MHA Annual Accounts 2014/15 by Monmouthshire Housing Association

ANNUAL ACCOUNTS

2014-15

Contents

Members, Executives & Advisors

Report of the Board

Review of the Year

Statement of the Boardâ&#x20AC;&#x2122;s Responsibility

Statement of Internal Control

Report of the Independent Auditor

Income & Expenditure Account and Statement of Total Recognised Surpluses & Deficits

Balance Sheet

Cash Flow Statement

Notes to the Financial Statements

Monmouthshire Housing Association

Other Formats Please contact the Corporate Services Team on 01495 761104 or corporateservices@ monmouthshirehousing.co.uk if you require this document in PDF, large format, another language, braille or audio format.

Annual Accounts 2014-15

Monmouthshire Housing Association

Members, Executives & Advisors

Annual Accounts 2014-15

The following people served on the Board during the year: Tenant Members

Ken Bucknall (Resigned July 2014)

David Gregory

Judith Langmead

Pip Williams (Appointed September 2014)

Gary Witcombe (Appointed September 2014)

Lynette Bonar (Resigned July 2014)

Council Members

Peter Clarke

Ann Webb

Monmouthshire Housing Association

Sue White

Alan Wintle

Independent Members

Andrew Martyn- Barry Gallagher Johns (Chair)

Lynnette Glover

Andy Jones (Appointed September 2014)

Alan Davies (Resigned May 2014)

Executive Officers

John Keegan Chief Executive

Ian Atkinson Steve Higginson (Resigned May Director of Resources & 2015) Director of Deputy Chief Property Services Executive

David Morris Director of Housing & Communities

Registered Office Nant Y Pia House, Mamhilad Technology Park, Mamhilad, Monmouthshire, NP4 0JJ

Independent Auditor Mazars LLP, 45 Church Street, Birmingham, B3 2RT

Principal Solicitors Trowers and Hamlin, 3 Bunhill Row, London, EC1Y 8YZ

Principal Bankers Barclays Bank Plc, 57 Frogmore Street, Abergavenny, NP7 5AT Annual Accounts 2014-15

Monmouthshire Housing Association

Report of the Board

Annual Accounts 2014-15

Report of the Board The Board is pleased to present its report and audited financial statements for Monmouthshire Housing Association Limited for the year ended 31st March 2015.

Results for the Year Monmouthshire Housing Association (‘The Association’) became operational with effect from 21st January 2008 upon the transfer of stock from Monmouthshire County Council following a successful ballot of tenants. The balance sheet is showing net assets of £14.3 million, which is a combination of a cumulative revenue reserve of £18.3 million, and a deficit in the Association’s main pension scheme of £4.0 million. During the year, the Association spent £6.4 million on major repairs works and these costs

Monmouthshire Housing Association

have been capitalised in the Association’s balance sheet. The long term plan is currently formulated on a cash basis and shows cash deficits in some future years. The decision to capitalise major repairs is consistent with the current Statement of Recommended Practice (SORP). The deficit in respect of the pension scheme liabilities has arisen due to the Association’s participation in a defined benefit scheme. Financial Reporting Standards require the Association to provide, at the balance sheet date, for the full deficit in respect of future liabilities of the pension scheme net of the aggregate value of the scheme assets.

Principal Activities Monmouthshire Housing Association provides housing and support to local communities within the county of Monmouthshire.

The Board

Annual Accounts 2014-15

Monmouthshire Housing Association

Review of the Year

Annual Accounts 2014-15

Review of the Year The financial year 2014/15 saw the Monmouthshire Housing Association Group made up of Monmouthshire Housing Association (MHA) and its trading subsidiary Capsel Limited continue to maintain and improve its financial strength.

We also carried out other external maintenance work to over 650 homes which included: • External decoration to 91 properties completed by our subsidiary company Capsel. • Decoration of internal communal areas to 70 flats and 4 communal lounges. • Upgrading work to paths, gates, hardstandings, fencing and boundary walls at 444 properties. • Replacement roof covering to 261 homes.

The year also saw the Association achieve a number of significant accreditations and positive reviews of its business which are detailed in this report.

Maintenance Planned Maintenance Update for 2014/15 Since the completion of our Welsh Housing Quality Standard Programme in 2012/13, the focus on planned maintenance work has changed from internal work to improving the quality and external appearance of our properties. During the year our Direct Services Organisation (DSO) and external contractors carried out external wall insulation to 51 of our traditionally constructed properties which were suffering from severe frost damage and water penetration.

External wall insulation (EWI) to traditional bungalows at Chestnut Close in Magor

External wall insulation (EWI) to traditional houses in Charles Close in Abergavenny

Monmouthshire Housing Association

External wall insulation (EWI) to traditional houses at Old Barn Way in Abergavenny

Upgrading work to boundary walls, fences, gates and paths in Abergavenny

Welsh Housing Quality Standard Kitchen for a three bedroom house

Upgrading work to boundary walls, fences, gates and paths

Our own Direct Services Organisation has continued to upgrade and refurbish the internals of properties mainly where tenants have previously opted out of the work but either changed their minds or vacated the property. During the year 91 properties in total were upgraded and the work included:

During 2014/15 our Direct Services Organisation also built extensions on another eight existing bedsit bungalows at The Bryn and Dumfries Close, Llanfoist, converting them into one bedroom bungalows.

â&#x20AC;˘ The refurbishment of 41 kitchens and 67 bathrooms. â&#x20AC;˘ The replacement of 86 central heating boilers together with associated central heating upgrades.

Annual Accounts 2014-15

Rear extension to a bedsit bungalow in Llanfoist under construction

Rear extension to converted bedsit bungalow at The Bryn under construction

Rear extension to converted bedsit bungalow at The Bryn

Monmouthshire Housing Association

We also carried out a garage/carport programme which included: • The demolition of 8 redundant garages to provide additional car parking. • The refurbishment of 42 existing garages and carports. • The demolition and renewal of 40 dilapidated garages.

Garage renewals at Betjeman Avenue, Caldicot

During the year we invited tenants having internal work carried out on their homes to complete a “Your Views” satisfaction survey form. Of the 93 forms handed out 39 were returned representing an overall return rate of 42%. The average satisfaction rating was 99%, the target being 97%.

The following are some of the comments received on the “Your Views” forms.

“The workmen who worked on our property were all hard working, very polite and worked well as a team. The work carried out has been very good, everything put back in its place and better than it was when they first started. All we can say is thank you to the men for all their hard work and for their understanding of our needs.” Mr & Mrs Skipp, Limetree Avenue, Wyesham

“I have no worries about the contractors. The men are great and go out of their way to help. Very polite.” Mr Salubi, Brynglas, Gilwern

Recently decorated flats at Langham House, Chepstow, completed by Capsel

“Very reassuring. The work was carried out to a very high level. Very nice workers. Polite at all times. Very helpful. Can’t praise them enough. Work done with pride.” D. Edwards, Dan y Deri, Abergavenny Annual Accounts 2014-15

Direct Service Organisation (DSO) Performance This was another busy year for the DSO across all work streams. Responsive Repairs We completed over 8% more repairs than in the previous financial year with the same workforce of skilled trades operatives and management/administration staff. The town/ trade job scheduling process continues to improve efficiency and reduce fuel consumption. The appointments system has been very successful with 97% of all urgent and routine jobs having a date and time agreed with the tenant, and over 94% of these appointments were met. Getting the job completed “right first time” is a key target for the DSO and we achieved 93% of all responsive repairs to this standard.

Voids Although the total number of voids completed was lower than the previous year, the DSO still completed refurbishment work on almost 300 properties. Over 90% of these were completed within the target time and the average turnaround time has reduced significantly. The DSO is working closely with the Voids Team within Housing and Communities to further reduce the turnaround times while improving the lettable standard and controlling costs. The average void cost in 2014-15 was around £1,400 per property.

Heating Services The percentage of properties with a gas-fired boiler that had a current landlord’s safety certificate was maintained at above 99.5% for

Monmouthshire Housing Association

most of the year. We introduced an injunction process for instances where the tenant would not allow access and although we had to go to court on three separate occasions to obtain an injunction, it was not necessary to complete the legal process as the tenants were then persuaded to allow access. Following the installation of a new gas pipeline to Llanelly Hill by British Gas, the DSO installed new gas-fired heating systems in 22 Association homes with a further 8 planned. This has provided the tenants with more efficient heating systems. At The Bryn, several of the existing bedsits have been converted into one bedroom bungalows and air source heat pumps have been installed as part of the refurbishment package as there is no mains gas in the area.

Electrical Services Following the decision by the Association to install carbon monoxide alarms in all properties, although it is not yet a legal requirement, the DSO has commenced a programme of fitting the units to provide tenants with extra peace of mind. The department is also carrying out a rolling programme of periodic tests which will cover all MHA properties within the next few years.

Bedsit Conversions A number of bedsit bungalows at The Bryn were identified as being unfit for modern living and the decision was made to construct extensions to provide separate bedrooms. The DSO completed a further 5 bungalow conversions in 2014-15 and also converted a disused Community Hall into a two bedroom bungalow. As well as building the extension, we installed new kitchens and bathrooms, new air source or oil-fired heating systems, renewed the roofs and other upgrades. Some of the existing tenants moved back in and some new tenants have arrived.

Some of the DSO Team

Annual Accounts 2014-15

External Wall Insulation & Roofing the DSO Manager, with a number of team At Chestnut Close, Magor, a number of bungalows were suffering with long-term problems to the external brickwork. The solution was to install external wall insulation to each bungalow, wrapping them in a warm coating with a smooth render finish. This has improved both the appearance and provided tenants with a significantly warmer home, reducing heating bills. While this work was carried out, the DSO team also renewed the roof coverings and installed new gutters and downpipes. This investment has resulted in a completely modern look for a small estate that was beginning to look tired.

External Clients The Association provides a full package of management, support and maintenance services to the residents of Cwrt William Jones, Monmouth, which is a modern block of 24 flats owned by Bristol Charities, with whom we have recently signed a 3 year service level agreement. The DSO has also started providing repair and maintenance services to Abbeyfields, a provider of extra care housing for elderly persons throughout the UK. They have a number of properties spread across South Wales and we are negotiating to provide services to all of them. The DSO has continued to tender successfully to provide disabled adaptations to private owners in both Torfaen and Monmouthshire. In 2014-15 we completed 6 in Torfaen and 6 in Monmouthshire.

DSO Restructure This was undertaken to make the DSO more efficient and commercially aware, with better cost control so that value for money can be measured. The management team were re-organised with the loss of two Project Manager posts and the introduction of a new Cost Surveyor. There are now Operations and Performance Managers reporting directly to

Monmouthshire Housing Association

leaders providing the service delivery.

Development Monmouthshire Housing Association had 6 projects under construction during the 2014/2015 year and a strong pipeline of projects programmed for the next 3 years. Additionally, MHA is looking to deliver on a number of Monmouthshire’s 60:40 (60% affordable & 40% private sites) along with entering into a deal to acquire new properties via Section 106 agreements with developers on projects across Monmouthshire. The scheme to provide 20 older person’s apartments and a dozen 2 & 3 bed houses for market sale is due for completion in July 2015. The sale of the houses was positive with all twelve of the units being sold “off-plan”.

St David’s Road, Abergavenny The scheme to replace obsolete garages is due for completion in September 2015. The development seeks to provide a mix of 1 & 2 bedroom accommodation for some tenants of MHA affected by the bedroom tax who are looking to downsize.

West End School, Caldicot The former school site was purchased by MHA from the Council in October 2014, with construction commencing in March 2015. The project to provide 16 new-build houses and flats – as well as an adapted bungalow – will be completed in April 2016.

Bungalow at Sandy Lane, Caldicot Capsel commenced work on constructing a wheelchair adapted bungalow in Caldicot during the early part of 2015. The project is due for completion in October with the tenant moving from accommodation that no longer meets their needs.

St Davidâ&#x20AC;&#x2122;s Road, Abergavenny

Annual Accounts 2014-15

Housing & Communities Neighbourhood Services Rent Management: Neighbourhood Officers have continued to provide a holistic service to our tenants and communities. Throughout the year, they have built strong relationships of trust with tenants to enable them to maintain their tenancies and overcome problems or issues as they have arisen. This has been particularly important when supporting tenants affected by various welfare reforms. For tenants affected by the bedroom tax, Neighbourhood Officers have enabled tenants to access Discretionary Housing Payments to make up shortfalls between their income and the increased rent payable due to under-occupation. We have also assisted tenants to downsize by accessing MHA’s Smart Move scheme and exchanging with other tenants. Neighbourhood Officers have also helped tenants access appropriate support, including making referrals to both our in-house Money Wise and Work and Skills Wise services. By working closely with our tenants, we have ensured that our rent arrears have remained below the 2% target and our evictions have been kept significantly under our 0.25% target for the year.

Monmouthshire Housing Association

Tenancy Management: This year we carried out a robust and thorough review of our current tenancy management service, ensuring the service is accessible, fit for purpose and meets the needs and expectations of our tenants. This review was wide-ranging and included all aspects of tenancy management, including issues such as hoarding. As a result of the review, all neighbourhood staff have attended refresher training, ensuring they are empowered and have the skills/tools they need to deliver the new service. The service itself will be launched in the new financial year. Estate Management: As well as ensuring that estate management complaints are dealt with swiftly and appropriately, the Neighbourhood Team have taken a proactive approach to some of our neighbourhoods this year, through specific clean up and “swap” days. We have also worked closely with Asset Management to facilitate the delivery of an extensive garage programme. This programme has seen a number of garage sites being redeveloped and refurbished and will continue into the next year. The Maintenance Team have made significant progress in delivering the Associations’ Welsh Housing Quality Standard (WHQS) environmental programme. This programme aims to make physical improvements to the environment within our communities, in consultation with tenants and stakeholders living within them. Results of this programme have included flower and vegetable beds, car parking, fencing, patios and other improvements which have made the areas more attractive places to live.

Case Study

Tenant A was struggling financially due to being subject to the bedroom tax and faced significant challenges from ex-family members. When we met with Tenant A she had decided to place her child into foster care for her own wellbeing and this, along with her financial worries, had taken a toll on her health, causing her to be too unwell to work. A Neighbourhood Officer and Money Wise Advisor worked closely with the tenant to address the financial issues and also enable her to downsize into a smaller property. The ongoing work and support from the two officers meant Tenant A was able to regain control of her circumstances, return to work and more importantly, have her child living back with her – a positive result for all involved.

Case Study

We were receiving persistent complaints of low level anti-social behaviour between two neighbours in one of our areas. The main factor which had led to their relationship breakdown was differing lifestyles. Issues escalated and despite numerous interventions including support and mediation, the problems kept recurring, resulting in health implications for both parties. We worked intensively with both parties and local agencies to resolve the situation. This resulted in facilitating a move for the family to a 3 bedroom house with which they were delighted! We didn’t stop there though. To ensure that the same situation didn’t reoccur, we worked closely with Homesearch to re let the property as a sensitive let with specific criteria. The new neighbours have now moved in and they have already initiated a good relationship with their neighbour. This intervention has resulted in significant changes in the wellbeing of both tenants, with the remaining tenants stating; “Just met my new neighbours and wanted to say what a delightful couple they are. I am sure they will be very happy living in this block of flats. I have offered to help with any assistance I can. I am so pleased that I have now contacted my doctor with a view to discontinue my antidepressant tablets. I am now sure that my health will improve ten-fold.”

Annual Accounts 2014-15

Impact of Welfare Reform

Future of Welfare Reform

The Association’s Smart Move scheme was launched in June 2013 to assist tenants who are under-occupying their property to downsize to a smaller property. The scheme is targeted at tenants affected by Welfare Reform and older tenants occupying family accommodation. Tenants are eligible for a payment of up to £1,000, which helps to pay towards removal costs and clear any outstanding debts. Since the scheme has been running, we’ve helped 35 tenants to downsize and we’ve committed to helping a further 25 tenants next year. Of the tenants assisted so far, 76% have been affected by welfare reforms and been able to move to a smaller property of their choice.

Tenants have made good use of the variety of support services and schemes that the Association has in place to mitigate the impact of welfare reforms, particularly in light of under occupation penalties. The year has shown a rise in demand for more long term and intensive support with tenants. Direct payment demonstration projects have shown a demand for increased support which will be inevitable under Universal Credit. Preparation for its introduction is under way, The Association is developing its own Direct Payment Pilot scheme.

Are you ready for Universal Credit?

The UK Government is changing the way people receive their bene (YBAC) has been set up to inform people about these changes and need it.

What is Universal Credit? Universal Credit is the name of a new monthly payment that will replace a number of current benefits and tax credits. These include Housing Benefit, Child Tax Credit, income-based JSA, income-related ESA, Income Support and Working Tax Credit.

How is Universal Credit different from my current benefit payment?

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• You’ll get one monthly payment for your whole household.

• Housing Benefit will be included in this payment and you’ll have to pay your rent to your landlord yourself.

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MHA0313 Universal Credit Tear Off Flyer.indd 1

Monmouthshire Housing Association

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• Universal Credit will be paid into your bank account.

• You will have to apply for and manage Universal Credit online.

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comprehensive schools. The Association’s Community Safety Team run workshops aimed The prevention of ‘anti-social behaviour’ (ASB) at school leavers alongside other agencies in is a core element of the Association’s business. the Heddlu Gwent Police Schools programme. Registered Social Landlords have a duty to tackle anti-social behaviour affecting tenants Wider community issues are also tackled and residents in our communities. with an ASB injunction being obtained on a member of a gang who was taking Following a re-structure of the Housing advantage of several of the most vulnerable and Communities Directorate in 2011, the in our communities. A total of nine Association established a specialist antiinjunctions were obtained against members social behaviour team, renamed in 2013 as of one family, restoring peace to one of our the Community Safety Team (CST). The CST neighbourhoods. deal with cases designated from the outset as urgent, which includes complex and Early intervention and partnership working domestic abuse cases and those that require remains key to our approach, even more so legal or tenancy enforcement action. Support with the advent of the ASB Crime and Policing is provided to the Neighbourhood Teams Act 2014. who deal with all non-urgent ASB cases that Service Performance can be dealt with via housing management intervention and other remedies in line with In 2013, the Association achieved the Association’s ASB policy and procedure. accreditation from both the Welsh Government and Housemark for its ASB The Neighbourhood and Community Safety Service. After scrutiny of all aspects of Teams have dealt with 226 cases of ASB our service by Housemark, a continuous in 2014-2015. Of these cases, noise is the improvement plan was put in place for most consistent complaint. In addition to 2014/15. Of the tasks identified in the sophisticated noise monitoring equipment, continuous improvement plan, 88.5% are new technology in the shape of a noise complete, with the remainder being carried phone app will be utilised in the year ahead. forward to 2015/16. Domestic abuse is the second highest recorded type of ASB. This is dealt with by the A suite of performance indicators are used to Community Safety Team who are trained, and monitor and measure performance relating have achieved a level of expertise in this field. to levels of ASB case resolution, duration and customer satisfaction. Quarterly reports are They work in partnership with a number of produced by the Senior Community Safety agencies, including the police, to safeguard, protect and support tenants and households. Officer to analyse performance and identify areas for improvement. During 2014-15, the CCTV equipment has been successfully used target set for closing cases as resolved has to protect the most vulnerable tenants. been consistently met. Since Housemark accreditation was achieved Satisfaction levels have been recognised in 2013, the scope of the Community Safety as an area for improvement, and a new Team has broadened. Prevention of noise method of collating the data in line with nuisance, anti-social behaviour and misuse recommendations from the Scrutiny Panel of drugs & alcohol work is undertaken and research by the Senior Community Safety throughout Monmouthshire in local Officer is being piloted in Quarter 1 2015/2016.

Anti-social Behaviour

Annual Accounts 2014-15

The average time taken to deal with an ASB case for the year is well within target, averaging 49 days in 2014/2015, showing continuous improvement when compared to 59 days in 2013/14 and 85 days in 2012/2013.

of the month. Cases worked on during the month but closed within the period would not be included giving a false impression of workload. Therefore “closed in period” has been included in the breakdown opposite:

Year

Target days for ASB resolution

Average days for year

Month/ New Live Closed Team cases in cases in in period period period

2014/2015

49 

January

2013/2014

59 

North

2012/2013

85 

South

CST

North

South

CST

North

South

CST

Separate targets apply to the Neighbourhood and Community Safety teams due to the nature of each Team’s casework. Legal and complex cases undertaken are often necessarily protracted. The neighbourhood target stands at 40 days and the CST target stands at 80 days which will remain for 2015/16. There has been a drop in the number of domestic abuse cases reported to us by the police due to issues with consent and data protection legislation. As these cases are generally closed early, they bring about a reduction in the average time taken to close by the CST. A new post of Domestic Abuse Project Manager for all Gwent Registered Social Landlords has been created. One of the initial tasks will be to work with the police to ensure that, where appropriate, cases are referred to the relevant housing provider. The Association’s publication ‘Tenant Matters’, Facebook and Twitter are also being used to inform tenants of services we provide in relation to domestic abuse etc. In terms of definition, “new cases” cover the period of a month, “live cases” are ongoing at a moment in time, specifically the last day

Monmouthshire Housing Association

Total

February

March

The Community Safety Team

Annual Accounts 2014-15

Homesearch Homesearch has continued to administer Monmouthshire’s Choice Based Lettings Scheme on behalf of the partnership which consists of Charter HA, Melin HA and Monmouthshire County Council. This year, the Homesearch Partnership extended to Derwen HA and United Welsh HA. In January 2015, Homesearch celebrated its 100th cycle. In 2014-15, 1,706 new applicants registered on the Common Waiting List and 436 applicants were housed through Homesearch, 81 of these were homeless households. During this period, Homesearch helped to identify potentially vulnerable applicants and made referrals to Monmouthshire Council’s Housing Solutions Team as well as ensuring appropriate and timely referrals were made for housing related support. An annual review of the Letting Departments quotas with the Monmouthshire Homesearch Partnership saw the quota for homelessness applicants reduced to 20%, matching the trend in social applicants. 55% of quota is now allocated to Homeseekers with 25% to tenants. At the end of March 2015, 6% of

Monmouthshire Housing Association

applicants were excluded from the waiting list for either ‘unacceptable anti-social behaviour’ or for ‘significant rent arrears’ with their current or former social landlord. Homesearch has been supporting and preparing new tenants for the introduction of Universal Credit, working with Neighbourhood Officers to identify applicants who are suitable for the Direct Payment Pilot scheme. Since it started, 34 new tenants have been identified and referred. Monmouthshire Homesearch remains an accessible service for all. So far this year, the website has had a total of 2,375,869 hits and is now the preferred method of registration for housing. Online is also the preferred method for bidding on properties with 93% of applicants using this method, 2% applying by text and 5% with staff assistance through telephone calls. Homesearch offers an assisted bidding service. The service has been set up to support those with additional vulnerabilities, around 1% of applicants are receiving this service. In the last 12 months, the Homesearch scheme achieved an excellent result, obtaining ‘Green’ status from Service Matters who provide the Association’s internal audit service.

The Homesearch Team

Leasehold Management The Association has 265 leaseholders who have bought flats under “Right to Buy” and each year MHA conducts a satisfaction survey to gain valuable feedback regarding the services they receive. The 2014/15 survey results showed encouraging levels of satisfaction and the table below makes a comparison with the previous year’s results: Question How satisfied are you with your neighbourhood as a place to live? How have you been affected by ASB or neighbour nuisance in the last 12 months? How informative is the new leaseholder handbook? How satisfied are you that MHA listens to your views and acts upon them? * How helpful did you find the member of staff you contacted? How satisfied are you that the service charges give you value for money? How satisfied are you with the overall service provided by MHA?

2014/ 2012/ 2011/ 2015 2013 2012 67% 78% Not Asked Not 40% 54% Asked Not 90% 86% Asked 56% 55% 49% Not Asked 68%

79%

82%

67%

82%

77%

Not Asked 72%

*Worded slightly differently to previous years. In April 2014, the Association held its first leaseholder conference, which included guest speakers, exhibition stands and a cross-section of staff available to answer any queries. Attendance by leaseholders at this conference proved to be disappointing (only 18 turned up). Consideration is now being given to holding leaseholder focus groups – some leaseholders have already expressed an interest in this.

Leaseholder Conference 2014

Annual Accounts 2014-15

Financial Inclusion

Money Wise Stats Money Wise provides face to face advice to tenants assisting in debt, energy and benefit advice. With the introduction of bedroom tax and a number of changes to the benefit system, the team has been busy responding to your queries.

488

PEOPLE HELPED

Tenants have been helped over the course of the year:

Applications for Welsh Water Assist were made

BENEFITS HELP

CLAIMING & SAVING HELP

Tenants were support with making Personal Independence Payment applications

£357,172

Tenants were assisted with energy switching

Tenants wanted support with understanding their finances and were assisted with budgeting advice

Applications were made for Discretionary Housing Payments – for those that were affected by Bedroom Tax

£5,864

Tenants were assisted with Warm Home Discounts

142

Tenants needed assistance with benefit matters

Appeals for made on behalf on tenants who were refused of DHPs

£2,050

Was the total amount Money Wise assisted in claiming Benefits and saving money:

Was saved via gas and electricity switching

Was saved by helping tenant change to water meters

£3,220

£7,386

£88,715

Was saved by making application for Warm home discounts

Was saved via Welsh Water Assist

Was saved via Housing Benefit application and backdates.

£249,936*

£19,682*

£13,890*

£53,271*

£15,059*

£8,580*

£51,017*

£61,390* Pension Credit

£27,046*

Other grants and debt related savings

£169,982

£107,366

£62,616

Was claimed on behalf on tenants relating to the following benefits:

Attendance Allowance

ESA

ARREAS

In arrears at the start of Money Wise intervention

DLA & PIP

JSA

In arrears at the end of intervention

Working Tax credits

Income Support

Reduction in arrears

*Projected over the year

Monmouthshire Housing Association

Case Study

A referral from the Neighbourhood Team was made to Money Wise as the tenant was affected by the Benefit Cap. A Discretionary Housing Payment (DHP) application needed to be made as the tenants Housing Benefit had been reduced to 50p per week. Prior to the Benefit Cap, the tenant’s Housing Benefit was £84 per week, which covered all the rent apart from water rates of £6 per week. In addition to the reduction in their Housing Benefit, they had a further reduction in their overall benefits of £80 per week. The case concerned a large family with both parents affected by long term illness. Arrears at the start of Money Wise intervention were £949,

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with the tenant subject to a court order. We arranged for a Discretionary Housing Payment application to be made to assist the family with the cost of their rent. An application for Personal Independence Payment (PIP) for the tenant’s deteriorating health was also made. The tenant now receives £10 per week in DHP, which reduces how much the tenants needed to pay towards their rent. They were also awarded the daily living component of PIP, at the standard rate of £54.45 per week and received a back payment of £491. As someone in the household was now in receipt of an award of PIP they are no longer subject to the Benefit Cap and the tenant is no longer affected by the reforms. An amount of £778 was back-paid in Housing Benefit and the tenants rent arrears were partly cleared. The arrears at the end of Money Wise intervention were £59.

Annual Accounts 2014-15

Inclusion Services

Work & Skills Wise Stats The Work and Skills Wise service helps tenants with finding employment and learning new skills. This year we have worked with 164 tenants and 52 young people, including:

164

Tenants have engaged with the MHA Work & Skills Wise Service

Young people were helped into employment

Laptops were loaned via our laptop loan scheme

Young people have engaged with the MHA Work & Skills Wise Service

People were placed into volunteering roles

Coffee and computer training group sessions were held

Monmouthshire Housing Association

Tenants were helped into employment

ÂŁ4,845

Worth of bursaries were gained via external agencies to help tenants move towards the labour market

100

1-2-1 appointments for getting online support were offered

Case Study

Customer shopping online in tenants own words.

Coffee and Computers in tenants own words

“My story starts with no knowledge and no confidence whatsoever. I had a laptop that had been in a cupboard for 3 years. Then, one day, I received a flyer from MHA advertising the new Web Wise service, so I gave MHA a call.”

“Big Chat came to my house and asked me a few questions which included whether I used the internet. Then I received some flyers about Coffee & Computers, so I called the number provided for more information. I had been given a laptop as a gift but had never really used it.

“Cath and Farida came out for an initial visit. We got the laptop out of the cupboard and we spent a few sessions together where I was learning more and gaining more confidence.”

MHA invited me to tea, coffee and biscuits with Julia and other tenants to discuss what we wanted. I had a few sessions with Julia, then Terry came in for about 6 sessions. We “My confidence in using the laptop has had the first sessions at St Cadoc’s, then improved greatly, as I was scared to death of it moved to the Fellowship Hall as St Cadoc’s at the beginning. I can now do online grocery was closing. Scott picked up the sessions after shopping which helps no end as I have Terry finished.” mobility issues. I’ve also been able to search for information on products that can improve “The sessions have been great socially, my mobility, quality of life and general feeling meeting with others for a couple of hours of wellbeing.” a week. I’ve been feeling very frightened of being left behind but now I feel that I will be able to live independently for longer. I’m having an operation soon and these sessions have given me the opportunity to keep in touch with people during my recovery.”

Annual Accounts 2014-15

Case Study

Way into Work programme The Association have been delivering the Way into Work programme, funded jointly by the DWP and Monmouthshire Youth Service. This is designed for 18-24 year olds who are seeking employment. Two tenants, who were a couple, were referred to the programme. Tenant 1 wasnâ&#x20AC;&#x2122;t too sure what area of work he wanted to go into but specified that he would prefer manual work, while Tenant 2 was interested in catering or customer service work. Both were nervous about reading and writing skills and were dyslexic. The tenants were affected by the bedroom tax having one spare bedroom. Both tenants were supported with creating

Monmouthshire Housing Association

their CVs, meeting employers, interviewing and job searching techniques. Due to the tenantâ&#x20AC;&#x2122;s dyslexia, they required more dedicated support resulting in one-to-one supervision being given to them. Both tenants positively engaged with the programme and excelled in the two week volunteering placements which were arranged for them. Tenant 1 did his work experience at the Association through the Direct Services Organisation, on a roofing project. Tenant 2 volunteered with the Cooperative Supermarket as a Store Assistant. They both received excellent feedback from their placements. The Cooperative was so impressed with Tenant 2 that they extended her work experience into a work trial. Both tenants have subsequently now found employment with the Cooperative and have reported an increase in confidence and are no longer affected by the issue of the bedroom tax.

2014/15 we provided an additional 19 dispersed alarms to vulnerable tenants. As well as providing support to those who Alarms provide the security of a 24 hour need us in our Sheltered (Enhanced) Schemes, emergency response, helping to provide the Safe Hands floating support service safety and security whilst promoting for older people has provided support to a independence. We provided an additional 50 further 80 people in Monmouthshire during pendants to tenants living in schemes with a 2014/15. hard wired static alarm – thus providing more independence. We have provided a range of ongoing activities at a number of key (hub) schemes. We started modernising our existing These have included Fit4Life exercise classes, community alarm service by a programme of tea dances, an older persons’ youth club, replacement with up to date technology in regular Passion for Life cafes and various the form of Tunstall VI dispersed alarms. In our ‘Gwanwyn’ (Age Cymru) events. Funding has satisfaction survey (Feb 15), 96% of tenants been provided from a number of sources receiving the Older Persons Support Service such as Sainsbury’s Community Fund and (Safe Hands) said they would recommend the Usk in Bloom as well as core funding from service to a friend or relative. the Association. There have been 1,144 individual attendances at these activities Monmouthshire Housing over the 12 month period. Of attendees, 64% Association (MHA) Resettlement were Association tenants with the remaining Scheme 36% being older people from the local The Resettlement Scheme supports tenants communities. who are subject to a statutory homeless duty Community Alarms from the local authority and need assistance to gain skills to fully maintain their tenancies In April 2014 we were providing 1,300 in the future. community alarms to our tenants. During

Health & Wellbeing

Annual Accounts 2014-15

Case Study

Prior to being supported by the Resettlement Scheme, S had been living in a bus in a Monmouth woodland area for approximately 10 years and had been asked to leave by the council. S then went to live on the Sugarloaf Mountain in a tent; with no means of heating, washing or cooking. S then applied to the local authority who allocated him a priority banding for accommodation. He was placed in an MHA property and was referred to the Resettlement Scheme for support. S was previously addicted to amphetamines and was alcohol dependant, for which he received no support. S had never had his own tenancy and, due to being homeless for a long period of time, he did not have any appropriate skills. S was very anxious about moving into his own home and was apprehensive when engaging with the support services. S had no confidence in sustaining his tenancy, often feeling that it was too much responsibility and that he was able to manage better when he was street homeless. S was employed part time by the Big Issue. He was not claiming any other benefit and was on a very low, non dependable income. S was struggling financially to maintain a tenancy including utilities, rent payments and food. Due to S being classed as self-employed, he was unable to access the Discretionary Assistance Fund to apply for household essentials. We applied for a Raven House grant for non-electrical items. The Association agreed to subsidise the £40 charge on S’s behalf, due to his financial vulnerability. The Resettlement Service completed a Vicar’s

Monmouthshire Housing Association

Trust Relief Grant of £250 for a cooker. S suffers with mental health issues, including depression and anxiety. Together we completed a PIP application and he was awarded £54.34 per week to supplement his income. We also applied for Employment Support Allowance as he works 16 hours per week for Big Issue, allowing him to receive an additional £121 per week. S’s confidence has grown daily as the service created an individual support plan tailored to his needs including assisting him with budgeting plans, which enable him to be in control and be independent in his own home creating skills. S will continue to use these skills throughout his tenancy to hopefully become even more independent by reporting repairs. S declined support with substance misuse but, during this time, his confidence was growing and as well as sustaining his tenancy he began to slowly reduce his alcohol intake and self-medicate with help from his GP. Looking at the outcomes achieved, S previously would not prioritise bills. He now manages money well, pays all utilities as well as budgeting for food and essentials. He has gone from feeling anxious and not wanting to stay in the property, to having a fully furnished home he is now proud of and wants to sustain. S is now engaging well with mental health services. He also has been drinking less and now self-medicates as he feels less anxious. He is now more trusting of people as, when he was street homeless, he suffered a lot of abuse including being urinated on and beaten up. He feels safe and secure in his own home. S has sustained his tenancy well, his rent payments are all up to date, is budgeting well and not over-medicating as he is now proactively engaging with his GP and mental health services.

Community Investment Projects 2014-15 Poppy Project

In 2014 the Association launched the Poppy Project to coincide with the centenary of the First World War and the 70th Anniversary of the D-Day landings. We asked if any tenants in our complexes would like a poppy or wildflower area on their grounds and tenants in Old Hereford Road, Abergavenny and The Lawns and Chestnut Close, Magor were keen to get involved.

Digital Storytelling Pupils from Caldicot School History club worked with Association tenants from The Lawns to produce a DVD of digital storytelling. The short films use photos to illustrate the stories and memories of the two world wars recounted by the 10 tenants who took part. The group discussed their experiences and compared lives for young people now and during the Second World War and then conducted and recorded interviews. Many new friendships across the generation gap were formed and a celebration showing of the DVD was held at Caldicot School. Girls United

In May staff from MHA dug and sowed two plots at the rear of Old Hereford Road as part of the organisations Give and Gain Day. They gave a pleasing show of both poppies and wildflowers.

In October 2014 the Association launched In June, tenants from The Lawns and Chestnut the “Girls United” project aimed at young Close worked with Keep Wales Tidy, volunteers women (aged 15-25) living in Caldicot and the and pupils from Magor Church in Wales Primary surrounding area. The project aimed to create School to create five plots around the site. On the opportunities for young women to become day of the sowing, schoolchildren and tenants more engaged in their community and address got together to discuss the wars and to look issues specifically facing them in Caldicot that at memorabilia. There were many experiences may become barriers to well-being, good and family histories shared before the sowing health and future success. The core participants and planting began. Despite sowing the seeds attended regularly and were committed to the slightly late, there was still a good show of project from the outset. Participants completed flowers. monitoring questionnaires periodically to assess their development of confidence, self-esteem, The existing flowers will be cut back and practical skills, knowledge, and soft skills. As a encouraged to self-seed so they will come back result of the project, all of the young women again for the tenants to enjoy. reported increased confidence, leadership skills, Mrs Smith of The Lawns said “The project is going future aspirations and self-worth. They reflected very well, the children were great and the flowers upon the importance of the group to provide a space to share and discuss important issues, feel have come out lovely and looked very pretty. We are hoping for a better show of poppies next safe, valued, part of a team and to make new friends. year.” Annual Accounts 2014-15

Making a Difference Awards

Summer Activities

The Association held the fifth annual “Making a Difference” Awards ceremony at The Glen Yr Afon Hotel. The calibre of nominations was very high and the project group, which comprised of previous award winners, found it difficult to choose the winners for the eight categories. All the awards were sponsored and presented by different companies. Individuals and groups were recognised for their contributions to their communities and neighbourhoods as well as for personal achievements achieved through studying, volunteering and gaining employment. The ceremony was followed by live music, a buffet and an opportunity to have fun photos taken with family and friends.

Summer Activities in Abergavenny and Caldicot took the theme of a Family Festival, with a variety of workshops designed to engage the whole family. Each session was themed and included Bollywood dancing, steel drumming, making ‘Bee B&B’s’ and ‘Bug Hotels’, doing experiments, free play, creative crafts and sports. Having a variety of different options meant that there was something for everyone and the sessions were planned to be accessible to children of all ages, so that whole families could join in the fun together. The sessions culminated in two big Celebration of Summer Events, which gave families the opportunity to have fun together and take part in a range of activities such as face painting, badge making, crazy golf, outdoor table tennis, felt crafts, bike maintenance, and balloon modelling. They also provided an opportunity for parents to find out more about the services the Association offers around employment, learning, and money management, as well as the work of partner organisations.

Monmouthshire Housing Association

Give and Gain Day

Dads Can

Give and Gain Day is an annual national event which encourages employees to volunteer on projects across the UK on the same day. It is facilitated by Business in the Community and the aim of the day is to celebrate:

Dads Can is a project funded by The Big Lottery for 5 years and hosted by MHA to support the transition of young men to their roles as fathers. The project has now been running for 18 months and has extended its boundaries to include Newport as well as Monmouthshire.

‘The power and potential of employee volunteering across the world. By getting unprecedented numbers of people out volunteering on one day, we’re championing the talent, skills and energy found in business and the role it can play in helping communities prosper’. The Association took the decision to participate in ‘Give and Gain Day 2014’ and staff from across the Association were encouraged to become involved in a number of different projects across the County. These included submitting ideas and suggestions for projects, volunteering on the day, or becoming project leads for specific teams. 45 members of staff were involved in the process with 36 volunteers taking part in seven projects across the county on the day. Activities included creating wild flower beds, repainting planters, reweaving willow structures, creating an outdoor play kitchen, planting raised beds and decorating a centre in a child friendly fun way.

The team have connected with 68 dads between the ages of 14 and 25 and have provided 273 hours of one-to-one support. The website has been accessed by 2,693 individuals from across the globe. Young Dads are choosing to connect with ‘Dads Can’ through Facebook & Twitter, which allows them instant access to the team and the opinions of other dads. 15 dads have requested help with writing their CV and 7 of these have now found work. The statistics only show a small part of the impact individual participants have felt. For some this has been quite life changing, with access to their children being granted, long term substance abuse being tackled and employment becoming a reality. “I found it very helpful to be able to talk through my family situation with someone who wasn’t judging me, and who could help me to see other views.”

Annual Accounts 2014-15

Tenant Empowerment and Engagement Tenant Empowerment and Engagement has continued to go from strength at The Association with a range of involvement opportunities. The groups outlined below enable tenants, residents and leaseholders to get involved in many areas of the Association’s business, from helping to edit and produce the tenant newsletter to scrutinising and inspecting the way the Association operates. The Association’s service users really are at the heart of everything we do. The team of two, the Tenant and Resident Involvement Coordinator and Tenant and Resident support Officer ensure that tenant participation is mainstreamed across the whole organisation and they equip the volunteers with the necessary skills to carry out their roles. The Tenants’ Forum and Steering Committee continues to be at the heart of everything we do. The challenge, as set out in the new Engagement and Empowerment Strategy 2015-18, is to develop more informal methods of engagement. This will help attract a wider range of views from our tenants, residents and leaseholders which can influence the decisions being taken by the Managers, Senior Management Team and the Board of MHA. Monmouthshire Housing recognises that tenants who want to be involved in Tenant Engagement activities, need to be equipped to make a meaningful contribution that can really influence the direction of the organisation. Over the last year, tenants have been involved in both external and internal training programmes. Externally, tenants have attended training courses run by TPAS Cymru and, internally, tenants have taken part in a new training programme designed in-house, which has been produced to reflect their own volunteering roles within the engagement

Monmouthshire Housing Association

structure. Tenants have completed courses in Understanding Social Housing, Influencing Decision Makers and How to Become a Board Member and these courses have been received well by tenants with very positive feedback. Joyce Davidson, a Tenants’ Forum member from Caldicot said, “The training has been very helpful, and has given me the confidence to have my say.” Emlyn Lunn who is a member of the Service User Inspection Team and lives near Catbrook said, “Learning more about social housing and the way it works helps me in my role enormously.” Peter Richards, a Tenant Forum Steering Committee Member from Abergavenny said, “To do any job effectively you need to be trained and MHA’s training programme is second to none. It has helped me gain confidence.” During the last year, the Association’s Scrutiny Panel has piloted a new way of working following a review of the way the Panel operates. The Panel wanted to be more effective and ensure that its outcomes really make a difference to the way services are delivered at MHA. This, it was hoped, will also ensure that they are delivering value for money. The Panel’s first review following the changes made was a review of The Association’s Money Wise service. This has yielded a number recommendations, which were presented to the Operations Sub Group. A number of the recommendations will now be implemented. Farida Aslam, the Manager responsible for the service said, “The Scrutiny Panel review was a very thorough process, which highlighted some areas which require further attention. An action plan has been developed which will be delivered by August 2015.”

Community Services Advice Team Number of calls during 2014/2015

Number of calls during 2013/2014

Number of calls answered during 2014/2015

Number of calls answered during 2013/2014

50,794

58,389

41,771

48,568

Number of calls abandoned during 2014/2015

Number of calls abandoned during 2013/2014

Average time taken to answer a call during 2014/2015

Average time taken to answer a call during 2013/2014

7,758

8,707

28 seconds

29 seconds

Number of Callback requests raised by the CSA Team

Number of Estate management requests raised by the CSA Team

Number of AntiSocial Behaviour complaints logged by CSA Team

Number of voicemails actioned during 2014/2015

968

310

102

1,265

Number of voicemails actioned during 2013/2014

There has been a 55% reduction in the number of estate management requests raised by the CSA Team compared to the previous year. There has also been a 56% reduction in the number of anti-social complaints reported via the contact centre. The average time taken to answer a call during 2014/2015 was 28 seconds, which exceeded the target of 20 seconds. During quarter 4 of 2014/2015 this reduced to 15 seconds, which is within the 20 second target.

1,114

Annual Accounts 2014-15

Facilities Annual Achievements 2014/15

Fire Safety

• Significantly reduce landfill waste and exceed our corporate environmental target • Improved transport efficiency and reduced our DSO van fleet fuel consumption. We have surpassed our set target • Completed the sewage treatment plant upgrade work programme

Photovoltaic (PV) Solar Panels

The fire safety management system is monitored closely and fire safety across the estates continues to improve. The sheltered scheme “stay safe” evacuation procedure was introduced and implemented. A series of Environmental During 2014/15 financial year Monmouthshire question and answer sessions were carried Housing Group have achieved Green Dragon out at each scheme to ensure tenants are fully aware and comfortable with the procedure. Level 5 and ISO 14001 environmental The presentations went well and all attendees accreditations. The auditor was very impressed with our progress over the past 12 were given the opportunity to ask questions months and commented on the commitment to clarify their understanding. Planned drills were conducted to ensure tenants and positive attitude of the organisation. To understood the procedure. date, Monmouthshire Housing Group have:

Health & Safety BS 18001 We have maintained our BS 18001 accreditation and have concentrated on making our processes more robust to achieve best practice. The BS 18001 standard evaluates our approach and management of Health and Safety in the workplace and how we aim to control the risks effectively. We are audited twice yearly and the most recent audit made reference to our excellent progress.

Monmouthshire Housing Association

A prompt and effective PV maintenance service is in place to ensure our systems are working to their optimum to ensure tenants benefit from the free electricity generated.

Governance

Financial Viability

Following its award of a ‘Low Risk’ engagement rating in 2012/13 from the Welsh Government in its Housing Association Regulatory Assessment (HARA). Monmouthshire Housing Association continues to maintain its position amongst the highest performing and lowest risk housing associations in Wales.

For 2014/15 MHA received the following regulatory judgment from the Welsh Government in terms of Financial Viability:

The Association remains open to challenge and is by no means complacent following the award last year. It continues to work alongside its tenants in seeking out opportunities to further improve satisfaction levels and services provided.

As at 30 June 2015 the judgement is:

The Association continues to apply Community Housing Cymru’s Charter for Good Governance and has a board that is balanced, diverse and effective, which leads and controls the organisation and complies with its legal requirements.

Our judgement is explained as follows: 1. The 30 year financial forecast has been prepared using a reasonable set of assumptions.

All major decisions for the Association are made by the Board, which is made up of 3 constituencies of equal size: Tenant members, Independent members and Council Nominees. It is the Board’s role to select, evaluate and approve appropriate compensation for the association’s Chief Executive, and evaluate the Chief Executive’s performance. It also evaluates the policies, strategies and updates given by Senior Management Team, makes recommendations, approves the company’s financial statements, and recommends or strongly discourages proposed directions for growth of the organisation. In addition, the system of sub-groups for Finance and Governance, Audit, Operations and Remuneration ensures that these sub-groups have the time to delve deeply into the subject matter, and make recommendations to the full Board. Each sub-groups contains representation from each of the constituent groupings of the Board.

Overall Conclusion Our judgement of the Group’s financial viability remains unchanged from last year.

Pass The Group has adequate resources to meet its current and forecasted future business and financial commitments.

2. The 30 year forecast is suitably funded, in terms of cash and secured facilities, for the duration of the 30 year forecast. It also shows the Group continuing to meet its lender’ covenants. The Group currently has 100% of its debt at a fixed rate of interest, thereby ensuring that has absolute certainty in relation to this cost. This drops to 60% during the 30 year forecast period the assumptions made in relation to the debt at a variable rate of interest are reasonable. 3. The Group’s 30 year forecast shows that it should continue to operate within the lenders’ covenants under most scenarios. 4. The Group has reported achieving the Welsh Housing Quality Standard (WHQS) in 2012. It has utilised stock condition survey information to inform the costs included in its 30 year forecast to continue to meet this standard.

Annual Accounts 2014-15

5. The Group is planning to develop around 345 homes over the next 6 years and has sufficient funding facility in place for this development. The progress of the Group’s development programme will be monitored as part of regulatory engagement. 6. The Group has assumed sales of a small number of homes in the development undertaken in 2015, however, we are satisfied that the Group is not reliant on this income to fund its operations. 7. The impact of the UK Government’s welfare reforms, to date, has been within the expectations of the Group. Going forward, the Group has assumed that its bad debt provision will initially rise to 2.4% (increased from 0.5% in 2013/14), before stabilising at 1.5%, as the UK Government introduces its Universal Credit provisions. We are satisfied that the assumptions made by the Group are reasonable given its current experience.

Compliance & Ambition Monmouthshire Housing Association complies with the requirements of the Welsh Language (Wales) Measure 2011 and has an approved Welsh Language Strategy which is regularly monitored and our progress against the strategy is reported to, and approved by the Welsh Language Commissioner. The Association has successfully run training programmes of Welsh Language courses for its staff in 2014/15 and will continue to offer support in the learning of the Welsh Language throughout 2015/16. In 2014/15 the Association achieved a rating of 1 Star from Best Companies, a significant step up from the previous year. For the first time, the Association appeared in the Sunday Times Top 100 Not for Profit organisations. In 2014/15 the Association again spent over £100,000 on training its staff and Board members which equates to almost 1,000 training days. The majority of which was incurred in our two largest directorates, Housing and Communities and Property Services. This highlights our commitment to ensuring our staff have the appropriate skills and knowledge to deliver high quality services to our customers.

8. The Group receives £2.6m per year dowry funding from the Welsh Government. The Welsh Ministers currently intend to offer financial assistance for 26 years from the date of transfer (subject to the terms and conditions set out in the offer letter) and acknowledge that the Group’s 30 year business plan is predicated on the assumption that further financial assistance A number of strategies were updated will continue to be offered for that period. and revised in the year e.g. Information Technology, Human Resources. The further 9. This Financial Viability Judgment covers development of our financial accounting the activities of all group members. This and performance monitoring systems, which Financial Viability Judgment covers the contributed to the significant development activities of Registered Social Landlord of the business and its progress towards – Monmouthshire Housing Association Limited. We have also reviewed the activities completion of its objectives outlined in for Capsel Limited and are satisfied that this support of its vision for 2015/20 which is: is not significant in context of the Group’s By 2020 Monmouthshire Housing Association activities. It does not therefore pose a will be the top performing Social Enterprise in material risk to the financial viability of the Wales providing quality homes and services, Registered Social Landlord.

Monmouthshire Housing Association

transforming peoples’ lives and giving them the confidence and support to realise their ambitions. We will create an environment where people can have a brilliant quality of life, in areas where they aspire to live and work. To achieve the vision we have agreed the following objectives: As a Landlord – By 2020 we will... • Optimise every opportunity to develop the type of homes and communities where people want to live. • Directly support at least 500 tenants each year, where necessary, to improve their quality of life. • Build 540 homes using our own resources. • Be in the top 25% performers across all key performance indicators.

• Spend a further £1m improving the external environment on our estates increasing tenant satisfaction with their neighbourhoods. People Oriented – By 2020 we will.... • Create 200 work placements by 2020 helping people into work. • Concentrate resources on getting tenants into work helping 100 into work by 2020. • Spend £1m transforming lives and ambitions through training and personal development on both staff and tenants, increasing productivity by 10%. • Focus our resources on ensuring that MHA can quickly become a more flexible organisation adapting to a constantly changing environment.

Economically – By 2020 we will.... • Increase our turnover from diversified activities by £4.0m by 2020, increasing our workforce to 270, maintain financial strength and viability achieving maximum scores from the regulator and covenant compliance from our funders. • Achieve efficiencies of 10% by our use of technology and ensuring that Value for Money is an embedded principle for driving value. Environmentally – By 2020 we will...... • Seek to use existing and new technology to reduce our CO2 footprint by a further 10% from 2014. • Purchase low energy equipment using local supply chains and will reduce our energy usage in our accommodation by 10%. • Reduce fuel usage in our vehicles by a further 10% on average. • Develop a recycling business to reduce our waste by 50% and this business will form part of our diversified activities.

Annual Accounts 2014-15

The Future

The Association and its trading subsidiary will continue to strive for excellence and will The next few years will prove significant in the seek to achieve accreditations which will development of the Associations activities support our commitment to providing good and services, with the further growth of our quality, efficient services. Our achievement trading subsidiary (Capsel Limited), enabling in previous years of the Platinum Corporate the undertaking of commercial works for Health Standard, along with maintaining the benefit of the Association. This will help our Gold Investors in People award, will be the Association to combat the impact of the another significant step along that path. major welfare reforms being introduced. The redevelopment of our 2 remaining Board members have been monitoring the sheltered schemes remains a top priority and impact of welfare reforms on the Association and the actions management have taken thus resources have been set aside to deal with these in a structured manner. The demolition far to mitigate the impact of the changes. and redevelopment of Trevor Bowen Court In 2015 the Association instigated a pilot scheme to evaluate the impact on some of itâ&#x20AC;&#x2122;s in Monmouth began in 2013/14 and is scheduled for completion in the 2015/16 tenants of the Universal Credit reforms that financial year. The properties we have will be brought in over the next 3 years. developed for sale on this site have all been Capsel Limited was incorporated on 3rd sold off plan and completion of the sales was May 2013 and in its first year of operations concluded in the early part of 2015/16. it achieved a turnover in excess of ÂŁ400,000. The redevelopment of Brookside in Caldicot In 2014/15 it increased its turnover while has been the subject of lengthy discussions consolidating profitability and has a number with Monmouthshire County Council but the of opportunities which it is embarking upon Association is now likely to redevelop the site to further increase returns. on their own, and are considering various The major rent review in Wales has now been options for this. The site at St Cadocs has been concluded and all RSLs are reviewing their emptied and is awaiting demolition. Options rent policies and procedures as a result. This for its redevelopment are being considered will have an impact for the Association, on by the Association and it is hoped that one of both individual tenancies and corporately. these proposals can be taken forward in the An extensive consultation exercise is likely next two years. to be carried out in 2015/16 with a view We continue to benchmark our services to introducing the new rent policy for the against other RSHPs in Wales and England and Association in April 2016. In addition, the will seek to identify efficiency opportunities Association will be reviewing its approach from any sector to bring into MHAâ&#x20AC;&#x2122;s own work to service charges with a view to making processes. them more transparent to tenants. There will undoubtedly be winners and losers in We have produced a Corporate Plan covering the realignment of rental charges but we are the next five years and within that are a confident that we can minimise that impact number of tasks we have outlined to achieve on individual tenancies over the coming our vision by 2020. years.

Monmouthshire Housing Association

The recent budget announcements by the Government affecting England have made all associations look at their financial business plans and consider them in light of the changes being imposed. Whilst in Wales the rent policy framework is devolved to the Welsh Government, all associations are being asked to consider a number of different scenarios and the impact they would have on their Business Plans. This scenario testing

could lead to a change in the agreed policy for the next three years. Only time will tell but, if changes are made to the existing policy, then each Association will have to represent its business plans to its Board, funders and Welsh Government for approval and sign off. At this time, Monmouthshire Housing Association feels it is relatively well placed to deal with any rent policy changes that may arise in 2015/16.

Annual Accounts 2014-15

Board Performance Indicators Ref

Description

2011/ 2012

2011/ 2012/ 2012 2013

2012/ 2013/ 2013 2014

2013/ 2014/ 2014 2015

2014/ 2015

Annual Target Annual Target Annual Target Annual Target Figure Figure Figure Figure PI.NH.001

% rent loss due to void PI.NH.012. % rent arrears YTD – current PI.LC.037 Annual Staff Turnover PI.LC.050 % Repairs completed Right First Time PI.LC.054 Loan Covenant PI.LC.055 Overall Sickness Level PI.NH.002 Re-let time (days) PI.NH.006. % rent YTD collected PI.LC.035. % properties YTD with Landlord Gas Certificate TS.CST.006 Overall Satisfaction with Services from MHA

1.11%

0.84%

1.12%

1.1%

1.23%

1.2%

1.36%

1.9%

1.38%

1.8%

1.54%

2.5%

0.48% * 1.8%

8.8

7.4

11.8

83.43% 87%

95.37% 90%

94.9%

92%

4.5

4.6

Yes 2.93

Yes 4.3

Yes 3.66

Yes 3.6

Yes 4.25

Yes 3.6

35.83

20.89

25.46

23.79

97.02% 98.5%

97.14% 98.5%

96.44% 98.5% 100.45% 98.6%

99.3%

99.2%

99.3%

99.21% 100%

99.81% 100%

87%

86%

90%

87%

*Further to the reduction in arrears seen in Quarter 3, Quarter 4 has also experienced a reduction in arrears which can be attributed to a number of factors. There was a decrease due to the 1 rent free week at the end of March at week 52, the arrears figures reduce substantially as Direct Debit payers are charged a full month’s charge, but are only charged 3 weeks rent. Typically there are only 2 rent free weeks within the year that normally occurs at the end of December, however in 2014/15 there were 3 rent free weeks. Finally, in the Direct Debit calculations for 2014/15, we are collecting an extra week’s rent to ensure these accounts are a week in advance at the end of financial year, therefore more accounts are in credit at the end of 2014/15. Due to MHA using the Housemark definition to calculate the % arrears, all credits offset any arrears. For general needs properties there were £367,394 arrears and £120,543 credits. In OAP/Sheltered accommodation there were £45,423 arrears and £48,432 credits. There was also 1 week’s HB owed totalling £160,807. ** First time collection level has been over 100% due to having an extra rent free week at the end of the year and those paying by Direct Debit have moved into credit for this period.

Monmouthshire Housing Association

Tenant Performance Indicators Ref

Description

2011/ 2012

2011/ 2012/ 2012 2013

2012/ 2013/ 2013 2014

2013/ 2014/ 2014 2015

2014/ 2015

Annual Target Annual Target Annual Target Annual Target Figure Figure Figure Figure PI.LC.010

ASB Cases Resolved PI.NH.012. Rent Owed YTD by Current Tenants (% rent arrears â&#x20AC;&#x201C; current) PI.LC.050 % Repairs completed Right First Time PI.NH.008 Emergency repairs completed in target PI.NH.009 Urgent repairs completed in target PI.NH.011 % tenant satisfied with repair work PI.LC.009 No. Of new ASB cases per 1000 tenancies TS.CS.006 Tenants satisfied with services provided by MHA SS.LC.001 Average time taken for Repairs Hotline to be answered PI.LC.001 Offers Refused

72.46% 60%

88.72% 65%

85.98% 80%

98.93% 90%

1.36%

1.9%

1.38%

1.54%

0.48% * 1.8%

83.43% 87%

95.37% 90%

94.9%

98.94% 96%

99.58% 97%

98.8%

98%

99.75% 98%

86.6%

95.47% 97%

88.68% 97%

92.59% 97%

93.23% 94%

93.4%

95%

91.62% 96%

93.43% 97%

74.22

120

85.52

100

61.99

61.99% 72%

87%

86%

90%

87%

15 secs

19 secs

15 secs

18 secs

27 secs

15 secs

22 secs

20 secs

30.9%

20%

22.8%

20%

23.03% 18%

96%

26.71% 15%

1.8%

2.5%

Annual Accounts 2014-15

92%

Monmouthshire Housing Association

Statement of the Boards Responsibility

Annual Accounts 2014-15

Statement of the Boards Responsibility The Board is responsible for preparing the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

The Board is responsible for the maintenance and the integrity of the corporate and financial information included on the Association’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Association is incorporated under the Industrial and Provident Societies Act of 1965. This Act, together with Registered Social Housing Provider legislation, require the Board to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and the Association and of their surplus for that period.

In so far as the Board is aware:

In preparing those financial statements, the Board is required to select suitable accounting policies, as described on pages 76-79 and then apply them on a consistent basis, making judgments and estimates that are prudent and reasonable. The Board must also prepare the financial statements on the going concern basis unless it is inappropriate that the Group will continue in business. The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Group and to enable them to ensure that the financial statements comply with the relevant legislation. The Board is also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Monmouthshire Housing Association

• There is no relevant audit information of which the Group’s auditors are unaware and; • The Board has taken all steps that they ought to have taken to make itself aware of any relevant audit information and establish that the auditors are aware of the information. A resolution to appoint auditors will be proposed at the Annual General Meeting. By order of the Board A Martyn-Johns Chair

Board meeting

Annual Accounts 2014-15

Monmouthshire Housing Association

Statement of Internal Control

Annual Accounts 2014-15

Statement of Internal Control In accordance with the Welsh Government’s Circular RSL 02/10 “Internal Controls and Reporting”, MHA’s Board acknowledges its responsibilities for the Association’s system of internal control and for reviewing their effectiveness. The Board also acknowledges its responsibility for the wider aspects of risk management.

b) clearly defined corporate and divisional management responsibilities and reporting structures ensuring that experienced and suitably qualified staff take responsibility for important business decisions; c) careful staff recruitment, appropriate training and individual performance monitoring systems; d) procedure manuals for staff;

e) defined business and strategic planning processes including the preparation of annual budgets, rolling five year business plans, a 30 year financial forecasting model and the production and review of monthly management accounts. These are supported The Association’s systems are designed to by specific operational/directorate action manage rather than eliminate the risk of failure to achieve business objectives, and can plans and a process for the monitoring of results against budgets; only provide reasonable, and not absolute, assurance against material misstatement or f ) a comprehensive process for assessing and loss, regarding the safeguarding of assets, the managing strategic and operational risks, maintenance of proper accounting records, including an annual risk review process; the reliability of financial information and g) performance management information the management of risks, any of which could and control systems, with regular reporting adversely affect the Association’s ability to of financial results and other performance achieve its Business Plan objectives. indicators against budgets and other The following mechanisms constitute the appropriate internal and external targets; key elements of the framework designed and h) a Board approved treasury policy and implemented by management to provide annual treasury strategy, which is reported effective internal control: against as part of the management a) standing orders and financial regulations accounting information; setting out clearly the system of delegation; i) an Anti-Fraud, Theft and Corruption policy; j) an established programme of internal audit activities derived from an assessment of key business risks;

Monmouthshire Housing Association

k) an established programme of external audit activities from an assessment of the key financial risks;

The Association has recently appointed a Risk and Business Assurance Manager to strengthen its approach to Risk Management.

l) the Audit Committee review and monitor reports from management, from Internal Audit and from External Audit to provide reasonable assurance that control procedures are in place and being followed;

The main risks facing the Association are welfare reform, the redevelopment of our sheltered schemes and the future of supporting people grant.

m) monitoring of the control system by the Audit Committee, the Internal Auditors and management.

Risk Management Framework At its July 2007 meeting, the Board approved the risk management strategy for the Association. The Board acknowledged at the time that the strategy could not be implemented until post transfer. During 2008/9, the risk mapping process was rolled out to managers. The risk map is now regularly reviewed by the Audit Committee and the Senior Management Team and has been updated in 2014/15 following a review by the Deputy Chief Executive and discussed with the Board at its away day in February 2015.

Register of Detected Frauds The Company Secretary maintains the register of detected frauds. There are no frauds to report in the period covered by this report.

Adequacy and Effectiveness of the Associations Internal Control System The Director of Resources has reviewed the adequacy and effectiveness of the Associationâ&#x20AC;&#x2122;s internal financial control and risk management system for the period 1 April 2014 to the date the annual accounts for 2014/15 were approved.

The Association continues to maintain or put in place a number of procedures designed to mitigate risks facing the Association. These include specific delegated authorities to managers and staff, insurances, performance management reporting, contract procurement process and an annual self-certification of risks and how they are controlled by the Senior Management Team. The Board has also been tasked during 2015/16 to assess their appetite for risk across a number of business drivers and this process will evolve during the next two years.

Annual Accounts 2014-15

Monmouthshire Housing Association

Report of the Independent Auditor

Annual Accounts 2014-15

Report of the Independent Auditor INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MONMOUTHSHIRE HOUSING ASSOCIATION LIMITED We have audited the financial statements of Monmouthshire Housing Association Limited for the year ended 31 March 2015 which comprise the Group and Association Income and Expenditure Accounts, the Group and Association Statement of Total Recognised Surpluses and Deficits, the Group and Association Balance Sheets, the Group Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Respective responsibilities of the board and the auditor As explained more fully in the Statement of Board’s Responsibilities set out on page 52, the Board is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Monmouthshire Housing Association

This report is made solely to the Association’s members, as a body, in accordance with section 9 of the Friendly and Industrial and Provident Societies Act 1968 and the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the Association’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Association and the Association’s members as a body for our audit work, for this report, or for the opinions we have formed. We have reviewed the Board’s statement on the Association’s compliance with the Welsh Government circular RSL 02/10 ‘Internal Controls and reporting’. We are not required to express an opinion on the effectiveness of the Association’s system of internal control.

Scope of the audit of the financial statements

Matters on which we are required to report by exception

A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at www. frc.org.uk/auditscopeukprivate.

We have nothing to report in respect of the following matters where the Industrial and Provident Societies Acts 1965 to 2003 require us to report to you if, in our opinion;

Opinion on the financial statements

• A satisfactory system of control over transactions has not been maintained; or • The Association has not kept proper accounting records; or • The financial statements are not in agreement with the books of account; or • We have not received all the information and explanations we need for our audit.

In our opinion the financial statements; • Give a true and fair view of the state of the Group’s and the Association’s affairs as at 31 March 2015 and of the Group’s and Association’s income and expenditure for the year then ended; • Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • Have been properly prepared in accordance with the Industrial and Provident Societies Acts 1965 to 2003, the Housing and Regeneration Act 2008 and the Accounting Requirements for Registered Social Landlords General Determination (Wales) 2009 Opinion on the other matter prescribed by the Welsh Government circular RSL 02/10 ‘Internal Controls and reporting’

Mazars LLP Chartered Accountants and Statutory Auditor 45 Church Street Birmingham B32RT

With respect to the Board’s statement on internal control, in our opinion, the Board has provided the disclosures required by the Welsh Government circular RSL 02/10 ‘Internal Controls and reporting’ and the statement is not inconsistent with the information of which we are aware from our audit work on the financial statements.

Annual Accounts 2014-15

Monmouthshire Housing Association

Income & Expenditure Account and Statement of Total Recognised Surpluses & Deficits

Annual Accounts 2014-15

Income & Expenditure Account Group 2015

2014

Association 2015 2014

Notes

£’000

Turnover Operating costs

2 2

OPERATING SURPLUS Surplus on sale of fixed assets Interest receivable and similar income

5 7

18,326 (14,778) ─────── 3,548 516 6

18,207 (14,756) ─────── 3,451 373 10

18,136 (14,673) ─────── 3,463 701 54

19,368 (16,055) ─────── 3,313 373 94

Interest payable and similar charges

(866) ───────

(864) ───────

(866) ───────

(864) ───────

SURPLUS ON ORDINARY ACTIVITIES BEFORE TAXATION Taxation

3,204 ───────

2,970 ───────

3,352 ───────

2,916 ───────

3,204 ═══════

2,970 ═══════

3,352 ═══════

2,916 ═══════

SURPLUS ON ORDINARY ACTIVITIES AFTER TAXATION All the results stated above are derived from continuing activities.

There is no difference between the surplus on ordinary activities before taxation and the retained surplus for the year as stated above and their historical equivalents.

Statement of Total Recognised Surpluses & Deficits For the year ended 31 March 2015 ────────────────────────────────────────────────────────────────────────

Notes SURPLUS FOR THE YEAR (AS PER I & E ACCOUNT) Actuarial movement – (loss) / gain TOTAL RECOGNISED SURPLUSES FOR THE YEAR

Monmouthshire Housing Association

Group 2015 £’000 3,204 (2,800) ─────── 404 ═══════

2014 £’000 2,970

2,181 ─────── 5,151 ═══════

Association 2015 2014 £’000 £’000 3,352 2,916 (2,800) ─────── 552 ═══════

2,181 ─────── 5,097 ═══════

Usk

Annual Accounts 2014-15

Monmouthshire Housing Association

Balance Sheet

Annual Accounts 2014-15

Balance Sheet Notes

TANGIBLE FIXED ASSETS Housing land and buildings – gross cost Less: Social Housing Grants Other grants Depreciation

10 11a 11b 11c

Other tangible fixed assets

Group 2015 £’000 64,028 (4,052) (19,038) (7,811)

2014 £’000 52,164 (2,104) (16,438) (5,903)

Association 2015 2014 £’000 £’000 62,462 (4,052) (19,038) (7,669)

50,598 (2,104) (16,438) (5,832)

4,286 4,315 4,185 4,315 ─────── ─────── ─────── ─────── 37,413 32,034 35,888 30,539 ─────── ─────── ─────── ───────

14 27

1,945 1,784 3,353 3,436 1,320 121 1,320 121 1,083 1,164 1,001 992 ─────── ─────── ─────── ─────── 4,348 3,069 5,674 4,549

(4,169) (2,956) (3,876) (2,994) ─────── ─────── ─────── ─────── 179 113 1,798 1,554 ─────── ─────── ─────── ─────── 37,592 32,147 37,686 32,093

NON-CURRENT LIABILITIES Creditors: amounts falling due after more than one year Housing loans Pension fund

16 24

CAPITAL AND RESERVES Share capital Pensions reserve Revenue reserve

(19,400) (17,400) (19,400) (17,400) (3,947) (906) (3,947) (906) ─────── ─────── ─────── ─────── 14,245 13,841 14,339 13,787 ─────── ─────── ─────── ───────

17 18 18

(3,947) (906) (3,947) (906) 18,192 14,747 18,286 14,693 ─────── ─────── ─────── ─────── 14,245 13,841 14,339 13,787 ─────── ─────── ─────── ─────── 14,245 13,841 14,339 13,787 ═══════ ═══════ ═══════ ═══════

TOTAL FIXED ASSETS CURRENT ASSETS Debtors: amounts falling due within oneyear Stock Cash at bank and in hand CURRENT LIABILITIES Creditors: amounts falling due within one year NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES

TOTAL REVENUE RESERVES TOTAL CAPITAL AND RESERVES

The financial statements on pages 48 to 80 were approved by the Board on 23rd Sept 2015 and were signed on its behalf by:

Andrew Martyn-Johns

Andy Jones

Steve Higginson

Board Member

Company Secretary

Monmouthshire Housing Association

Annual Accounts 2014-15

Monmouthshire Housing Association

Cash Flow Statement

Annual Accounts 2014-15

Cash Flow Statement NET CASH INFLOW FROM OPERATING ACTIVITIES

Notes 19

Interest receivable Interest paid

Group 2015 £’000 4,778 6 (865) ──── (859) -

NET CASH OUTFLOW FROM SERVICING OF FINANCE TAXATION Purchase and development of properties Social Housing Grant and Dowry received Grant repaid during the year Purchase of other fixed assets Proceeds of sale of properties and other fixed assets

2014 £’000 7,707 10 (1,001) ───── (991) (17)

Association 2015 £’000 4,720 54 (865) ───── (811) -

2014 £’000 5,885 94 (1,001) ───── (907) (17)

(11,284) (9,808) (11,183) (8,242) 4,637 3,276 4,637 3,276 (54) 5 (54) 5 701 456 701 456 ───── ─────── ─────── ─────── (6,000) (6,071) (5,899) (4,505)

NET CASH OUTFLOW FROM CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT

───── ─────── ─────── ─────── (2,081) 628 (1,990) 456

NET CASH (OUTFLOW) / INFLOW BEFORE FINANCING FINANCING Housing loans received Housing loans repaid NET INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES (DECREASE) / INCREASE IN CASH AND SHORT TERM DEPOSITS

────── ─────── ─────── ─────── 2,000 2,000 (2,600) (2,600) ────── ─────── ─────── ─────── 2,000 (2,600) 2,000 (2,600) ══════ ═══════ ═══════ ═══════ (81) (1,972) 10 (2,144) ══════ ═══════ ═══════ ═══════

Monmouthshire Housing Association

Caldicot Town Centre

Annual Accounts 2014-15

Monmouthshire Housing Association

Notes to the Financial Statements

Annual Accounts 2014-15

Notes to the Financial Statements 1. PRINCIPAL ACCOUNTING POLICIES A summary of the more important accounting policies, which have been applied consistently, is set out below.

Basis of accounting The financial statements are prepared on the historic cost basis of accounting in accordance with applicable financial reporting standards in the United Kingdom, including the Statement of Recommended Practice (SORP) for “Accounting by Registered Social Housing Providers” as updated in 2010, and comply with the Accounting Requirements for Social Landlords registered in Wales General Determination 2009.

Basis of consolidation The financial statements consolidate the results of the Association with that of its subsidiary, Capsel Limited. Intra group transactions and balances are eliminated on consolidation.

Turnover This represents rental income receivable together with revenue grants from local authorities and the Welsh Government and charitable fees and donations. All income is accounted for on a receivable basis. However, property sales are not accounted for as being receivable until all of the requirements of the sale contract have been satisfied including receipt of the proceeds and legal transfer of the property has taken place.

Monmouthshire Housing Association

Housing properties Housing properties, held at cost less depreciation, were transferred from Monmouthshire County Council at no cost and were subject to a nil valuation based on an independent report using the basis of existing use value for social housing. “Housing properties in the course of construction” are stated at cost and transferred into “housing properties” when completed. Any overhead costs directly attributable to bringing fixed assets into their working condition for their intended purpose are capitalised. Expenditure on initial purchase of land and buildings is capitalised and disclosed as part of housing properties in the course of construction within tangible fixed assets. The Association capitalises improvement works undertaken by its own Direct Services Organisation. In addition to the direct costs of labour and materials, the capitalised costs include an element for indirect costs and supervision. Some residents have rights under their tenancy agreements to purchase their homes at prices which are at a discount below market price. Profits and losses on disposals of properties are recognised as at the date a sale becomes certain. The profit or loss on a disposal of a property is the difference between the sale price and the aggregate of the depreciated cost and the associated costs of disposal such as valuation and legal fees.

The grant originally received on a property is repayable in full in the case of a disposal, demolition or change of use to an ineligible activity, save that in circumstances where the Welsh Government considers appropriate it may reduce the amount repayable. Where this arises on a disposal, the grant payable so waived is added back to the profit and loss on that disposal.

Interest payable Interest payable is charged to the income and expenditure account to reflect the costs of loan finance attributable to each accounting period. The Group does not capitalise any interest.

Supporting People

Properties on long leases are depreciated over the shorter of the above and the remaining period of the lease. The policy in respect of expenditure to refurbish or replace major components is that all such work is assessed against life cycle costing principles. The Associationâ&#x20AC;&#x2122;s policy is to depreciate components net of the dowry and other capital grants. Refurbishment or replacement of major components which have an estimated useful life in excess of 10 years are capitalised and depreciated over the useful life of the component as follows: Windows and doors 30 years

Supporting People income is funded by Kitchens 15 years the Local Authority and is recognised in the Bathrooms 25 years year in which it is receivable. Costs are also charged in the year to which they are payable. Roofing 50 years

Depreciation

Boilers & central heating 15 years

The Association has depreciated its housing properties in accordance with the Statement of Recommended Practice (SORP) â&#x20AC;&#x153;Accounting by Registered Social Housing Providers 2010.â&#x20AC;? Depreciation is charged on the historic cost of property (excluding land) after deducting grants and an amount for residual value. The depreciable amount is written off over the estimated useful lives from the date of purchase/build as follows: Houses Flats New build 150 years 110 years properties Acquired properties

100 years

External wall insulation

30 years

Photovoltaic panels

22 years

Depreciation is charged over the expected useful economic life of the other fixed assets as follows: Motor vehicles 3 to 7 years Office & IT equipment

3 to 10 years

Software

3 to 5 years

Head Office (building and furniture)

5 to 100 years

80 years

Annual Accounts 2014-15

Grants & Dowry

Impairment

Where developments have been financed wholly or partly by grants, the cost of these developments has been reduced by the amount of the grant received. These grants are received from central government agencies and local authorities and are offset against the cost of housing properties on the face of the Balance Sheet. The Companies Act 2006 requires the tangible fixed assets to be included at purchase price, or production cost, less any provision for depreciation or diminution in value. However this requirement conflicts with the generally accepted accounting principles set out in the SORP: Accounting by Registered Social Housing Providers 2010. The purpose of the grant is to subsidise the capital cost of affordable housing. Accordingly, management consider it necessary to adopt the accounting treatment set out in the SORP to give a true and fair view.

Housing properties are reviewed annually for impairment. Where there is evidence of impairment, housing properties are written down to their recoverable amount. The review undertaken during the year has indicated that no impairment has occurred.

Where grants are received in advance they are carried forward as current liabilities to be matched against future capital expenditure as it is incurred. Grant receivable in respect of completed schemes or those under construction is included as a debtor in the financial statements. Grants are repayable under certain circumstances, primarily following the sale of a property. Such repayable grants are included within the creditors in the balance sheet. The Dowry given to the Association by the Welsh Government is for the completion of the major works programme to deliver the Welsh Housing Quality Standard in its property stock. The Dowry is offset against the capital cost of the major works programme. The Association has to request the Dowry each year from the Welsh Government and its requirement is consistent with the terms outlined at the time of transfer in January 2008 i.e Dowry required annually until 2033/34.

Monmouthshire Housing Association

Repairs and maintenance The costs of repairs and maintenance are expensed as incurred on the basis of work done at the Balance Sheet date.

Pension costs The Association participates in the Greater Gwent (Torfaen) Pension Fund which is a defined benefits pension scheme, based upon Career Average salary. The contributions to the scheme are determined on the advice of independent actuaries to Torfaen CBC following triennial valuations, using the projected unit method. The Association is able to identify its share of the underlying assets and liabilities of the pension scheme, and in accordance with the requirements of FRS17: Retirement Benefits, discloses certain information regarding assets, liabilities, income and expenditure related to the pension scheme for its employees. Disclosures relating to the pension scheme are set out in note 25 to the financial statements. Since transferring staff from MCC, the Association also participates in the SHPS â&#x20AC;&#x153;Defined Benefit Schemeâ&#x20AC;?, a multi employer scheme for the social housing sector, administered by the Pensions Trust. As a â&#x20AC;&#x153;Last Man Standing scheme, the Association is unable to identify its share of the underlying assets and liabilities of the scheme, and so is required to account for it as a defined contribution scheme.

Operating leases

Loans

Costs in respect of operating leases are charged to the Income and Expenditure account as they are incurred.

Loan arrangement fees are written off to the Income and Expenditure account in the year in which they are incurred.

Value Added Tax

Provisions

The Association has agreed a 10 year VAT shelter with HMRC and can recover VAT on its programme of planned repairs. The Association is partially exempt for VAT purposes and has agreed a method with HMRC.

Provisions will be recognised where uncertainty exists to the timing or amount that may be required to settle potential liabilities. Any amounts provided for are charged to the Income and Expenditure account and credited to the Balance Sheet based upon the Associationâ&#x20AC;&#x2122;s best estimate of potential liabilities.

Taxation The Association adopted charitable rules with effect from 21st January 2008. No corporation tax is expected to arise after that date on charitable-object activities. The trading subsidiary Capsel Limited is subject to corporation tax on any taxable profits it makes.

Stock Stock is valued at the lower of cost or net realisable value.

Deferred taxation Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less tax. Deferred tax assets are recognised only to the extent that the Board consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax is measured on an undiscounted basis at the rates that are expected to apply in the periods in which timing differences reverse, based on the tax rates and laws enacted or substantively enacted at the Balance Sheet date.

Annual Accounts 2014-15

2. NOTE A – PARTICULARS OF TURNOVER, OPERATING COSTS AND OPERATING SUPLUS – GROUP 2015 Turnover £’000

2015 2015 Operating costs Surplus £’000 £’000

2014 Turnover £’000

2014 Operating costs £’000

2014 Surplus £’000

Social Housing Lettings (Note B)

18,326

14,778

3,548

18,207

14,756

3,451

Non social housing activity

───────

18,326

14,778

3,548

18,207

14,756

3,451

═══════

NOTE B – PARTICULARS OF TURNOVER, ,OPERATING COSTS AND OPERATING SUPLUS – ASSOCIATION 2015

2015

2014

Turnover £’000

2015 Operating costs £’000

Surplus £’000

Turnover £’000

2014 Operating costs £’000

Social Housing Lettings (Note B)

18,136

14,673

3,463

19,368

16,055

3,313

Non social housing activity

───────

18,136

14,673

3,463

19,368

16,055

3,313

═══════

Monmouthshire Housing Association

2014 Surplus £’000

2. NOTE B – PARTICULARS OF INCOME AND EXPENDITURE FROM SOCIAL HOUSING LETTINGS – GROUP General needs and sheltered housing

Income Rent receivable Service charge income Income for support services Other revenue grants Other income Turnover from social housing lettings

Cost Management costs Service charge costs Routine maintenance Major repairs expenditure Bad debts Depreciation of housing properties Other costs Operating costs on social housing activities Operating surplus on social housing lettings Rent loss due to voids (memorandum note)

Other Social Supported housing letting housing income

2015 Total

2014 Total

£’000

16,783 230 955

358 -

16,783 230 358 955

16,158 236 331 1,482

───────

17,968

358

18,326

18,207

───────

4,937 535 5,669 685 44 1,819 441

519 -

129

5,456 535 5,669 685 44 1,819 570

3,109 372 5,760 680 75 1,555 3,205

───────

14,130

519

129

14,778

14,756

───────

3,838

(161)

(129)

3,548

3,451

═══════

261

247

═══════

Annual Accounts 2014-15

2. NOTE B – PARTICULARS OF INCOME AND EXPENDITURE FROM SOCIAL HOUSING LETTINGS – ASSOCIATION General needs and sheltered housing

Income Rent receivable Service charge income Income for support services Other revenue grants Other income Turnover from social housing lettings Cost Management costs Service charge costs Routine maintenance Major repairs expenditure Bad debts Depreciation of housing properties Other costs Operating costs on social housing activities Operating surplus on social housing lettings Rent loss due to voids (memorandum note)

Other social Supported housing letting housing income

2015 Total

2014 Total

£’000

16,783 230 765

358 -

16,783 230 358 765

16,158 236 331 2,643

───────

17,778

358

18,136

19,368

───────

4,937 535 5,669 685 44

519 -

5,456 535 5,669 685 44

4,799 372 6,067 680 75

1,819 336

129

1,819 465

1,555 2,507

───────

14,025

519

129

14,673

16,055

───────

3,753

(161)

(129)

3,463

3,313

═══════

261

247

═══════

Monmouthshire Housing Association

3a. DIRECTORS’ EMOLUMENTS The remuneration paid to the directors (defined as members of the Board and the Executive officers) of Monmouthshire Housing Association Ltd was: Group Association At 31st March 2015 £’000

At 31st March 2014 £’000

At 31st March 2015 £’000

At 31st March 2014 £’000

Aggregate emoluments of executive officers Aggregate emoluments of Board members Emoluments of highest paid director (Chief Executive) – exc pension contributions

369 101

365 101

369 101

365 101

Expenses reimbursed to directors not chargeable to United Kingdom taxation

═══════ ═══════ ═══════ ═══════ The number of Directors who received emoluments (excluding pension contributions) in the following range was: Group Association 2015 number

2014 number

2015 number

2014 number

£0 - £65,000 £65,001 - £70,000 £70,001 - £75,000 £75,001 - £80,000 £80,001 - £85,000 £85,001 - £90,000 £90,001 - £95,000 £95,001 - £100,000 £100,000 - £105,000

1 1 1 1 ────

2 1 1 ────

1 1 1 1 ────

2 1 1 ────

TOTAL

4 ════

The Chief Executive is an ordinary member of the Torfaen Borough Council (Greater Gwent) pension scheme. The Torfaen Borough Council (Greater Gwent) pension scheme is a defined benefit scheme and details are provided in note 24.

Annual Accounts 2014-15

3b. EMPLOYEE INFORMATION Group

Association

2015 number

2014 number

2015 number

2014 number

219 ────

216 ────

219 ────

Direct Services Organisation including administration Head Office staff

77 115 ────

85 114 ────

76 115 ────

85 114 ────

TOTAL

192 ════

199 ════

191 ════

199 ════

2015 £’000

2014 £’000

2015 £’000

2014 £’000

Wages and salaries Social security costs Pension costs

5,653 382 599 ────

5,421 396 477 ────

5,579 376 599 ────

5,421 396 477 ────

Total

6,634 ════

6,294 ════

6,554 ════

6,294 ════

The average number of staff (including directors): Full time equivalents:

Staff costs (for the above persons):

4. OPERATING SURPLUS Group The operating surplus is stated after charging:

Depreciation Bad debts Auditor’s remuneration: in their capacity as auditors in respect of other services Operating lease rentals

Land and buildings Other assets

Monmouthshire Housing Association

Association

For the year ending 31st March 2015 £’000

For the year ending 31st March 2014 £’000

For the year ending 31st March 2015 £’000

For the year ending 31st March 2014 £’000

2,092 44

1,597 75

2,021 44

1,555 75

13 20

13 2

13 20

13 2

22 ════

10 ════

22 ════

10 ════

5. SURPLUS ON SALE OF FIXED ASSETS Group

Association

2015

2014

2015

2014

£’000

522

456

707

456

(6)

(83)

(6)

(83)

Offices

Other fixed assets

Housing properties

- sales proceeds - cost of sales

─────── ─────── ─────── ─────── Surplus on sale of fixed assets

516

373

701

373

═══════ ═══════ ═══════ ═══════ The surplus arose due to the sale of one property under the ‘Right to Buy’ legislation as well as 4 other properties and one piece of land which were sold as part of the Association’s ‘Asset Management’ strategy.

6. CONTINGENT LIABILITIES The Association has a small number of employees who are members of the Social Housing Pension Scheme (SHPS). The Actuary of the Scheme estimated that the employer debt that would have been payable if the Association had withdrawn from the Scheme as at 30th September 2013 was £591k.

7. INTEREST RECEIVABLE AND SIMILAR INCOME Group

Interest receivable from investments Interest receivable from Subsidiary

Association

2015

2014

2015

2014

£’000

48 84 ═══════ ═══════ ═══════ ═══════

8. INTEREST PAYABLE AND SIMILAR CHARGES Group

On bank loans and overdrafts and other loans Repayable within 5 years, not by instalments Repayable wholly or partly in more than 5 years Total

Association

2015

2014

2015

2014

£’000

866 864 866 864 ─────── ─────── ─────── ─────── 866 864 866 864 ═══════ ═══════ ═══════ ═══════

Annual Accounts 2014-15

9. CORPORATION TAX Group

a) Current tax UK Corporation tax on surplus for the year

Association

2015

2014

2015

2014

£’000

═══════ ═══════ ═══════ ═══════ b) Factors affecting tax charge for the year Profit on Taxable activities before tax. Profit on ordinary activities multiplied by the standard rate of corporation tax in the U.K. of 21% (2014:23%) Effects of: Expenses not deductible for tax Capital allowances in excess of depreciation Utilisation of tax losses

37 8

54 12

(8) -

(12) -

─────── ─────── ─────── ─────── -

═══════ ═══════ ═══════ ═══════ The Association adopted charitable status with effect from 21st January 2008. Some non-charitable activity has been undertaken since that date and the level of this activity exceeded the HMRC threshold in the year to March 2013.

Monmouthshire Housing Association

10. HOUSING PROPERTIES Tangible Fixed Assets – Housing Land and Buildings - Group Housing properties Housing Housing held for At 31 properties properties in letting March held for letting the course of completed 2015 completed construction

As at beginning of year Additions Disposals Schemes completed AT END OF YEAR

At 31 March 2014

£’000

51,253 8,906 -

911 2,958 -

52,164 11,864 -

41,968 8,897 (81)

469 911 -

42,437 9,808 (81)

469

(469)

─────── 60,159

─────── 3,869

─────── 64,028

─────── 51,253

─────── 911

─────── 52,164

═══════

At 31 March 2015

Housing properties comprise Freehold land and buildings Long leasehold land and buildings Short leasehold land and buildings

Housing properties in the course of construction

At 31 March 2014

£’000

60,159

3,869

64,028

51,253

911

52,164

───────

60,159

3,869

64,028

51,253

911

52,164

═══════

Annual Accounts 2014-15

10. HOUSING PROPERTIES (continued) Tangible Fixed Assets – Housing Land and Buildings - Association Housing properties Housing Housing held for properties in At 31 properties letting the course of March held for letting completed construction 2015 completed

As at beginning of year Additions Disposals Schemes completed AT END OF YEAR

At 31 March 2014

£’000

49,687 8,906 -

911 2,958 -

50,598 11,864 -

41,968 7,331 (81)

469 911 -

42,437 8,242 (81)

469

(469)

─────── 58,593

─────── 3,869

─────── 62,462

─────── 49,687

─────── 911

─────── 50,598

═══════

At 31 March 2015

Housing properties comprise Freehold land and buildings Long leasehold land and buildings Short leasehold land and buildings

Housing properties in the course of construction

At 31 March 2014

£’000

58,593

3,869

62,462

49,687

911

50,598

───────

58,593

3,869

62,462

49,687

911

50,598

═══════

Monmouthshire Housing Association

11(a). TANGIBLE FIXED ASSETS – SOCIAL HOUSING GRANT - GROUP

AT 1 APRIL Additions Disposals Schemes completed AT END OF YEAR

Housing properties

Under construction

At 31 March 2015

Housing properties

Under construction

At 31 March 2014

£’000

2,104 -

1,948 -

2,104 1,948 -

1,432 672 -

─────── 2,104

─────── 1,948

─────── 4,052

─────── 2,104

─────── -

─────── 2,104

═══════

11(b). TANGIBLE FIXED ASSETS – OTHER GRANTS - GROUP

AT 1 APRIL Additions Disposals Schemes completed AT END OF YEAR

Housing properties

Under construction

At 31 March 2015

Housing properties

Under construction

At 31 March 2014

£’000

16,438 2,600 -

13,834 2,604 -

11,129 2,705 -

─────── 19,038

─────── -

─────── 19,038

─────── 16,438

─────── -

─────── 16,438

═══════

Annual Accounts 2014-15

11(C). TANGIBLE FIXED ASSETS (continued) – HOUSING LAND AND BUILDINGS – DEPRECIATION – GROUP Housing properties

Under construction

At 31 March 2015

Housing properties

Under construction

At 31 March 2014

£’000

5,903 1,908

4,455 1,448

AT END OF YEAR

─────── 7,811

─────── -

─────── 7,811

─────── 5,903

─────── -

─────── 5,903

NETBOOK VALUE

═══════ 31,206

═══════ 1,921

═══════ 33,127

═══════ 26,808

═══════ 911

═══════ 27,719

═══════

AT 1 APRIL Charge for the year Eliminated on disposals

Monmouthshire Housing Association

11(a). TANGIBLE FIXED ASSETS (continued) – SOCIAL HOUSING GRANT - ASSOCIATION

AT 1 APRIL Additions Disposals Schemes completed AT END OF YEAR

Housing properties

Under construction

At 31 March 2015

Housing properties

Under construction

At 31 March 2014

£’000

2,104 -

1,948 -

2,104 1,948 -

1,432 672 -

─────── 2,104

─────── 1,948

─────── 4,052

─────── 2,104

─────── -

─────── 2,104

═══════

11(b). TANGIBLE FIXED ASSETS – OTHER GRANTS - ASSOCIATION

AT 1 APRIL Additions Disposals AT END OF YEAR

Housing properties

Under construction

At 31 March 2015

Housing properties

Under construction

At 31 March 2014

£’000

16,438 2,600 -

13,834 2,604 -

─────── 19,038

─────── -

─────── 19,038

─────── 16,438

─────── -

─────── 16,438

═══════

Annual Accounts 2014-15

11(C). TANGIBLE FIXED ASSETS (continued) – HOUSING LAND AND BUILDINGS – DEPRECIATION - ASSOCIATION Housing Under properties construction

AT 1 APRIL Charge for the year Eliminated on disposals AT END OF YEAR NETBOOK VALUE (10-11a-11b-11c)

At 31 March 2015

Housing properties

Under construction

At 31 March 2014

£’000

5,832 1,837 -

4,455 1,377 -

───────

7,669

5,832

═══════

29,782

1,921

31,703

25,313

911

26,224

═══════

During the year the Association capitalised £6.4 million of improvements to housing properties and £5.6 million on new developments. The Association also spent £5.6M on revenue repairs.

Monmouthshire Housing Association

12. UNITS IN MANAGEMENT – Group and Association 31 March 31 March 2015 2014 Rental Other Total Total

At 1 April 2014 Additions Disposals Conversions and demolitions

3,562 26 (16) -

3,618 5 (4) (57)

─────── 3,572 ═══════

─────── ═══════

─────── 3,572 ═══════

─────── 3,562 ═══════

31 March 2015 IT Office Freehold £’000 equipment equipment property Total

31 March 2014 £’000 Total

AT 31 MARCH 2015

Within the rental units, 59 were vacant as at 31 March 2015 (2014 - 27 units).

13. OTHER TANGIBLE FIXED ASSETS

GROUP COST At 1 April 2014 Additions Disposals AT 31 MARCH 2015 DEPRECIATION At 1 April 2014 Charge for year Eliminated on disposals AT 31 MARCH 2015

637 35 -

92 101 -

4,436 19 -

5,165 155 -

5,170 (5) -

─────── 672

─────── 193

─────── 4,455

────── 5,320

─────── 5,165

═══════

535 78 -

42 30 -

273 76 -

850 184 -

701 149 -

─────── 613

─────── 72

─────── 349

─────── 1,034

─────── 850

═══════

Net book value AT 31 MARCH 2015

───────

121

4,106

4,286

4,315

═══════

Annual Accounts 2014-15

13. OTHER TANGIBLE FIXED ASSETS (continued)

ASSOCIATION

31 March 2015 IT Office Freehold £’000 equipment equipment property Total

COST At 1 April 2014 Additions Disposals AT 31 MARCH 2015 DEPRECIATION At 1 April 2014 Charge for year Eliminated on disposals AT 31 MARCH 2015

31 March 2014 £’000 Total

637 35 -

92 -

4,436 19 -

5,165 54 -

5,170 (5) -

─────── 672

─────── 92

─────── 4,455

────── 5,219

─────── 5,165

═══════

535 78 -

42 30 -

273 76 -

850 184 -

701 149 -

─────── 613

─────── 72

─────── 349

─────── 1,034

─────── 850

═══════

───────

4,106

4,185

4,315

═══════

Net book value AT 31 MARCH 2015

14. DEBTORS & PREPAYMENTS Group

AMOUNTS FALLING DUE WITHIN ONE YEAR Rental and service charge debtors Bad debt provision Loans to employees Prepaid insurance HMRC - VAT refund Other debtors and prepayments TOTAL

Monmouthshire Housing Association

Association

2015

2014

2015

2014

£’000

867 (302) 83 185 333 779

781 (299) 94 160 230 818

867 (302) 83 185 333 2,187

781 (299) 94 160 149 2,551

─────── 1,945

─────── 1,784

─────── 3,353

─────── 3,436

═══════

14. DEBTORS & PREPAYMENTS (continued) The Association has made a number of car loans to employees. The loans are for a period up to 5 years and the interest charged is a fixed rate of 6.1% APR - which is above the HMRC official rate. LOANS TO EMPLOYEES

DUE WITHIN One year or less Between one and two years Between two and five years TOTAL

Group

Association

2015

2014

2015

2014

£’000

42 19 22

44 26 24

42 19 22

44 26 24

─────── ─────── ─────── ─────── 83 94 83 94 ═══════ ═══════ ═══════ ═══════

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group

AMOUNTS FALLING DUE WITHIN ONE YEAR Rents and service charge income received in advance Accrued interest Accruals and other deferred income Purchase ledger Contractors – improvements Retentions – planned repairs & new offices SHG in advance Taxation and social security TOTAL

Association

2015

2014

2015

2014

£’000

237 211 707 1,180 820 107 673 234

151 210 767 513 603 16 584 112

237 211 296 1,298 820 107 673 234

151 210 805 513 603 16 584 112

─────── ─────── ─────── ─────── 4,169 2,956 3,876 2,994 ═══════ ═══════ ═══════ ═══════

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Group and Association

Housing loans

2015

2014

£’000

19,400

17,400

═══════

Housing loans are secured by specific charges on the Association’s housing properties. The weighted average rate of interest was 4.75% (2014 - 4.87%). As at 31st March 2015, £17.4m of loans were at fixed rates (2014 - £17.4m). The Association has an agreed loan facility of £45 million. At the end of each financial year, the Association has to make repayment so that the aggregate amount of loans is reduced to the relevant level in the repayment profile. As at 31st March 2015, no repayments were due.

Annual Accounts 2014-15

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Group and Association (Continued) DUE WITHIN: One year or less Between one and two years Between two and five years In five years or more

2015

2014

£’000

19,400

17,400

───────

19,400

17,400

═══════

2015

2014

85 9 (1)

79 6 -

─────── 93

─────── 85

═══════

17. SHARE CAPITAL – Group and Association

At 1st April 2014 Issued during the year Shares cancelled during the year At 31 March 2015

Shareholders have voting rights but have no entitlement to dividends or return of monies in respect of shares surrendered or a share in the assets in the event of the Association being wound up.

Monmouthshire Housing Association

18. RESERVES

Balance at 1st April 2014 Surplus for the year Actuarial movement for the year Transfer to revenue reserve Balance as at 31st March 2015

Pension reserve

Group revenue reserve

Total

£’000 (906) (2,800) (241)

£’000 14,747 3,204 241

£’000 13,841 3,204 (2,800) -

─────── ─────── ─────── (3,947) 18,192 14,245 ═══════ ═══════ ═══════

Balance at 1st April 2014 Surplus for the year Actuarial movement for the year Transfer to revenue reserve Balance as at 31st March 2015

Pension reserve

Association revenue reserve

Total

£’000 (906) (2,800) (241)

£’000 14,693 3,352 241

£’000 13,787 3,352 (2,800) -

─────── ─────── ─────── (3,947) 18,286 14,339 ═══════ ═══════ ═══════

Annual Accounts 2014-15

19. NET CASH INFLOW FROM OPERATING ACTIVITIES Group

Operating Surplus for the year Depreciation FRS 17 pension adjustment (non-cash) Movement in working capital

Association

2015

2014

2015

2014

£’000 3,548 2,092 241 (1,103)

£’000 3,451 1,597 344 2,315

£’000 3,463 2,021 241 (1,005)

£’000 3,313 1,526 344 702

─────── ─────── ─────── ─────── 4,778 7,707 4,720 5,885

Net cash flow from operating activities

═══════ ═══════ ═══════ ═══════

20. RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET DEBT Group

Decrease) / increase in cash in year (Increase) / decrease in debt

Association

2015

2014

2015

2014

£’000 (81) (2,000)

£’000 (1,972) 2,600

£’000 9 (2,000)

£’000 2,144 (2,600)

Net cash (outflow) / inflow before financing Net debt at start of year

─────── ─────── ─────── ─────── (2,081) 628 (1,991) 456 (16,236) (16,864) (16,408) (16,864)

Net debt at 31st March 2015

─────── ─────── ─────── ─────── (18,317) (16,236) (18,399) (16,408) ═══════ ═══════ ═══════ ═══════

21. ANALYSIS OF NET DEBT

At 1 April 2014

GROUP

Cash at bank and in hand Loans

ASSOCIATION Cash at bank and in hand Loans

£’000

1,164 (17,400)

(81) (2,000)

1,083 (19,400)

1,164 (17,400)

───────

(16,236)

(2,081)

(18,317)

(16,236)

═══════

At 1 April 2014 £’000 992 (17,400) ───────

Monmouthshire Housing Association

At At Cash flow 31 31 during the March March year 2015 2014

Cash flow At At during the 31 March 31 March year 2015 2014 £’000 £’000 £’000 9 1,001 992 (2,000) (19,400) (17,400) ───────

───────

(16,408)

(1,991)

(18,399)

(16,408)

═══════

22. CAPITAL COMMITMENTS

Capital expenditure that has been contracted for but has not been provided for in the financial statements Not yet been contracted for

2015

2014

£’000

═══════ 50,980

═══════ 56,617

═══════

As part of the transfer of properties from Monmouthshire County Council to Monmouthshire Housing Association, the Association has delivered a programme of major repairs which comply with the Welsh Housing Quality Standard. The cost of the works were financed from rental income, an annual dowry from the Welsh Government and a loan facility with Barclays Bank.

23. OPERATING LEASES – Group and Association At 31 March 2013, annual commitments under non-cancellable operating leases as follows: Leases expiring Within 1 year Between 2-5 years

31 March 2015

31 March 2014

£’000

21 35

10 22

───────

═══════

Annual Accounts 2014-15

24. PENSION SCHEMES In accordance with FRS17 reporting requirements, Monmouthshire Housing Association Limited is required to disclose certain information concerning assets, liabilities and income and expenditure related to pension schemes for its employees. The Association participates in the Torfaen County Borough Council (Greater Gwent) pension scheme (the Scheme), which is a defined benefit scheme based on final liabilities attributable to these individuals were identified at the transfer date i.e. 21st January 2008. As part of the transfer agreement, liability for the proportion of the debt attributable to these employees that relates to the pre-transfer period rests with Monmouthshire County Council. The gains and losses recognised by the Association therefore relate solely to the post transfer period. The most recent valuation was carried out as at 31 March 2012 and has been updated by independent actuaries to the scheme to take into account the requirements of FRS 17 in order to assess the liabilities of the fund at 31st March 2013. Liabilities are valued on an actuarial basis using the projected unit method, which assesses the future liabilities discounted to their present value. The Association’s contribution rate from 1st April 2012 to 31st March 2013 was 11.6% of members’ pensionable earnings. The main assumptions used for the purpose of FRS17 are:

To the 31st March ... 2015

2014

2013

2012

2011

% per annum Rate of CPI inflation Rate of increase in salaries Rate of increase in pensions Discount rate Equities Rate of return on government bonds Rate of return on other bonds Rate of return on property Cash/liquidity Rate of return on other assets Expenses deduction Overall expected rate of return

100

Monmouthshire Housing Association

2.1 3.6 2.1 3.4 6.5 2.2 2.9 5.9 0.5 6.5 0.3

2.4 3.9 2.4 4.6 7.0 3.4 4.3 6.2 0.5 7.0 0.4

2.4 3.9 2.4 4.2 7.0 2.8 3.9 5.7 0.5 7.0 0.3

2.5 4.0 2.5 4.9 7.0 3.1 4.1 6.0 0.5 7.0 0.3

2.9 4.4 2.9 5.5 7.5 4.4 5.1 6.5 0.5 7.5 0.3

──── 5.58%

──── 6.11%

──── 5.97%

──── 6.01%

──── -

════

24. PENSION SCHEMES (Continued) Principal demographic assumptions - post retirement mortality:

31 March 2015

31 March 2014

S1PA CMI_2012_(1.5%)

S1PA

( 98% males, 97% females )

S1PA CMI_2012_(1.5%)

(98% males , 97% females)

(98% males, 97% females)

Non retired members

Retired members

Male Future lifetime aged 65 in 20 years time Current pensioner aged 65

Female

Male

Female

25.3y

27.9y

25.2y

27.8y

23y

25.5y

23y

25.4y

Assets are valued at fair value, principally at market value for investments, and comprise : 31 March 2015

31 March 2014

31 March 2013

31 March 2012

31 March 2011

£’000

Equities Government bonds Other bonds Property Cash Other

14,685 1,451 1,470 509 113 622

77.9% 7.7% 7.8% 2.7% 0.6% 3.3%

12,861 1,199 1,232 427 148 558

78.3% 7.3% 7.5% 2.6% 0.9% 3.4%

11,087 1,263 1,234 334 73 523

76.4% 8.7% 8.5% 2.3% 0.5% 3.6%

9,145 1,125 997 275 200 442

75.1% 9.2% 8.2% 2.3% 1.6% 3.6%

9,782 917 881 253 217 12

81.1% 7.6% 7.3% 2.1% 1.8% 0.1%

Total

──── ──── ──── ──── ──── ──── ──── ──── ──── ──── 18,850 100.0% 16,425 100.0% 14,514 100.0% 12,184 100.0% 12,062 100.0% ════

════

Annual Accounts 2014-15

════

101

24. PENSION SCHEMES (Continued) The following amounts were measured in accordance with the requirements of FRS17: At At At At At 31 March 31 March 31 March 31 March 31 March 2015 2014 2013 2012 2011

Present value of Funded Benefit Obligations Present value of Unfunded Benefit Obligations

£’000

22,797 -

17,331 -

17,392 -

14,056 -

12,603 -

─────── ─────── ─────── ─────── ─────── Total Present Value of Benefit Obligations Fair Value of Plan Assets Unrecognised Past service Cost

22,797 (18,850) -

17,331 (16,425) -

17,392 (14,514) -

14,056 (12,184) -

12,603 (12,062) -

─────── ─────── ─────── ─────── ─────── 3,947 906 2,878 1,872 541

Deficit

═══════ ═══════ ═══════ ═══════ ═══════ Components of pension costs for the period to 31 March Current service cost 695 766 592 524 603 Interest on pension liabilities 29 743 703 699 817 Expected return on assets 15 (880) (739) (804) (746) Past service cost (705) Effect of curtailments or settlements 90 7 14 Effect of paragraph 41 limit Total pension cost recognised in I & E

─────── ─────── ─────── ─────── ─────── 829 629 556 426 (17) ═══════ ═══════ ═══════ ═══════ ═══════

Statement of Comprehensive Income Actuarial (gains) /losses Total pension cost recognised in the SOCI

(2,800)

(2,181)

850

1,306

(2,007)

─────── ─────── ─────── ─────── ─────── (2,800) (2,181) 850 1,306 (2,007)

═══════ ═══════ ═══════ ═══════ ═══════ Change in Benefit Obligation during year to 31 March ... 2015 2014 2013 2012 2011 £’000

£’000

All benefits All benefits All benefits All benefits All benefits Benefit obligation at beginning of period Current service cost Interest on pension liabilities Member contributions Past service cost / (gain) Actuarial (gains) / losses on liabilities Curtailments Settlements Benefits / transfers paid Business combinations

17,331 695 795 262 4016 90 (392) -

17,392 766 743 235 (1,418) (387) -

14,056 592 703 224 2,059 (242) -

12,603 524 699 218 522 7 (517) -

14,024 603 817 206 (705) (2,177) 14 (179) -

─────── ─────── ─────── ─────── ─────── 22,797 17,331 17,392 14,056 12,603

═══════ ═══════ ═══════ ═══════ ═══════

102

Monmouthshire Housing Association

24. PENSION SCHEMES (Continued) Change in Plan Assets during year to 31 March ... 2015 2014 2013 2012 2011

Fair value of plan assets at beginning of period Expected return on plan assets Actuarial gains / (losses) on assets Business combinations Settlements Employer contributions Member contributions Benefits / transfers paid Fair value of plan assets at year end

£’000

16,425 766 1,216 (15) 588 262 (392)

14,514 880 763 420 235 (387)

12,184 739 1,209 400 224 (242)

12,062 804 (784) 401 218 (517)

11,007 746 (170) 452 206 (179)

─────── ─────── ─────── ─────── ─────── 18,850 16,425 14,514 12,184 12,062 ═══════ ═══════ ═══════ ═══════ ═══════

Actual Return on Plan Assets Experience Gains / (losses) on Assets Experience Gains / (losses) on Liabilities

1,982 1,216 -

1,142 763 (434)

1,948 1,209 -

21 (784) -

830 (170) 1361

Budgeting figures for next year Association

2015 £’000

2014 £’000

£’000

A - Projected Service cost Estimated pay

3,872

3,619

Implied service cost

23.8%

17.6%

───────

Implied service cost next year B - Projected finance cost Interest on pension liabilities

921

637

789

808

(1,046)

(1,013)

───────

Budgeted net finance cost / (gain) next year

(257)

(205)

C - Projected employer contributions Normal contributions £ for £ recharges

515

481

───────

Total employer contributions for next year

(515)

(481)

D - Current deficit

3,947

906

───────

4,096

857

═══════

E - Projected deficit next year ( A + B + C + D )

Annual Accounts 2014-15

103

24. PENSION SCHEMES (Continued) Sensitivity Analysis as at 31 March 2014 Central

Sensitivity 1

Sensitivity 2

+0.1% p.a. discount rate

+0.1% p.a. inflation

Sensitivity 3 1 year increase in life expectancy

Liabilities Assets

─────── 22,797 (18,850)

─────── 22,320 (18,850)

─────── 23,284 (18,850)

─────── 23,206 (18,850)

Deficit Projected service cost for next year Projected return on assets for next year Projected interest cost for next year

─────── 3,947 921 (1,046) 789

─────── 3,470 615 (1,013) 808

─────── 4,434 951 (1,046) 806

─────── 4,356 941 (1,046) 803

───────

Disclosure item

In addition, the Association has 15 employees who participate in the Social Housing Pension Scheme. This scheme is funded and is contracted out of the State Pension Scheme. It is not possible to identify in the normal course of events, on a consistent and reasonable basis, the share of underlying assets and liabilities belonging to individual participating employers. This is because the scheme is a multi-employer scheme where the assets are co-mingled for investment purposes, and benefits are paid from the total scheme assets. Accordingly, due to the nature of this scheme, the accounting charge for the period under FRS17 represents the employer contribution payable. The Trustee commissions an actuarial valuation of the scheme every three years. The main purpose of the valuation is to determine the financial position of the scheme in order to address the future level of contributions required so that the scheme can meet its pension obligations as they fall due. The last formal valuation of the SHPS scheme was performed as at 30th September 2011 by a professionally qualified Actuary using the Projected Unit Method. The market value of the scheme’s assets at valuation date was £2,062 million. The valuation revealed a shortfall of assets compared with the liabilities of £1,035 million, equivalent to a past service funding level of 67.0%. The Scheme Actuary has prepared an Actuarial Report that provides an approximate update on the funding position of the scheme as at 30th September 2013. Such a report is required by legislation for years in which a full actuarial valuation is not carried out. The market value of the Scheme’s assets at the date of the Actuarial Report was £2,718 million. The Actuarial Report revealed a shortfall of assets compared with the value of liabilities of £1,154 million, equivalent to a funding level of 70%.

Reconciliation of the movement in the deficit Opening balance at start of the year Current service cost Contributions Past service cost Curtailments and settlements Administration Costs Interest on Pension Liabilities Expected return on Assets Actuarial gain / (loss)

2015 2014 2013 2012 2011 £’000 £’000 £’000 £’000 £’000 (906) (2,878) (1,872) (541) (3,017) (695) (766) (592) (524) (603) 588 420 400 401 452 705 (90) (7) (14) (15) (795) (743) (703) (699) (817) 766 880 739 804 746 (2,800) 2,181 (850) (1,306) 2,000

Balance at the end of the year

─────── ─────── ─────── ─────── ─────── (3,947) (906) (2,878) (1,872) (541) ═══════ ═══════ ═══════ ═══════ ═══════

104

Monmouthshire Housing Association

25. RELATED PARTY TRANSACTIONS The Board includes members who are tenants of the Association or councillors with Monmouthshire County Council. Any transactions with these tenants and councillors are made at arm’s length and on normal commercial terms. They cannot use their position to their advantage.

26. LEGISLATIVE PROVISION The Association is incorporated under the Industrial and Provident Societies Act 1965 to 2003. The Association adopted charitable rules with effect from 21st January 2008.

27. STOCK (GROUP AND ASSOCIATION)

Properties under construction held for sale Sundry materials At 31st March

2015

2014

£’000

1,190 130

121

─────── 1,320

─────── 121

═══════

Annual Accounts 2014-15

105

Where Our Homes Are Located Grosmont Fawr (21) Crucorney Fawr (11)

Gilwern (54)

Govilon/ Llanfoist (147)

Clydach (33)

Mardy (365)

Llantilio United (20)

Abergavenny (598)

Llanelly Hill (55)

Monmouth (346) Wyesham (153)

Llanarth (16)

Mitchell Troy United (31)

Llanover Fawr (39)

Raglan United (100) Goytre Fawr (64)

Trellech United (46)

Gwehelog Fawr (4)

Usk (90)

Tintern (19) Devauden (20) St Arvans (16)

Llangybi (38)

Shirenewton (5) Caerwent (45)

Chepstow (447) Mathern (17)

Caldicot (637) Magor (18) Undy (58)

106

Monmouthshire Housing Association

Rogiet (57)

Portskewett (57)

Annual Accounts 2014-15

107

0345 677 2277 communityservices@monmouthshirehousing.co.uk www.monmouthshirehousing.co.uk Monmouthshire Housing Association Nant-Y-Pia House, Mamhilad Technology Park Mamhilad, Monmouthshire, NP4 0JJ facebook.com/Monmouthshire.Housing

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