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 (Co￿pted 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 Ch*ng•s In C*plt*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$lng Regulator Housln9 (Scotlandl Act 2010 Reglstered Number HAL 274 Scottish Charity Number SC043725 MOLENDINAR PARK HOUSING ASSOCIATION REPORT OF THE MANAGEMENT COMMITTEE {INCORPORATING THE STRATEGIC REPORTI FOR THE YEAR ENDED 31 MARCH 2026 The Managementcornmitteepres￿tstheiTrepOrt(in¢OrptySt1rQ the Strategic Reportland audited finanual statemen& the year endèd 31 March 2026. Prfnclpal aclfvlty Th8 principalactivityoftheAsso(¥akn'onisthe provs¥)n, cor6tru¢tk)n, imrxO￿rnent, and Tnan3￿m￿t0frenIed. shar￿ and shared ownership accommodation. The Associats"on became a regISte￿d charity In January 2013. Bu8lne$s reV￿W The linanThal ststernents sot out tha As$ociation's results lor the year. This Business review gives an overview ol our ptrrf0man￿during 2025r2W26,the progresswehave rnade foTtenantsand re￿dÈnts. and Ihe prioritiesshaping ourw¢ as we look ahead. has been a p05itivey8ar forlh8 A850fi8t'on.with strong outo)mesdeliveredalongsith a stableoperats.ng posit'on.Thi% was supported bythe re-elecbon ofthe As$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 (￿£) 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 Ma￿h 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 Ma￿h 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 - Chal￿ersOn 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 0￿rating 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 CU￿nI 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 a￿roUnded 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 ￿giSte￿d 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 prePa￿d on the historical cost basis of accounting subject lo the revalu*ion 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 fo￿seeable 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 ex￿n5*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 revIe￿ed 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 gener*ly be capitalised under the following Circumstances.. livl Where a component of the housing property that has been treated separately for dep￿claI￿1 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 incOm￿eneratIng 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 p￿sent 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 measU￿d 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 reCognit￿n 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. Ho￿ver 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 Ma￿et 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 0￿ershiP. 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 wh￿Ch 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 CoMp￿hen$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 Cu￿ent 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 co￿Orate 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 a￿1 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 calegoris*ion 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 kn0￿edgeab1e 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 1111- (ryo) ¢yO I Irj p ) o) 15& 81 Ill j I, LU￿)￿￿tI ujw • ULL C)U)Urs Inc￿ase}(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 re￿iVed 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 0￿er$ (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 particip*es in the S¢ollish Housing Pension Scheme (the Scheme). The Scheme is a rnulli*mployer 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 c￿dit 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￿$1 cost Contribution by plan parti¢ipanls ActLJarial gainsllosses dLJe to scheme experience Actuarial {Ios5es}Igains due lo changes in demographic assumptions Actuarial gains due lo charrfJes in financial assumptions Benefits paid and expenses (1, 706) f6J {31 1971 1241 31 118) 38 68 (83) (23) (744) 226 66 D¢finod bongfit Ilablllty at the ond of the p•rlod 11.6791 (1,673) 32 MOLENDINAR PARK HOUSING ASSOCIATION IK)TES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 22. ￿￿remOnt Benefit Obligations {continu8d) R8conciliation of opening and closing balances of the fair value of plan assgts Year ended 31 March 2026 £'ooo Year ended 31 Ma￿h 2025 £'Ot Fair value of plan assets al start of the period Interest income Contributions by Ihe employer Experience on plan assets lex¢luding amounts included in interest income) ContribLrtions by participants Benefits paid and expenses 1,491 73 25 85 27 (82) 23 166) 24 1681 Falr valuè of plan a88ets at ènd of ￿rIOd 1,521 1,464 D•fin8d benefit costs recognised in Statement of Cornprehensive Income Year •nded 31 March 202$ to 31 March 2028 £'ooo Year ended 31 March 2019 to 31 Ma￿h 2025 Current servi¢e ¢ost Contributions Nel interest expense 12 to Totsl 0￿ra￿ng charge 16 79 Ngl intsrest cosl 12 70 Dgfined benefit Costs recognised in Other C¢mpr¢hen$ive Income Year endgd Ygar gnded 31 March 31 Ma￿h 2026 2025 Experience on plan assets {excluding amounts included in nel Inte￿$t costi {Ios5ygain Experience gains and Ilos$esl arising on the plan liabilities gain Illoss) Effects of changes in the demographic assumptions underfying the present value of the defined benefit obligation - Ilossllgain Effects of changes in the financial assumptions underlying the present valui of the defined benef il obligation gain (82) (144) 31 118> 38 226 Total amount rncognis8d in other CoMpre￿n91ve income - gainloossl 40 33 MOLE14DINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026 22. Retirement Benefit Obligations Icontrnuedl Fund allocation for employ•rf8 ¢al¢ulat•d sharg of a$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$els Private Credit Credit Investment Grade Credit 201 291 170 270 151 175 79 72 21 419 23 196 69 34 472 183 62 67 Total As8ets 1,521 1.464 The main financial assumptions used by the Scheme Actuary, TPT, in their FRS 102 calculations are as follows.. Assumptlons as at 31 March 2026 Yd par annum Discount rate Inflation IRPII Inflation {CPII Salary gr0￿h Allowance for commutation of pension for cash al retirement 6.14% 3.290 3.03% 4.03% 75% of Maximum Allowance The mortality assumptions adopted al 31 March 2026 imply the follo%%ing lrfe expectancies.. Llfg gxpgCtan¢y at age 65 lygar¥l Male retirirKJ in 2028 Female retiring in 2026 Male retiring in 2046 Female retiring in 2046 22.9 21.9 24.4 MOLENDINAR PARK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 P4lARCH 2026 22. Retirement B•notit Obllgatlon$ l¢onUnuedl Life expectancy is based on the Fund's Vitacurves with improvements in line with the CMI 2017 model with an allo￿nce 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 (unV￿1ghtsd} 76 68 70 Males Females Totsl Employers. debt on Nvithdrawal Following a change in legisl*ion in September 2005 there is a potential debt on the employer that could be levie