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 – continuing activities
3a Association – continuing activities
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
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
At the beginning of the year, the Executive Team was expanded with the new role of Executive Director of Development. Penelope Metcalfe worked for settle in the prior year, but was not an executive director.
During the year, an amount of £26,175 (2020: £10,200) was paid to Housing Association Charitable Trust (HACT), which is a not-for-profit charity, of which Gavin Cansfield is the Chair of the Board. settle works with HACT on a range of initiatives to support the organisation's development during challenging times for the sector. Gavin Cansfield received no financial benefit from these transactions nor was he involved in the decision to commission HACT.
The emoluments of the highest paid director, the Chief Executive, excluding pension contributions, were £197k (2020: £185k).
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 aggregate remuneration for key management personnel, which includes the executive directors and other members of the senior management team, charged in the year is:
The tax assessed for the year is lower than the standard rate of corporation tax in the United Kingdom at 19% (2019: 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 settle's subsidiary is removed. Association therefore holds assets under construction at a £431k higher value than 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. This valuation does not include uncharged properties.
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 2021. The Group’s investment properties have been valued by Stuart King from 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 holds 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 (NHH) Limited.
The investments are charged as security for the Group’s £86.3m bond with Harbour Funding Plc and are held by Royal Trust Corporation of Canada, the bond trustee on behalf of the Group. The investments were revalued at 31 March 2021 and are recorded in the accounts at the market value £5,615k at that date (2020: £7,428k).
The principal undertakings in which the Association has an interest in are as follows:
18 Properties for sale
