Notes to the Financial Statements 3-18

Note 3 Particulars of turnover cost of sales, operating costs and operating surplus Note 4 Accommodation in management and development Note 5 Operating surplus Note 6 Surplus on sale of fixed assets – housing properties Note 7 Interest receivable and other income

Note 8 Interest and financing costs Note 9 Employees Note 10 Board members and executive directors Note 11 Key management personnel Note 12 Tax on surplus on ordinary activities Note 13 Intangible fixed assets

Note 14 Fixed assets – housing properties

Note 15 Tangible fixed assets – other

Note 16 Investment properties

Note 17 Investments

Note 18 Properties for sale

3 Particulars of turnover cost of sales, operating costs and operating surplus

3a Group

3a Association

3b Particulars of income and expenditure from social housing lettings Group and Association

3c Particulars of income from non-social housing lettings

4 Accommodation in management and development

At the end of the year accommodation in management for each class of accommodation was:

5 Operating surplus

The operating surplus is arrived after charging/ (crediting):

6 Surplus on sale of fixed assets – housing properties

Group & Association

7 Interest receivable and other income

8 Interest and financing costs

*This relates to the redemption fees for the part redemption of Harbour Funding bond.

9 Employees

Average monthly number of employees expressed as full-time equivalents (FTE) calculated based on a standard working week of 37.5 hours:

Employee costs:

Some of the Association’s employees are members of the Local Government Pension Scheme (LGPS) or the General Stakeholder Scheme. Further information on the LGPS is given in note 27. The full time equivalent number of staff who received remuneration, inclusive of loss of office, but exclusive of pension contributions:

10 Board members and executive directors

Executive directors

Executive director dates: *1 from 10/09/2018 to 10/08/2021, *2 from 01/08/2021, *3 from 01/10/2018 to 26/11/2021, *4 from 20/06/2022, *5 from 02/11/2021 to 26/06/2022, *6 from 04/07/2022, *7 from 04/10/2021 to 08/07/2022, *8 from 18/07/2022, *9 from 01/05/2020 to 22/07/2022

Board members

11 Key management personnel

The aggregate remuneration for key management personnel, which includes the executive directors and other members of the senior management team, charged in the year is:

12 Tax on surplus on ordinary activities

The tax assessed for the year is lower than the standard rate of corporation tax in the United Kingdom at 19% (2020: 19%). The differences are explained as follows:

13 Intangible fixed assets

14 Fixed assets – housing properties

Group – housing properties

The Group note contains an intercompany adjustment wherein the profit made by settles subsidiary is removed. Association therefore holds assets under construction at a £431k higher value than settle Group. There are no other differences.

The housing property stock is held at cost, at each year-end the stock is externally re-valued by Jones Lang LaSalle using EUVSH valuation method.

Expenditure on works to existing properties

Social housing grant

Finance costs

Impairment

The Group considers individual schemes to be separate Cash Generating Units (CGU’S) when assessing for impairment, in accordance with the requirements of Financial Reporting Standard 102 and Housing Statement of Recommended Practices.

15 Tangible fixed assets – other

16 Investment properties

Investment properties were valued as at 31 March 2023. The Group’s investment properties have been valued by Davies King professional external valuers. The full valuation of property was undertaken in accordance with the Appraisal and Valuation Manual of the Royal Institute of Chartered Surveyors as follows:

The Group hold two residential properties to enhance development opportunities, these have since been rented as market rent properties with the intention to sell once the development opportunities have materialised.

17 Investments

settle, the Association, owns all £100 of the issued share capital of Rowan Homes (NHH) Limited.

The investments within the Debt Service Reserve are charged as security for the Group’s £64m bond with Harbour Funding Plc and are held by Royal Trust Corporation of Canada, the bond facility agent on behalf of the Group. The investments were revalued at 31 March 2023 and are recorded in the accounts at the market value £5,868k at that date (2022: £5,622k).

The principal undertakings in which the Association has an interest in are as follows: