This year has very much been another year of positive growth for the Association in what I would describe as one of the most challenging years for the Association since its formation in 1992. It therefore pleases me more that I am able to report a highly successful year, not only in financial terms, but I am also pleased to report that the Association has been more than successful in rising to the many challenges. Within the year under review we have proved its adaptability and it’s willingness to change to suit the ever changing Statutory and Financial environment within which it operates.

Growth is important to an Association of our size and given the introduction of the Statutory House Sales Scheme, spiralling land prices and planning problems it was an excellent performance to add 15 new properties to our stock in areas of very high demand for social housing. Although tempered by the sale of 17 of our houses to tenants through the Statutory House Sales Scheme, leaving a net loss of 2 properties, we did see an increase in our turnover for the year of 13%.

This year I am happy to report that the Association continues to operate on a sound financial basis. Rising income has also been reflected by lower operating costs. With sound management our rent loss due to empty properties has fallen to £1039 and current tenant rent arrears continue to decrease in percentage terms.

I am therefore happy to confirm that the surplus for the 2006 – 2007 Financial year is £264414 which leaves the Association now with a sound Revenue Reserve of £1169760.

The continued addition of stock is not reflected, however, in an increase of the Association’s fixed assets. The fixed assets which are made up of mainly the Association’s housing property net of Housing Association Grant, increased only slightly over the year due to the effect of the disposal of 17 properties to sitting tenants. I am confident this will not be repeated in 2007 - 2008

Increased land and property prices have again this year played a vital role in the Associations finances. We have had to use our own reserves and external finance to push schemes forward but planning and other external factors delays have been unavoidable. As a result our interest payments on our current and loan accounts have been significantly higher than normal. To ensure this does not happen again the Association has now decided to cut back on buying land at risk.

The only accounting policy that has changed during the year is related to the accounting of the final salary or “defined benefit pension schemes”. For the first time this year our financial statements include a long term creditor for pension liability. In accordance with the accounting practise outlined in the FRS17 a qualified actuary has calculated the liabilities.

Also this year saw our first house sales being accounted for in our statements. Monies received through the house sales are ring fenced in our Disposal Proceeds Fund, and if not used for certain types of development within 3 years of receipt, have to pay back to the Department of Social Development. It is a key aim of the Association to ensure all such monies are used quickly to secure further homes for the social housing sector.

Overall responsibility for the Association's activities rests with our Board of Management. The Board is made up of unpaid voluntary members who provide their expertise and time to ensure the successful running of the Association. 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 the Association's performance. The Board also establishes and oversees a framework of delegation and procedures ensuring that the Association's affairs are conducted lawfully and in accordance with regulatory requirements. The Board of Management is supported by two sub committees which meet at regular intervals.

The purpose of the Audit Sub-Committee is to ensure that the Board of Management places particular emphasis upon its responsibilities for financial reporting, audit (both internal and external) and control. It is responsible for overseeing and reporting to the Board of Management on the financial reporting process, the external audit, accounting and internal control systems of the Association and the internal audit function. The Development Sub Committee oversees the wok of the development department.

Last year’s report noted that over 100 applications were received under the Statutory House Sales Scheme. By the end of this financial year 17 House Sales Completions had taken place. As can be seen from our turnover, this happily has not had a marked effect on our main revenue stream. I anticipate that the incoming year will see a marked slow down in these sales and with continued steady development our overall stock numbers will rise once again.

With another successful year in operation the Association is mindful of the help and assistance that has been provided by its many interested partners. We continue to be grateful for the financial advice and support from the First Trust Bank who are now our key financiers outside the public sector. As always we are indebted to Department of Social Development and the Northern Ireland Housing Executive who sponsor and approve the financing of our capital development program.

This year again we have had invaluable advice given to us on accounting, taxation, systems and other financial matters by our external auditors, RTJ Ross, for which we remain very appreciative. .

Sean Gallagher
Honorary Treasurer


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