Each year I comment on the growth of the Association and how it continues to add to the Financial Base. This year can also confirm that steady growth has taken place during the financial year as the Association has added 13 properties to its portfolio.

As we continue to grow so does our turnover and it is now significant that I can report an annual turnover of £1,035,938, an increase of 7% from the previous year. With little loss through void and bad debt plus low current tenants’ arrears, I am indeed happy to report that the association continues to operate on a sound financial basis.

Income is only one side of the equation. The association continues to monitor its spending wisely and budgets set by the Board of Management in March 2005 have been adhered to over the financial year. The result was that the Association surplus for the year-end was £122,038. Although this was below the predicted surplus the difference can be mainly accounted for by the unexpected cost to us of £22,000 interest charged by the Department of Social Development against Housing Association Grant. This was recouped from a payment they made to us in 1995.

The continued growth in stock is reflected in the increase of the Association’s fixed assets. These are made up, mainly, of the Association’s housing property nett of Housing Association Grant and these rose by 6% in the financial year. There was, however, an increase in net current liabilities, mainly because of an increase in creditors due at the year-end. This increase reflected the Association’s borrowing commitment at the end of the financial year for the advance purchase of development land.

Increased land and property prices have again played a vital role in the Associations cash flow and, in particular, at the year-end. Although most development can be financed internally from working capital we are have to resort to external finance earlier to ensure or cash flow does not suffer. This in turn means we have to pay interest charges on loans earlier in the cycle of development. I am confident, however, that this is not impacting on our long-term goals.

The statutory house sales scheme continues to develop and during the year 14 sales have nearly completed out of over 100 applications. I envisage a slow down both in the number of house sales applications and the total sold mainly due to the high increase in market values of our properties. These market values are shown in our current new build programme with very high land and property costs which will lead to high historic costs for the sales scheme. As we are not allowed to sell below the historic cost of the property for the first ten years after completion, it is inevitable that this will have a knock-on effect on those tenants wishing to purchases their homes.

It is vital to record our appreciation to those who have worked in the background ad ave helped to make the association successful. The Department of Social Development continues to sponsor our capital development programme, while the first Trust Bank and Bank or Ireland continues to assist, support and finance the Association. RTJ Ross, our external auditors, provide not just a statutory service, but continue to help us with invaluable advice on accounting, taxation, systems and other matters. We remain very appreciative to all of them and, of course, to all the staff within the association.

Overall responsibility for the Association’s activities rests with a Board of voluntary members, drawn from the public and private sectors. The essential functions of the board include defining the values and objectives of the Association, establishing policies and plans to achieve these objectives, taking significant strategic and financial decisions and monitoring performance. The board also establishes and oversees a framework of delegation and procedures ensuring that the Association affairs are conducted lawfully and in accordance with regulatory requirements. They are supported by two sub-committees.

Financial accounts and numbers can be used to clearly show that the Association continues its planned steady growth. Further success, however, is measured by the positive impact we have on the housing needs of our current and potential tenants. This years tenants satisfaction survey has shown that our tenants perception of our organization are as high as ever, and with that planned steady growth we will hopefully continue to have a positive impact on many more rural dwellers lives in years to come.

Sean Gallagher
Honorary Treasurer


:: Financial Performance 2005/2006
:: Financial Performance 2004/2005
:: Financial Performance 2003/2004