## **Abertay Housing Association Limited**
Report and Financial Statements For the year ended 31 March 2026
Registered Social Landlord No. HAL297 FCA Reference No. 2517R(S) Scottish Charity No. SC030152
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026**
## **Contents**
|**ontents**||
|---|---|
||**Page**|
|Members of the Board, Executive and Advisers|1|
|Report of the Board|2 – 9|
|Report by the Auditors on corporate governance matters|10|
|Report of the Auditors|11 -14|
|Statement of comprehensive income|15|
|Statement of financial position|16|
|Statement of cash flows|17|
|Statement of changes in equity|18|
|Notes to the financial statements|19 - 34|
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **BOARD, EXECUTIVE AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2026**
## **BOARD**
Chairperson Vice Chairperson Resigned 5 February 2026
Ron Neave Chairperson Kathleen Mands Vice Chairperson Kevin Braidwood Ian Byers Paul Crichton Resigned 5 February 2026 Alan Fraser Darren Keddie Callum Main Jennifer McAughtrie Graeme Watson Michelle Murray Appointed 27 May 2026
## **EXECUTIVE OFFICERS**
Barry Moore Marjorie Sloan
Chief Executive Corporate Services Director and Secretary
## **REGISTERED OFFICE**
147 Fintry Drive Dundee DD4 9HE
## **AUDITORS**
TC Group Business Advisors and Accountants 180 St Vincent Street Glasgow G2 5SG
## **INTERNAL AUDITORS**
Cameron Audit 4/2 Grosvenor Gardens Edinburgh EH12 5JU
## **BANKERS**
Royal Bank of Scotland Plc 3 High Street Dundee DD1 9LY
## **SOLICITORS**
Thorntons WS 33 Yeaman Shore Dundee DD1 4BJ
1
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026**
The Board presents its report and the Financial Statements for the year ended 31 March 2026.
## **Legal Status**
Abertay Housing Association Limited (the Association) is a registered non-profit making organisation under the Co-operative and Community Benefit Societies Act 2014 No.2517R(S). The Association is governed under its Rule Book. The Association is a registered Scottish Charity with the charity number SC030152.
## **Principal Activities**
The Association is a not for profit organisation, governed by a voluntary Board. The principal activity of the Association is the provision of affordable rented accommodation in an efficient, caring and friendly environment for people in housing need.
## **Strategy and Objectives**
The Association’s overall aim is to enhance the quality of life in our communities.
The Association’s structure should be whatever best serves the long term interests of its tenants and communities. The Association believes that, for the foreseeable future, these interests are best served by the Association being run by a strong, independent, locally focussed Board, which includes tenants and other members of its communities within its membership. In 2019, an Options Appraisal was carried out which confirmed this position.
It is an overriding objective that the Association remains financially viable into the long term future. This will be achieved through effective financial and treasury management. The Association’s long term (30 year) financial forecasts give confidence that the Association can afford to maintain and improve its housing stock to meet all known future quality standards, while remaining financially viable.
Risk is an integral part of everything the Association does. The Association will seek to identify the risks it faces and take a prudent approach to managing them.
A focus on providing the best possible value for money is a key consideration for the Association. The Association participates in Scotland’s Housing Network’s Value for Money benchmarking group. The Association uses this information to inform its decision making, and report on how value for money is being achieved. Annual reports on Value for Money are prepared for the Board.
The Association’s key objectives in setting rent levels are as follows:
1. To keep rents affordable for tenants, without risking the Association’s long term financial viability or ability to maintain our housing stock to a good standard.
2. To maintain stability and predictability from year to year, (i.e. to favour small steady rises each year, rather than having low rises one year with excessively high rises the following year).
3. To maintain its rents at levels which are reasonably in line with other social landlords in the local area.
2
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026**
The Association aims to maintain and improve its properties to a standard which ensures they continue to make desirable homes, so long as it is cost effective over the long term to do so. With deadlines for meeting the Scottish Housing Quality Standard (SHQS) and the Energy Efficiency Standard for Social Housing (EESSH) now passed, we have ten properties in abeyance from SHQS as tenants or owners have not consented to the required works and 106 properties with an exemption due to excessive costs. These properties are regularly reviewed. 3 properties fail the SHQS at 31 March 2026 as they did not have the required electrical certification. One of these properties was purchased by the Association shortly before 31 March and had works ongoing. Further energy efficiency targets in the form of EESSH2 will require to be met by December 2032. Achieving this objective as cost effectively as possible depends on excellent asset management planning, informed by detailed and up to date knowledge of the Association’s stock.
The Association aims to deliver excellent, customer focussed, value for money services in all its core areas. This includes:
- letting homes which are in good condition, to those in greatest need, as effectively as possible;
- • supporting tenants to maintain their tenancies. The Association will do this through proactive, sensitive, and effective action to help avoid tenants falling into rent arrears, and dealing effectively with neighbourhood problems;
- providing a high quality, cost effective, repairs service;
- maintaining its neighbourhoods to a good standard; and
- • providing a good quality factoring service to owners in communities.
The Association aims to provide high quality and effective services in these areas, and for this to be recognised by its regulators and other key decision makers in the sector.
The Association desires to acquire new homes, to improve both the quality and age profile of its stock, and increase its rental income. Ideally, the Association would wish to have a development programme of 30 – 50 new homes per year, which could be managed with its existing staff team.
## **Review of business and future developments**
The Association continued to provide affordable rented accommodation and to maintain and improve our properties to a high standard during 2025/26.
The Board, in consultation with tenants, applied a rent increase of 6.0% from 1 April 2025 (2024 – 7.7%). The Association strives to ensure that its rents remain competitive and affordable for its tenants. The rent increase from 1 April 2026 was 8.0%.
3
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026**
The Association owned 1,906 properties at the end of the year. Of these, 237 are used to provide retirement housing. During the year one property was sold and twenty were purchased under the Association’s Acquisition and Disposal Strategy. The Association’s new build development of 10 houses at Oak Gardens, Newtyle was handed over in September / October 2025. The Association was progressing a development of 8 homes at Angus Street, Dundee at the year end, which was handed over in May 2026, and is currently progressing a development of 31 homes at Clepington Road, Dundee. The intention is to progress a development of 44 homes at the former Mossgiel Primary School site in Dundee later in 2026/27 and at further sites thereafter should grant funding availability allow.
The Association’s priorities are to provide the best standard of homes for affordable let, and the best standard of service it can. The Association undertook a programme of improvements and planned maintenance during the year with a total spend of £3.1m. The work which was carried out included external works - re-roofing, chimney repair or removal, replacement of windows and doors, footpath repairs, works to balconies and our maintenance paint work programme. Internally electrical testing and gas servicing was carried out and kitchens, bathrooms, air source heat pumps, electric heating systems and boilers were replaced. The Association will continue to spend heavily on improving its stock over the coming years.
Details of movements of the Association’s fixed assets during the year are set out in note 12.
No further loan agreements were entered into during the year. £1.0m was drawn down on our revolving credit facility, leaving £6.09m of borrowing from this agreement to be drawn. Regular payments were also made on the existing loans. The total bank borrowings increased from £20.28m to £20.70m at the year end. The Association’s bank balances decreased over the year, from £2.6m to £1.5m. The Association is currently working with its current lenders, following a tender process, to enter into new loans to a value of £21m to replace £15.29m of lending which will be repaid in bullet repayments in the next two financial years and to fund development and maintenance of existing stock.
The Association’s Risk Management Framework consists of three documents: Risk Management Policy, Risk Management Tables and Risk Assurance Register. The Board and the Senior Management Team review strategic and operational risks on a regular basis using a scoring mechanism which considers both the likelihood and probability of the risk and the severity of the impact if the risk were to materialise.
No risks are currently classified as intolerable. There are ten serious and significant risks, serious and significant in that without efficient and effective monitoring and mitigation they would have a serious and significant severity of impact on the Association’s Business Plan.
1. Breach of the SHR Regulatory Framework and consequential regulatory intervention.
2. Inadequate corporate governance and non-compliance with the Association’s Rules.
3. Serious health and safety breach.
4. Breaching loan covenants.
5. Borrowing facilities not being in place when needed.
6. Inflation implications.
7. Unsuitable and insufficient development feasibility and viability assessment and financial appraisal resulting in developments failing.
8. Asset management – failure to invest in maintaining the existing housing stock. 9. Net zero carbon.
10. Increase in prices due to the current global crisis.
In addition to the ten serious and significant risks, efficient and effective control mechanisms are also in place to monitor, manage and mitigate all strategic and operational risks.
4
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026**
The Association, like all Registered Social Landlords, has been significantly effected by inflationary pressures. The Association has an abundance of strength in terms of financial capacity and human resource competence and capability to tolerate difficult scenarios and was able to navigate its path through the storm. Additional scenario planning and constant monitoring throughout the year, enabled us to adapt to circumstances.
We have therefore had a very successful year despite the challenges of the economic climate.
## **Key performance indicators**
In accordance with the Scottish Social Housing Charter, the Association submits an Annual Return on the Charter to the Scottish Housing Regulator. This consists of a number of performance indicators. Some of these are included in a separate annual report to members. The key indicators, including some which are non Charter indicators, are reported to the Board on a quarterly basis.
## _**Housing Quality and Maintenance**_
- 93.9% of the Association’s stock met the Scottish Housing Quality Standard (SHQS) in 2025/26, (the properties not meeting the standard are classed as “exempt” or “abeyances” under the SHQS guidelines, where tenants or sharing owners have not allowed work to be carried out, or EESSH exemptions are required for economic reasons. In addition this year, 4 properties did not meet the SHQS requirements, as they did not have the appropriate electrical certification);
- The average length of time the Association took to complete emergency repairs in 2025/26 was 1.8 hours;
- The average length of time the Association took to complete non-emergency repairs in 2025/26 was 6.1 days;
- 98.4% of repairs carried out in the last year were completed right first time;
- 99.2% of the Association’s repairs appointments were kept; and
- 99.2% of the Association’s tenants who had repairs carried out in the last 12 months were satisfied with the service.
## _**Satisfaction**_
The Association’s satisfaction figures come from a survey of all tenants carried out in spring 2025.
- 83.2% of tenants are satisfied with the overall service provided by the Association;
- 78.2% of tenants feel that Abertay was good at keeping them informed about services and decisions; and
- 69.8% of tenants were satisfied with the opportunities given to them to participate in the Association’s decision making process.
## _**Getting Good Value from Rents and Service Charges**_
- 0.7% of rent was lost in 2025/26 through properties being empty;
-
- The average length of time the Association took to relet properties was 28.8 days; and
- 100.7% of the rent due was collected from tenants in 2025/26.
## _**Neighbourhood and Community**_
- 13.8 cases of anti-social behaviour were reported per 100 homes in 2025/26; and
-
- 79.4% of anti-social behaviour cases were resolved within locally agreed targets in 2025/26.
5
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026**
## **Governance**
The Association’s governing body is its Board which is responsible to the wider membership. The Board serves in a voluntary capacity and the Association recognises this puts more onus on the Senior Management Team to ensure that they achieve high standards of professionalism in their work.
The Board is elected from among the members at the AGM. There are up to 15 places on the Board which are split as follows:
- At least 2 tenants
- At least 2 service users (owner occupiers)
- Up to 11 drawn from all three categories (tenants, service users and others with appropriate skills or expertise).
It is possible for people to be invited to join the Board provided co-options do not exceed one third of the number of elected members.
The Board met regularly during the year, with strategy and governance training held between meetings. Sub-committees can be set up to deal with particular aspects of the Association’s affairs.
The Board is responsible for the Association’s Business Plan, which incorporates the Association’s strategic objectives in respect of governance, finance, housing services, property services and human resource management.
Board members act in a voluntary capacity and do not receive payment for their work beyond reasonable out-of-pocket expenses. They do not benefit from their position and cannot receive favourable treatment in any way – neither can their close relatives.
The Association’s engagement plan from the Scottish Housing Regulator shows its Regulatory Status as Compliant. The Board in its latest Assurance Statement is satisfied that the Association is compliant with the requirements of the Regulatory Framework and the Regulatory Standards of Governance and Financial Management.
The Association has appointed internal auditors who carried out four reviews during 2025/26 along with a follow up review looking at recommendations made in previous years. These are an important resource in demonstrating compliance with legislation and regulatory standards. They made four recommendations which, have been or will be implemented over the coming months.
## **Going concern**
The Board has reviewed the results for this year and the budgets going forward. The Board has a good expectation that the Association has adequate resources to continue operational existence for the foreseeable future. The going concern basis of accounting has been adopted in preparing the financial statements.
## **Related Party Transactions**
The tenants who sit on the Board have entered into tenancies on the Association’s normal terms and conditions and they cannot use their position to their advantage.
6
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026**
## **Board and Executive Officers**
The members of the Board and the Executive Officers are listed on Page 1.
Each member of the Board holds one fully paid share of £1 in the Association unless they are Co-opted in which case they are not required to be a Share Member until they are elected at the next Annual General Meeting. The Executive Officers hold no interest in the Association's share capital and, although not having the legal status of Directors, they act as Executives within the authority delegated by the Board.
The members of the Board are also Trustees of the Charity. Members of the Board are appointed by the members at the Association's Annual General Meeting.
## **Statement of Board’s Responsibilities**
The Co-operative and Community Benefit Societies Act 2014 requires the Board to prepare Financial Statements for each financial year which give a true and fair view of the state of affairs of the Association and of the surplus or deficit of the Association for that period. In preparing those Financial Statements, the Board is required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the Financial Statements;
- prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Association will continue in business;
- prepare a statement on Internal Financial Control.
The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Association and to enable them to: ensure that the Financial Statements comply with the Co-operative and Community Benefit Societies Act 2014, the Housing (Scotland) Act 2014 and the Determination of Accounting Requirements 2024. It is also responsible for safeguarding the assets of the Association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. It is also responsible for ensuring the Association's suppliers are paid promptly.
The Board must, in determining how amounts are presented within items in the income and expenditure account and balance sheet, have regard to the substance of the reported transaction or arrangement, in accordance with generally accepted accounting practices.
In so far as the Board is aware:
- There is no relevant audit information (information needed by the Association’s auditors in connection with preparing their report) of which the Association’s auditors are unaware, and
- The members of the Board have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the Association’s auditors are aware of that information.
## **Statement on Internal Financial Control**
The Board acknowledges its ultimate responsibility for ensuring that the Association has in place a system of controls that is appropriate for the business environment in which it operates. These controls are designed to give reasonable assurance with respect to:
- the reliability of financial information used within the Association, or for publication;
- the maintenance of proper accounting records;
- the safeguarding of assets against unauthorised use or disposition.
7
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026**
It is the Board’s responsibility to establish and maintain systems of Internal Financial Control. Such systems can only provide reasonable and not absolute assurance against material financial misstatement or loss. Key elements of the Association's systems include ensuring that:
- formal policies and procedures are in place, including the ongoing documentation of key systems and rules relating to the delegation of authority, which allow the monitoring of controls and restrict the unauthorised use of the Association’s assets;
- experienced and suitably qualified staff take responsibility for important business functions and annual appraisal procedures have been established to maintain standards of performance;
- forecasts and budgets are prepared which allow the management team and the Board to monitor key business risks, financial objectives and the progress being made towards achieving the financial plans set for the year and for the medium term;
- quarterly financial management reports are prepared promptly, providing relevant, reliable and up to date financial and other information, with significant variances from budget being investigated as appropriate;
- regulatory returns are prepared, authorised and submitted promptly to the relevant regulatory bodies;
- all significant new initiatives, major commitments and investment projects are subject to formal authorisation procedures, through the Board;
- the Board receives reports from management and also from the external and internal auditors to provide reasonable assurance that control procedures are both in place and are being followed and that a general review of the major risks facing the Association is undertaken;
- formal procedures have been established for instituting appropriate action to correct any weaknesses identified through internal or external audit reports.
During 2025/26, the following internal audits were carried out:
Treasury Management: Level of Assurance - Substantial Assurance Factoring: Level of Assurance - Substantial Assurance Gas Safety: Level of Assurance - Substantial Assurance Tenant Engagement: Level of Assurance - Substantial Assurance Follow Up Audit on previous years recommendations: Level of Assurance - Reasonable Assurance
The Board has reviewed the effectiveness of the system of internal financial control in existence in the Association for the year ended 31 March 2026. No weaknesses were found in the internal financial controls which resulted in material losses, contingencies or uncertainties which require disclosure in the financial statements or in the auditor's report on the financial statements.
## **Donations**
During the year the Association made charitable donations amounting to £1,953 (2025 - £2,500).
## **Auditors**
A resolution to re-appoint the Auditors, TC Group will be proposed at the Annual General Meeting.
8
## **ABERTAY HOUSING ASSOCIATION LIMITED**
**REPORT OF THE BOARD FOR THE YEAR ENDED 31 MARCH 2026**
**By order of the Board**
**MARJORIE SLOAN** Secretary 26 August 2026
9
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **REPORT BY THE AUDITORS TO THE MEMBERS OF ABERTAY HOUSING ASSOCIATION LIMITED ON CORPORATE GOVERNANCE MATTERS**
In addition to our audit of the financial statements, we have reviewed your statement on pages 7 and 8 concerning the Association’s compliance with the information required by the Regulatory Standards in respect of internal financial controls contained in the publication “Our Regulatory Framework” and associated Regulatory Advice Notes which are issued by the Scottish Housing Regulator.
## **Basis of Opinion**
We carried out our review having regard to the requirements to corporate governance matters within Bulletin 2006/5 issued by the Financial Reporting Council. The Bulletin does not require us to review the effectiveness of the Association’s procedures for ensuring compliance with the guidance notes, nor to investigate the appropriateness of the reason given for non-compliance.
## **Opinion**
In our opinion the Statement of Internal Financial Control on pages 7 and 8 has provided the disclosures required by the relevant Regulatory Standards within the publication “Our Regulatory Framework” and associated Regulatory Advice Notes issued by the Scottish Housing Regulator in respect of internal financial controls and is consistent with the information which came to our attention as a result of our audit work on the financial statements.
Through enquiry of certain members of the Board and Officers of the Association and examination of relevant documents, we have satisfied ourselves that the Board’s Statement on Internal Financial Control appropriately reflects the Association’s compliance with the information required by the relevant Regulatory Standards in respect of internal financial controls contained within the publication “Our Regulatory Framework” and associated Regulatory Advice Notes issued by the Scottish Housing Regulator in respect of internal financial controls.
**TC Group** Statutory Auditors GLASGOW 26 August 2026
10
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ABERTAY HOUSING ASSOCIATION LIMITED FOR THE YEAR ENDED 31 MARCH 2026**
## **Opinion**
We have audited the financial statements of Abertay Housing Association Limited (the ‘Association’) for the year ended 31 March 2026 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Cash Flows, Statement of Changes in Equity and related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the Association’s affairs as at 31 March 2026 and of the surplus for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Co-operative and Community Benefit Societies Act 2014, the Housing (Scotland) Act 2010 and the Determination of Accounting Requirements 2024.
## **Basis of Opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Association in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Board’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Association’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Board with respect to going concern are described in the relevant sections of this report.
## **Other Information**
The Board is responsible for the other information. The other information comprises the information contained in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
11
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ABERTAY HOUSING ASSOCIATION LIMITED FOR THE YEAR ENDED 31 MARCH 2026 (continued)**
## **Other Information (Contd.)**
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Co-operative and Community Benefit Societies Act 2014 require us to report to you if, in our opinion:
- proper books of account have not been kept by the Association in accordance with the requirements of the legislation;
- a satisfactory system of control over transactions has not been maintained by the Association in accordance with the requirements of the legislation;
- the Statement of Comprehensive Income and Statement of Financial Position are not in agreement with the books of account of the Association; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of the Board**
As explained more fully in the statement of Board’s responsibilities as set out on page 7, the Board is responsible for the preparation of the financial statements and for being satisfied that they give true and fair view, and for such internal control as the Board determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board is responsible for assessing the Association’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board either intend to liquidate the Association or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
12
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ABERTAY HOUSING ASSOCIATION LIMITED FOR THE YEAR ENDED 31 MARCH 2026 (continued)**
**The extent to which the audit was considered capable of detecting irregularities including fraud** Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we gained an understanding of the legal and regulatory framework applicable to the Association through discussions with the Board and other management, and from our wider knowledge and experience of the RSL sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Association, including the Cooperative and Community Benefit Societies Act 2014 (and related regulations), the Housing (Scotland) Act 2010 and other laws and regulations applicable to a registered social housing provider in Scotland. We also considered the risks of non-compliance with the other requirements imposed by the Scottish Housing Regulator and we considered the extent to which non-compliance might have a material effect on the financial statements.
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Association’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 1 were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reviewing the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims;
- reviewing the Association's Assurance Statement and associated supporting information; and
- reviewing correspondence with the Scottish Housing Regulator.
13
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ABERTAY HOUSING ASSOCIATION LIMITED FOR THE YEAR ENDED 31 MARCH 2026 (continued)**
**The extent to which the audit was considered capable of detecting irregularities including fraud (Contd.)**
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. The description forms part of our audit report.
## **Use of our Report**
This report is made solely to the Association's members as a body, in accordance with Part 7 of the Cooperative and Community Benefit Societies Act 2014. Our audit work has been undertaken so that we might state to the Association's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Association and the Association's members as a body, for our audit work, for this report, or for the opinions we have formed.
**TC Group** Statutory Auditors GLASGOW 26 August 2026
14
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2026**
|**Notes**|**2026**
**£**
**£**|**2025**
**£**
**£**|
|---|---|---|
|Revenue
2
15
Operating costs
2
**OPERATING SURPLUS**
Gain on sale of housing stock
7
Interest receivable and other income
Interest payable and similar charges
8
Other Finance income/(charges)
11
**SURPLUS FOR THE YEAR**
**Other comprehensive income**
Actuarial gains/(losses) on defined benefit
pension plan
18
**TOTAL COMPREHENSIVE INCOME**|12,142,996
9,405,280
2,737,716
228,069
45,901
(1,094,213)
8,301
(811,942)
**1,925,774**
(92,317)
**1,833,457**|_11,076,256_
_8,742,136_
_2,334,120_
_116,532_
_32,432_
_(1,011,489)_
_168,619_
_(693,906)_
**_1,640,214_**
_(176,909)_
**_1,463,305_**|
The results relate wholly to continuing activities.
The notes on pages 19 to 34 form an integral part of these financial statements.
15
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2026**
|**Notes**|**2026**
**£**
**£**|**2025**
**£**
**£**|
|---|---|---|
|**NON-CURRENT ASSETS**
Housing properties - depreciated cost
12a
62,570,998
_57,578,919_
Other tangible assets
12b
70,544
_90,490_
62,641,542
_57,669,409_
**CURRENT ASSETS**
Receivables
13
764,434
_520,463_
Cash and cash equivalents
14
1,513,800
_2,642,360_
2,278,234
_3,162,823_
**CREDITORS:**Amounts falling due within
one year
15
(7,307,230)
_(1,917,653)_
**(NET CURRENT LIABILITIES) / ASSETS**
(5,028,996)
_1,245,170_
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
57,612,546
_58,914,579_
**CREDITORS:**Amounts falling due after
more than one year
16
(14,732,805)
_(19,531,175)_
**PENSIONS AND OTHER PROVISIONS**
**FOR LIABILITIES AND CHARGES**
Tayside pension fund
18
-
_-_
-
_-_
**DEFERRED INCOME**
Social housing grants
19
(20,685,700)
_(19,022,803)_
(20,685,700)
_(19,022,803)_
**NET ASSETS**
**22,194,041**
**_20,360,601_**
**EQUITY**
Share capital
20
76
_93_
Revenue reserves
22,193,965
_20,360,508_
**22,194,041**
**_20,360,601_**|||
The financial statements were approved by the Board and authorised for issue and signed on their behalf on 26 August 2026.
## **Committee Member Committee Member Secretary**
The notes on pages 19 to 34 form an integral part of these financial statements.
16
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2026**
|**Notes**|**£**|**2026**
**£**|**£**|**2025**
**£**|
|---|---|---|---|---|
|**Surplus for the Year**
_Adjustments for non-cash items:_
Depreciation of tangible fixed assets
2,840,166
Amortisation of capital grants
19
(502,739)
Gain on disposal of tangible fixed assets
(228,069)
Non-cash adjustments to pension provisions
(92,317)
Share capital written off
20
(25)
Interest receivable
Interest payable
8
**Operating cash flows before movements in**
**working capital**
Change in debtors
(153,971)
Change in creditors
154,119
**Net cash inflow from operating activities**
**Investing Activities**
Acquisition and construction of properties
(7,807,613)
Purchase of other fixed assets
(13,129)
Social housing grant received
2,075,636
Social housing grant repaid
-
Proceeds on disposal of housing properties
236,512
**Net cash outflow from investing activities**
**Financing Activities**
Loan Advances Received
1,000,000
Interest received on cash and cash equivalents
45,901
Interest paid on loans
(1,094,213)
Loan principal repayments
(562,912)
Share capital issued
20
8
**Net cash outflow from financing activities**
**(decrease)/increase in cash**
21
**Opening cash & cash equivalents**
**Closing cash & cash equivalents**
**Cash and cash equivalents as at 31 March**
Cash
21||1,925,774
2,017,016
(45,901)
1,094,213
4,991,102
148
4,991,250
(5,508,594)
(611,216)
(1,128,560)
2,642,360
**1,513,800**
1,513,800
**1,513,800**|_2,751,031_
_(457,381)_
_(116,532)_
_(176,909)_
_(10)_
_146,972_
_211,350_
_(5,785,475)_
_(12,473)_
_1,705,888_
_(14,818)_
_138,095_
_1,000,000_
_32,432_
_(1,011,489)_
_(552,841)_
_3_|_1,640,214_
_2,000,199_
_(32,432)_
_1,011,489_
_4,619,470_
_358,322_
_4,977,792_
_(3,968,783)_
_(531,895)_
_477,114_
_2,165,246_
**_2,642,360_**
_2,642,360_
**_2,642,360_**|
The notes on pages 19 to 34 form an integral part of these financial statements.
17
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **STATEMENT OF CHANGES IN EQUITY AS AT 31 MARCH 2026**
||**Share**
**Tayside**
**Pension**
**Revenue**
**Capital**
**Reserve**
**Reserve**
**Total**|
|---|---|
|**Balance as at 1 April 2024**
Issue of Shares
Cancellation of Shares
Other comprehensive income
Other movements
Surplus for the year
**Balance as at 31 March 2025**
**Balance as at 1 April 2025**
Issue of Shares
Cancellation of Shares
Other comprehensive income
Other movements
Surplus for the year
**Balance as at 31 March 2026**|**£**
**£**
**£**
**£**
_100_
_-_
_18,897,203_
_18,897,303_
_3_
_-_
_-_
_3_
_(10)_
_-_
_-_
_(10)_
_-_
_(176,909)_
_-_
_(176,909)_
_-_
_176,909_
_(176,909)_
_-_
_-_
_-_
_1,640,214_
_1,640,214_
**_93_**
**_-_**
**_20,360,508_**
**_20,360,601_**
93
-
20,360,508
20,360,601
8
-
-
8
(25)
-
-
(25)
-
(92,317)
-
(92,317)
-
92,317
(92,317)
-
-
-
1,925,774
1,925,774
**76**
**_-_**
**22,193,965**
**22,194,041**|
The notes on pages 19 to 34 form an integral part of these financial statements.
18
**ABERTAY HOUSING ASSOCIATION LIMITED**
**FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS**
## **1. PRINCIPAL ACCOUNTING POLICIES**
## **Statement of Compliance and Basis of Accounting**
These financial statements were prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Statement of Recommended Practice for social housing providers 2018. The Association is a Public Benefit Entity in terms of its compliance with Financial Reporting Standard 102, applicable for accounting periods beginning on or after 1 January 2019. They comply with the Determination of Accounting Requirements 2024. A summary of the principal accounting policies is set out below.
## **Revenue**
Revenue comprises rental and service charge income receivable in the period, income from shared ownership first tranche sales, sales of properties built for sale, other services provided, revenue grants receivable and government grants released to income in the period.
The Association recognises rent receivable net of losses from voids. Service Charge Income (net of voids) is recognised with expenditure as it is incurred as this is considered to be the point when the service has been performed and the revenue recognition criteria is met.
Government grants are released to income over the expected useful life of the asset to which they relate. Revenue grants are receivable when the conditions for receipt of the agreed grant funding have been met.
## **Retirement Benefits**
The Association participates in the Tayside Pension Scheme which provides benefits on final pensionable salary, up to 31 March 2015, thereafter, these are based on a career average. The assets of the scheme are held and invested seperately from those of the Association.
The Association accounts for this scheme as a defined benefit pension scheme in accordance with FRS 102. Contributions to the scheme are charged to the Statement of Comprehensive Income so as to spread the costs of pensions over the employees' working lives with the Association.
The difference between the actual and expected return on assets during the year, including changes in actual assumptions, is recognised in the Statement of Comprehensive Income.
## **Going Concern**
On the basis that the Board has a reasonable expectation that the Association has adequate resources to continue in operational existence for the foreseeable future, the Association has adopted the going concern basis of accounting in preparing these financial statements.
19
## **ABERTAY HOUSING ASSOCIATION LIMITED**
**FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS** (continued)
## **1. PRINCIPAL ACCOUNTING POLICIES** (continued.)
## **Housing Properties**
Housing properties are held for the provision of social housing. Housing properties are stated at cost less accumulated depreciation and impairment losses. Cost includes acquisition of land and buildings and development cost. The Association depreciates housing properties over the useful life of each major component. Housing under construction and land are not depreciated.
|_Component_|_Useful Economic Life_|
|---|---|
|Land|Not Depreciated|
|Structure|Over 50 years|
|Roofs|Over 40 years|
|Windows and Doors|Over 20 years|
|Bathrooms|Over 15-20 years|
|Kitchens|Over 15 years|
|Central Heating|Over 15-20 years|
## **Depreciation and Impairment of Other Tangible Assets**
Non-current assets are stated at cost less accumulated depreciation. Depreciation is charged over the expected economic useful lives of the assets at the following annual rates:
|_Asset Category_|_Depreciation Rate_|
|---|---|
|Office Premises|4%|
|Housing Stock Improvements|5%|
|Machinery & Equipment|6.67%|
|Furniture & Fittings|10-20%|
|Computer Hardware & Software|25%|
The carrying values of non-current assets are reviewed for impairment at the end of each reporting period.
## **Social Housing Grants and Other Capital Grants**
Social housing grants and other capital grants are accounted for using the Accrual Method as outlined in Section 24 of Financial Reporting Standard 102. Grants are treated as deferred income and recognised in income on a systematic basis over the expected useful life of the property and assets to which they relate.
Social housing grant attributed to individual components is written off to the statement of comprehensive income when these components are replaced.
Although social housing grant is treated as a grant for accounting purposes, it may nevertheless become repayable in certain circumstances, such as the disposal of certain assets. The amount repayable would be restricted to the net proceeds of sale.
## **Sales Of Housing Properties**
Disposals under shared equity schemes are accounted for in the statement of comprehensive income. The remaining equity in the property is treated as a non-current asset investment, which is matched with the grant received.
## **Taxation**
The Association is a Registered Scottish Charity and is not liable to taxation on its charitable activities.
20
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026**
**NOTES TO THE FINANCIAL STATEMENTS** (Continued)
## **1. PRINCIPAL ACCOUNTING POLICIES** (continued.)
## **Works to Existing Properties**
The Association capitalises major repairs expenditure where these works result in an enhancement of economic benefits by increasing the net rental stream over the life of the property, a material reduction in future maintenance costs, or a significant extention of the life of the property.
## **Capitalisation Of Development Overheads**
Directly attributable development administration costs relating to ongoing development activities are capitalised.
## **Borrowing Costs**
Interest incurred on financing a development is capitalised up to the date of practical completion of the scheme. All other borrowing costs are expensed to the statement of comprehensive income using the effective interest rate method.
## **Property Development Cost**
The proportion of the development cost of shared ownership properties expected to be disposed of as a first tranche sale is held in current assets until it is disposed of. The remaining part of the development cost is treated as a non-current asset. Surpluses made on the disposal of first tranche sales are taken to the Statement of Comprehensive Income.
Property developments that are intended for resale are included in current assets until disposal.
## **Financial Instruments - Basic**
The Association classes all of its loans as basic financial instruments including agreements with break clauses. The Association recognises basic financial instruments in accordance with Section 11 of Financial Reporting Standard 102.
The Association's debt instruments are measured at amortised cost using the effective interest rate method.
## **Cash and Liquid Resources**
Cash comprises cash at bank and in hand, deposits repayable on demand less overdrafts. Liquid resources are current asset investments that cannot be disposed of without penalty and are readily convertible into amounts of cash at their carrying value.
## **Impairment**
The Association asseses at the end of each accounting period whether there are indications that a noncurrent asset may be impaired or that an impairment loss previously recognised has fully or partially reversed.
Where the carrying value of non-current assets is less that their recoverable amounts the shortfall is recognised as an impairment loss in the Statement of Comprehensive Income. The recoverable amount is the higher of the fair value less costs to sell and value-in-use of the asset based on its service potential.
Impairment losses previously recognised are reversed if the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in the Statement of Comprehensive Income.
21
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **1. PRINCIPAL ACCOUNTING POLICIES** (continued.)
## **Key Judgements and estimates made in the application of Accounting Policies**
The preparation of financial statements requires the use of certain accounting judgements and accounting estimates. It also requires the the Association to exercise judgement in applying the accounting policies. The areas requiring a higher degree of judgement, or complexity, and areas where assumptions or estimates are most signficant to the financial statements are disclosed below.
## Key Judgements
## _a) Categorisation of Housing Properties_
In the judgement of the Board the entirety of the Association's housing stock is held for social benefit and is therefore classified as Property, Plant and Equipment in accordance with FRS 102.
## _b) Identification of cash generating units_
The Board considers its cash-generating units to be the schemes in which it manages its housing property for asset management purposes.
## _c) Financial instrument break clauses_
The Board has considered the break clauses attached to the financial instruments that it has in place for its loan funding. In their judgement these break clauses do not cause the financial instrument to be classified as a complex financial instrument and therefore they meet the definition of a basic financial instrument.
## Estimation Uncertainty
## _a) Rent Arrears - Bad Debt Provision_
The Association assesses the recoverability of rent arrears through a detailed assessment process which considers tenant payment history, arrangements in place and court action.
## _b) Life Cycle of Components_
The Association estimates the useful lives of major components of its housing property with reference to surveys carried out by external qualified surveyors.
## _c) Useful life of properties, plant and equipment_
The Association assesses the useful life of its properties, plant and equipment and estimates the annual charge to be depreciated based on this assessment.
## _d) Defined pension liability_
In determining the value of the Association's share of defined benefit pension scheme assets and obligations, the valuation prepared by the Scheme actuary includes estimates of life expectancy, salary growth, inflation and the discount rate on corporate bonds.
## _e) Allocation of share of assets and liabilities for multi employer schemes_
Judgements in respect of the assets and liabilities to be recognised are based upon source information provided by the administration of the multi employer pension schemes and estimations performed by the Tayside Pension Fund.
22
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **2. PARTICULARS OF TURNOVER, OPERATING COSTS AND OPERATING SURPLUS OR DEFICIT**
|**Notes**
**Turnover**
**£**
Affordable letting activities
3
11,248,004
Other Activities
4
894,992
**Total**
**12,142,996**|**Operating**
**costs**
**£**
8,699,697
705,583
**9,405,280**|**2026**
**Operating**
**surplus /**
**(deficit)**
**Turnover**
**£**
**£**
2,548,307
_10,466,079_
189,409
_610,177_
**2,737,716**
**_11,076,256_**|**Operating**
**costs**
**£**
_8,194,117_
_548,019_
**_8,742,136_**|**2025**
**Operating**
**surplus /**
**(deficit)**
**£**
_2,271,962_
_62,158_|
|---|---|---|---|---|
|||||**_2,334,120_**|
## **3. PARTICULARS OF TURNOVER, OPERATING COSTS AND OPERATING SURPLUS OR DEFICIT FROM AFFORDABLE LETTING ACTIVITIES**
||**General**|||
|---|---|---|---|
||**Needs**|**2026**|**2025**|
||**Housing**|**Total**|**Total**|
||**£**|**£**|**£**|
|**Revenue from Lettings**||||
|Rent receivable net of service charges|10,584,106|10,584,106|_9,877,411_|
|Service charges receiveable|262,176|262,176|_232,737_|
|**Gross income from rent and service charges**|10,846,282|10,846,282|_10,110,148_|
|Less: Rent losses from voids|101,017|101,017|_101,450_|
|**Income from rents and service charges**|10,745,265|10,745,265|_10,008,698_|
|Grants released from deferred income|502,739|502,739|_457,381_|
|**Total turnover from affordable letting activities**|11,248,004|11,248,004|_10,466,079_|
|**Expenditure on affordable letting activities**||||
|Management and maintenance administration costs|2,800,713|2,800,713|_2,600,717_|
|Service costs|146,829|146,829|_156,423_|
|Planned and cyclical maintenance, including major repairs|207,116|207,116|_193,709_|
|Reactive maintenance costs|2,600,785|2,600,785|_2,411,725_|
|Bad Debts - rents and service charges|137,163|137,163|_126,181_|
|Depreciation of affordable let properties|2,807,091|2,807,091|_2,705,362_|
|**Operating costs of affordable letting activities**|8,699,697|8,699,697|_8,194,117_|
|**Operating surplus on affordable letting activities**|**2,548,307**|**2,548,307**|**_2,271,962_**|
|**2025**|_2,271,962_|||
23
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **4. PARTICULARS OF REVENUE, OPERATING COSTS AND OPERATING SURPLUS OR DEFICIT FROM OTHER ACTIVITIES**
|**Grants**
**from**
**Scottish**
**r**
**Ministers**|**Grants**
**from**
**Scottish**
**r**
**Ministers**|**Other**
**evenue**
**grants**|**Operating**
**Operating**
**Operating**
**Other**
**surplus**
**surplus**
**Other**
**Total**
**costs -**
**operating**
**/ (deficit)**
**/ (deficit)**
**income**
**Turnover**
**bad debts**
**costs**
**2026**
**2025**|**Operating**
**Operating**
**Operating**
**Other**
**surplus**
**surplus**
**Other**
**Total**
**costs -**
**operating**
**/ (deficit)**
**/ (deficit)**
**income**
**Turnover**
**bad debts**
**costs**
**2026**
**2025**|**Operating**
**Operating**
**Operating**
**Other**
**surplus**
**surplus**
**Other**
**Total**
**costs -**
**operating**
**/ (deficit)**
**/ (deficit)**
**income**
**Turnover**
**bad debts**
**costs**
**2026**
**2025**|**Operating**
**Operating**
**Operating**
**Other**
**surplus**
**surplus**
**Other**
**Total**
**costs -**
**operating**
**/ (deficit)**
**/ (deficit)**
**income**
**Turnover**
**bad debts**
**costs**
**2026**
**2025**|
|---|---|---|---|---|---|---|
|Wider role activities
Care and repair
Factoring
Support activities
Other activities
**Total From Other Activities**
**2025**|**£**
-
225,643
-
-
-
**225,643**
_69,100_|**£**
**£**
**£**
1,200
-
1,200
-
-
225,643
-
245,831
245,831
-
186,675
186,675
-
235,643
235,643
**1,200**
**668,149**
**894,992**
_3,400_
_537,677_
_610,177_||**£**
**£**
-
-
-
158,420
(8,025)
263,898
-
55,647
-
235,643
**(8,025)**
**713,608**
_7,426_
_540,593_|**£**
**£**
1,200
_-_
67,223
_(31,436)_
(10,042)
_(27,017)_
131,028
_120,611_
-
_-_
**189,409**
**_62,158_**
_62,158_||
|||||||**_62,158_**|
||||||||
24
**ABERTAY HOUSING ASSOCIATION LIMITED**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **5. OFFICERS' EMOLUMENTS**
||**2026**|**2025**|
|---|---|---|
||£|£|
|The Officers are defined in the Co-operative and Community Benefit Societies Act|||
|2014 as the members of the Board, managers and employees of the Association.|||
|Aggregate emoluments payable to Officers with emoluments greater than £60,000|||
|(excluding pension contributions)|380,804|_354,695_|
|Pension contributions made on behalf on Officers with emoluments greater than|||
|£60,000|86,538|_76,435_|
|Emoluments payable to Chief Executive (excluding pension contributions)|133,076|_124,137_|
|Pension contributions paid on behalf of the Chief Executive|29,910|_26,515_|
|Total emoluments payable to the Chief Executive|162,986|_150,652_|
|Total emoluments paid to key management personnel|598,738|_431,130_|
The number of Officers, including the highest paid Officer, who received emoluments, including pension contributions, over £60,000 was in the following ranges:-
||**Number**|**Number**|
|---|---|---|
|£60,001 to £70,000|2|_-_|
|£70,001 to £80,000|1|_1_|
|£80,001 to £90,000|-|_1_|
|£90,001 to £100,000|1|_-_|
|£100,001 to £120,000|-|_1_|
|Over £120,000|2|_1_|
## **6. EMPLOYEE INFORMATION**
|Average total number of employees employed during the year
Staff costs were:
Wages and salaries
National insurance costs
Pension costs
Temporary, agency and seconded staff
Average monthly number of full time equivalent persons employed during the year|**2026**
**No.**
33
40
£
1,589,334
196,819
243,903
-
2,030,056|**2025**
**No.**
_32_|
|---|---|---|
|||_39_|
|||£
_1,458,917_
_155,778_
_278,339_
_340_|
|||_1,893,374_|
25
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)**
|**7.**
**GAIN ON SALE OF HOUSING STOCK**|||
|---|---|---|
|Sales proceeds
Cost of sales
Gain on sale of housing stock|**2026**
**2025**
**£**
**£**
241,000
_168,500_
12,931
_51,968_
228,069
_116,532_||
|**8.**
**INTEREST PAYABLE AND SIMILAR CHARGES**|||
|On bank loans and overdrafts|**2026**
**2025**
**£**
**£**
1,094,213
_1,011,489_||
|**9.**
**SURPLUS FOR THE YEAR**|||
|Surplus For The Year is stated after charging/(crediting):
Depreciation - non-current assets
Auditors' remuneration - audit services
Gain on sale of other non-current assets|**2026**
**2025**
**£**
**£**
2,560,255
_2,527,191_
13,447
_11,682_
(228,069)
_(116,532)_||
## **10. CORPORATION TAX**
The Association is a Registered Scottish Charity and is not liable to United Kingdom Corporation Tax on its charitable activities.
## **11. OTHER FINANCE INCOME / (CHARGES)**
Net interest on pension obligations
|**2026**|**2025**|
|---|---|
|**£**|**£**|
|8,301|_168,619_|
26
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **12. NON-CURRENT ASSETS**
|**Housing**
**Housing**
**Properties**
**Properties**
**Held**
**In course of**
**for Letting**
**Construction**
**Total**
**£**
**£**
**£**
(a)**Housing**
**Properties**|**Housing**
**Housing**
**Properties**
**Properties**
**Held**
**In course of**
**for Letting**
**Construction**
**Total**
**£**
**£**
**£**
(a)**Housing**
**Properties**|
|---|---|
|**COST**
At 1 April 2025
85,583,102
Additions
4,997,806
Disposals
(1,135,277)
Transfers
2,408,749
At 31 March 2026
91,854,380
**DEPRECIATION**
At 1 April 2025
30,430,576
Charge for Year
2,527,180
Transfers
-
Disposals
(846,923)
At 31 March 2026
32,110,833
**NET BOOK VALUE**
At 31 March 2026
59,743,547
At 31 March 2025
_55,152,526_
_Component_
_Improvement/_
**£**
**£**
2,862,764
75,429
-
2,807,901
**Expenditure on Existing Properties**
Amounts capitalised
Amounts charged to the statement of
comprehensive income
**2026**|2,426,393
88,009,495
2,809,807
7,807,613
-
(1,135,277)
(2,408,749)
-
2,827,451
94,681,831
-
30,430,576
-
2,527,180
-
-
-
(846,923)
-
32,110,833
2,827,451
62,570,998
_2,426,393_
_57,578,919_
_Component_
_Improvement/_
**£**
**£**
_2,268,184_
_99,120_
_-_
_2,605,434_
**2025**|
All land and housing properties are heritable.
The Association's lenders have standard securities over housing property with a carry value of £38,668,127 (2025 - £38,625,104).
The depreciation charge on housing properties as shown above differs from that per Note 3 due to accelerated depreciation on component replacements.
27
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **12. NON CURRENT ASSETS (continued)**
||**Office**|**Furniture**|**Machinery &**|**Computer**||
|---|---|---|---|---|---|
|(b)**Other tangible assets**|**Premises**|**& Equipment**|**Equipment**|**Equipment**|**Total**|
||**£**|**£**|**£**|**£**|**£**|
|**COST**||||||
|At 1 April 2025|380,133|79,841|45,294|114,537|619,805|
|Additions|-|7,269|-|5,860|13,129|
|Eliminated on disposals|-|(7,499)|-|(20,959)|( 28,458)|
|At 31 March 2026|380,133|79,611|45,294|99,438|604,476|
|**DEPRECIATION**||||||
|At 1 April 2025|345,864|74,021|25,726|83,704|529,315|
|Charge for year|11,946|533|4,235|16,361|33,075|
|Eliminated on disposals|-|(7,499)|-|(20,959)|( 28,458)|
|At 31 March 2026|357,810|67,055|29,961|79,106|533,932|
|**NET BOOK VALUE**||||||
|At 31 March 2026|22,323|12,556|15,333|20,332|70,544|
|At 31 March 2025|_34,269_|_5,820_|_19,568_|_30,833_|_90,490_|
## **13. RECEIVABLES**
||**2026**|**2025**|
|---|---|---|
||**£**|**£**|
|Gross arrears of rent and service charges|247,819|_238,750_|
|**Less:**Provision for doubtful debts|(85,851)|_(87,487)_|
|_Net arrears of rent and service charges_|161,968|_151,263_|
|Social housing grant receivable|90,000|_-_|
|Other receivables|512,466|_369,200_|
||764,434|_520,463_|
## **14. CASH AND CASH EQUIVALENTS**
||**2026**|**2025**|
|---|---|---|
||**£**|**£**|
|Cash at bank and in hand|1,513,800|_2,642,360_|
||1,513,800|_2,642,360_|
28
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **15. PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR**
||**2026**|**2025**|
|---|---|---|
||**£**|**£**|
|Bank loans|5,817,142|_581,684_|
|Trade payables|208,089|_173,269_|
|Rent received in advance|331,410|_324,472_|
|Other taxation and social security|46,401|_38,189_|
|Other payables|246,305|_237,271_|
|Accruals and deferred income|657,883|_562,768_|
||7,307,230|_1,917,653_|
At the statement of financial position date there were pensions outstanding of £35,950 (2025 - £33,481).
## **16. PAYABLES: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
|**2026**
**2025**
**£**
**£**
Bank loans
14,732,805
_19,531,175_
14,732,805
_19,531,175_|**2026**
**2025**
**£**
**£**
Bank loans
14,732,805
_19,531,175_
14,732,805
_19,531,175_|
|---|---|
|**17. DEBT ANALYSIS - BORROWINGS**||
|**2026**
**2025**
**£**
**£**
**Bank Loans**
Amounts due within one year
5,817,142
_581,684_
Amounts due in one year or more but less than two years
4,655,581
_5,817,142_
Amounts due in two years or more but less than five years
2,211,679
_5,085,955_
Amounts due in more than five years
7,865,545
_8,628,078_
20,549,947
_20,112,859_||
The Association has a number of bank loans the principal terms of which are as follows:
||**_Number of_**||**_Effective_**||
|---|---|---|---|---|
||**_Properties_**||**_Interest_**|**_Maturity Variable or_**|
|**_Lender_**|**_Secured_**||**_Rate_**|**_(Year) Fixed_**|
|Royal Bank of Scotland||1,519|6.25%|2037 Fixed|
|Royal Bank of Scotland||-|5.6%|2039 Fixed|
|Royal Bank of Scotland||-|3.03%|2026 Fixed|
|Royal Bank of Scotland||-|6.5%|2028 Variable|
|CAF Bank||109|6.25%|2042 Fixed / Variable|
|CAF Bank||-|6.25%|2043 Fixed / Variable|
All the Association's bank borrowings are repayable on a monthly or quarterly basis with the principal being amortised over the term of the loans.
In accordance with FRS 102 the Association's bank borrowings are valued at amortised cost using the effective interest rate method.
||**2026**|**2025**|
|---|---|---|
||**£**|**£**|
|Due to lenders at 31 March 2026|20,702,705|_20,284,389_|
|Effective interest rate adjustment|(152,758)|_(171,530)_|
||20,549,947|_20,112,859_|
29
**ABERTAY HOUSING ASSOCIATION LIMITED**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **18. RETIREMENT BENEFIT OBLIGATIONS**
The pension cost figures used in these accounts comply with the Financial Reporting Standard 102 (FRS 102).
The Association is an admitted body to the Tayside Pension Fund, a fund administered by Dundee City Council. The fund is a funded defined benefit pension scheme providing benefits based on the final pensionable salary to 31 March 2015, thereafter benefits are based on career average basis. Contributions to the fund are determind by the scheme's actuary using the projected unit method and are charged to the Statement of Comprehensive Income as they are incurred. The pension costs for the period were £290,334 (2025 - £272,746). The pension fund is now closed to new members effecive from 1 November 2021.
The table below compares the present value of the scheme's liabilities, based on the Actuary's assumptions with the estimated employer assets.
|Net pension liability as at:
Estimated employer assets (A)
Present value of scheme liabillities
Total value of liabilities (B)
Impact of asset ceiling
**Net pension assets/(liabilites) (A-B)**|**2026**
**£**
15,072,157
8,736,665
8,736,665
6,335,492
**-**|**2025**
**£**
_13,533,681_|
|---|---|---|
|||_8,831,395_|
|||_8,831,395_|
|||_4,702,286_
**_-_**|
## **The movement in the defined benefit obligation over the year is as follows:**
|Opening defined benefit obligation
Current service cost
Interest costs
Change in financial assumptions
Change in demographic assumptions
Experience loss/(gain) on defined benefit obligation
Estimated benefits paid net of transfers In
Contributions by scheme participants
**Closing defined benefit obligation**|**2026**
**£**
8,831,395
201,273
497,881
(384,737)
63,762
28,628
(598,522)
96,985
**8,736,665**|**2025**
**£**
_9,780,372_
_260,405_
_467,565_
_(1,345,047)_
_(27,690)_
_(21,157)_
_(367,699)_
_84,646_|
|---|---|---|
|||**_8,831,395_**|
**The movement in the fair value of fund assets in the year is as follows:**
|Opening fair value of funds
Interest on assets
Return on assets less interest
Administration expenses
Contributions by employer including unfunded
Contributions by fund participants
Estimated benefits paid plus unfunded net of transfers in
**Closing fair value of fund assets**|**2026**
**£**
13,533,681
778,915
975,809
(5,045)
290,334
96,985
(598,522)
**15,072,157**|**2025**
**£**
_13,122,298_
_636,184_
_(210,443)_
_(4,051)_
_272,746_
_84,646_
_(367,699)_|
|---|---|---|
|||**_13,533,681_**|
30
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **18. RETIREMENT BENEFIT OBLIGATIONS (continued)**
The amounts recognised in the Statement of Comprehensive Income are as follows:
|**Analysis of amount recognised in the Statement of**
**Comprehensive Income**
Service cost
Net interest on the defined liability (asset)
Administration expenses
**Total loss (profit)**
**The aggregate assets of the defined pension scheme are comprised as follows:**
Equities
Gilts
Bonds
Property
Cash
Alternatives
**Total**|**2026**
**£**
201,273
(8,301)
5,045
**198,017**
**Value at**
**31 March**
**2026**
**£**
11,301,655
913,108
932,852
1,508,107
407,416
9,019
**15,072,157**|**2025**
**£**
_260,405_
_(168,619)_
_4,051_|
|---|---|---|
|||**_95,837_**|
|||**Value at**
**31 March**
**2025**
**£**
_8,988,592_
_863,209_
_891,176_
_2,053,545_
_733,578_
_3,581_|
|||**_13,533,681_**|
The total return on the fund assets for the year to 31 March 2026 was £1,754,724 (2025 - £425,741).
**The principal acturial assumptions used in valuing the defined benefit pension scheme were as follows:**
|Discount Rate
Pension increases
RPI increases
Salary increases
**The net asset/(defined liability) recognised in other comprehensive income:**
Experience gain on defined benefit obligation
Reduction of pension asset
Return on fund asset in excess of interest
Change in demographic assumptions
Changes in financial assumptions
Re-measurement of the net assets|**2026**
**2025**
**2024**
6.1%
_5.8%_
_4.9%_
2.9%
_2.9%_
_2.9%_
3.3%
_3.2%_
_3.3%_
3.9%
_3.9%_
_3.9%_|**2026**
**2025**
**2024**
6.1%
_5.8%_
_4.9%_
2.9%
_2.9%_
_2.9%_
3.3%
_3.2%_
_3.3%_
3.9%
_3.9%_
_3.9%_|
|---|---|---|
||**2026**
975,809
(63,762)
(28,628)
384,737
(1,360,473)
**(92,317)**|**2025**
_(210,443)_
_27,690_
_21,157_
_1,345,047_
_(1,360,360)_|
|||**_(176,909)_**|
## **Mortality Rates**
Life expectancy is based on the S3PA_H tables with a mulitipier of 105%/115%. These base tables are then projected using the CMI_2025 Model, allowing for the long-term rate of improvement of 1.25% p.a. Based on these assumptions, the average future life expectancies at age 65 are summarised below:
||**Males**|**Females**|
|---|---|---|
||**(Years)**|**(Years)**|
|Retiring today|19.4|21.9|
|Retiring in 20 years|20.7|23.4|
31
**ABERTAY HOUSING ASSOCIATION LIMITED**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **19. DEFERRED INCOME**
||**Social**|**Other**||
|---|---|---|---|
||**Housing**|**Housing**||
||**Grants**|**Grants**|**Total**|
||**£**|**£**|**£**|
|**Capital grants received**||||
|At 1 April 2025|24,489,849|94,226|24,584,075|
|Additions in the year|2,165,636|-|2,165,636|
|At 31 March 2026|26,655,485|94,226|26,749,711|
|**Amortisation**||||
|At 1 April 2025|5,467,046|94,226|5,561,272|
|Amortisation in year|502,739|-|502,739|
|At 31 March 2026|5,969,785|94,226|6,064,011|
|**Net book value**||||
|At 31 March 2026|20,685,700|-|20,685,700|
|At 31 March 2025|_19,022,803_|_-_|_19,022,803_|
This is expected to be released to the Statement of Comprehensive Income in the following years:
||**2026**|**2025**|
|---|---|---|
||**£**|**£**|
|Amounts due within one year|502,739|_457,381_|
|Amounts due in more than one year|20,182,961|_18,565,422_|
||20,685,700|_19,022,803_|
|**20. SHARE CAPITAL**|||
|---|---|---|
|**Shares of £1 each, issued and fully paid**
At 1 April
Issued in year
Cancelled in year
At 31 March|**2026**
**£**
93
8
(25)
76|**2025**
**£**
_100_
_3_
_(10)_|
|||_93_|
Each member of the Association holds one share of £1 in the Association. These shares carry no rights to dividend or distributions on a winding up. When a shareholder ceases to be a member, that person's share is cancelled and the amount paid thereon becomes the property of the Association. Each member has a right to vote at members' meetings.
32
## **ABERTAY HOUSING ASSOCIATION LIMITED**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **21. CASH FLOWS**
|**_Reconciliation of net cash flow to_**||**2026**||**2025**|
|---|---|---|---|---|
||**£**|**£**|**£**|**£**|
|(Decrease) / increase in cash|(1,128,560)||_477,114_||
|Cashflow from change in net debt|(437,088)||_(447,159)_||
|Movement in net debt during the year||(1,565,648)||_29,955_|
|Net debt at 1 April||(17,470,499)||_(17,500,454)_|
|Net debt at 31 March||_(19,036,147)_||_(17,470,499)_|
||**_At_**||**_Other_**|**_At_**|
|**_Analysis of changes in net debt_**|**_01-Apr-25 _**|**_Cashflows_**|**_Changes_**|**_31-Mar-26_**|
||**£**|**£**|**£**|**£**|
|Cash and cash equivalents|_2,642,360_|(1,128,560)|-|1,513,800|
||_2,642,360_|(1,128,560)|-|1,513,800|
|Debt: Due within one year|_(581,684)_|(437,088)|(4,798,370)|(5,817,142)|
|Due after more than one year|_(19,531,175)_|-|4,798,370|(14,732,805)|
|Net debt|_(17,470,499)_|(1,565,648)|-|(19,036,147)|
## **22. CAPITAL COMMITMENTS**
||**2026**|**2025**|
|---|---|---|
||£|£|
|Capital Expenditure that has been contracted for but has not been provided|||
|for in the finanical statements|1,410,499|_1,169,699_|
The above commitments will be financed by a mixture of public grant, private finance and the Association's own resources.
## **23. DETAILS OF ASSOCIATION**
The Association is a Registered Society registered with the Financial Conduct Authority and is domiciled in Scotland.
The Association's principal place of business is 147 Fintry Drive, Dundee, DD4 9HE.
The Association is a Registered Social Landlord and Scottish Charity that owns and manages social housing property in Dundee.
## **24. BOARD MEMBER EMOLUMENTS**
Board members received £486 (2025 - £23) in the year by way of reimbursement of expenses. No remuneration is paid to members in respect of their duties to the Association.
33
## **ABERTAY HOUSING ASSOCIATION LIMITED**
**FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **25. HOUSING STOCK**
|The number of units of accommodation in management
at the year end was:-
General needs
Community projects block
Retirement housing|**2026**
**No.**
1,663
6
237
1,906|**2025**
**No.**
_1,633_
_6_
_238_|
|---|---|---|
|||_1,877_|
## **26. RELATED PARTY TRANSACTIONS**
Members of the Board are related parties of the Association as defined by Financial Reporting Standard 102.
Any transactions between the Association and any entity with which a Board member has a connection with is made at arm’s length and is under normal commercial terms.
Transactions with Board members (and their close family) were as follows:
|Members of the Board who were tenants during the year
Rent received from tenants on the Board and their close family members
Factoring charges received from factored owners on the Board and their close
family members
Members of the Board who were owner occupiers during the year|**2026**
**2025**
**£**
£
6,129
_17,046_
-
_480_
1
_1_
1
_2_|
|---|---|
34