41 AZETS MOLENDINAR PARK HOUSING ASSOCIATION REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
MOLENDINAR PARK HOUSING ASSOCIATION MANAGEMENT COMMITTEE. EXECUTIVES AND PROFESSIONAL ADVISORS Manag•m•nt Commltt¢e F Sheeran {Chairperson A S¢oll (Vice Chairperson) B Johnslon C McKinlay M O'Donnell A Wood M Harkness {Elecled 1710212026) M Johnston C Peacock N Thumalh C Boyle A Gillespie {Resigned 2511112025) McLauchlan (Copted 1910512026) Key Management Julie Smlllle Scott Rae Director & Secretwy Depute Director lactlng Director and S¢¢relary from 16 April 2024) R•glsl•r•d Offl¢• 3 Graham Square Glasgow G311AD Audltor Azels Audit Services Chartered AGGounlanls rilanium 1 King's Inch Pl8ce Glasgow PA4 8WF Bonk•r¥ The Royal Bank of Scotland 139 Sl Vlncent Street GI4s9OW G2 5JF N*ionwde 8uilding Sociely Kings Park Road Moullon Park Northampton NN3 6NW Solldtor¥ TC Young Merchants House 7 West George Stre•t Glasgow G2 18A
MOLENDINAR PARK HOUSING ASSOCIATION CONTENT8 Pag• Report ofthe Managfjm•nt Commllt•• {Sncorpordtlng the Stratsglc Report) Managomgnt Commlttw'¥ Statomgnt on Int•rnal FlnanGl•l Contn>l Auditor's R•port on Corpor•t• Gov•rnanc• hlatt•rn Roport of th• Independent Audltor 7-10 Statsment of Gompr•h•nslv• Incom• 11 Slatgmgnt of Chng•s In Cplt*l and R•s•rv•# 12 stst•m•nt of Flnanclal Po•ldon 13 Statsmont of Cash Flo 14 Notss to tho Flnan¢lal 8tat•ments 15-36 Roglstratlon Partl¢ular•: Financial Conduct Authortty Coryoperatlve and Communlly 8enefit Soci•tie8 Act 2014 Registered Number 2400R{SI Scottish Hou$lng Regulator Housln9 (Scotlandl Act 2010 Reglstered Number HAL 274 Scottish Charity Number SC043725
MOLENDINAR PARK HOUSING ASSOCIATION REPORT OF THE MANAGEMENT COMMITTEE {INCORPORATING THE STRATEGIC REPORTI FOR THE YEAR ENDED 31 MARCH 2026 The ManagementcornmitteepreststheiTrepOrt(in¢OrptySt1rQ the Strategic Reportland audited finanual statemen& the year endèd 31 March 2026. Prfnclpal aclfvlty Th8 principalactivityoftheAsso(¥akn'onisthe provs¥)n, cor6tru¢tk)n, imrxOrnent, and Tnan3mt0frenIed. shar and shared ownership accommodation. The Associats"on became a regISted charity In January 2013. Bu8lne$s reVW The linanThal ststernents sot out tha As$ociation's results lor the year. This Business review gives an overview ol our ptrrf0manduring 2025r2W26,the progresswehave rnade foTtenantsand redÈnts. and Ihe prioritiesshaping ourw¢ as we look ahead. has been a p05itivey8ar forlh8 A850fi8t'on.with strong outo)mesdeliveredalongsith a stableoperats.ng posit'on.Thi% was supported bythe re-elecbon ofthe As$oriation Chairperson fora third term, eonbnued investrnèntin ourhomes. * full complianc¢ with tanant and iesident safety obligatsons. ¥Ab have madè good pro9r6ssin tt)e secondyearof ourthree-yearBusiness Plan. Three new memb8rsofstaffjoi Associats"on. filling tr40 existing posts and one new post also continued to support Reidv816 Housing Assotriafj s8conding our Director and Asset complian Officer to assist their transition toward5 Scotbsh Housing Regulatr compliance. Imth a stsble and cornrnitted team in place, we have been able to meet our operational objectives continue dalivaring 8llective services lor tenants. Good governan remains atthe heart of how we protect IhÈ A5soeiab"on's long-term strèngth and dèlivei high-qU8ty Services. arè supported by a dadicated Managementcommittee with a broad mr<olskills, KnowleLJe and experErKe. Oureffortsthis year in rewib'ng new committee Members should comètofruib.on over2026-27, withthèaddits.on ofth new cofflmitteo mèmbars. Committee members and stall have worked dosely throughout the year to keep strategic priorikn'es on track and ensure operabonal objectives are dèlivÈrÈd. Internal audit5cornpleted duringthèy8arconinued to provideposits"veassurance. The Assoaation maintaingj lowarreaB and lavourable Scoth'sh Housing Charter indicator results, both nationally and against peer registered social landlo These strong rgsults have been sustained over a number of years. Vve also met all gUlatOry requirements and lin covènants ¢Juring the year. The Managementcommitteecornpleted itsannual assessmentofcomKAiance with gUlatOry requements in preparats)n for Ihè Annual Assuran Statement submitted to the Scotb5h Housing Regulator in October 2025. The Comrntse approved the statementafter receivingthe8S5uraneèit requi tt)atthe Assoaationcomplied withthe requirementst out in Chapter 3 01 tt)e Scoth"sh Housing Regulator's Regulatory Framewolk. Kèaping tenants and residents safe remain$ our highest priority, alongside ongoing Investrnent in hoFnè$ and communib'&S During Ihe year, we conb.nued to carry out stock conditson surveys to irnprove the quality of inforrnats'on availablè lor future investment planning and to help us target improvements U)at matter mostto tenants. have also strength8ned our commitmènt to meaningful tenant and stakeholder engagement. We will continue to d8valop opportuniknes lortenants lo be involved. while improving how wg assess and communicate value for monoy. Equality, diversity and human rights conb'nue to be ernbedded in our work. hglping us promote fairtroatrnont, ro$pget and indusion for everyone who angagèswith Ihe Association. Looking shead, weare moving Intotre trird year olour three-year Business Plan Wg willconb'nue to meet our strategi¢ goalsand operational objecb'ves.while iernaining rasponswe to tt)e challeng•s and Opponi.S lacing the Associab"on and Ihe wider housing sector. Vit conts.nue to operate in a demandingenwronm8nt,witheost-of-liwng pressusa&.ng m8nytanantsand incre8siro expectab'ons acr055 tha sector. In résponse, the Associat'on has conbnued lo support tenants through welfare rights services. We rernain focused on maintaining high-damand housing stock, responding to homalassnèss. meets.ng changing t8nant xp&ctalJons and adapts'ng to evolving regulatory and govemmental priorib'es As we move into a period ol developing a new businÈss plan ftsr2027-2030 we can llect on a good performing year with the Associ8ts"on having astrong plaffomi to buildfrorn. Good governance, an experIend and committed staffteam. strong perfornTrarte againstpeerorganisab'oro. high tènantsatislacts"on. low debt levels and 8 healthy financial posib.on all provide confidence for the future. These strenglhs will help us conb'nue investing in ¢enants' homes while keepin9 nts affordable and competitive. The results fortha y88r ar& shown in the Statementol Comprehensive Inwme on page 11 .
MOLENDINAR PARK HOUSING ASSOCIATION REPORT OF THE MANAGEMENT COMMIThEE (INCORPORATING THE STRATEGIC REPORTI FOR THE YEAR ENDED 31 MARCH 2026 Prlnclpal r18k8 and uncortaln¢los Risks are identified benable theAssociation to putmeasUsin pla to mitigate theserisksand to enableourobjeth to bo achievèd. Managernènt Committee agendas ensure that néw, currènl. and èmerging risks are evaluated throwh regularlyevaluatin9 risk. Medium and high risksare induded in the Intemal Mana9ementPlan togetherwith detailsof tt)8 eontrols to mitgate each risk and any ne$sary further acts"on. Thè 5 highèstgross scoring risks sdenb.lied are as follows". Breach ol Loan Covenants. Failureto adhere to heightened regulabryexpectsb"onsand implernerrt flexible fina181 strategiesand plansto address them efficiently. Revenue irnpact and stsff time taken up by the ongoing cost of living challenges 4. Challenges In the insurance sector due to a decrease in available Servi providèrs ¥nd rising produ¢t costs. Loss of Contractors cr1 paymènt poli¢y The Association's policy conceming the payment of its trade creditors ¢orrplEs with the Confederation of Br&h Industry guidelines. The average payment period is thirty days. Maintenance policies The Asso¢iation seeks lo maintain its properties to the highest $tandard. To this etKI. programmes of cyclta repairs are carried out in the medium term to deal urith the gradual and predictable deleriorion ol buikliro components. Itis expected thatthecostolall these repairswoLbld becharged lo the Statement of Comprehensive Iwome. In addition, the Associion ha$ a long-lemi programme of major repaits to cover 1rkS which have becon necessary since the original development were completed, including Works required by subsequent legislatwe changes. This includes replacernentlrepairs to features of the properties thich have come to the end of ther economic lives. In line with the SORP 2018, replacements to building components are capitalised in the financial slalemenls. All other major rep&rs are charged lo the Slalemenl of Comprehènsive Income. Trnasury managom8nt The Association has an active treasury managernenl fundion. vthich operates in accordancewth the Treasury Policy approved by the Management Committee. In this vday the Association manages its borrowrg arrangements to ensure Ihal il is always in a position to meet it$ finan¢ial obligations as they fall due. whilst minimising excess cash and liquid resources held. Employee involvement and Health & Safety The Management Committee lake serfously theirSpOnSIbilItieS lo empk)yee8 underHealth & Safely legIa1)n and endeavor to provide infonnation on any matters that may be of ¢on¢em lo them. The Association ago en¢ourages employee involvement in all major iniliab'ves $0 that Iheirviews may be taken Into aceoL¢nt In mJ decisions that may affect their inleresls. Future Prospects The Association wll continue to invest in its housing stock in the coming year. The Association does not envisage any further housing property developments in the immediate future. Man8g•ment Commltto• •nd Exe¢utlv• Offl¢ern The members of the Management Committee and the Executive Officers are listed at the front ofthese financ slalemenls. Each member of the Management Committee holds one fully paid share of £1 in the Associat1 The Exècutive Officers hold no interest in the Associalion'ssharecapilal antl, allhoughnolhaving thelegal sta of Directors, they act as Exe¢utives within the authority deleged by the Management Committee.
MOLENDINAR PARK HOUSING ASSOCIATION REPORT OF THE PIIANAGEMENT COMMITTEE (INCORPORATING THE STRATEGIC REPORTI FOR THE YEAR ENDED 31 MARCH 2026 Govarnancfr Goveming DLKumenl The Association is a registered Social landlord {RSLI and is thu5 registered with The Scollish Housirg Regulator and the Financial Conduct Aulhorily. 11 is also a registered charity with the Office of the Scolli5h Charity Regulator {OSCR}. Recruitm8nls and Appointm&nl ofthe Managem8nt Commillee At the Annual General Meeting in a¢¢ordance wilh Ihe rules of the Association. members retire by rotation Members can all offer themselves for felection. The Management Committee seeks to ensure that the reds of ils stakeholders are appropriately fIe¢l& through the diversity of the Board and Committee. To enhance the potential pool of members. the Association has, through selective networking, sought lo identify people wuld be wlling lo become members and ulilise their own skills and experience lo assist the A$$o¢ialion. The Management Committee has a broad range of skills and members. Management Committee Members Inductlon and TTrining Most members of the Management Committee are already familiarwith the practical wjrk of the Associalw)rL Where new members are elected, inlomiation is supplied regarding the obligation of Management Committee members, details ol the Association's main documents and up lo dale financial slalemenls. In addition, a fomial training and induction programme 15 provided for any new member of the Management Committee. Comrniltee training is discussed annually. Training needs are then identified to ensure the competencies ol the Committee are properfy maintained. The Management Committee of MolendinarPaTk Housing AssocIatn is experienced. and its members possess the required level of competencies lo govem ils aclivilies. O)FanisatnaI sInlU At 31 March 2026 the Management Committee comprised 12 members. The Management CoMMee meet ten limes per year. As a result of a revised Govemance Structure there is also a Services Commill&. A scheme of delegation is in place aThY the day lo day responsibility for the provision of the Associaliorfs projects re515 with the Director. The Di10T is responsible for en$uring that the A$$o¢iation delivws the services specified and that operationa objectives are met. Ststsmont of Management Committee's Responsibilities The Management Committee is responsible for preparing the annual report and financial ststemenls In accordance wlh applicable law and regulations. The Co-operative and Community Benefit Societies Act 2014, and registered Social housing legislation require the Management Committee to prepare financial slalemenls for each financial year 1¢ give a true and fair view of the stale of affairs of the Association and of the income and expenditu of the Associal ion for that period. In preparing these financial slalements, the Management Cornmiltee is required to.. select suitable accounting policies and then apply them consistently., • make judgements and eslimales that are reasonable and prudent., • slatethelher applicablea¢¢ounling standards have beenf01lod. $ubjedto any material departures di$¢lo$ed and explained in the financial stalemenls., and • ppare the financial Statements on the going cwcem basis unles5 It is inappropriate lo presume tr Ihe Association wll continue in business.
MOLENDINAR PARK HOUSING ASSOCIATION REPORT OF THE MANAGEMENT COMMITTEE (INCORPORATING THE STRATEGIC REPORTI FOR THE YEAR ENOED 31 MARCH 2026 ststemgnt of Manag8ment CommIttae Responslbllltios Icontlnugdl The Management Committee is responsible for keeping proper aceounling e0rdS vthich disclose with reasonable accuracy at any time the financial position of the AssocialK)n and lo enable il lo ensure Ihal the financial statements ¢omply wth the Co-operative and Community Benefit Societies Act 2014, the Hous (Scollandl Act 2010 and the Detemiinalion of Accounting Requirements 2024 as issued bythe Scottish HO Regulator It has a general responsibility fortsking reasonable steps to safeguard the assets of IheAssooknn and to prevent and detect fraud and other irregularities. Intemal Flnanclal Control The Management Committee is responsible for establishing and maintaining the Association's system of inlemal control. Inlemal control systems are designed to meet Ihe particular needs of IheAssocialion and t risks lo vthich il 15 exposed, and by their nature can provide reasonable bul not 8bsolute assurance against mateiial misstatement orloss. The key procedures ¥thich the Management Committee has established wth view to providing effective inlemal financial control are outlined on page 5. Infomiauon for tho Auditor As far a5 the Committee members a there 1$ no levant audit infomalion of vknich the auditor unaware, and the Committee members have taken all the steps they ought to have taken lo make themselves aware of any relevant audit infom)ation and to ensure that the auditor is awa of any such infomalion. Charttsble Donatlon5 During the year. the Association made charitable donations amounting lo £Nil {2025- £ Nrf). Audltor The Association's extemal audit seJvi¢e is presently being tenllertd. Currently. the appointed auditor, Azets Audit Services, ha5 expressed their wllingness lo continue in office as auditor in the interim. The Report of the Management Committee (incorporating the Strategic Reportl has been approved by IPe hAanagement Committee on 18 August 2026. F Sheeran Chairperson
MOLENDINAR PARK HOUSING ASSOCIATION MANAGEMENT COMMITTEE'S STATEMENT ON INTERNAL FINANCIAL CONTROL FOR THE YEAR ENDED 31 MARCH 2026 The Management Committee a¢knOedge their ultimate responsibility forensuring that the Association has li place a system of control that is appropriate lo the various bLJsiness environments in 1¢h il operates. This ¢ontrol is designed to give reasonable assurance nth respect to.. the reliability of financial information used wlhin the Association or for publication., the rnaintenance of proper accounting records,. and the safeguardirrfJ of assets {against unauthorised use or disposition). ft is the Management Comrnitlee's respon5ibililyto establish and maintain systems of intemal financial control. Such systems Can only provide reasonable and not absolute assurance against material financ misstatement or loss. Key elements include ensuring that.. fomial police$ and prOceduS are in place, including the documentation of key systerns and rules relatrg to the delegation of authorities, vthich allowlhe monitoring of ¢onlro& at)d restrict the unaulhorised use of the Association's assets.. experienced and suitably qualifEd 51afflakeresponsibility forimportant busnessfunctions, annualappraisa procedures wll be established to maintain standards of performance. forecasts and budgets are prepared regularly thich allowlhe Management Committee and Staff to morilor the key bLJsiness risks and financial objectives, and progress towards financial plans set forthe year and the medium lemi. Regular management a¢¢ounls a prepared promptly, providing relevant, reliable and up-t04Iale financial and other information and significant variances from budgets are investigated as appropriate., all significanlrwiinilialives, major¢ommilmen15and inveslmentprojects aresubje¢lto fomial authDrisaton proceduws, through the Management Committee." the Management Committee revi portS, from directors, staff and from the extemal audilorto prov#Je reasonable assurance that control proCedUS a in pla¢e and are being follLAved, including a general review of the major risks facing the Association,. and fomial procedures have been established for instituting appropn'ate action to correct weaknesses idenlTts from the above reports. The Management Committee have reVIed the effecbveness of the system of inlemal financial control in existence in the Association forthe yearended 31 March 2026 and until the belowdale. No weaknesse5 were found in intemal financial control vthich resulted in material losses, conl#igencies. or uncertainties which requi disclosure in the financial slalemenls or in the auditorfs report on the financial statements. The Management Committee's statement on Intemal Flnancial Control has been approved by the Managemal Committee on 18 August 2026. F Sheeran Ch8irpwson
MOLENDINAR PARK HOUSING ASSOCIATION AUDITOR'S REPORT ON CORPORATE GOVERNANCE MATTERS FOR THE YEAR ENDED 31 MARCH 2026 In addition lo our audit of the Financial Statement5, we have reVieEd your slatement on page 5 conceming the A5s0ciation'5 ¢omplian¢e wlh the information required by the Regulatory Standards in SpeCt of the internal financial control contained wthin the publication "Our Regulatory FraMerk. and associabj Regulatory Advi$ory Notés thi¢h are issued by the Scottish Housing Regulator. 8asls of Opln5on We carri1 out our review having regard lo the requirements on corporate goveman¢e rnlers ¥wthin Bulletin 200914 issued by the Financial Reporting Council. The Bulletin does not require us to review the effeclivews of the Association's procedu$ for ensuring compliance wlh the guidance notes, nor lo investigate the appropriateness of the reason given for non-compliance. Oplnion In ouropinion the Slalemenl on Inlemal Financial Control on page 5 has provided the disclosuros reqUId by the relevant Regulatory Standards wlhin the publication °Our Regulatory Framework" and a$so¢iabJ Regulatory Advisory Notes i$sued by the Scottish Housing Regulator in SpeCt of the inlemal financial control and is consistent with the infomiationvthich came lo ourattenlion as a result ol our audit work on the Financial Statements. Through enquiry of certain member5 of the Managernenl Committee and Officers of the Association and examination of levant do¢umenls, we have salislied ourselves that the Management Commillee's Statement on Inlem31 Financial Control appropriately fIe¢l$ the Association's ¢omplian¢e wlh the information required by the felevant Regulatory Standards in respect of the intemal financial cont¥ol contained within the publicalvjn "Our Regulatory Framewrrk" and associated Regulatory Advisory Notes issued by the Scollish Hou5irvJ Regulator in respect of the inlemal financial control. Az•ts Audit ServSco$, Slatutory Audltor Chartorod Accountsnts Statutory Auditor Titanium 1 King's Inch Place Glasgow PA4 8V Oaled.. 18 August 2026
MOLENDINAR PARK HOUSING ASSOCIATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MOLENDINAR HOUSING ASSOCIATION LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Opinion We have audited the financial statements of Molendinar Park Housing Association Limited Ith& 'AssoCiatn) forlhe year ended 31 March 2026 1¢h comprise the Statement of Comprehensive Income, the Statement of Changes in Capital and Reserves, the Statement of Financial Position, the Slaternenl of Cash Flows and tl notes to the financial stalements, including significant accounting policies. The financial reporting framewo 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 Iland, Iunited Kirn9dom Generally Accepted Accounting Praclicel. In our opinKsn, thg financid $talfjments.' give a true and fairview of the slate of the Association's affairs as at 31 Mah 2026 and of ils incc ar expenditure for the yeai then en(Jeil". have been properfy prepared in accordance with United Kingdom Generally Accepted Accountry Practice., and have been prepared in accordance wth the requirements of the Co.operalive and Community Benefit Societies Act 2014, Part 6 of the Housing Iscollandl Act 2010 and the Deleminalion of Accountirg Requ1mentS 2024 issued by the S¢ollish Housing Regulator. Basis lor oplnlon We condLJCted our audit in accordance wth Inlemational Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the auditorfs responsibilit for the audit of the financial statements section of our reptsrt. We are independent of the Association in accordance with the ethical requirements that are relevant lo our audit of the financial slalemenls in the UK. including the FRC'S Ethical Standard and we have fulfilled ourethical responsibilities in accordan¢e rith these requirements. We believe that the audit evidence we have obtained is SLrfficient and appropriate to provide a basis for our aLtdit opinion. Concluslons relating to going concern In auditing the financial statements, we have concluded that the Management Committee'$ use of Ihe gory concern basis of accounting in the preparation of the financial statements is appropriate. Based on the wrjrk we have perforned, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubl on the Association's ability to continue as a going concem fora period of al least ttIve months from %then the financial slalemenls are authorised for issue. Our responsibilities and the responsibilities of the Management Committee wth respect lo going concem are described in the relevant sections of this report. Other Infomiatlon The other infomiation comprises the infomalion included in the annual report, other than the financia statements and Ouf audilorfs report thereon. The Management Committee is responsible for the other infomalion contained wlhin the annual report. Our opinion on the financial statement$ does not cover the other infomalion and we do not expre$$ any fomi of assurance conclusion thereon.
MOLENDINAR PARK HOUSING ASSOCIATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MOLENDINAR HOUSING ASSOCIATION LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 0th9r Inforniation Icontinufrdl Our responsibility is to read the other infomialion and, in doing so, consider whether the other infomialion is materially inconsistent with the finan¢ial statements, or our knoedge obtained in the Course of the audit, or olherwse appears lo be materially rnisstated. If identify such material inconsistencies or apparent material misstatements. we are required lo delemiine %thether this gives nse lo a malenal mis51alemenl in the financia statements themselves. K, based on the work we have performed, YR corlude that there is a material misstatement of this other infomialion. we a quired lo report that fact. Vve have nothing to port in this ward. Matters on whlch ar9 raqulred to roport by oxception We have nothing lo report in respect of the following matters in relation lo which the Co-operative and Community Benefit Societies Act 2014 requi$ us lo POrt lo you if, in our opinif)n'. a satisfactory system of control over transa¢lion$ has not been maintained,. or the Association has not kept proper accounting records., or the financial slalements are not in agreement with the books of account.. or e have not received all the information and explanations we need for our audit. RponsIbl11tis of the Management Committ¢• AS explained more fully in the Statement of the Management Committee's Responsibilities set out on pages 3 and 4, the Management Committee is responsible forlhe preparation of the financial stalemenls and ftsr beirvJ . $atisfied that they give a INe and lair view, and for such inlemal Control as the Management Commill detemiine is necessary lo enable the preparation of financial statements that a free from material misslalement, Ythether due lo fraud or error. In ppanng the financial statements, the Management Committee is responsible for assessing the Association's ability to continue as a goin9 concem, disclosing, as applicable, maller5 related lo going concem and using the going concem basi5 of accounting unless the Managemenl Committee either inten¢J to liquidate the Association or to cease operations, or have no realistic allemalive bul to do so. Audltorf$ r•sponsibiliti8s for th8 audit of the financial statements We have been appointed as auditor under thè Co-operative and Community Benefit Societies Act 2014 and report in accordance 1th the Act and relevant regulations made or having effe¢l Ihereunder. Our objectives are lo obtain reasonable assurance about whether the financial statements as a vknDle are f from material misstatement, whether due to fraud or error, and to issue an audilorfs report that includes our opinion. Reasonable assurance is a high level of a55urance bul is not a guarantee that an audit conducted in accordance wlh ISAS IUKI will alway5 delecl a material misstalemenl Mhen il exists. Misstslemenls can arise from fraud or error and a considered material rf. individually or in the aggregate, they could reasonably be expected to influènce the economic decisions of users taken on the basis of these financial statements. A further description of our Tesponsibililies is available on the Financial Reporting Council's EbsIte at This description fomis part of our audilorfs report.
MOLENDINAR PARK HOUSING ASSOCIATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MOLENDINAR HOUSING ASSOCIATION LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Auditor's responsibilities for the audit of the financlal statements (contlnuedl The extent to whlch the audit was Considered ¢apJble of dete¢tlng Irregularf(les Includlng frèud Irregularities. inclLJing fraud. are irv6lanGes of non<ompliance wlh laws and regulations. We design procedure5 in line wlh our responsibilities, outlined above and on the FRC'8 ebSIte, Its detect material misstalemenls in respect of irregulafities, including fraud. We obtain and update our understanding of the entity, 115 aclivilies, Ils control environment, and likely future developments, including in relation lo the legal and regulatory fraMrt[ applicable and how the entity Complying with that frameM)rk. Based on this understanding, identify and assess the risks of material misstatement of the financial slatemenls, vhielher due lo fraud or error. design and perfomi audit procedu responsive to those risk$, and oblain audit evidence that is sufficient and ap propriale lo provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and iegulations, including fraud. Our approach lo identifying arKI assessing the risks of malenal misslatemenl in respect of irregularities, including fraud and non<ornplianee wth law3 and regulations, a$ follows.. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills lo identify or re¢ognise non<ompliance ¥Mlh applicable la¥ and regulations", e identified the laws and regulations applicable to the Association through discussions wth the Management Committee members and the senior management team, and from our knovledge and experience of the RSL sector, we focused on specific laws and regulations leh considered may have a direct material eff& on the financial statements or the operations of the Association, including the Co-operative and Community Benefit Socielieg Act 2014, Part 6 of the Housing {S¢ollandl Act 2010, the Detemiination of Accounting Requirements 2024 issued bythe S¢olli$h Housing Regul8tor, taxation, data protection. anli-bribery, ernployment, environmental and health and safely legislation.. we assessed the extent of compliance wth the laws and regulations identified above through makiro enquiries of the senior management team and the Management Committee and inspecting legal corre$ponden¢e', and identified la and regulations we communicated wlhin the audit team regularfy and the learn remained alert to instances of non<ompliartce throughout the audit. In response to the risk of irregularities and non-compliance with laws and regulations. we designed procedu vknich included, bul were not limited to.. agreeing f inan¢ial st*emenl dis¢losure$ to underfying supporting documenlalion.. ading the minutes ol meetings of the Management Committee". enquiring of the seniormanagemenl team and the Management Committee as to a¢lual and potentia litigation and claims., reviewing legal and profe$sionalfee$ paid inthe year forindicationof any actual and potential lillgalon and claims., and reviewng correspondence wth HMRC, the Scottish Housing Regulator, OSCR and the Asso¢ialiorf$ legal advisors. We assessed the susceptibility of the Association's financial slalements to material misstatemenl, ItludIvj obtaining an understanding of how Iraud might occur, by.. making enquiries of Ihe senior management team and the Management Committee as to where they considered there was susceplibilily lo fraud, their knoedge of actual, suspected and alleged fraud,. and considering the intemal controls in place lo mitigate risks of fraud and non<ompliance wlh laws and regulations.
MOLENDINAR PARK HOUSING ASSOCIATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MOLENDINAR HOUSING ASSOCIATION LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 To addsS the risk of fraud through management bias and override of controls, £.. perfomied 3nalyli¢81 procedures lo identify any unusual or unexpected relationships., tested joumal entries to identify unusual transactions., assessed whether judgements and assumption5 made in detemiining the accounting estimates were indicative of potential bias.. and investigated the rationale behind $ignifi¢ant or unusual Iransxlions. Because of the inherent limitations of an audit, there is a risk th81 will not delecl all irregularities, in¢ludiThJ those leading lo a material misstatement in the financial slalemenls or non-¢ompliance wlh regulation. Thi$ risk incTeases the rnore that compliance with a law or regulation is removed from the events and Iransaclior reflected in the financial slalements. as wll be less likely to becomeaware of instan¢esol non-compliance. The risk of not detecting a material misglalement resulting from fraud is higher than lorone resulting fnm error. as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of inlemal control. Usa of our report This report is made solely lo the Association's members, as a body, in accordance wth Section 87 of the Co- operative 8nd Community eenefil Societies Act 2014. Our audit work has been undertaken so that mig slate lo the Association's members. as a body. those matters are required to slate to them in an audilorfs report and for no other purpose. To the fullest extent permitted by law. do not aceepl orassume responsb lo anyone other than the Association and the Association's rnèmbers, as a body. for our audit work, forlhis report, or for the opinions we have fomied. AQL 4LdK> (£) Azets Audit Services statutory Auditor Charter•d Accountsnts Titanium 1 King's Inch Place Renfrew PA4 8WF Date.. 18 August 2026 Azets Audit Service5 is eligible for appointment as auditor of the Association by virtue of ils digibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. 10
MOLENDINAR PARK HOUSING ASSOCIATION STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2026 2026 2025 Notes Tumovor 2,934.810 2,805,902 Operating expenditu 12,357.2461 (2,429, 1371 Operallng surplus 577,564 316, 765 Gain on sale of assets 22.4S8 Interest payable and other charges 177.0101 {84534J Interest receivable 10 36.003 42,441 Surplus before tsx 559,015 333.6T2 Taxaliorb Surplu$ for year 559,015 333, 672 other comprnhensive Incomo Actuarial G8in in respect of pension $¢heme 22 40.000 Total ¢ompr*h•nsive incomo for th8 year S99,015 333.672 The results for the year relate Ytholly to continuing activities. These financial statements were approved by the Management Committee aThJ authorised for issue on 18 August 2026 and signed on its behalf by.. F Shegran - Chairperson A Scott- Vice Chairperson S Rae {Secret8ry1 The notes on pages 15 to 36 forn part of the financial slalemenl5.
MOLENDINAR PARK HOUSING ASSOCIATION STATEMEKf OF CHANGES IN CAPITAL AND RESERVES AS AT 31 MARCH 2026 Share Cawtsl Rwon Reserve Totsl 8alanc• at 1 April 2025 Share8188uad Totsl Comprohen$lvo Incom• 6,194376 6,194,431 599.015 599,015 Balan¢0 at 31 Mah 2026 6,793,391 6,793.447 STA TEMENT OF CHANGES IN CAPITAL AND RESERVES AS A T 31 MARCH 2025 Sha C8prf81 Revenuo ReseNe Tot81 Reseryes Balance al l Apn-12024 Shares issued Total Gomprehensive Income 5,860, 704 &860, 759 333,672 333,672 881ance at 31 Mah 2025 55 6. 194, 376 6, 194.431 The notes on page5 15 to 36 form part of the financial stalementS. 12
MOLENDINAR PARK HOUSING ASSOCIATION STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2026 Not•s 2026 2025 Tangible Flxed Assets Housing properties Other assets 11 11,991,638 64,595 12. 728,059 12.056.233 12, 192, 123 Current Ass•ts Debtors Cash and cash equivalents Investments 13 14a 14b 351,771 1.125.514 872,808 795,017 890,935 840, 726 2,350,093 1,926,672 Current Llablliti8s Creditors due within one year 15 11,000.7191 (901.386) Net current assets 1,349,374 7,025.288 Creditors due after morn than o yèar 16 11,317.4691 (1, 5Q4, 709) Deferred Income: Soclal Houslng Grant mor• than ono ygar 17 15,136,691) (5,309,869) Pension liability (158,0001 (209,0) Net Assets 6,793,447 6, 194.431 Capital and ReseNos Called up share capital Revenue reserves 18 56 6.793.391 6, 194,376 6,793,447 6, 194,431 These financial statements were approved by the Management Committee and aulhorised for issue on 18 August 2026 and signed on ils behalf by.. F Sheeran - ChalersOn A Scott- Vi¢e Chairperson S Rae (Secretaryl The notes on pages 15 10 36 fomi part of the linancial statements. 13
MOLENDINAR PARK HOUSING ASSOCIATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2026 2026 2025 Net cash g¢n•ratsd from 0rating actlvlt5es 19 686.601 666, T15 Cash Ilow from invgsting activili8s Purchase of tangible fixed asset$ Proceeds from sale of tangible fixed assets Housing Association Grant received Interest received 1333,9521 64,915 66.388 36,003 (335, Ily) 42, 441 1166,848) (292,670) Cash llow from finan¢lng a¢tlvitl•s Interest paid Repayment of boffowngs Issue of share capital Deposit to CUfTenl asset investment 165,0101 1188,285) (75, 534) (218, 187) 132,0821 (37,376) 1285,3761 (331, 097) Not changes in cash and cash oquival•nts 234,579 42,948 Cash and cash equivalents al 1 April 890,93S 847,987 Cash and cash 8quival8nts at 31 March 14a 1.125.514 890.935 lil Analysis of change$ In ngt d&bt Other non- cash At31 changes March 2026 At 1 April 2025 Cash Ilo Cash and cash equlva19nts Cash 890.935 234.579 1.125,514 Cash and cash equivalents 890,935 234.579 1,125,514 CUnI asset inveslmenls 840,726 32.082 872.808 Borrowings Debt due wlhin one year Debt due aller one year 1155.212) 11,504.1091 188.285 {186,6401 11S3,5671 186,640 (1,317,469) 11,659.3211 188,285 11.471.036) Totsl 72,340 454.946 527.286 The ntsles on pages 15 10 36 fom part of the financial slatemenls. 14
MOLENDINAR PARK FDUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Generdl Information The fina¢31 slalements have been prepared in accordance wlh FRS 102 'The Flnancial Reportr Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accountr Practice) and Comply wth the requirements of the Delermination of Accounting Requirements 2026 a5 issued by the Scottish Housing Regulatorand the Slalement of Recommended Practiceforsoaal HousnJ Providers issued in 2018. The principal accountin9 policies are set out below. The preparation of these financial slalements in compliance wlh FRS 102 requires the use of certan accounting eslimales. tt also requires management lo exercise judgement in applying IheAssociation's a¢counling poli¢ies (see note 31. The presentationcurrency is pounds sterting. and thefinancial statements aroUnded to th&nea$t whole number. The Association is definèd as a public benefit entity and thus the Association com leS wth all disclosue requirements lating lo pthlic benefic enlfties. The Association 1$ a giSted social landlord in Scokn and its registered number is HAL 274. These financial slalements represent Ihe results of theAssociknn only. The Association's registered charity number is SC043725. The add$$ of the Association's registered office is.. 3 Graham Square Glasgow G31 1AD Ac¢ountlng Pollcles 8asi5 of accounting The financlal statements are prePad on the historical cost basis of accounting subject lo the revaluion of Certain fixed assets and in a¢¢ordance with applicable a¢¢ounliThJ standards. The effecl of events relating lo the year ended 31 March 2026, thich occurred before the dale of approval of the financial statements by the Management Committee have been included in the slalemenls lo the extent required lo show a true and fairview of the stale of affairs as at 31 March 2026 and of the suItS for the year ended on th dale. Golng ¢onc&m The Management Committee anticipates that a surplus will be generated in the year lo 31 March 2027 and also in the yearto 31 March 2028. The Association has a healthy cash and net current asset positK)n and thus the Management Comrnittee are satisfied that there are sufficient resources in pla to cont operating lorlhe foseeable f ulu. Thus, the Management Committee continue lo adopt the gory ¢oncem basis of a¢¢ounling in preparing the annual financial st*ement$. 15
MOLENDINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Accounting Policies Iconvdl Flnance The financial statements have been prepared on the basis that capitsl expenditure will be grant aid&l, funded by loans. met out of reserves, or from proceeds of sales. Tumover Tumover represents rental and service charge income receivable, fees receivable and revenue grants receivable from local authorities and other agencies. Also included is any income from first tranche shaBJ ownership disposals and management fees for the factoring of propertie$ for private owners as the provision of factoring services is accounted for on an ongoing basis. Apporttonment of management exn5*S Direct employee adminislr81ion and operallng costs have been apportioned lo the Slalemenl of Comprehensiv& Income on the basis of costs of the staff to the extent that they are dI¢11Y engaged in each of the oporalions dealt vAth in the financial statement$. The costs of cydical and major repairs are charged to the Slalement of Comprehensive Income in the ye in 1¢h they a incurred. Int•rost recglvablo Interest receivable is recognised in the Statement of Comprehensive Income using the effectNe interest rate method. Internst payable Finance costs are charged to the Statement of Cornprehensive Income over the lemi of the debt usiry the effectNe interest method so that the amount charged is al a constant rale on the carying amount Issue costs are inrtially recognised as a reduction in the proceeds of the associated eapilal inslrumenl. Dopreclatlon lil Housing Properties Housing properties are slated al cost, less accumulated depwialion. Each housing unil has been splil between its majgrcomponent parts. Each majorcomponent is depreciated on aslraighl line bas over ils expected economic useful life. The following majorcomponents and useful lives have been identified by the Association. Land not depreciated. Slruelure - over 50 years. Windows - over 40 years. Kitchen - over 20 years. Bathroom - over 30 years. Central Healing Boilers - over 15 years. Central Healing Radiators - over 30 years. During the year the Association revIeed the useful life of components and extended the usefd fire of Cenltal Healing Radiators f rom 20 years lo 30 years and shortened the useful life of Central Heating Boilers from 20 years lo 15 years. 16
MOLENDINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 A¢countlng Policl•s Icont'dl Doprociation Iconvdl lill Other fixed assets The Association's assets are willen off evenly over their expected useful lives as follows.. Off ice property Fumilure, ftlirrJ$ & wuipmenl Computer equipment 2% per annum per annum 33% per annurn A full yearfs depreciation is charged on these assets in the yearof purchase, but no charge is made #i tr year of dispo881. Houslng Prop•rtles Housing propertie5 are slated al cost less acc#Jmulated depreciation. The cost of such properties indwl the followng-. lil Cost of acquiring land and buildings., lill development expenditure including applicable overheads.. and liiil interest charged on the loans raised lo finance the scheme. These costs a either temed "qualifying costs" for approved Govemment grant schemes and are considered formortgage loans by the relevant lending authorities orthey are mel out of the Associ'on'$ ieserves. All invoices and architects. certificates relating to capital expenditure incurred in the year at gross val before retentions are included in the financial statemen15 forlhe year, provided that the dates of IS or valuations are prior to the year end. Works to existing properties 111 generly be capitalised under the following Circumstances.. livl Where a component of the housing property that has been treated separately for depclaI1 purposes and depreciated over ils useful economic life is repl8¢ed or re5tored'. or Iv) ere the subsequent expenditu provides an enhatKement of the economic benefits of the tangible fixed assets in excess of the previously assessed standard of perfomance. Such enhancement can occur if the improvements result in an increase in rental in¢ome, a material reduction in future maintenance c051s or a significant extension of the life of the property. Worf(s to existing properties vthich fail lo meet the above crit&ia are charged lo the Stalemert of comp hensive Income. Expenditure on schemes lCh are subsequently aborted 15 written off in the year in vthich it is Qgr1$? that the scheme wll not be developed lo completion. Impaimi¢nt offjxed assets Reviews for impaim)ent of housing properties are carried out on an annual basis and any impaimenl in an incOmeneratIng unil is re¢ognisgJ by a charge to the Slalemenl of Comprehensive Incom& Impaimenl is wognised there the Carrying value of an in¢ome-generating unil exceed5 the higher of ils nel 811$able value or ils value in use. Value in use represents the net psent value of expeLts future cash flows from these units. Impaimenl of a$sel$ would be recognised in the Statement of Comprehensive Income. 17
MOLENDINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Accounting Policies Icont'dl D8v•lopment administration costs Development adminislralion costs latIng to devdopment activities a capitalised based on an apportionment of the staff time spent directly on this activity. Capilalisation of interest Interest incurred on financing a development is capilalised up lo the dale of practical completion of scheme. Debtors Short tenn debtors are measured al transaction price, less any impaimient. Rentsl arr•a Rental affears presentS amounts due by tenants lor rental of so¢Kql housing properties al the year end. Rental atTears are reviewed regularfy by management and written do lo Ihe amount deem8 recoverab5e. Any provision deemed necessary is shown alongside gross rental arrears in tv)le 13. Cash & cash 6quival•nts and Currènt assèt imi8$tm&nts Cash is represented by cash in hand and deposits wth financial inslibjtions repayablew71hout penaty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no mo than three month5 from the date of acquisrtion and that a readily convertible to known amounts of &4sh wlh insignificant risk ofchange invalue Current asset investments a represented by IDn9-tem deposts with financial institutions repayable after 3 months. Cr•ditors Short temi creditors are measured al the transaction price. Olherfinancial liabilties, including bank baB, are measured initially al fair value, nel ol transaction costs, and are measUd subsequently al amortBaJ cost using the effective Inte$1 method. Financial Instruments The Association only entets into basic financial instruments lonsactions that result in the reCognitn ol financial assets and liabilities like trade and other accounts receivable and payable, loans from barks related parties. Debt instrumen15 (other than those wholly repayable or receivable wlhin one yearl, including loans olheraccoun15 receivable and payable, are initially measured al the present value of the future cash fb and subsequently atamortised cost using the effecb.ve interest method. Debtinslruments that are payab or receivable within one year, typically trade payables or receivables, are measured, initially aTrJ subsequently, at the undiscounted amount of the cash or Other consideration. expected lo be pa K* or received. Hover if the arrangements of a short-temi instrument conslilute a financing Iran$a¢lion. kke the payment of a trade debt deferred beyond nomal business lems oifinanced al a rale of interest th Is ritsl a Maet rale or in case of an oul-righl short-lem loan not * market rate, the financial asset or liability is measured, initially, * the present value of the future cash flow discounted al a market fate of interest for a similar debt instrument and subsequently at amortised cost. Financial assets a derecognised when contractual rights lo the cash flows from the assets expire. or Sthen the As$ocialion has transferred substantially all the risks and rwards of 0ershiP. Financial liabilities are derecognised only once the liability has been extinguished through disehargq cancellation, or expiry. 18
MOLENDINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 A¢¢ounting Pollclès Iconvdl Gov8mm8nt Capital Grants Govemmenl capital grants, at amounts approved by The Scollish Govemmenl or Glasgow City Councl. are paid directly to theAssoaalion as qlsired lo meet 11$ liabilities during Ihedevelopmenl process. Th&e are treated as deferred Capital grants and are released to income overthe useful life of the assets thw relate lo on complelion of the developmont phase. Gov8rnmont Revenue Grants Govemment revenue grants are OgniSed using the accrual method sthich means the Associa))n recogni5es the grant in income on a syslemalic basis overlhe period in vA)i¢h the Association recogrises the related costs for which the 9ranl is intended lo Compensate. Non-gov•mmont capitsl and r•venue grants Non-govemmenl capital grants and revenue grants are recognised using the perfomance model. If I are no perfomance conditions attachecl the grants are ¢99n1$ed a$ income vthen the grants a received or receivable. A grant that imposes specrfic future perfomance related conditions on the recipient is recognisaj a5 revenue only when the perfomiance related conditions are mel. A grant rtceived before the revenue ognitIOn criteria a satisfied is recognised as a liability. Loans Mortgage loans are advanced by financial institutions under the temis of individual mortgage deeds n respect of each property or housing scheme. Advances a available only in SpeCt of those developments whCh have been givenapprovalforGovemment Capital Grant by the S¢ollish Governmw or Glasgow City Coun¢il. Pension Costs (Note 221 The Scotlish Houslng Asso¢latlon Deflned Benellts Pen$lon S¢heme The Association participates in The Scottish Housin9 Associations, Defined Benefits Pension Scheme ISHAPSI and retirement benefils to employees of the Association are funded by the contributions fnm all participating employers and employees in the scheme. Payments are made in accordance wlh periodic calculations by consulting actuarie5 and are based on pension ¢osl$ applicable across the various participating Associations taken as a Ole. The SHAPS is accounted for as a defined benefit scheme and as such the amount charged to ttr Statement of Comprehensive Income in respect of pension cost5 and other post retirement benefits is the estimated regular cost of pro¥Ading the benefits accrued in the year, adjusted to reflect variations from tr cost. The interest cost is included wlhin other finance ¢oslslin¢ome. Actuarial gains and losses arisry from new valuations and from tjpdating valuations to the reporting date are recognised in Other CoMphen$1ve In¢ome. Defined benefit schemes are funded, wlh the assets held separately from the As50Gialion in separate trustee administered funds. Full actuarial valuatiolls, by a professionally qualified actuary, are oblairvj al least every three years, and updated lo reflect Cuent conditions at each reporting date. The pension scheme assets are measured at fair value. The pension scheme liabilities are measured using the projected unil method and discounted al the current rale of relum on a high quality coOrate bond of equivalent lem and Currency. A pension $¢heme asset 1$ recognised on the Slatem$nl of Financial Position only to the exlettt that the surplus may be recovered by redu¢ed future conlribulio orlo the extent th* the trustees have agreed a refund from the scheme al the reporting date. A pension scheme liability is recognised lo the extènt that the Association has a legal or conslruclive obligatpjn to settle the liability. 19
MOLENDINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 Accountlng Poll¢lg$ l¢ont'd) Valu8 added tax The Association de-registered forVATinlhe yearended 31 March 2011. A18rge proportion oflhe incon, namely rents. was exempl forVAT purposes and therefore gave rise lo a partial exemption calculalK>n. Expenditure Is shown inclusive of VAT. Judg8m•nt in applying policies and key sources of uncertainty In preparing the financial $lalements, management is required to make eslimales and assumptior ich affect reported income. expenses, assets. and liabilities. Use of available infonnalion a1 application of jLKlgemenl a inherent in the fomialion of estimates, together wlh past experience afKI expectations of future events that are believed to be reasonable under the circumsta$. Actual re$ults in the future could differ from such estimates. The members of the Board of Management considerthe followng lo be critical judgements in preparing the financial slalemenls.. The calegorision of housing pioperties as property, plant and equipment in line with the requirements of the SORP.. The amount disclosed as 'operaling prolit, is representative of a¢tivilie5 that wiuld nomidly be regarded as 'operating and The idenlificalion of a cash-generating unit for impaimient purposes. The Management Committee are Satisfied that the accounting policies are appropriaie and appl ¢onsislently. Key sources of eslimalion have been applied a5 follow5.. Estimate Valuation of housing properties sls f èsttmation Housing Properties are held al deemed cost 1¢h is based on existing use valuations * the date of transition to FRS 102 of 1 April 2014. The obligation5 under the SHAPS This has relied on the actuarial assumptions of a qualified actuary which have been reviewed and are considered reasonable and appropriate. Additionally, the irnpact of Guaranteed Minimum Pen510n IGMPI equalization is includ&J in the SHAPS defined benefit liabilrty. The main components of housing properties and their useful lives The cost of housing properties is split and depreciated over the expected useful life into separately Identifiable components. These components were identified by kn0edgeab1e and experienced Staff members and based on costing models. Recoverable amount of rental and other trade receivables Rental 8Trears and other trade receivables a reviewed by appropriglely expeNenced senior management team members on a case by case basis wth the balan¢e oulslanding together wlh the payment history of the individual tenant being taken into account. 20
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MOLENDINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 6. Employ 2026 2025 Stsff costs durlng yoar Wages and salaries Pension c0515 Social security costs Temporary or agency staff 567,637 69,678 65,901 39,460 499, 113 61,301 50,467 72,474 742.676 883.355 The total remuneration lineluding pension conlribuiKJns and benefits in kindl paid lo Key Management v are listed on the first page of the financial statements was £235,556 (2025- £223,304). The emoluments of key management (excluding pension contributions and employers, national insurance conlribirtions and including benefits in kindl for the year were £184,122 (2025 £177, 040). Their pensicn contributions forthe year were £25.317 (2025 - £24,343J. Their employers, nional in$urance conlributK) were £26,117 (2025 - £21,921). The average tull lime equivalent number of persons employed by the Associion during the year was.. 2026 No 2025 No 11 11 The Directors are defined as the member5 of the Management Committee, the Director and any other person reporting directly lo the Director or the Management Committee Ose lolal emoluments exceed £60,000 per year. No emoluments were paid lo any member of the Management Committee. 2026 2025 Emoluments payable to Chief Executive (excluding pension conlributionsl arnounled to.. 92.061 88, 520 The Association's pension conliiblrtions forlhe Chief Executive in the year amounted to £14,270 12025 £13. 7271. The number of employees in the year vthose emoluments {excluding pension ¢onlributionsl exceeded £60,000 were as follows.. 2026 2025 £60,001 . £70,000 - £70.001 . £80,000 £80,001 - £90,000 - £90,001 -£100,000 The Chief Ex&utive 15 an ordinary member of the As50cialion's pension scheme as described in note 22. No enhan¢ed or special terms apply lo her membership. 24
MOLENDINAR PARK HOUSING ASSOQIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 31 MARCH 2026 7. Op•ratlng •urplu• Operating s¥1y$ 1$ $laled after Gharging.. 2026 2025 DÈprecialion Auditorfs remun•r4llon 435,691 19,830 445,053 18,360 & Galn on dl8po¥al of fix•d a¥¥•ts 2026 2025 Sale Proceeds Cost of Sales 64,91S {42,4571 Houslng property disposals 22,458 9. Intsmt paybl• and lmllar charg•8 2026 2025 On bank loans and overdrafts Defined benefit pension liability - interest expense INote 221 85,010 12.000 75,534 10,000 77.010 85.534 10. Intsr•st rnG•lvablg and $lrnll*r Incomo 2026 2025 8ank intemsl rnceived 36,003 42,441 36.003 42,441 25
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MOLENDINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 11. Tangible FIX A$ts {Conttnuedl Additions to Housing Properties during the ye*r includes no capilalised inlerest12025 £Ni4 and no ¢aprtalLl administration costs12025- £Ni4. All housing properties are freehold. Properties wth a gross cost of £46,571 (2025 £ Nil) and accumulated depreciation of £12,419 (2025 - £ Nilj have been Lyisposed of in the yearfor net proce&ls of £64.915 (2025 - £ Nil). The proceed5 were before a grant lo be paid of £25,95312025- £ Nio. Included in freehold housing propertie$ 1$ land wlh a historic co$t allocation of £2.477.77112025- £2,470,419). 12. Housin9 Stock 2026 2025 The number of units in Management al 31 March byas as follows". General Needs Housing Shared Ownership HousitYJ Supported Housing Accomrnodalion 467 78 29 466 78 29 574 573 13. Dgbtors 2026 2025 Gross rents in arrears Less.. bad debt provision 67,614 154.0001 TT, 129 f57.(X)OJ 13.614 20, 129 Other debtors Prepayments 110,125 228,032 107,215 67.667 351.771 195.011 14a. Cash and cash gqulvalgnts 2026 2025 Current accounts 1,125.514 890,935 14b. InvgslJn9nts 2026 2025 Balanees held in deposit accounts 872,808 840, 726 27
MOLENDINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 P41ARCH 2026 15. CrltOrS duè vAlhln ono year 2026 2025 Trade creditors Loans Accfuals and deferred income ppaid rent Other creditors Deferred Govemment Capital Grant$ 329,168 1S3,S67 56,819 152,397 78,769 229,999 158,390 755,212 68,021 142,263 139,420 238,080 1,000.719 901, 386 seCud creditors 153.567 155,212 Pension contributions of £Nil12025- £Nin are outstanding. No amounts a due in respect of other taXan and social security (2025.. £Nil)). 16. Creditors duè aftsr mor• than onè y•ar 2026 2025 Housing loans 1,317.469 I, thf. 109 Secured creditors 1,317.469 1,504, 109 The Association's lenders have standard securities over housing property wth a carrying value of £9,395,779 12025 £72, 787, 490) 2026 2025 In one year or less Be£en one and two years Belb%een two and f ive years In five years or more 153,567 65,819 189,404 1.062.246 155.212 162,559 177, 194 1, 164,356 1,471,036 1, 659,321 The loans are advanced lo finance the development and refurbishment of housing properties and are payable by monthly inslalmenls of principal and inte$1. The loans bear Inte$t at varying rates. 28
MOLENDINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 17. Dgfgrr•d eapltal gran18 2026 2025 Deferred capitsl grants at 1 April Received In yèar Released to incorne in year Grants disposed ol in year SA47,949 66,388 1229,9991 117,6481 5, T86,029 1238,080) D•lerred capital grants at 31 March 5,366,690 5,547,949 In oné year or less Beeen one and years Beb¥gen Iwo and livè yoars In live years or more 229,999 229,999 689.997 4,216,695 238,Q80 238,08Q 714.24Q 4,351,549 Total 5,366,690 5,541.949 18. Share capital 2026 2025 Shares of £1 fully paid and is$ued al bèginning of ya8r Sha$ issued during year Shares canc911gd during yoar SS 55 Shar85 15suod at and of year 55 Eac* memberof theAs8ociation holds ono share of £1 in the Asstsci8bon. Thèsè sharescarry no rights trj dividend or distrbuts'onson a winding up. Wnen a shareholder ceases lo be a member, that person's share is cancelled and amount paid thèrèon bècomes the property of the Associatson. Each member has a right to vote at members. meets.ngs 19. N•tcash flow from oporating actlvltlos 2026 2025 Surplus for the year Adlustm•nts for non-cash It•ms: Carrying amount of tsngible fixed asset disposals Dèprsaaknon ol tangible fixed assets including loss on component disposals IlncreasèllDécrÈa5è in tr8dè and other debtr>rs Incase}(DeCreasel in trade and other creditors Net Intèrèst chargè in rèspèctof thè definèd benefit pension liability Staff Servi costs in respect of the defined benefit pension liability Adjustments for invèsting and Ilnanclng aettvltios: Intere51 payable Interest reiVed Release of D8ferrvd GovernrT7ent Capital Grants SHAPS past Servi defial payment Proceeds from sale of fixed asse Forfeited Share capital 559,015 333,672 34,1S2 435,690 1156,7601 109,059 12.000 123,0001 448.642 (31.027J 726,415 i0.0(K) (16,000) 65,010 136,0031 1247,8471 75,534 (42,441) (238,08Q) 164,9151 Netcash inflow from operating a¢b'vi)$$ 686.601 666.715 29
MOLENDINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 20. L8gislativo Provl$ion$ The Association is incorporated under the Co-operative and Community Benefit Societies Act 2014 and was incofporaled in Scotland. 21, Transacllons with rnlatsd paTl•s and Key Managemgnt Personnèl There are 5 members of the Committee that ¥%ere tenants of the Association during the year 12025 There were also 1 members who are shared 0er$ (2025 - OJ. The tenancies and oc¢upan¢y a9reernenls of these Cornmittee members are on nom731 temis and the members eannol use Iheir po$ition to their advantage. There were also 2 members vtho were a factored ow)er (2025- 3?. The total nI and seNice charge payable in the year relating lo tenant and shared oymer members is £34,045 (2025 - £36.073J. The total rent and seNice arrears relating lo these members included wlhin debtors at I year-end is £107 12925 - £125). The lolal faeloring 5erwices charges payable in the year lo factored owners was £3,727 (2025 - £3, 841) and deblors at the year end d$ £859 (2025 - £2,633J. 22. Retlrement Benefit Obligations Gengral Molendinar Park Housing Association participes in the S¢ollish Housing Pension Scheme (the Scheme). The Scheme is a rnullimployer defined benefit scheme ¥thich provides benefits lo some 150 non-associa employers. The scheme is funded. The Scheme offers six benefrt stwctures to employers, namely,. Final salary wlh a 1160th accrual rale {Final Salary)., Career average revalued eamings wth 8 1160th accrual rate {CARE 1160th . Career avèrage valued eamings wlh 8 1170th accrual rale (CARE 11701h Career average revalued eamings wth a 1180th accrual rate ICARE 11801h Career avwage revalued eamings wth a 11120th accrual fate (CARE 11120th) contracted in.. and Defined Conlnbution (DCI An employer can elect lo operate different benefrt slru¢bJres fortheiractive members las at the fitst day of Aprf n any given yearl and their new enlranls. The OC option can be introduced by the employeron the first day of ary month after giving a minimum of three months. prior notice. MoletKlinar Park Housing Asso¢ialion elected to close the final salary wth a 1160th accrual rale for existirg employees wth effect from 1 July 2021. Current participants of the firial salary 1160th ¥%tre transferred into either CARE 1160th CARE 11801h or DC. Future employees are only eligible for enrolment into the DC structure. The Trustee cornmissions an actuarial valuation of the Scheme every three year5. The main purpose of the vdualion 15 to delerrnine Ihefinancial position of the Scheme in order to delemine the level of fijture conlribulw) required. so that the Scheme Can meet rts pension obligations as they fall due. The actuarial valuation assesses ether the Scheme's assets al the valuation date are likely lo be suffic4ert to pay the pension benefits accrued by members as at the valuation date. Asset values are calculated by reference to marf(et values Ac¢wed pension benefits are valued by discounting expected futu benefit payments usiry a discount rale calculated by reference lo the expected future investment retums.
MOLENDINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 22. Retirem•nt B•n•fit Obligation$ l¢onVdl During the accounting period the Associalionpaid ¢onlributions allhe rates of 11.60% ICARE 11801hl & 15.50% {CARE 1160th) and 12% (DCI of pensionable salaries. There were no annual employer past service deliat contributions Inel of administration costs) as these ceased after 30 September 2022 (2025- £Nil). As at the balance sheet dale there s%ere 4 active membets of the Defined Benefit Scheme structures and 7 a¢live members of the Defined Contributions Scheme employed by the Association. The last triennial valuation of the Scheme vrds carried out as at 30 September 2024 by a professionally qualrf actuary using the Projected Unil cdit method. The marf(et value of the Scheme's asse15 at valuation dale was £689m. The valuation revealed a shortfall of assets compared nth the value of liabilities of £79.5m lequivalenl to a past service funding level of 90°AI. A new Recovery Plan has been put in place to eliminate Ihe deficit. this wll run frorn 1 April 2026 until to 31 March 2030 forthe majority of employers. although certain employe Yrfill have different arrangements. The next full actuarial valuation wll be for 30th September 2027 and wll be finalised later in 2028. The Scheme Actuary prepared an Actuarial Report that provides an approximate upd*e on the funding position of the Scherne as at 30th September 2025. Such a report is required by legislation for years in which a ftjll actuarial valuation is not carried out. The funding position revealed a decrease in the assets to £626m and a decrease in liabilities lo approximately £686m. equivalent lo a past service funding level of 91%. Forac¢ounling purposes, a valuation of the scheme was carried oui y¥ilh an effective dale of 30 September 2025. The liability figures from this valuation were rolled forward for accounting year-end$ from 31 March 2026 to 28 February 2027 inclusive. The liabilities are compared, at the relevant accounting date, wth the company's fa share of the Scheme's lolal assets to calculate the company's net deficit or surplus. The SFNPS defined benefit pension $¢heme 1$ a¢¢ounled foras a defined benefit pension scheme from 1 Ap 2018 onwards. In a¢cordan¢e 1th FRS 102 section 28. the operating and financing Costs of pension and post retirement schemes Idetennined by TPD are recognised separately in Ihe Statement of Comprehensive Income. Service cost5 are 3yslematically spread over the service lives of the employees and financing costs are recognised in the period in lch they arise. The difference between actual and expected retums on assets during the year. including changes in the actuarial assumptions. is ¢09n1$ed in Other Comprehensive Income. At 1 April 2018 on initial QgnitIon of Ihe mulli-employer defined benefit $¢heme, the opening adjuslmenl made was £144,633 to recognise a nel pension liability estimate of £361,000 as al 1 April 2018. 31
MOLENDINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 22. Retirement Benefit Obligations Icontinuedl Present Valu of dgfined b8ngftt obllgatlon. falr value of a$$ets and d&fined beneffit liability 31 March 2026 £'ooo 37 Ma 2025 £9 Fair value of plan assets 1,521 1,464 Present value of defined benefrt obligations 11.679) (1,673J Dgfingd benafit Ilablllty to bo racognlsed 1158 (209) Roconclllatlon of openlng and closlng balancas of tha defingd bBnefit obllgauon Year &nd8d 31 March 2026 £'ooo 11,6731 Y&ar ended 31 March 2025 Defined benefit obligation at start of period Current service cost Expense5 Inte$1 cost Contribution by plan parti¢ipanls ActLJarial gainsllosses dLJe to scheme experience Actuarial {Ios5es}Igains due lo changes in demographic assumptions Actuarial gains due lo charrfJes in financial assumptions Benefits paid and expenses (1, 706) f6J {31 1971 1241 31 118) 38 68 (83) (23) (744) 226 66 D¢finod bongfit Ilablllty at the ond of the p•rlod 11.6791 (1,673) 32
MOLENDINAR PARK HOUSING ASSOCIATION IK)TES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 22. remOnt Benefit Obligations {continu8d) R8conciliation of opening and closing balances of the fair value of plan assgts Year ended 31 March 2026 £'ooo Year ended 31 Mah 2025 £'Ot Fair value of plan assets al start of the period Interest income Contributions by Ihe employer Experience on plan assets lex¢luding amounts included in interest income) ContribLrtions by participants Benefits paid and expenses 1,491 73 25 85 27 (82) 23 166) 24 1681 Falr valuè of plan a88ets at ènd of rIOd 1,521 1,464 D•fin8d benefit costs recognised in Statement of Cornprehensive Income Year •nded 31 March 202$ to 31 March 2028 £'ooo Year ended 31 March 2019 to 31 Mah 2025 Current servi¢e ¢ost Contributions Nel interest expense 12 to Totsl 0rang charge 16 79 Ngl intsrest cosl 12 70 Dgfined benefit Costs recognised in Other C¢mpr¢hen$ive Income Year endgd Ygar gnded 31 March 31 Mah 2026 2025 Experience on plan assets {excluding amounts included in nel Inte$t costi {Ios5ygain Experience gains and Ilos$esl arising on the plan liabilities gain Illoss) Effects of changes in the demographic assumptions underfying the present value of the defined benefit obligation - Ilossllgain Effects of changes in the financial assumptions underlying the present valui of the defined benef il obligation gain (82) (144) 31 118> 38 226 Total amount rncognis8d in other CoMpren91ve income - gainloossl 40 33
MOLE14DINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 22. Retirement Benefit Obligations Icontrnuedl Fund allocation for employ•rf8 ¢al¢ulat•d sharg of a$sets 31 March 2026 £'ooo 31 March 2025 £000 Global Equity Liquid Allemative Currency Hedging Private Equity Real Assets Insurance-Linked Securities Property Cash Secured Income Liability Driven Investment Nel Current As$els Private Credit Credit Investment Grade Credit 201 291 170 270 151 175 79 72 21 419 23 196 69 34 472 183 62 67 Total As8ets 1,521 1.464 The main financial assumptions used by the Scheme Actuary, TPT, in their FRS 102 calculations are as follows.. Assumptlons as at 31 March 2026 Yd par annum Discount rate Inflation IRPII Inflation {CPII Salary gr0h Allowance for commutation of pension for cash al retirement 6.14% 3.290 3.03% 4.03% 75% of Maximum Allowance The mortality assumptions adopted al 31 March 2026 imply the follo%%ing lrfe expectancies.. Llfg gxpgCtan¢y at age 65 lygar¥l Male retirirKJ in 2028 Female retiring in 2026 Male retiring in 2046 Female retiring in 2046 22.9 21.9 24.4
MOLENDINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 P4lARCH 2026 22. Retirement B•notit Obllgatlon$ l¢onUnuedl Life expectancy is based on the Fund's Vitacurves with improvements in line with the CMI 2017 model with an allonce forsmoolhing of recent mortality experience and long tem rates of 1.25% p.a. for males and 1% p.a. for lemales. Member dats Summary A¢ve member8 Number Total &aming$ I£'OOOs p.a.) 92 Average agè lunvKi9htodl 54 47 Males Females Totsl 176 Deferrod mgmbors Numbgr Doforred p•nslons £'OOOs p.a.) Average ag• {unweightedl 59 53 Males Females Total 12 Pen8loners Nurnbor Pon$ion$ I£'OOOs p.a.) 22 46 68 Averag¥ ago (unV1ghtsd} 76 68 70 Males Females Totsl Employers. debt on Nvithdrawal Following a change in legislion in September 2005 there is a potential debt on the employer that could be levie<l by the Trustee of the Scheme. The debt is due in the event of the employerceasing lo participate in the Scheme or the Scheme wnding up. The debt for the Scheme as a thole is calculated by comparing the liabililiesforthe Scheme {calculaled on a buy-out basis i.e. the coslof securing benefits by purchasing annuity policies from an insurer. plus an allowance for expense$l wth the assets of the Scheme. the liabilities exceed assets the is a buy-out debt. The leaving employeff s share of the buy-out debt is the proportion of the Scheme's 1Sabilily attributable to employment 1th the leaving employer ctsmpared to the lolal amount of the Scheme's liabilities Irelaling to employment wth all the employers). The leaving employers debt therefore includes a share of any 'orphan' labilities in respect of previously participating employers. The amount of the debt therefore depends on many fac1015 IncludirYJ lolal Scheme liabilities, Scheme investment performance, the liabilities in respect of current and fomeremployees of Ih$employer, financial conditions allhe tirne of the cessation event and the insurance buy-out rnaet. The amcunls of debt can Ihereftsre be volatile over time. The Association has been notified by TPT Retirement Solutions of the estimated emplgyer debt on thdral from the Scherne based on the financial position of the Scheme as at 30 September 2025. As of this date the eslimaled employer debt for the Asso¢iation was £404,223 {2025.. £519,671. 35
MOLENDINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 23. Continnt liabilities The Trustee has carried OLrt a VIeW comparing the benefits provided lo Scheme members with the requirements of the Scheme documentation 11 has received legal advice that there is Sufficient uncertainty iegarding the effect of some benefit changes that the Court should be asked to provide clarity, lo provide the Trustee wlh the certainly il nefjds lo properly administer the Scheme. The Court hearing concluded in March 2026, with the Court's delemiinalion expected no eadier than the summer 012026. After this, the Twslee and its advisers wll consider the OLrtcome and comrnunicale next steps to empltsyers. Depending on the outcome of the hearing, it may be necessary lo ask further questio of the Court lo clarify certain dItIOnal points. Should th& Court decide that the historic benefit chatYJes reed lo be applied differently. then some member benefits would need to be increased, vthich would increase the value placed on Scheme liabilities. No allowance has been made for potential additional liabilities wthin the eslimale provided above.