3 o I o ? / % o / 3

1 Details of society

Details of society

1.1 Details of the society

Register number / §> ¥ - £ / / / ?

Registered office

address

Postcode SE / / f f u j

1.2 Year end date (dd/mm/yyyy)

See Note 1.2

3 o I o ? / % o / 3.

Committee of management If you are a club you do not need to give a year of birth in questions 1.3-1.6.

The names of the members of the Committee at the date on which the return is signed

should be entered below in BLOCK CAPITALS.

1.3 Details of Chairman

Name $ ~T£ FH # A / U f * ^ C H

Address # # C # 0 £ / ? C C * J ' S ® F r / C £

* f# fusee's /9i/e^t/S

Postcode i j ^ £ r f p

Year of birth yyyy t9So Business occupation S & * / / £ > / £ C A . & A . Q Y 4 / ? / ? ^ /

1.4 Details of Treasurer

Name S T ^ l / e ^ ^ S S ^ X / p / V

Address 1 < ? C O £ > / Z / C t f ^ C * ? t >

Postcode S £ 3 3 . 9 ^ (Si

Year of birth yyyy '96e> Business occupation

and other / J C C C U ^ / 7 ^ * ? / V T directorships

FCA • Mutuals AR 30 - Industrial and Provident Societies (F) • Release 2 • Apri\ 20J3 page 3


1.5 Details of Secretary

Name S7~£t /6 J~OyC£

Address ? < $ 0 / ? £ > 6 A / * ® # £ >

Postcode 7 ~ U J < $ / X F >

Year of birth yyyy / ? S 8

Business occupation

a , / ) / ^ ^ fop secAe-r**?

1.6 Details of Members of the Committee

Name

srefHAN WELCH

YGTUNDt

CT£S/frfy/?

Address

/&9 UPkWos

S F Z Z CDC

Year of birth

yyyy

/<tso

yyyy

/9ps

yyyy

/960

r/^ssi £

SO #4/ft/tfM£P

rtw/o s t r r

/9SS>

yyyy

/ f ^ 7

yyyy

/?3S

Business

occupation

and other

directorships

4 / Y d A . l S - r

/fCCOd*S77f*f7

/fcc€(/*/r/?*/t

C/ j&efY/f f tA/

R€T/REC>

Please use separate sheets of paper if you need more space.

Please indicate how many separate sheets of paper you have used.

FCA • Mutuals AR 30 - Industrial and Provident Societies (F) • Release 2 • April 2013 page 4

Details of Members of the Committee

Name

£>$<f tD

D A Y

HtlZ-J£L

DUA-ime&c

Address

*Sff€Pf*l*os C c a & E

9? #*/£*&(/$#&

£ 7 P#/y7P/sFb/V>

-25COAJui&f /?/).

t o /y)#L/tfy?

*9 &fc/<SA?/7#S

StctrH C^GYAOA/ C # 3 9 4 2 -

Q3/tEsroA/*%Tff

¥ 2 R (7#£*&€*/

Year of birth

dd/mm/yy

S

dd/mm/yy

dd/mm/yy

/9¥-f

dd/mm/yy

/79-f

dd/mm/yy

/?£S

dd/mm/yy

0 / J S J

dd/mm/yy

dd/mm/yy

dd/mm/yy

dd/mm/yy

Business occupation and other directorships

<SO£C77ftJA£/C

C 0 U A J C / I ~ / ~ O R

tfOUS/A/0 lSOLU*tTS'£&

S O ^ / C / T C R


All societies must answer the following questions whether the answers are yes or

no, and provide all other information requested

1.7 Does the society take deposits (excluding withdrawable shares) within the

provisions of the Financial Services and Markets Act 2000?

• No

0 Y e s

1.8 Does the society hold deposits (excluding withdrawable shares) taken previously, even though it does not currently take them, within the provisions of the Financial Services and Markets Act 2000?

& N o

Q Yes

1.9 Is the society a subsidiary of another society?

S*No • Yes

1.10 Does the society have one or more subsidiaries?

B 'No

D Yes

1.11 Is the society currently accepted by the Inland Revenue as a charity for tax purposes?

D N o > Continue to question 1.12

• ^ Yes • Give details below

Reference number of letter from Inland Revenue or the Scottish Charity number 3r

You must confirm that you have attached a copy of the f^Yes

Inland Revenue's letter to this return

1.12 Is the society registered with the Homes and Communities Agency, Welsh

Ministers or The Scottish Housing Regulator?

D No • Continue to question 1.14

0 Yes • Select the one you are registered with below and provide the registration

number 0Homes and Communities Agency

• Welsh Ministers

QThe Scottish Housing Regulator

Register number / , / ^ » 3 ^ 3 <9~

1.13 Is the society a registered social landlord?

• No

STVes

1.14 Does the society offer any insurance products?

S'No • Yes

1.15 Does the society undertake residential mortgage business?

0^No

• Yes

1.16 Name of any organisation to which the society is affiliated

Name S W T f f - C c V A W f = £ 0 € A / } T / e * / tf= S A Q f i U . f f / f T

HOUS/NG TuSTfC£~


\

1 Details of society • •,

Benefit of the community societies

1.17 As once completed this return will be placed on the society's public file, benefit of the

community societies are welcome to use the space below to provide a report for all those who may have an interest in the society. If provided, this report should cover the activities of the society during the financial period covered by the return and should set out how these activities have brought benefit to the community.

Please use separate sheets of paper if you need more space.

Please indicate how many separate sheets of paper you have used.

FCA • Mutuals AR 30 - Industrial and Provident Societies (F) • Release 2 • April 2013 page6

2 Statistics

Account details

2.1 You must enter the figures below

See notes for help on items E-T. Enter NIL where applicable

A

B

C

D

E

F

G

H

1

J

Members at beginning of year

Members ceased during year

Members admitted during year

Members at end of year

Turnover for year

Total of income and expenditure (receipts and payments added together)

Net surplus/(deficit) for year

Fixed assets

Current assets

Total assets (equal to amount in

row 0, below)

/OS

0

a 10%

/.S07,2SZ

3., GZ 7,7 SG

C / S t $ M )

X,'iSLSi.£t£ •227.0OS

1 7 * t 671

K

L

M

N

0

Current liabilities

Share capital

Long-term liabilities

Reserves

Total liabilities, share capital &

reserves (K+L+M+N) (equal to

amount in J above)

S i 5. X I f

/ ^S , /7¥ -

* . ? ? ? , * £5

l l h $0D

?, 79-9. 67/ All societies (excluding clubs) must complete boxes P-T

Investments in other Industrial and

Provident societies

Q Loans from members

Loans from Employees'

Superannuation Schemes

Dividends on safes

Share interest

FCA • Mutuals AR 30 - Industrial and Provident Societies (F) • Release 2 c April 2013 page?

2 Statistics

2.2 Names of subsidiaries as defined in Section 15 of the Friendly and Industrial and Provident Societies Act 1968

^ L

2.3 Names of subsidiaries not deatt with in group accounts (if any) and reasons for exclusions (as approved by the FCA)

The society must have written authority from us to exclude a subsidiary from group

accounts

y

/

/

y

FCA « Mutuals AH 30 - Industrial and Provident Societies (F) • Release 2 o April 2013 page 8

3 The audit

3.1 Type of audit used for the attached accounts.

If the society has used a full professional audit or an accountant's report then the report

must be prepared by a registered auditor.

0 Full professional audit > Continue to section 4

• Accountant's report • Complete questions 3.2 and 3.3

• Lay audit • Complete questions 3.2 and 3.3

Q Unaudited • Complete questions 3.2 and 3.3

3.2 Do the society's registered rules allow the society not to undertake a full

professional audit?

0 ^ N o

• Yes

3.3 Has the membership passed at general meeting, in accordance with section 4A(2) of the Friendly and Industrial and Provident Societies Act 1968, a resolution allowing the society not to undertake a full professional audit for the year of account in question?

<0*No

• Yes

FCA • Muluals AR 30 - Industrial and Provident Societies (F) • Release 2 • April 2013 page 9

4 Accounts and signature - m.

Accounts and signature

-Accounts

4.1 Date on which the accounts and balance sheet will beAvere laid before the AGM

(dd/mm/yyyy)

O £ i o 3> / %D / 3

4.2 Has your society produced accounts to the minimum standard required?

0 ' Y e s • you must confirm that you have attached the accounts

and the audit/accountant's report bearing the original

signatures of the auditor (if required by law), the secretary

and the two committee members. Ât tached

D No > you must produce accounts to the minimum standard

required, see notes for details.

Signature - all societies to complete

4.3 The Secretary of the society must sign and date below

I certify that the information in this form is correct to the best of my knowledge and belief.

Name S T A P H S * - / JÔ^Ct :

Signature

Phone number 020 70£9 1370 Email Sieve jo^ce.aâH>v^.q^(;cflu.or<j

Date dd/mm/yy 0\ 108 / 13


8

SOUTHWARK AND LONDON DIOCESAN

HOUSING ASSOCIATION LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2012

Tenant Services Authority Registration No: LH3934

Industrial and Provident Society No: 16905 R

An Exempt Charity

9

INDEX

Page

Report of the Committee of Management 2-4 Audit Report 5 Financial Statements ^.jo

Balance Sheet g Income and Expenditure Account 7 Cashflow Statement g Notes to the Financial Statements 9. ] g

0

Southwark and London Diocesan Housing Association Report of the Committee of Management for the year ended 30 September 2012

The Committee of Management is pleased to present their report and the audited financial statements

for the year ended 30 September 2012.

Principal Activities

The principal activity of Southward and London Diocesan Housing Association is the development

and management of rented social housing - primarily on Church land.

Committee of Management

The Committee of Management as ai 30 September 20)2 who execute the function of the Board of

Directors was:

The Venerable Stephan Welch

Steven Essayan

Les Alden

Janet Heatley

John Ebenezer

Revd. George Bush

David Freeman

Martin Day

Sarah Firm

Yetunde Oiesanya

Hazel Miall

Councillor Lynne Hale

Ngozi Ok a for

Bill Dunmore

Chair

Hon. Treasurer

Vice Chair

Chair of Communication Group

Chair of Asset Management and

Development Group

Chair of Services Group

Chair of Audit Committee

Internal Auditor

Co-opted Members

Yasmin Begum

John Berryman

Executive Officers

Steve Joyce

Pauline Adjetey

Director and Secretary

Operations Manager

Review of Business during 2012 As at 30 September, the Association had 257 homes in ownership and 20 under construction. Each year, the Association reviews its Business Plan for the coming 3 year cycle. Early in 2012, the Committee set a series of targets for the year ahead which covered:

Developing greater resident 'scrutiny' of the service provided Sustaining a high level of service to residents and communicating more effectively Continuing to improve fire, health and safety standards Maximising investment in the Association's existing properties Maintaining a new development programme in more challenging times Improve tenant representation on the Management Committee

Improving Tenant Representation The Association was delighted to welcome two new Committee Members during the course of 2012, Yasmin Begum and John Berryman. The Management Committee recorded its thanks to Beverley Douglas-Blake for her years of service on the Committee.

Committee of Management Each member of association, including Committee members, holds one fully paid share of £] in the Association.

Developing a System of Resident 'Scrutiny' Working jointly with our colleagues in the South London Federation of Small Housing Associations (SoLFeD), a Scrutiny Group made up of residents from the 5 organisations has been set up. The group drew up a set of draft 'Service Standards' which highlighted the areas that were most important to them. These standards have now been accepted and our annual survey of residents re-designed to check how well each organisation is performing against such standards. The results are reported on below. The Scrutiny Group continues to meet and will look at specific areas of work from a tenant's perspective.

Services to Residents As described above, the annual survey was re-designed during 2012 in order to cover the service standards valued most highly by tenants. Over 50% of SLDHA's residents responded and an overall satisfaction level of over 92% was recorded - which is a further improvement on the previous year.

Communicating more effectively Committee and staff have been considering ways in which we can communicate more effectively with our tenants and other outside bodies. We are producing a better Newsletter and Annual Report to Tenants this year and have experimented with different ways of engaging with out residents. We have had some success here but will be looking to build on this in the future.

Investing in our Existing Properties The Association had another year where it invested significantly in its houses that were developed in the mid 1990s. This particular work was focussed on kitchen replacement, some bathrooms and improving security in 35 homes in Bermondsey. The majority of residents were extremely happy with the work.

Component Accounting For this year's accounts the Association needed to account separately for the components in each of its buildings and homes and, in effect, to re-cast its accounts on that basis going back to October 1999. Shortly after the end of the year it commissioned a stock condition survey which provided the information for thai and which will help in programming future replacements of building components, such as bathrooms, kitchens and boilers.

Maintaining a new Development Programme

The new social housing regime has brought many challenges and risks. The Association decided to

continue its development programme - but in a more modest way than before. As part of the previous

funding system, SLDHA completed a development of 8 new homes in Southwark earlier in the year.

It also opened a further 20 new homes in Lewisham shortly after the end of the financial year

2011/12.

Insurance

Insurance policies are maintained by the Association and include protection for Committee members

against liabilities in relation to the Association.

Auditors

Beevcrand Struthers have expressed their willingness to continue as auditors.

Internal Financial Control

The Association has a system of controls guided by its bespoke Financial Regulations, reviewed

annually, and quarterly Internal Audit arrangements, carried out by members of the Management

Committee.

Statement of the Committee's Responsibilities in respect of the Accounts

The Industrial and Provident Societies Acts and registered social housing legislation require the

Committee to prepare financial statements for each financial year which give a true and fair view of

the state of affairs of the Registered Social Landlord and the surplus or deficit for that period. In

preparing these financial statements, the Committee is required to:

- Select suitable accounting policies and then apply them consistently;

- Make judgements and estimates that are reasonable and prudent;

- State whether applicable accounting standards have been followed, subject to any material

departures disclosed and explained in the financial statements;

- Prepare the financial statements on the going concern basis unless it is inappropriate to

presume that the Registered Social Landlord will continue in business.

The Committee is responsible for keeping proper accounting records which disclose with reasonable

accuracy at any time the financial position of the Registered Social Landlord and enable it to ensure

that the financial statements comply with the Industrial and Provident Societies Acts and Housing

Acts. It has general responsibility for taking reasonable steps to safeguard the assets of the Registered

Social Landlord and to prevent and detect fraud and other irregularities.

Statement of Disclosure of information to Auditors

We, the Board members of Southwark and London Diocesan Housing Association who held office at

the date of approval of these Financial Statements as set out above, each confirm, so far as we are

aware, that:

- There is no relevant audit information of which the Association auditors are unaware; and

- We have taken all the steps that we ought to have taken as Board members in order to make

ourselves aware or any relevant audit information and to establish that the Association's

auditors are aware of that information.

On behalf of the Cc^nntfjtecj^ f j ^ 1

Chair: \ J K 4 1 T ^ V A ^ 1/fe^'" U'l Date: (o . . {!>

Secretary: vAlTVv D a t e : » • •> • I 1>

Independent Auditor's Report to the Members of Southwark and London Diocesan Housing Associat ion

We have audited the financial statements of Southwark and London Diocesan Housing Association for the year ended 30 September 2012 on pages 6 to 18. 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).

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. 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.

Respective Responsibilit ies of the Board and the Auditor

As explained more fully in the Statement of Board's Responsibilities set out on page 4, the Board is responsible for the preparation of the financial statements which 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.

;ope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Association's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Board; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Board Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

• give a true and fair view of the state of the Association's affairs as at 30 September 2012 and of its income and expenditure for the year then ended; and

• have been properly prepared in accordance with the Industrial and Provident Societies Acts, 1965 to 2002, the Housing and Regeneration Act 2008 and the Accounting Requirements for Registered Social Landlords General Determination 2006.

Matters on which we are required to report by exception

jfe have nothing to report in respect of the following matters where the Industrial and Provident Societies Acts, r965 to 2002 require us to report to you if, in our opinion:

a satisfactory system of control over transactions has not been maintained; or

the association has not kept proper accounting records;

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.

P££**f- Q*\ S&*AH*SI

Address Beever and Struthers

15 Bunhill Row, Chartered Accountants and Statutory Auditor

London . , ^

EC1Y8LP Date: 2-T " faA ^ 0 ( 1

SOUTHWARK AND LONDON

DIOCESAN HOUSING ASSOCIATION

BALANCE SHEET

AS AT 30 SEPTEMBER 2012

Fixed assets

Tangible assets

Less: Social Housing grant

Depreciation

Current assets

Debtors

Cash at bank

Less creditors

Amounts falling due within one

year

Net current (Iiabilities)/assets

Total assets less current liabilities

Notes

2/21

4/6

2012

£

30,785,387

(19,679,629)

(2.183.092)

8,922,666

57,499

769.506

827,005

(513,214)

313,791

£9,236,457

2011 Restated

£

29,249,831

(18,919,629)

(1.938.846)

8,391,356

38,295

644.469

682,764

(541,524)

141,240

£8,532,596

Creditors

Amounts falling due after more

than one year

Capital and reserves

Called-up share capital

Designated reserves

Income and expenditure account

5/6

7

8

8/21

8,979,483

103

142,071

114,800

£9,236,457

8,260,293

103

170,200

102,000

£8,532,596

The financial statements on pages 6 to 17 were approved by the Committee of Management on 24 January 2013 and

were signed on its behalf by:

Committee Member:

Committee Member:

Director and Secretary.

-u_i h i V\ \d



INCOME AND EXPENDITURE ACCOUNT


£

Turnover

Operating costs

Operating surplus

Interest receivable

Interest payable

Surplus/ (deficit) for the year

Notes

10

10

12

13

2012 £

1,507,233

(1,120,523)

2011 Restated

£

1,406,256

(1,188,219)

386,710

3,527

(405,566)

(£15.329)

218,037

1,389

(371,494)

(£152,068)

All amounts relate to continuing activities,

Alf recognised gains and losses are included in this statement.

The above surpluses are the historical cost surpluses.



CASH FLOW STATEMENT


Notes

Net cash flow from operating

activities

Returns on investments and

servicing of finance

Capital Expenditure

Acquisition, construction and

improvement of housing properties

and replacement of building

components

Housing grams received

| Net cash inflow (outflow) before

management of liquid resources

and financing

Financing

Increase (decrease) in cash

2012

(1,670,787)

760.000

666,018

(378,062)

(910,787)

(622,831)

747.868

£125.037

Q

2011 Restated r f

(89,145)

735.877

(361,755)

(89.145)

284.977

£284,980

Reconciliation of operating surpluses to net

cash inflow from operating activities

Operating surplus

Depreciation charges

(Increase)/ decrease in debtors

increase/(decrease) in creditors

Net cash (outflow)/! nflow from operating

activities

Reconciliation of net cash flow to movement in

net debt

Change in cash in the period

Cash used to increase liquid resources

Loans received

Loans repaid

Loan costs written off

386,710

379,477

(19,204)

(80,965)

£666.018

125,037

-

(1,000,000)

193,077

45,333

Change in net debt

Net debt at start

Net debt at end

(636,553)

(7,775.224)

(£8,411,777)

218,037

370,881

3,175

143,784

£735,877

284,980

(9,142)

275,838

(8,051,062)

(£7.775,224)

17 SOUTHWARK AND LONDON


NOTES TO THE FINANCIAL STATEMENTS


] PRINCIPAL ACCOUNTING POLICIES

The Association is incorporated under the Industrial and Provident Societies Acts 1965 and is registered with the

Tenant Services Authority as a Registered Provider.

Basis of accounting

The financial statements have been prepared in accordance with applicable United Kingdom Accounting Standards and

Statements of Recommended Practice of the United Kingdom. The accounts comply with the Industrial and Provident

Societies Acts 1965 to 2002, the Housing and Regeneration Act 2008, the Accounting Requirements for Registered

Social Landlords General Determination 2006. and the Statement of Recommended Practice: accounting by Registered

Social Housing Providers Update 200S published by the National Housing Federation. The accounts are prepared on

the historical cost basis of accounting.

Turnover

Turnover represents rental income receivable, service charges receivable and other income.

^ P Fixed assets and depreciation

The Association has implemented the requirements of component accounting. In the Association's case this took

effect from the year which began on i October 1999. Tangible fixed assets are staled at cost less accumulated

depreciation and capital grants. Depreciation is now charged on the components of buildings, not land, on a straight-

line basis over the expected remaining economic useful lives of the components. A stock condition survey has been

carried out to provide information on a sample of (he Association's building components and this has been used to

estimate the remaining useful life of those components which were surveyed and-.those which could reasonably be

assumed to have similar remaining useful lives. Otherwise components have leen depreciated with the following

estimated useful lives and at the following rates -

Main fabric

Roof structures and coverings

Windows and external doors

Gas boilers/ fires

Kitchens

Bathroom/ WCs

Mechanical systems (heating, ventilation and plumbing)

k Electrics

" Lifts

Digital TV aerials

Social housing grant and similar capital grants are attributed to land and the main fabric of buildings pro rata to

expenditure on them but not to other components.

Depreciation is calculated on a quarterly basis with effect from the quarter after that in which a development becomes

available for letting or the quarter after a component is replaced. A full quarter's depreciation is charged in that

following quarter. Depreciation is accelerated in those cases where it becomes clear that the original estimate of the

remaining useful life of a component was loo long but is not decelerated in those cases where it becomes clear that the

initial estimate was too short.

Replacements of components are capitalised where an entire component is replaced or where the cost of a partial

replacement exceeds £5,000. In the latter case an estimate is made of the proportion of the component which is

replaced and that proportion of its book value is alienated. In other cases of partial component replacements the

expense is treated as a major repair.

niiia! estimated

useful life (yrs)

99

70

30

10

15

25

30

40

20

30

Rate

1.01%

1.43%

3.33%

10.00%

6.67%

4.00%

3.33%

2.50%

5.00%

3.33%



2


FOR THE YEAR ENDED30SEPTEMBER 20J2

Housing properties

As required by FRS 15, the Association has reviewed the economic useful lives of its housing properties and

depreciates the property costs, less grants, freehold land and residual value.

Ail properties are reviewed for impairment annually, and where housing properties have suffered a permanent

diminution of value, the fall in value is recognised after taking account of any related capita! grants.

Housing properties in the course of construction are slated at cost and are not depreciated.

Social housing and other grants

Where developments have been financed wholly or partly by social housing or similar capital grants, the cost of those

developments has been reduced by the amount of the grant received.

Social housing grant received for items of cost written off in the Income and Expenditure Account are matched against

those costs.

Social housing grant can be recycled by the Association under certain conditions, if a property is sold or if another

t relevant event takes place. In those cases the SHG can be used for projects approved by the Homes and Communities

^ Agency. However, ShG may have to be repaid if certain conditions are not met.

Any net social housing grant received and not spent is included in current liabilities, taking into account all properties

under construction.

In certain circumstances, SHG may be repayable and, in that event, is a subordinated unsecured repayable debt.

When donations are received for capital purposes the grant is credited to this heading in the accounts.

Capitalisation of interest and administration costs

Any interest on loans financing development is capitalized up to the date of completion of the scheme and only when

development activity is in progress.

Administration costs relating to development activities are capitalised based on an apportionment of the management

time spent on the activity. Administration costs relating to the replacement of components are not capitalised.

Pension costs

The cost of providing retirement pensions and related benefits is charged to management expenses over the periods

benefiting from the employees' services.

. Provisions

' The Association provides only for contractual liabilities.

Improvements to property

The Association capitalises expenditure on housing properties which adds to the value of the property or extends its

useful life. Improvements to property that relate to assets which have a separately identifiable life to the properly

'concerned are also capitalised but under a category separate from the property.

Loan finance issue costs

It is SLDHA's policy to capitalise those costs of borrowing which can property be capitalised over a period no longer

than the term of the loan concerned. SLDHA takes a view as to what period is appropriate bearing in mind the

possibility that the loan may be refinanced before its term and that in any case the value of a loan diminishes over time

through principal repayments. It will keep under review the period over which capitalised issue costs are amortised

taking into account the circumstances affecting its borrowing at the end of each financial year.

Value Added Tax

The Association is not registered for VAT. All amounts disclosed in the accounts are inclusive of VAT.

Designated major repairs reserve

The Committee of Management designate an amount from the general reserves as a major repair reserve. The amount

designated in (he rcser\-e is reviewed annually.





9

2. TANGIBLE FIXED ASSETS

Cost

At 1 October 201! Restated

Additions for new developments and improvements

Additions for component replacements

Disposals of replaced components

At 30 September 2012

Depreciation

At i October 2011 Restated

^ ^ Charge for year

^ P Disposals of replaced components


Net Book Value at 30 September 2012

Net Book Value at I October 2011 Restated

Housing

properties

£

29,249,83!

1,478,400

192,387

(135,231)

30,785,3S7

1,938,846

379,477

(135,231)

2,183,092

£28,602,295

£27,310,985

Total

£

29,249,831

1,478,400

192,387

(135,231)

30,785,387

1,938,846

379,477

(135,231)

2,183,092

£28,602,295

£27,310,985

Social housing and other grants

At 1 October 2 0 i l

Additions


'Housing Properties Comprise:

Freeholds

Lone leaseholds

2012

£

11,644,481

19.140.906

£30,785,387

18,919,629

760,000

£19,679,629

18,919,629

760.000

£19,679,629

2011 Restated

£

11,626,704

17.623.127

£29,249,831

3. DEBTORS

Amounts falling due within one year

Rent arrears

Less: provision for bad debts

Prepayments and other debtors

101,466

(51,06!)

7.094

60,537

(26,950)

4.708

£57.499 £38,295





2.o

A. CREDITORS • AMOUNTS FALLING DUE WITHIN ONE

YEAR

Trade creditors

Prepaid rent

Accruals and deferred income

Loans

5. CREDITORS - AMOUNTS FALLING DUE AFTER MORE

THAN ONE YEAR

Repayable in more than one year and within five years

Repayable in five years or more

^ B Loan cost

2012

145,492

38,198

48,877

280.647

£513,214

888,000

8,170,291

(78,8081

£8,979,483

2011 Restated

219,668

38,309

55,556

227.991

£541,524

718,500

7,575,268

(33,4751

£8,260,293

6. ANALYSIS OF LOAN DEBT

Repayable within one year

Repayable in more than one year and within five years

Repayable in five years or more

201,800

888,000

8,170,29!

£9.260.091

159,400

718,500

7,575,268

£8,453.168

These loans arc secured by a fixed charge on some housing properties and repayable by instalments. The interest rale

on £6,500,000 of the loans (2011 £6,500,000) was fixed and the remainder variable. ;

7. CALLED UP SHARE CAPITAL

Allotted Issued and Fully Paid

At start of the year

Issued during the year

^ B Cancelled during year

At end of year

103 100

£103 £103

The shares do not have a right to any dividend or distribution in a winding-up, and are not redeemable. Each share has

full voting rights.

8. RESERVES

income and

Expenditure Major Repairs

Account Reserve

At 1 October 201! Restated

Surplus/ (deficit) for the year

Transfers to designated reserves

Transfers from designated reserves


102,000

(15,329)

170.200

28,129 (28,129)

£114.800 £142.071

Total

272,200

(15,329)

£256.87

The transfer from the Major Repairs reserve reflects the substantially higher amount which the Association decided to

spend on major repairs in the year.





9. CAPITAL COMMITMENTS

Capital expenditure that has been contracted for but has not

been provided for in the financial statements

2012

4.460.000

2.

2011 Restated

1.540.000

Capital expenditure that has been authorised by the Committee

of Management but has not yet been contracted for

The Association expects to finance the

expenditure above by:

Social Housing Grant receivable

Loans to be received, with loan offers

Loans yet to be raised

Own funds

1,850,000 4,630,000

£6,310,000

2,630,000

3,330,000

350,000

£6,310,000

£6,170,000

3,460,000

2,682,000

28.000

£6,170,000

1(1. TURNOVER, OPERATING COSTS AND OPERATING SURPLUS

SOCIAL HOUSING LETTINGS

OTHER ACTIVITIES

Development

Management Fees

TOTAL

SOCIAL HOUSING LETTINGS

OTHER ACTIVITIES

Development

Management Fees

TOTAL

2012

Turnover

1,507,233

£1,507,233

Operating costs

1,118.054

2,469

£1,120,523

Operating

surplus/deficit

i»9 ,1 79

(2,469)

£386,710

201] Restated

Operating

Turnover Operating costs surplus/ deficit

1,406,256 1.139.033

49,186

267.223

(49,186)

£1,406,256 £1,188,219 £218,037

Please see note 11 for a detailed analysis of the income and expenditure from lettings.

13





2 1

I I . INCOME AND EXPENDITURE FROM SOCIAL HOUSING LETTINGS

INCOME

Rental income

Service Charges

Net rents receivable

Rent losses from voids

EXPENDITURE

Services 1 Management

Routine Maintenance

Planned maintenance

Major repairs expenditure

Rent losses from bad debts

Depreciation of housing properties

TOTAL EXPENDITURE ON LETTINGS

OPERATING SURPLUS ON LETTING ACTIVITIES

Total

2012

1,362,524

148.717

1,511,241

1,507,233

£4,008

140,570

277,224

190,198

51,497

54,875

24,213

379,477

£1,118,054

£389,179

All general needs accommodation:

No of units;-

Owned and managed

Under development

No of units at end

^ I N T E R E S T RECEIVABLE

Other interest

13. INTEREST PAYABLE

On housing loans

Loan finance costs

257

257

£3.527

391,844

13,722

£405,566

Total

2011 Restated

1,282,663

126.781

1,409,444

1,406,256

During the year £ni! (20! 1 - £nil) of interest payable was capitalised as part of the development process.

£3,188

124,514

245,006

151,673

69,964

171,802

5,193

370,88!

£1,139,033

£267.223

249

249

£1.389

362,350

9.144

£371,494

Id

14. SURPLUS FOR THE YEAR





2012

is stated after charging:-

Housing depreciation

Auditors remuneration (including VAT)

In their capacity as auditors

£379,477

£4.200

1 Z

2011 Restated

£370,88!

£4.200

15. DIRECTOR'S EMOLUMENTS

The aggregate emoluments paid to or

receivable by the Director.

The emoluments paid to the highest paid

•Director of the Association excluding

pension contributions

£75.655

£64.385

£73.949

£63.092

The Director is an ordinary member of the pension scheme. The pension scheme is a final salary scheme funded by-

annual contributions by the employer and employee. No enhanced or special terms apply. There are no additional

pension arrangements. A contribution by the association of £11,27! (2011: £10,857) was paid in addition to the

personal contributions of the Director,

The Committee of Management received expenses of £317 in the year (201! - £100) and no remuneration (20!) -

£Nil).

16. EMPLOYEE INFORMATION

The average weekly number of persons (including the Chief

Executive) employed during the year was:

Full-time equivalents 5.5 5.5

Staff costs (for the above persons)

Wages and salaries

Social Security costs

Pension costs

215,114

20,788

22.629

209,030

19,727

21,879

£258.531 £250,636

z SOUTHWARK AND LONDON




17. PENSION OBLIGATIONS

SLDHA participates in the Social Housing Pension Scheme (SHPS), managed by the Pensions Trust. The Scheme is

funded and is contracted out of the State scheme.

It is not possible in the normal course of events to identify 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 Scheme assets are co-mingled for investment purposes and benefits are paid from total Scheme

assets. Accordingly, owing to the nature of the Scheme, the accounting charge for the period under FRSI7 represents

the employer contribution payable.

From 1 April 2010 SLDHA paid contributions of 16.8% and member contributions were 8.5%.

The Scheme operated a single benefit structure, final salary with a I/60th accrual rate, to March 2007. From April

2007 there are three benefit structures, namely -

• Final salary with a !/60th accrual rate

• Final salary with a l/70th accrual rate

^ ^ • Career average revalued earnings with a l/60th accrual rate

SLDHA has elected to operate the final salary with a l/60th accrual rale.

An employer can elect to operate different benefit structures for their active members (as at the first day of April in anv

given year) and their new entrants. An employer can operate only one open benefit structure at any one lime. An

open benefit structure is one which new entrants are able lo join.

As at the balance sheet date there were 3 active members of the Scheme employed by SLDHA. SLDHA continues to

offei membership of the Scheme to its employees.

The Trustee commissions an actuarial valuation of the Scheme even' three years. The main purpose of the valuation

h to determine the financial position of the Scheme in order to address the level of future contributions required so that

the Scheme can meet its pension obligations as they fall due.

'I he last forma) valuation of the Scheme was performed as at 30 September 201 ! by a professionally qualified Actuary

using the Projected Unit Method. The market value of the Scheme's assets at the valuation date was £2,062 million.

The valuation revealed a shortfall of assets compared with the value of liabilities of £!,055 million, equivalent to a past

service funding level of 67,0%.

Following a change in legislation in September 2005 there is a potential debt on the employer that could be levied by

the Trustee of the Scheme. The debt is due in the event of the employer ceasing to participate in the Scheme or the

Scheme winding up.

^PSLDHA has been notified by the Pensions Trust of the estimated employer debt on withdrawal from the Social

Housing Pension Scheme based on the financial position of the Scheme as at 30 September 2011. As of this date the

estimated employer debt for SLDHA was £1,115,000.

The next formal triennial valuation of the Scheme is due at 30 September 2014. The results of the valuation will be

available in the Autumn of 2015.

The Trustee is currently reviewing the future options to be made available to employers and SLDHA is reviewing how

it might select from those to increase employee participation and to minimise the risk of incurring the buy-out debt.

16





2S

18. CASH FLOW STATEMENT NOTES

Returns on investments and servicing of

finance

Interest Received

Interest paid

Management of liquid resources

Money market investments

Financing

Issue of ordinary shares

Loan issue costs

Loans received

Loans repaid

2012

3,526

(381.588)

(£378,062)

2011 Restated

1,389 (363.144)

(£361,755)

Change in net debt

Cash in hand and at bank

Debt due within one year

Debt due after one year

TOTAL

At start

.' £44,469

'(159,400)

(8.260.2931

(£7,775,224)

(59,055)

1,000,000

(193.077)

£747,868

Cash flows

125,037

159,400

(966.323)

(£681,886)

Non-cash

movements

(201,800)

247.133

£45,333

•

£3

At end

769,506

(201,800)

(8.979.483)

(£8,411,777)

19. TAXATION STATUS

The Association has charitable status.

•

ELATED PARTY TRANSACTION

oard members Yasmin Begum and John Berryman are also tenants of the Association. Their tenancy agreements are

under normal commercial terms.

17





21. PRIOR YEAR ADJUSTMENTS Fixed assets

2G

Capital cost

less SHG Depreciation Reserves

Balance at 30 September 2010 as previously stated 10,033,01! (444,043) 1,340,144

Capitalisation of component replacements up to 30 September

2010

Additional depreciation up to 30 September 2010

Disposals of replaced components up to 30 September 2010

Balance at 30 September 2010 restated

Surplus for year as previously stated

Additions in year to 30 September 2011 as previously stated

Capitalisation of component replacements in year to 30

September 2011

Depreciation in year as previously stated

Additional depreciation in year to 30 September 2011 Disposals of replaced components in year to 30 September

2011

Balance at 30 September 2011 restated

The above adjustments arise from the implementation of component accounting with effect from 1 October 1999.

359,778

-

(86,285)

£10,306,504

-

5,817

83.328

-

-

(65,447)

£10.330.202

-

(1,275,654)

86.285

(£1,633,412)

-

-

.

(92,469)

(278,412)

65.447

(£1.938.846)

359,778

(1,275,654)

-

£424,268

43,016

•

83.328

-

(278,412)

.

£272.200

SOUTHWARK AND LONDON DIOCESAN HOUSING ASSOCIATION

AUDIT MEMORANDUM AND MANAGEMENT LETTER YEAR ENDED 30 September 2012

APPENDIX 2: LETTER OF REPRESENTA TiON

BEEVER AND STRUTHERS CLIENT: SOUTHWARK AND LONDON DIOCESAN HOUSING ASSOCIATION

Chartered Accountants Date of Accounts: 30 September 2012

REPRESENTATIONS REGARDING LIABILITIES AND CERTAIN MATTERS (continued)

Information provided

7. All accounting records and relevant information have been made available to you for the purpose of your audit of the financial statements. We have provided to you all other information requested and given unrestricted access to persons within the entity from whom you have deemed it necessary to obtain audit evidence. All other records and related information including minutes of all management and shareholders meetings have been made available to you.

8. All transactions undertaken by the association have been properly reflected in the accounting records and are reflected in the financial statements.

9. We acknowledge our responsibility for the design, implementation and maintenance of controls to prevent and detect fraud. We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud.

10. We have disclosed to you all informatioh in relation to fraud or suspected fraud that we are aware of and that affects the entity and involves, management, employees who have significant roles in internal control, or others, where fraud could have a material effect on the financial statements.

11. We have disclosed to you all information in relation to allegations of fraud, or suspected fraud affecting the entity's financial statements communicated by employees, former employees, analysts, regulators or others.

12. We confirm that we are not aware of any possible or actual instance of non-compliance with those laws and regulations which provide a legal framework within which the association

f conducts its business and which could affect the financial statements. The association has complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of non-compliance.

13. We confirm that we have disclosed to you the identity of the entity's related parties and all related party relationships and transactions relevant to the association that we are aware of.

14. The association has satisfactory title to all assets, and there are no liens or encumbrances on the assets except for those disclosed in the financial statements.

15. There are no liabilities, contingent liabilities or guarantees to third parties other than those disclosed in the financial statements.

BEEVER aJLd

STRUTHERS

SOUTHWARK AND LONDON DIOCESAN HOUSING ASSOCIATION

AUDIT MEMORANDUM AND MANAGEMENT LETTER YEAR ENDED 30 September 2012

APPENDIX 2: LETTER OF REPRESENTATION

BEEVER AND STRUTHERS CLIENT: SOUTHWARK AND LONDON DIOCESAN HOUSING ASSOCIATION

Chartered Accountants Date of Accounts: 30 September 2012

REPRESENTATIONS REGARDING LIABILITIES AND CERTAIN MATTERS (continued)

16. The association has at no time during the year entered into any arrangement, transaction or agreement to provide credit facilities (including loans, quasi loans or credit transactions) for directors, nor to guarantee or provide security for such matters, except as disclosed in the financial statements.

We confirm to the best of our knowledge and belief that the above representations are made on the basis of enquiries of management and staff with relevant knowledge and experience and, where appropriate, of inspection of supporting documentation sufficient to satisfy ourselves that we can properly make each of the above representations to you.

We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and

Skfirm that so far as we are aware, there is no relevant audit information needed by you in nnection with preparing your audit report of which you are unaware. Each director has taken all the

steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that you are aware of that information.

faJ^jy G.2.1S

Din-fecrovL M io SeautTtw-y

(Signature and Title) (Date)

Note: this document should be on the letter head of the organisation and be signed by the Chairman and Director.

BEEVER " ^ STRUTHERS

Documents

3 o I o ? / % o / 3