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Trident Housing Association Limitedand its subsidiaries

Report and Financial Statements

Year Ended

31 March 2017

Registered Number |P171 33R

Trldent Housing Assoclatlon Llmlted and lts subsldlarlesReport and flnancial statements for the year ended 3l March 2017

Association I nformation

Co-operative and Gommunity Benefit Societynumber:

Homes and Gommunities Agency registrationnumber:

Registered Office:

Directors and Board of Management:

Board of Management

Directors

Company Secretary

Auditors

Bankers

tP 17133R

10979

239 Holliday Street, Birmingham, 81 1SJ

The directors of the company who served during theyear ended 31 March 2017 are listed as follows:

Andrew Ballard - Group Chair (appointed March 17)

Abigail Robson - Group Chair (resigned March 17)

Abigail Davies (resigned September 2016)Frances Anderson (resigned October 2016)Rob TurtonKatie KershawColin SmallMatt KnoppNathan TalbottElaine Elkington (appointed December 2016)Rosemarie Anderson (appointed December 2016)Gill Coombes (appointed March 201 7)

John Morris (appointed September 2016)

John Morris - Group Chief ExecutiveDavid Jones - Director of Housing and Social Care(appointed October 201 6)Andrew Cooke - Finance Director (appointed October2016)Ann Rivera - Director of Organisational Development

John Morris (resigned September 2016)Martyn Ruscoe (appointed September 2016)

BDO LLP, Two Snowhill, Birmingham, 84 6GA

NationalWestminster Bank Plc, 1 St Philips Place,Birmingham, 83 3PP

'' Tr¡dent Houslng Association Llmlted and its subsidiarlesReport and flnancial statements for the year ended 3l March 2017

lndex to the Financial StatementsGhairman's statement

Strategic Report and Operating and Financial Review

o PrincipalActivities, Governance and Legal Structure

o Business and Financial Review

. Objectives and Strategy

r Achievements

o Value for Money

o Risk Management

. Capital Structure and Treasury Policy

o Future Developments

o Statement of Compliance

o Gode of Governance and FinancialViability Standard

Report of the Board

lndependent Auditor's Report to the Members of Trident HousingAssociation and its subsidiaries

Consolidated Statement of Comprehensive lncome

Association Statement of Comprehensive lncome

Consolidated Statement of Financial Position

Association Statement of Financial Position

Consolidated Statement of Ghanges in Reserves

Association Statement of Changes in Reserves

Consolidated Statement of Cash Flows

Notes to the Financial Statements

Page I I

2

4

22

29

31

32

33

34

35

36

37

3B

Trident Houslng Assoclation Llmlted and its subsidlarlesReport and flnanclal statements for the year ended 31 March 2017 Page | 2

Chairman's statement

It has been a successful year for Trident Group. During the year we continued to respond to the wide range

of needs and requirements for our vulnerable customers. lt is a year when we continued to work on our key

priorities as a social investment agency, based on the 5 "F's" of Food, Fuel, Furniture, Finance and Futures.

However, like many in the sector it has also been a period of regrouping in response to the significant

sectoralchanges which have and are being introduced.

To this end we have revisited our Strategic Plan, including our business plan finances, resetting it for the

next five years. We have also responded to the downward financial pressure on Housing Associations. ln

particular, a 1o/o cul in rental income and a reduction in the availability of funds for work with Local Authoritypartners.

There has also been a concentrated effort on voids management, income management and tenancy

support in order to address an increase in stock turnover, increased pressure on customer's income, and

changes to the benefit system. This has taken place whilst still providing support to frontline services for the

Homeless, those experiencing Domestic Violence, those with an offending background and those requiring

flexible floating Support services in their homes.

Trident is also continuing to work in the areas of Value for Money, Risk management and Treasury

management, working closely with our lenders, supported by our advisors from Savills, to maintain a firm¡nancial footing in order to drive the business forward. To this end Trident maintains significant headroom

in all of its covenants. As well as providing assurance to the Board and the wider stakeholders the Strategicplan has been significantly stress tested mapping back key tests to the strategic risk register. Stress testing

iras been enhanced during the year in line with the Board's risk appetite with key mitigations quantified

within a scenario based approach.

Governance remains a key priority for the Board and Executive. We continue to work with The Governance

Forum on the implementation of both a Succession Strategy and a Governance Action Plan in order to

retain the highest grading with The Governance Forum. Trident also continues to expand the use of the

governance lT portal, CG First.

Succession planning within Board members continues to be a key focus. During the financial year three

Board members completed their service and following a successful recruitment and skills assessment

campaign four further members were appointed.

ln March 2016 Trident Group adopted the National Housing Federation Code of Governance, which

replaced the previous Code adopted by Trident, the Public Sector Code. Trident also carried out acomprehensive exercise on compliance with this code, alongside the requirements of the HCA's Standards.

During 2016t17 Trident continued to respond the Social Housing Regulator (SHR) following on from an

enquiry in October 2014 lhat put our G1, V1 gradings under review and in January 2015 updated our

gradings to G2, V1. ln July 2016 the regulator carried out in in-depth assessment and further updated their

regulatory judgement to G2, V2. Trident's regrading to V2 reflects changes in the external environment in

relation to exposure to supported housing and Welfare Reform and Work Act 2016 and is in line with otherproviders who similarly deliver a high proportion of supported housing services. Trident has continued to

work with the HCA and is pleased to announce that during August 2017 has been awarded the G1 grade'

During the financial year Trident also completed its recruitment of a new Chair. ln addition, following a

review of its Senior Management structure, recruitment of two new strategic Directors, a Group Finance

Director and a Director of Housing and Social Care was completed in October 2016.

Throughout the year Trident continued to work closely with its Local Authority partners, successfullydeliveiing on a wide range of Support contracts across the West and East Midlands. This included 12

contracts with Birmingham City Council. Trident was also successful in securing additional contracts; one

being the Elms in Shropshire, a partnership arrangement with the NHS and Shropshire County Councilto

' Tr¡dent Houslng Assoclatlon Limlted and lts subsldlarlesReport and financial statements for the year ended 3l March 2017 page | 3

Chairman's statement (Continued)

provide mental health support. Trident also successfully managed its Care portfolio, achieving good resultswith its lead regulators.

In addition to the support contracts Trident Group will commence its development ofWrockwardine Wood in Telford; a fifty three unit development with a golden brick milestone expected duringMay 2017.

2016117 has been a successful year, one in which Trident Group has successfully regrouped and refocused.It has established a firm platform on which to respond to the challenges that lie ahead. This has beenachieved whilst looking forward to the successful implementation of a new Strategic Plan incorporating thebusiness plan finances, the introduction of new group structure arrangements and to further successfulpartnership working with Local Authority and regional stakeholders.

A. Ballard (-Ghair of Trident Group

Date l6[v,.5orb 7otT

Trldent Housing Association Limited and its subsldiarlesReport and financial statements for the year ended 3l March 2017 Page I 4

Strategic Report And Operating and Financial Review

Principal Activities, Governance and Legal Structure

Trident Group ("The Group") comprises:

Trident Housing Association Limited

A Co-operative and Community Benefit Society, an exempt charity and registered provider with the Homes

and Communities Agency. Trident Housing Association provides landlord services for the Group in respect

of housing management and maintenance. Trident Housing Association is also the parent company of the

Group and provides central services to Group members.

Trident Gharitable Housing Association Limited

A Co-operative and Community Benefit Society, exempt charity and registered provider with the Homes and

Communities Agency. Trident Charitable Housing Association is the legal owner of one housing schemeand all services for residents are provided by Trident Housing Association. This Company has now ceased

trading and is dormant.

Trident Reach: The People CharitY

A registered charity. Trident Reach the People Charity provide Care and Support services to residents over

a number of geogiaphical areas in the Midlands from Trident Housing Association properties and those ofother registered providers.

Trident Star Limited

Trident Star, a company limited by shares, is the Group's commercial arm and currently manages one social

enterprise for the Group and the residents shop situated in Trident House.

Dorcas Housing and Community Support Association Limited

A Co-operative and Community Benefit Society and exempt charity, providing support services, mentoring

and employment training alongside a maintenance and home improvement service. Dorcas left the group on

March 3oth 2017.

Partnerships

The Group continues to engage in a wide range of partnership working including participation in the Matrixpartnership of housing assoCiations which seeks to pool resources for joint procurement and housing

development.

The Group also works with Human City lnstitute (HCl), an independent research initiative and "think tank"

which investigates social and economic exclusion and promotes solutions that seek to build more human

cities and coñrmunity services. ln addition, the Group is engaged in a social enterprise partnership with

Jericho Landscape, a community controlled business that delivers grounds maintenance, property

development and refurbishment to Trident schemes. Finally, the Group also has a partnership with

Shahjalal, a Bangladeshi co-operative based in Aston. Trident provides maintenance and housing services

to Shahjalal.

t Tr¡dent Housing Associatlon Llmlted and its subsldlariesReport and financial statements for the year ended 3l March 20f 7 Page | 5

Strategic Report And Operating and Financial Review

Principal Activities, Governance and Legal Structure (continued)

Trident Group has adopted the National Housing Federation Code of Governance and Code of Conduct(2012).ln fulfilling its obligations under that code it also makes use of the Good Governance code for theVoluntary and Community Sector and the Good Governance Standard for public services. The legal parentof the Group is Trident Housing Association Limited through which all statutory powers of the Group arevested and all the accounts of the Group are consolidated. The controlling powers of the Group areexercised by the Group Board and the individual functions of Trident Housing Association are divested tothe Group Board. The Group operates as a Social lnvestment Group which incorporates all the groupservices of housing, maintenance, support, social enterprise and charitable activities. These functions aredischarged by the legal subsidiaries and the Trident Group Board.

ln line with best practise the Group carries out an annual self-assessment against its chosen Code, theGood Governance Standard for Public Services and it is fully compliant. lt also carries out an externallyfacilitated governance assessment, by the Governance Forum and has maintained its level 3 rating for2016fi7. Level 3 is the highest rating of the standard.

The Board has overall responsibility for management and performance of the group, overall strategy,financial viability, and risk management. This includes annual review of the business plan and our long termfinancial model along with review of the treasury strategy. During the year the chair of the Trident Groupretired and a new chairman was elected into post.

ln addition the make up of the Board has been assessed which highlighted the need for members withcomplimentary backgrounds and skills to be recruited to further strengthen its position. Recruitment hastaken place and the new members have joined during the year.

The Board reviews the Value for Money (VFM) strategy and considers significant proposals to supportdelivery of VFM.

The Board has delegated day to day management of the Group to the Executive Team.

The Group delegates specific responsibilities to Group committees under approved terms of reference.

As of 31 March 2017, there were eight Board members.

The Board carry out an annual review of its schedule of matters reserved for the board and the terms ofreference for its committees to ensure that these documents remain in line with good practice. The boardfollows a three year assurance framework for governance which includes a review of collective boardperformance, individual appraisals and skills assessments and externally facilitated board observations.

As of 31 March 2017 lhe Board had three committees and some of the key items in the terms of referenceare highlighted below.

Trident Houslng Associatlon Limlted and lts subsldlarlesReport and financlal statements for the year ended 3l March 2017 Page | 6

Strategic Report And Operating and Financial Review

Principal Activities, Governance and Legal Structure (continued)

Audit and Assurance Gommittee

Consider the Group's internal controls and advise the Group Board on the content of its annual statement ofinternal control.

Oversee and approve the Group risk management framework and process.

Review all financial regulations, procedures and controls necessary for the effective operation of the Board

for recommendation to the Group Board and carry out reviews of such procedures and controls.

Ensure appropriate internal audit arrangements are in place and establish a systematic review of internal

controls.

The Audit Committee also monitors monthly financial performance on behalf of the Board.

Receive a report on the Group financial statements and the results of the external audit and make

recommendation to the Group Board for their approval'

Remuneration and Nomination Committee

Recommend to the Group Board targets and objectives and all arrangements for the Chief Executive.

To support the Group Chief Executive in developing the remuneration packages of the Directors.

Consider the balance of skills, experience, knowledge and independence of Board members and identify

any recruitment needs for the Group and subsidiary Boards.

Regularly review and make recommendations on the remuneration policy for the Group Board.

Safeguard ing Gomm ittee

Provide an environment which offers protection to vulnerable people.

Encourage staff to gain the necessary knowledge and practice that proactively understands safe ways of

carrying out their responsibilities to others who are vulnerable.

Ensure the correct support policies, protocols, training and guidance is in place.

Monitor incidents and reports to the Board of Management on annual basis.

Suggest ways of improving and expanding the influence of the protection service throughout the group

structure.

' Trident Housing Association Limited and its subsldiarlesReport and financlal statements for the year ended 3l March 2017 Page | 7

Strategic Report And operating and Financial Review

Business and Financial ReviewThe Trident Group successfully delivered a broad range of services to a diverse and vulnerable client group.This has been achieved during a period of unprecedented change across the Housing and Social Caresectors, and at a time where austerity measures present an ongoing challenge for Local Authority partners.

The Board are pleased to report a surplus from normal operational activíties of 12,267k(2016: E1,44gkl.The achievement of the year end surplus is pleasing given a very challenging financial year.Theconsolidation of back office support functions has contributed to significant VFM.

Trident continues to play an active role within the Matrix development programme and during the yearcommitted to a new development project; a 53 unit Scheme based in Shropshire. Trident is looking tocontinue to provide rented homes, but also to respond to the government imperative of providing newhomes for sale.

The Care and Support part of the business has continued to successfully deliver and develop services andcontinues its efforts to diversify its income streams in support of contract income. This work being centredon obtaining grants and developing new bidding partnerships for the forthcoming year. The businessremains well respected with Care and Support partners, in particular the Care Quality Commission, theLocalAuthority and the Charity Commission.

Dorcas left the group on the 30 March 2017 and no further trading income and expenditure is expected. Theshare capital was cancelled accordingly and consequently any control was removed from the Trident Group(all relate.d parties resigned from their positions). The consolidated accounts contain the activities up toMarch 30"' 2017. Dorcas activities are considered discontinued but they have not been separately disclosedas they are immaterialto the Group.

Trident Charitable Housing sold Grove House, its only asset, on the 6 March 2017 and is therefore now in adormant state. Funds were transferred to the Association by means of a dividend distribution before yearend.

Trident continued to work with the HCA with an action plan to strive to obtain Gl,V2status during 2O1t-19.

The group is financially compliant in respect of funders covenants with significant headroom and strongcash holding.

Effects of material estimates and judgements:-

ln preparing these financial statements, the key judgements and estimates have been made in respect ofthe following:

o lmpairment of tangible assets

A key judgement has been made in respect of whether there are indicators of impairment of the Group'stangible assets. Factors taken into consideration in reaching such a decision include the economic viabilityand expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

The Association obtained a valuation from Nationwide in February 2017 îor their charged stock that showsan EUV ("Existing Use Value") of Ê84.39m. Further stock is held through Barclays charged assets andTHFC ("The Housing Finance Corporation") loan facilities.

We have considered the following impairment indicators and concluded that no impairment is required: -. Long term voids - there are l3long term voids,which represents an insignificant proportion of thetotalstock.

o Obsolescence - there has been no unexpected decline in asset valueso There has been no major contamination. There are no changes in government policy that we consider would lead to an impairment

Trldent Houslng Associatlon Llmlted and lts subsldlarlesReport and flnanclal statements for the year ended 3l March 2017 Page I I

The five year summary of the group income and expenditure statement can be found on the following page

Strategic Report And Operating and Financial Review

Business and Financial Review (continued)2017 2016

Consolldated Statement ofComprehensive lncome (€000)lncome

2015 2014

- Core- Care and support- Other activities

Totallncome

Operatlng SurplusSurplus for the year transferred toreserves before pension schemeclosure costsPension scheme closure costs

Net surplus / (deficlt)

Statement of Flnanclal Posltlon(r000)Housing Properties, net ofdepreciationSHG and other grants

Other fixed assetslnvestment properties

Net current assets

Total assets less current liabilities

Creditors:amounts falling due aftermore than one yearPension liability

Revaluation ReserveRevenue Reserves

Houslng propertles at year end:ln managementln developmentTotal

StatlstlcsOperating surplus as % of turnoverSurplus transferred to reserves as %turnover (pre exceptional item)Gearing (Debt per unit)NationwideBarclays

5,285 4,908

2,267

17,11913,t682,243

32,530

2,267

3,3831,320

153,953

2,171

156,124

(137,398)

20173,349

633,412

16.20/o

6.5%

Ê26,469827,017

17,69213,539

1,90033,131

17,54313,3522,2'17

33,'112

3,852

'1,216(660)

'151,4'15

4,1281,230

@702

157,475

(142,395)

1,1',|413,966

15,080

20153,355

223,377

'11.60/o

3.70/o

t31,446829,247

15,73913,3414,380

33,460

4,631

'l ,571(2,198)

re

156,948(74,153)

82,795

4,059

86,854

14

86,868

(74,781)

20143,351

943,445

13.8o/o

4.70/o

Ê28,146

2013

'15,44413,659

'1,14930,252

4,398

't,623

1,623

146,993(72,154)

@4,201

79,040

4,789

93,829

(68,749)

(2,084)

1,448(6e)

-

1,379

3,6451,230

156,316

'1,178

157,494

(141,035)

20163,354

43,358

14.8o/o

4.4o/o

556

149,250 151,441 151,4',15

149,250 151,441

18,726

18,726'l,114

15,345

18,726 16,459

16,459 15,080 '12,087 12,996

12,087 12,996

12,087 12,996

Ê28,248228,829

20133,366

2273,593

14.5%

5.4o/o

î26,887-

' Trldent Housing Association Llmited and lts subsldlariesReport and financial statements for the year ended 31 March 2017

* Under old UK GAAP

Page I I

Strategic Report And Operating and Financial Review

Objectives and Strategy

The Group's overriding strategy was set out in our Strategic Plan published in 2017 entitled "A Beacon ofHope in an Age of Austerity" which took the Group through to 2022. This ambitious plan set out how weplanned to develop our service offer through our ambition to be one of the country's major social investmentgroups. This plan built on the achievements of the last five years but took the Group forward in a stepchange combining social purpose and business considerations. The corporate ambitions can besummarised as follows:-

To be acknowledged as an outstanding social business group with an associated high public profile andreputation.

To be recognised as an excellent service provider that places involvement of people, communities andstakeholders at the core of its approach.

To be acknowledged as a successful, sustainable and environmentally friendly social investment group.

Within that plan the core strengths of the Group "the three pillars" are delivered through a focus on:

People:. Offering high quality services to all our residents, putting our customer first and ensuring that staff are

highly motivated and given continued support through effective training and career development.

Property:o lnvesting in our properties and the environment to ensure that homes are well maintained, safe and

secure and that the surrounding envíronment is a good place to live.

Finance:r Ensuring that the Group makes best use of its resources for residents and that a solid financial platform

is in place for future investment in homes for growth and development of services.

ln 2014 the Group launched its Social lnvestment Strategy 2014 - 2018. We are pleased to announce thatwe are well on our way to delivering on this strategy. We continue to explore opportunities for growth that fitwith or complement our existing services.

Trldent Housing Association Limlted and lts subsidiarlesReport and financial statements for the year ended 3l March 2017 Page I l0

Strategic Report And Operating and Financial Review

Achievements

20161'17 has been a challenging year for Trident however we continue to deliver quality services in a tough

operating environment. The period will be remembered as one of uncertainty around policy and so making

it difficult to plan in the medium term and respond appropriately. Responding to the operating environment

will be essential, if we are to continue to succeed, and the importance of understand, harnessing and

influence the external factors.Saying that there have been many successes during the period and the following will provide a flavouracross some of various services and operating areas.

Support ServicesOrganisationally we have a positive reputation for supporting some of the most vulnerable people within avariety of settings. Services and support focus on people and added value initiatives, partnership

development and maximising opportunities within contracted services.

Young People's ServicesSubstantial funding has been accessed to set up, as part of the new Youth Promise Plus Service, to provide

support to vulnerable and disadvantaged young people to access educational / training and employmentopportunities. This has proved to be successful and a supportive link to ensure stability within young

people's life.

Homeless ServicesOur homeless services, especially in Birmingham, are at the forefront of tackling homelessness in thesecond city of the nation. During the period there has been an increase focus on the needs of Rough

Sleepers and Washington Court, the largest direct entry hostel in the city, is working with other agencies to

tackle this issue.

Domestic Abuse ServicesAnother successful period within Birmingham and Derbyshire, with our services continually providing

excellent provision especially in our Refuge Accommodation and Outreach Support. All service contracts

have hit their targets and all are seen as a quality provider.

Registered CareTrident manages 12 Registered Care Homes across Birmingham and Shropshire, offering 24 hourresidentialcare and support to adults with learning disabilities and associated needs. The services are

regulated by the Care Quality Commission (COC) and with Trident operating robust internal audit andquality assurance process it was pleasing that all homes inspected in 2016117 received a Good rating.

Housing ServicesWithin a challenging working environment Trident Housing our commitment is to provide good quality homes

and services to our customers that meet service standards and are value for money. This year we have

made the best use of our available housing stock have worked even harder to achieve our goal. We are not

complacent and continue to be committed to continually improve.lncome Management

o With the vulnerable client group it continues to be a challenging environment to manage however

there has been a step improvement on income and housing management in our larger schemes,

such as Washington Court.o Over the period Trident income management processes and protocols have aligned with the

majority of other providers and commissioners, especially in Birmingham and the Black Country,

allowing for more seamless and transparent approach that is more collegiate and beneficial.

o lnitiated a partnership with Shelter who provided money and debt advice to our customers in

Birmingham, supporting 200 plus individuals, some 10olo of all our customers living in the City.

o lncrease activities in supporting our most vulnerable and in need customers accessing non-statutory

funding via grant applications from localcharitable bodies.

' Tr¡dent Housing Association Limited and its subsidlarlesReport and financial statements for the year ended 3l March 2017 Page I 11

Strategic Report And Operating and Financial Review

Achievements (conti n ued)

Asset Management¡ Process reviews have resulted in an improved performance for the in-house reactive repairs team

with the introduction of a more refined scheduling system that has saw an increase in productivityand so reducing costs. With the reduction with the average days to complete repairs; increase inrepairs per operative; reduction in average cost of a repair, as well as increase of repairs first time.

o Maintaining 100% gas serving record, so being fully compliant.o Following consultation with customers'and installation programme was initiated and the result was

an upgrade of 85 kitchens across the stock.o Upgrading of residential blocks on the Waterside complex that included doors; windows; external

access systems and a general improvement of the fabric.

Green Agendao During the year we saw the installation of solar panels to 60 properties at Trident Close, which has

benefited all parties especially customers energy bills.o The completion and installation of two energy saving heating systems at our largest property Trident

House, Birmingham and Meeting House, Sandwell. The largest investment was the introduction ofa biomass system at Trident House, which has reduced costs and accessed additionalfunds, viathe Renewable Heat lncentive (RHl).

o Upgrading of energy efficient double glazing windows, doors and replacement of roof coveringsacross various properties and sites has saw energy savings and reduction in maintenance.

Organisational Development

Organisational Development is central to the back office infrastructure that supports the day{o-day deliveryof services to our clients.

Equality, Diversity and lnclusion

Having been recognised for our commitment to Equality, Diversity and lnclusion (EDl) as a Top 35 companyto work for - the Group is reviewing its reaccreditation to the awarding body, lnvestors in Diversity, as itembarks on new initiatives and innovative ways of demonstrating its commitment to EDl.

Further review and identification of relevant accreditation in this area will form part of the Group's review toevidencing sustainability of the Group's commitment to EDI for all.

Human Resources

The Group's lnvestors in People Gold Standard award places Trident in the top 1o/o of UK organisationsaccredited by lnvestors in People.

With a change in the standard, the HR team continues to work with our communities, staff and volunteers onskills development, including, communication, presentation, creativity and decision making increasing self-confidence and ability to contribute effectively to the Group's strategic vision and direction.

Learning and Development

As an accredited centre for the lnstitute of Leadership and Management (lLM), the OrganisationalDevelopment department is able to deliver ILM Level 3 and 5 courses, increasing our ability to providefurther support to our clients.

Trldent Houslng Assoclation Llmlted and lts subsidlarlesReport and flnancial statements for the year ended 3l March 2017 Page I 12

Strategic Report And Operating and Financial Review

Achievements (conti nued)

tcT

Digitalisation remains high on the agenda for the Group and the ICT team. The digital services that we offerhave key benefits by enabling us to redefine service users, residents and customers' relationships usinginformation and knowledge as an asset to understanding their needs better and meet them in an efficientmanner.

ln the future we will enhance our digital offering, including our websites to make these more efficient, easierto use and more accessible to the growing number of residents and service users who are accessing theinternet via mobile and tablet devices.

ln addition, we will look for new, innovative ways of using digital channels such as social media to offer moreopportunities to residents and service users of all ages and backgrounds to engage more and enhance twoway communication.

'Trident Houslng Association Llmited and its subsidiariesReport and financial statements for the year ended 3l March 2017 Page I 13

Strategic Report And Operating and Financial Review

Value for Money (VFM)

Overview

During 201612017 VFM has remained at the heart of the work undertaken across the Group.

Trident Group has adopted the mantra 'Every Pound Counts' to embed into the delivery of all our servicesour approach to Value for Money

Many of our residents and customers have complex needs and vulnerabilities and this inevitably requiresadditional investment in services.

Therefore our aim is not to be the cheapest when compared with our peers, but to balance value with thediverse requirements of our customer-base, aiming for our costs to be no more than the median whencompared to our peers.

This does not prevent us from aiming to reduce costs where we can, provided we are maintaining effectiveservices to our customers. For this reason we have developed a comprehensive Cost lmprovement Plan,which focuses on consolidating assets and streamlining services to eliminate duplication and inefficienciesacross the Group.

This is centred on the following areas:-

o Reduction in use of agency staffo Reduction in use of petty cash; move to card payments for improved cost controlo Renegotiation of contracts for all lT equipment¡ Consolidation of lT systems and removalof near-redundant systemsr Pooling of fleet to create shared transportation serviceso lnvestment in digital communication including awareness and profiling campaign.o Achieving staff savings, realigning and reconfiguring teams.o Reconfiguring officearrangements.o Embarking upon a programme of business analysis to achieve leaner working practises.o lntroducing a back to basics emphasis in terms of voids, income management and bad debts.o lntroducing a new Asset Management Strategy focused on critical appraisal of stock, including

disposal and consolidation where appropriate.o Alignment and centralisation of services across the Group to remove duplication and improve cost-

efficiency

ln support of the above the Group has an active financial strategy, linked to the VFM requirements that wesee as fundamental to our role as an organisation in receipt of capital and revenue funding from thegovernment and ultimately the tax payer. That strategy has some fundamental key drivers:-

o To achieve financial covenants with funders, thereby protecting social housing assets.o To generate financial resources for the investment and upkeep of existing homes.o To generate financial resources for the provision of new homes for rent and sales.. To support residents and clients with additional services where possible.

The Group has a strictly controlled budget process lead by the Group Board and the Executive where eachline of expenditure is assessed and challenged as required. Resource allocation is uppermost in our plans.

Trldent Houslng Assoclatlon Llmlted and lts subsldlarlesReport and flnanclal statements for the year ended 3l March 2017 Page | 14

Strategic Report And Operating and Financial Review

Value for Money (VFM) (Gontinued)

Governance

How We Manage and Monitor VFM

Our Governance arrangements have been streamlined and strengthened over the past 12 months. We have

introduced new members onto the Boards and committees, and reviewed the terms of reference and otherkey governing documents to ensure they offer our organisation the best possible management and

leadership.

The Group Board is clear in its responsibility for driving and delivering VFM in a social investment context.

The Group Board, supported by the Audit and Assurance Committee, has a key role in ensuring that theprogrammes outlined above are regularly monitored and are implemented in a timely fashion, across thegroup.

The Group Board and Audit and Assurance Committee will continue to support subsidiaries in delivery oftheir objectives in this area.

Asset Performance

Going forward Trident Group will continue to balance its investments in new and existing stock in line with itsBusiness Plan projections.

During 2O16 a new Asset Management Strategy was implemented, together with a new Options Appraisal

methodology, informed by the PAVE business model (Portfolio Asset Valuation Evaluation). This helps toinform both decisions regarding the investment in existing stock and the identification of potential strategicsales.

As a result Trident is looking to appropriately invest in its stock, deliver VFM and to use its existing assets tosupport the provision of new homes.

ln addition facilities have been charged to cover the development capital to support the build of 53 newproperties commencing from May 2017.

Trident's investment in HCA programmes has been substantial, and over the last five years Trident has

investment significantly in the provision of new homes. We have carefully stretched our financial ratios in

respect of gearing and whilst staying within financial covenants, allocated substantial internally generated

resources to the development programme.

lnvestment inNew Homes

10.1m6.3m 7.6m0.2m 2.7m

lnvestment inExisting Homes

1.0m 1.7m 1.4m'l .2m 1.0m

New Loan DebtTaken On

5.6m2.7m 5.8m8.8m

Highest Debt Per 27,017Unit

31,446 28,146 26,88728,829

w tr tr w tr

' Trident Housing Association Limited and its subsidiariesReport and financial statements for the year ended 3l March 2017 Page I 15

Strategic Report And Operating and Financial Review

Value for Money (VFM) (Continued)

ln addition to the development of new homes, we have during the period remodelled existing schemes toensure they have modern facilities and will remain attractive places to live over the long term. We havecarefully monitored our borrowings, with lending secured to support delivery of the development plan in thecoming year.

Performance and Cost Management

During 2016117 the group developed its next five year Strategic Plan, a document which leads theorganisation strategically and financially from 2O17 onwards. A key component of the development of thisPlan was the review and redevelopment of arrangements in relation to performance management, keyperformance indicators and cost management. This work centred on the following :-

o The timely production, review and monitoring of monthly accounts on a timely basis by both theExecutive and the Board.

. A review of key performance indicator reporting, and a shift in emphasis to providing a 'wholepicture' reporting framework which ensures that at every level of management and delivery, staffand stakeholders have all the relevant information to drive performance improvement and costcontrol.

o Reinvigoration of our efficiency and savings programme, including a planned reduction in staff costsand the continued realignment of services across the group, based on a one organisation approach.

o A continuation of our office consolidation programme.o Renewed concentration on voids, income management and bad debts.¡ A rigorous approach to compliance with HCA Standards.o A rigorous programme of monitoring in relation to the delivery of support contracts, together with a

proactive dialogue with Local Authority partners.

A key component of evaluating the effectiveness of our approach to Value for Money is undertakingcomprehensive benchmarking. We use the benchmarking available through Housemark, completingquarterly performance and annual performance and cost appraisal exercises, supported by our own monthlyKPI monitoring. Although our full annual comparison of cost and performance is not yet available the belowdemonstrates year end performance against the limited peer group available, on a number of our KeyPerformance indicators. Our Value for Money Statement, which will be published on our web site by 30thSeptember 2017 will reflect the full KPI benchmarking once both Trident and our peer group members havesubmitted their annual performance and cost information.

Trldent Houslng Assoclatlon Llmlted and lts subsldlarlesReport and flnanclal statements for the year ended 3l March 2017 Page I 16

Strategic Report And Operating and Financial Review

Value for Money (VFM) (Gontinued)

Trident will continue to work closely with Housemark in terms of both key performance indicator peer group

comparisons and in relation to VFM, however the Strategic Plan outlines our approach to improving thequantity and quality of customer feedback and benchmarking information. There is an enhanced level offocus associated to key outliers within the benchmarking information for example the staff turnover above

relates mainly to care and support staff and therefore provides explanation to the variances.

Trident is also looking very closely at the cost of its services and is very conscious of the potential higher

level of costs that result from the management services provided to a vulnerable client group and as a result

of a significant amount of Care and Support work being delivered. The review of the Group Structure, theongoing realignment of services based on a one organisation approach are just the beginning of a period ofsignificant change across the group, providing the basis for the proposed business transformation agenda

supported by our Strategic Plan.

We derive assurance from our year end calculations of costs per unit (produced in line with the HCA Global

Accounts regression analysis) which show we compare favourably overall against the current sectorheadline cost of 3.96, and demonstrates a year on year improvement in cost management, but remain

committed to improving cost efficiencies and providing services which are effective, but present good value

and affordability for our residents and stakeholders.

26.9 21.642 30.9Operating margin99.35100 99.9 99.8Uptime of ITC21.4810.55 14.8534.74Staff turnover

96.4 93.75 87.7898.72% calls answered81.8 71 54.883.8Satisfaction with complaint handling

97.39 96.7 95.8897.96Rent collected from current and former tenants as apercentage of the rent due (including arrears b/f) (GN)

3.992.49 3.126.8Current tenant arrears as a percentage of the annual rentdebit (net of HB)

0.59 0.84 1.271.16Percentage of rent lost through dwellings being vacant24.76 33.7230 18.2Average re-let time in days (standard re-lets)

8.92 11.584.9 6.69Calendar days taken to complete repairs

92.3 86.5391.3 96.13Percentage of repairs completed at first visit75.5327 38 59.5Gearing

613 13 10Number of internal audit reviews undertaken in the year

.351116 7.45 9.5Average working days lost to due to sickness absence per

employee

29 654 15Average time taken to answer inbound telephone calls (inseconds

ffi ffiffi

3.64 3.88Socialhousing CPU (âk) 3.28

îNTEÁF!îmßrJn ,ûEtfd

I Trldent Housing Association Limited and lts subsidiarlesReport and financial statements for the year ended 3i March 2017

Strategic Report And operating and Financial Review

Value for Money (VFM) (Continued)

Extract of Key lndices from the FinancialAccounts

Page | 17

Ê000 e000 Ê000 Ê000 Ê000Totalturnover 32,532 33,131 33.112 33,460 30.252Surplus for theyear transferred toreserves beforepension schemeclosure costs

2,267 1,449 1,216 1,571 1,623

Totalassetsfinanced by loansand reserves

'156,124 157,494 '157,475 88,868 83,829

Housing Propertiesln management

3,349 3,354 3,355 3,351 3,366

Housing Propertiesln development

63 4 22 120 227

Surplus transferredto reserves as %turnover (pre -exceptional item)

6.60/o 4.4o/o 3.7o/o 4.7o/o 5.4o/o

Gearing Debt perunit - Nationwide

Ê26,469 Ê28,248 Ê31,446 128,146 Ê26,887

Gearing - Debt perunit - Barclays*Under old UK GAAP

127,017 t28,829 Ê29,247

z,trørmtn zîrrd',IIIId

ENTFE

Trldent Houslng Assoclatlon Limlted and its subsidlarlesReport and flnancial statements for the year ended 3l March 2017 Page | 18

Strategic Report And Operating and Financial Review

Risk Management

During 2016117, in light of significant ongoing change in both our external and internal operatingenvironments, Trident has reviewed its approach to Risk management. This includes the following:-

o Reassessing the organisation's risk appetite.

o Developing a comprehensive Risk Management Strategy.

o Revising our Risk Management recording and monitoring practices.

¡ Reviewing the relationship between strategic and operational risks in our Group.

o The development of a clear framework for risk-based decision-making in the context of a group

structure.

Risk Management was a key factor in the review of the group structure undertaken by Altair Ltd, together

with delivery of VFM and was very much a factor behind the decision to introduce a unitary board from

September 201 6 onwards.

The Group felt that it was important to review its approach to Risk Management in the light of dialogue with

the SHR and as a result of the uncertainties which are created by both austerity measures and a period of

unprecedented changes within the Housing and Care and Support sectors.

We have continued to support our approach to risk management with a robust programme of stress testing.

A complete stress testing exercise is formally programmed in a minimum of three times a year, firstly as part

of the budget setting process, secondly as part of the Strategic Plan review, and thirdly, later in the year as

part of the financial reforecasting, but is adjusted and re-run responsively to internal and external changes,

both for current and perceived future events.

ln short,Trident has been carefully examining its approach to both strategic and operational Risk in the

short, medium and longer term, given the amount of sectoral uncertainty. Our approach to risk review and

management will continue to evolve to meet the needs of a changing environment.

Trident's Strategic Risk Register is a living document, reviewed and updated on at least a fortnightly basis

by the Senior Managament Team and by the Group Board at least quarterly; the following table

summarises the principal risks identified and monitored on the Register at the year end.

" Trldent Houslng Asaoclatlon Llmlted and lts subsldtariesReport and flnanclal statements for the year ended 3'l March 2017

Strategic Report And Operating and Financial Review

Risk Management (Continued)

Page I 19

Significantreduction in

Income

Financial loss that weare unable to meet

through our reservesleads to inability to

deliver services andmaintain staffing levels

Unexpected support or nominations contract withdrawal, significant theftor fraud, reduction in tenant income, failure or loss on commercial

ventures, investments failing could lead to a sudden income loss. Thiscould lead to the inability deliver services, appropriately invest in stock,maintain current business and tender for new, and ultimately lead to abreach of our loan covenants if the impact on our income is significant

enough.

Given the volatility of the care sector, and the uncertainty of GovernmentPolicy regarding the payment for Supported Housing which could instigatea significant loss of potential income, Trident completed extensive stresstesting of these scenarios before developing our business plan. We haveincome insurance, a prudent reserves policy which allows quick accessand covers operation for 18+ months, which would allow us to absorb

major losses of income and give time to restructure appropriately.

Our funding contracts in the support sector are diverse with a range ofcommissioning bodies, end dates and support customer types thereby

reducing our risk of loss; we have assessed the interdependency betweencompanies and the reserves within the Charity would mean that theimpact on the Housing Association if all funding were withdrawn isminimal. Additionally we operate internal audit and strong cash

handling/anti-fraud processes.

Welfare Reformand otherSignificantChange in

Governmentand Regulatory

Policy

Failure to understandand respond to

Government Policyand Regulatory

changes, or an inabilityto absorb any

associated financialstrains as a result of

changes.

The introduction of income-restricting measures applied both directly andindirectly to Registered Providers through Welfare Reform/Austerity

measures could lead to tenant arrears increase to such a degree that itaffects our ability to deliver the business plan. Additionally the

Government's introduction of de-regulatory measures could increase riskperception of lenders thereby altering our ability to secure desired rates.

Trident are safeguarding against this through extensive stress testing ofknown and predicted impacts. From this we have produced prudent

financial forecasting, and have increased our transfer to already significantreserves which can be accessed quickly. Services have been remodelled

to respond to changes and ensure structures are in place to respond toescalating arrears.

Trldent Houslng Association Llmlted and its subsidiarlesReport and financlal statements for the year ended 3l March 2017

Strategic Report And Operating and Financial Review

Risk Management (Continued)

Page | 20

Achieving the cost efficiency savings outlined in our business plan areintegral to demonstrating our ability to control costs and indicative of

business improvement measures succeeding. lf Trident were to fail to gain

these efficiencies either through poor cost management or externalfactors, or if we fail to demonstrate we have taken an appropriate

approach to delivering Value for Money this could impacts on non-payrollcost base, and ultimately lead to an intervention or downgrade from

commissioners, lenders or regulators.

Trident militates against this possibility by embedding a culture of VFMprinciples in the organisation, closely monitoring budgets and setting costimprovement plans with realistic targets in place. Cost savings are notedwithin budgets, and these have been stress tested against the impact of

external variables.

Failure to deliverValue for Money

lnability to meet costimprovement targets

and achieve efficiencymeasures leads tofinancial losses,inability to deliver

services and loss ofreputation

Failure to deliver an appropriate fully financed asset managementStrategy, including suitable and successful developments, and investmentin current stock could lead to a decline in the value of our asset base and

a shrinkage of the organisation over time as we are unable to accessfavourable products to re-finance, or become unable to tender for

accom modation-based su pport contracts. U ltim ately failure to adequatelyinvest could lead to prosecution if compliance areas not met.

Trident operates a programme of significant reinvestment in stock, basedon the information secured on our Asset and liability register. We invested

in a stock appraisal tool used to develop a robust asset managementstrategy, and suitable insurances are in place to cover unforeseen

investment requirements (i.e. fire, criminal damage, weather damage) andto cover against losses from public or employers liability claim. We use aconsortium for property development which shares resources and the risk

of developments. We stress test delivery models and sales variables toensure we cost for contingencies including inflationary rate rises and costs

of labour and materials

Failure to deliverAsset

ManagementStrategyincluding

developmentand sales

targets

Failure to adequatelyinvest in and manageour stock and estates

leads to decline instock condition,

property values andfailure to meet

compliance standards.Failure to deliverdevelopment and

sales targets restrictincome and affect our

reputation withstakeholders

ffilrlK{l

Trident Houslng Associatlon Limlted and its subsldiarlesReport and flnancial statements for the year ended 31 March 2017 Page | 2l

Strategic Report And Operating and Financial Review

Capital Structure and Treasury Policy

ln respect of Treasury arrangements, these are actively managed. The Group does not have any abnormalexposure to price, credit, liquidity and cash flow risks arising from its trading activities. The Group does notenter into any hedging transactions and no trading in financial instruments is undertaken.

The loans maturity is as follows:

Maturity

Within one yearBetween one and two yearsBetween two and five yearsAfter five years

2017€m

3.13.2

16.358.5

2016€m

3.43.1

16.361.7

8t.l 84.5

The Group has four principalfunders being Nationwide, THFC, Orchardbrook and Barclays.Trident has put in place an active interest management strategy. This combines current and future hedgingarrangements to provide longer term certainty around interest costs whilst obtaining some financial benefitsfrom the current low libor rates offered by the financial markets. As a proportion of our loan portfolio at thedate of this report around 34o/o (2016:59%) of our loans are at a fixed rate. Discussions are underway withour predominant lenders; Nationwide and Barclays to assess the cost of fixing a higher proportion of debt.

Future Developments

A key influence on the timing of borrowings is the rate at which development activity takes place and thelevels of grant funding available. The board has approved plans for the development programme through to2018. This investment will be funded through Social Housing Grant (SHG), reserves and borrowings;borrowings are not fully drawn down to date, thus providing approximately Ê13m capacity. The programmeis in progress and on target to complete on time in accordance with HCA requirements, and sufficientfunding is in place to meet the programme.

Statement of Compliance

ln Preparing the Operating and Financial Review and Board report, the board has followed the principles setout in the Housing SORP 2O14 and FRS 102.

Code of Governance and Financial Viability Standard

The Board has adopted the Housing Federation's Code of Governance, and Code of Conduct (2012).'lheBoard has formally assessed it's compliance against the Code of Governance and confirms that theorganisation is compliant.

The Board has assessed compliance with the Financial Viabilty Standard and confirms that the organisationcomplies.

Trident Houslng Association Limlted and lts subsidiariesReport and financial statements for the year ended 31 March 2017 Pagel22

Report of the Board

The Board of Trident Housing Association Limited and its subsidiaries are pleased to present its report

together with the audited financial statements for the year ended 31 March 2017.

Principal Activities, Business Review and Future Developments

Details of the Group's principal activities, its performance during the year and factors likely to affect its futuredevelopment are contained within the Strategic Report and Operating and Financial Review, whichprecedes this report.

Board Members and Executive Directors

The Board members and executive directors of the Group are set out with the Association lnformation.

The Executive Directors are the Group Chief Executive and other members of the Group's seniormanagement team. They act as executives within the authority as delegated by the Board.

Service contracts

The Chief Executive and the Executive Directors are employed on the same terms as other staff, their noticeperiods being three months.

Pensions

The Chief Executive and Executive Directors are ordinary members of the staff defined contribution pension

scheme and participate in the scheme on the same terms as all other eligible staff.

Other benefits

The Chief Executive and the Executive Directors do not receive any other significant benefits.

Employees

We recognise that the success of our business depends on the quality of our managers and staff. lt is thepolicy of the Association that training, career development and promotion opportunities should be availableto all employees.

We are committed to equal opportunities and through the work of the equality and diversity steering group

have developed an equality and diversity policy and implemented this across the Group.

The Board is aware of its responsibilities on all matters relating to health and safety. The Group hasprepared detailed health and safety policies and provides staff training and education on health and safetymatters.

Employment of disabled persons

The Association and Group are committed to a policy of recruitment and promotion on the basis of aptitude

and ability without discrimination of any kind. Management actively pursues both the employment ofdisabled persons whenever a suitable vacancy arises and the continued employment and retraining ofemployees who become disabled whilst employed by the company. Particular attention is given to the

training, career development and promotion of disabled employees with a view to encouraging them to play

an active role in the development of the Group.

Donations

The Group donated a total oî Í2,612 (2016: €1,300) to Trident's Charity Committee for onward distribution tothe Group's chosen charity and €1,203 to other local charities (2016: Ê700). The Group made no political

donations.

' Trident Houslng Association Limited and lts subsldiarlesReport and flnancial statements for the year ended 31 March 2017 Page | 23

Report of the Board

Financial Risk Management Objectives and Policies

The Group uses various financial instruments, including loans and cash, and other items such as rentalarrears and trade creditors that arise directly from its operations. The main purpose of these financialinstruments is to raise finance for the Group's operations.

The existence of these financial instruments exposes the Group to a number of financial risks. The mainrisks arising from the Group's financial instruments are considered by the directors to be interest rate risk,liquidity risk and credit risk. The Board review these through the work of the Group Finance Audit and Riskcommittee and agree policies for managing each of these risks and they are summarised below:

lnterest rate

The Group finances its operations through a mixture of retained surpluses and bank borrowings. TheGroup's exposure to interest fluctuations on its borrowings is managed by the use of both fixed and variablerate facilities, with a retained external treasury advisor providing treasury advice.

Liquidity risk

The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeableneeds and investing cash assets safely and profitably. ln addition to drawn borrowings the Group hasÊ13.7 million of undrawn facilities (2016: [13.7 million).

Gredit risk

The Group's principal credit risk relates to tenant arrears. This risk is managed by providing support toeligible tenants with their application for Housing Benefit and by closely monitoring the arrears of self-payingtenants. Proposed changes to the benefits system have been identified on the risk register and work isunderway to assist those customers impacted by the first changes and to put systems and support in placefor the main changes now deferred until 2017l18.

Going Concern

The Group has set out its short and medium term strategic plan, preparing a budget lor 2017118 lhaldelivers a net surplus of €1,373k across three entities; Trident Housing Association, Trident Reach andTrident Star. Dorcas left the Group on 30 March 2017. This resulted in a positive impact to brought fonuardGroup reserves of 1124k and the resulting loss in Dorcas for the period of f17k was not consolidated intothe group position.

Trident Charitable Housing sold its asset on 6 March 2017 and therefore no trading budget has beenprepared for this entity. During the period Trident Charitable Housing proposed and paid a dividend ofÊ1.023m to Trident Housing Association this resulted in net assets in Trident Charitable Housing remainingatî12. The Group Board have proposed that during 2017118 that Trident Charitable is collapsed through avoluntary deregistration.

The Budget for 2017118 has been prepared with a prudent approach to supported income. Contract cutsassociated to Birmingham City Council have been assumed, offset by the full year effect of new businesssecured during 2016/17 and additional new business targets. Trident Housing Association has reflectedrent reductions mitigated by units which have come back into management towards the later part of 2016117and therefore generating a full year effect of income during 20'17118.

The Group as at the I't April 2017 has drawn facilities amounting to Ê81,119k in addition to which there is afurther Ê13,652k facilities that are available that haven't been drawn. The Board are assured that theavailable facilities are sufficient to cover the approved committed development program.

Trident Housing Assoclatlon Llmlted and its subsidiariesReport and financlal statements for the year ended 31 March 2017 Pagel24

Report of the Board

Going Concern (Gontinued)

The Group remains compliant with its lenders preparing a budget that delivers an EBITDA MRI covenant of172o/o compared to an internal risk appetite oî 140o/o and a compliant lender requirement of 110o/o. Net debtper unit remains comfortably within the Ê35k ceiling alE29.7k and Ê29.1k across Barclays and Nationwiderespectively. As part of the Group risk management strategy, the budgetlor 2017/18 has been significantlystress tested using parameters such as increase in voids, tenant arrears, interest rate, inflation plus cuts tosupported people contracts and major business impacts such as fire or flood.

On this basis, the Board has reasonable expectation that the Group has adequate resources to continue inoperational existence for the foreseeable future, being a period of twelve months after the date on which thereport and financial statements are signed. For this reason, it continues to adopt the going concern basis inthe financial statements.

lnternal Gontrols Assurance

The Group Board is ultimately responsible for the system of internal control and the management of risk andfraud, including reviewing the effectiveness of internal control.

The process for identifying, evaluating and managing the significant risks faced by the Group is ongoing andhas been in place throughout the period commencing 1 April 2014 up to the date of approval of the reportand financial statements.

The Board receives regular reports on the internal controls framework of the Group and any significantweaknesses identified through audit work or other means is acted upon and the actions reported.

The Group operates a fraud management procedure based on the fraud management policy as approvedby the Group Board. All frauds are recorded in this register and it is policy that frauds involving amountsabove f5,000 are reported to the Board. There were no such matters in the year to 31 March2017.

The management team is responsible for implementing Board policies on risk and control, but all employeesof the Group have some responsibility for internal control.

The Group Board recognises that no system of internal control can provide absolute assurance or eliminateall risk. The system of internal control is designed to manage risk and to provide reasonable assurance thatkey business objectives will be achieved. lt also exists to give reasonable assurance about the preparationand reliability of financial and operational information and the safeguarding of the Group's assets andinterests.

Key elements of the control framework include:

. Board approved terms of reference and delegated authorities for subsidiary boards and committees

. Clearly defined management responsibilities for the identification, evaluation and control of significantrisks

o Robust strategic and business planning and processes, with detailed financial budgets and forecasts¡ Formal recruitment, retention, training and development policies for all staffr A sophisticated approach to treasury management which is subject to external review each year. Regular reporting to the appropriate board and committee on key business objectives, targets and

outcomeso Board approved probity and money laundering policieso Board approved fraud policies, covering prevention, detection and reporting, together with recoverability

of assets. Regular monitoring of loan covenants and requirements for new loan facilitieso Review of board and senior management risk appetiteo Risk as standing item on both Group Board and Audit and Assurance Committee agendas.

' Trldent Houslng Assoclation Llmlted and lts subsldlariesReport and financlal statements for the year ended 3l March 2017 Page | 25

Report of the Board

lnternal Controls Assurance (Continued)

Process for reviewing control systems

The Group Business Plan sets out its key strategic objectives. Each objective is analysed in terms oforganisational strengths and weaknesses and environmentalopportunities and threats. Operational targetsto support each objective are identified, along with resource implications.

Evaluation of key risks

The Group has a Risk Management Policy which includes a statement covering the Group risk appetite.Each of the Group's key business objectives is subjected to a risk management assessment.Risk management is embedded within the normal management and governance process. All paperspresented to the Group Board and its Committees contain an assessment of risk implications. The GroupChief Executive is responsible for reporting to the Board any significant changes affecting key risks. TheAudit & Assurance Committee monitors risk and reviews the findings of both the internal and externalauditors.

Monitoring & corrective action

The targets to support the business plan objectives cascade down through the organisation through theannual appraisal process and the setting of personal performance targets. Progress towards achievingthese targets is monitored through regular staff meetings.Regular management reporting on control issues and key performance indicators provideshierarchical assurance to each level of management and to the Group Board. This includes a rigorousprocedure for ensuring that correct action is taken in relation to any significant control issues, particularlythose with a material impact on the financial statements.

The Group has lnvestors in People status which is independently audited. The Group's lnvestors in Peoplestatus has been retained at the 'Gold Standard'. The Group also has also achieved Positive About DisabledPeople standard, Leaders in Diversity, Midlands Excellence and Best Company 2013.

Fraud prevention and detection

There are policies and procedures to identify areas of risk that may lead to misappropriation, fraud orattempted fraud. The fraud policy requires a register to be maintained of all actual and attempted fraud andfor this register to be presented to the Audit and Assurance Committee on an annual basis.

Corporate Governance

Trident Group have now moved to a Common Board comprised of 9 non-executive members who are drawnfrom a wide background bringing together professional, commercial and local experience. This alsoincludes the appointment of the Senior lndependent Director. The Board meets formally during the year andreceives training, as required.

Whilst the Board is responsible for the overall strategy and policy of the Group, day to day matters aredelegated to the Group Chief Executive, who attends Board meetings. Also in attendance at the Boardmeetings are Directors and senior staff..

The terms of reference for each Committee have been approved by the Board, which reviews the minutes ofCommittee meetings at each Board meeting.

Staff work shops and conferences attendance is mandatory

Trident Housing Assoclation Limited and lts subsidlariesReport and financial statements for the year ended 3l March 2017 Page | 26

Report of the Board

lnternal Controls Assurance (Continued)

Gontrol environment & control procedures

The Association has adopted the National Housing Federation's Model Rules 2015.

The Group Board and each of its sub committees have clear terms of reference and the staff of the Grouphave clearly defined areas of responsibility. Both Group Board and staff operate within a framework ofStanding Orders and Financial Regulations, including the Scheme of Delegated Authority. The operationalactivity of the Group is governed by set policies and procedures, with which all employees must comply. ABoard Members' Handbook and Staff Handbook detail all the Group's key policies and procedures. Bothdocuments are reviewed and updated on a regular basis.

Budgeting & financial reporting systems

An annual budget is set at the beginning of each financial year and monthly management accounts facilitatethe regular monitoring of expenditure against budget, including identification and explanation of anysignificant adverse or favourable variances against budget.

Value for Money

An annual self-assessment of the Group's performance in relation to value for money takes place,

including an assessment of the costs of providing services, past and future efficiency gains, how value formoney is taken into account in strategic decision making, how returns on assets are maximised,performance management, scrutiny and assurance arrangements. A copy of this assessment is publishedon the Group's website.

Annual Review of lnternal Controls System

The Group Board confirm that there is an ongoing process for identifying, evaluating and managingsignificant risks faced by the Group and that this process has been in place throughout the period underreview.

The Group Board identified no significant failings or weaknesses from the review and no remedial action isrequired. The external auditors are engaged to express an opinion on the financial statements. They reviewand test the systems of internal financial control and the data contained in those statements, to the extentnecessary to express their audit opinion. Any weaknesses identified during the course of the audit arebrought to the attention of the Group Board in the form of a management letter. No weaknesses were foundin internalfinancialcontrols which resulted in material losses, contingencies or uncertainties, which requiredisclosure in the financial statements or in the auditor's report on the financial statements.

Sources of Assurance on the effectiveness of key controls

The Group draws upon various sources of assurance on an ongoing basis to establish the effectiveness ofkey controls, these include:

o lnternal and external audit reportso Assessment by external and regulatory bodiesr lndustryaccreditations. Stakeholder feedbacko Group Health and Safety Manger's reports. Performance management informationo Financialperformanceinformation¡ Self-assessment against industry standards and best practice.

' Trldent Housing Association Limited and its subsldlarlesReport and financlal statemênts for the year ended 3l March 2017 Page 127

Report of the Board

lnternal Controls Assurance (Continued)

The Group Board are aware that during the year, the assurance activities described above have, as amatter of course, identified opportunities for improvement to the Group's internal control structure.Management have provided assurances and evidence to Group Audit & Assurance Committee todemonstrate that the organisation is keeping the internal control structure under continuous review. Assuch, the Group Board can conclude that they are satisfied that a robust system of internal control is inplace; and has been in place for the year ended 31 March 2017.

As agreed with the Group Board a self assessment in relation to the Homes and Communities Agency(SHR) Standards documentation has been completed and continues to be maintained along with supportingevidence which can be found on the Group's intranet which can be accessed by Members.

Statement of the respons¡bil¡ties of the board for the report andfinancial statements

The Board members are responsible for preparing the report of the Board and the financial statements inaccordance with applicable law and regulations.

Co-operative and Community Benefit Society law and social housing legislation require the Board membersto prepare financial statements for each financial year in accordance with United Kingdom GenerallyAccepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

ln preparing these financial statements, the Board members are required to:

o select suitable accounting policies and then apply them consistently;

o make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards and the Statement of Recommended Practice:Accounting by registered social housing providers 2014 have been followed, subject to any materialdepartures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume thatthe group and association will continue in business.

The Board members are responsible for keeping adequate accounting records that are sufficient to showand explain the group and association's transactions and disclose with reasonable accuracy at any time thefinancial position of the group and association and enable them to ensure that the financial statementscomply with the Co-operative and Community Benefit Societies Act 2014, the Co-operative and CommunityBenefit Societies (Group Accounts) Regulations 1969, the Housing and Regeneration Act 2008 and theAccounting Direction for Private Registered Providers of Social Housing 2015. They are also responsiblefor safeguarding the assets of the group and association and hence for taking reasonable steps for theprevention and detection of fraud and other irregularities.

The Board is responsible for ensuring that the report of the board is prepared in accordance with theStatement of Recommended Practice: Accounting by registered social housing providers 2014.

Financial statements are published on the Group and association's website in accordance with legislation inthe United Kingdom governing the preparation and dissemination of financial statements, which may varyfrom legislation in other jurisdictions. The maintenance and integrity of the Group and association's websiteis the responsibility of the board members. The board members' responsibility also extends to the ongoingintegrity of the financial statements contained therein.

All of the current Board members have taken all of the steps that they ought to have taken to makethemselves aware of any information needed by the Group's auditors for the purpose of their audit and to

a

a

Trldent Houslng Assoclatlon Llmlted and lts subeldlarlesReport and flnanclal statements for the year ended 3l March 2017 Page | 28

establish that the auditors are aware of that information. The Board is not aware of any relevant auditinformation of which the auditors are unaware.

Annual General MeetingThe annual general meeting will be 25th September 20'17

External AuditorsA resolution to tender for auditors will be proposed at the forthcoming annual general meeting.

The report of the Board is to be approved by the Board on 24th July and signed on its behalf by:

Martyn Ruscoesecretary

'' Trident Housing Assoclation Limlted and its subsldiariesReport and financial statements for the year ended 31 March 2017 Page | 2g

lndependent Auditor's Report to the Members of TridentHousing Association Ltd

We have audited the financial statements of Trident Housing Association Limited for the year ended 31March 2017 which comprise the consolidated and Association statement of comprehensive income, theconsolidated and Association statement of financial position, the consolidated and Association statement ofchanges in equity, the consolidated cash flow statement and the related notes. The financial reportingframework that has been applied in their preparation is applicable law and United Kingdom AccountingStandards (United Kingdom Generally Accepted Accounting Practice).

This report is made solety to the association's members, as a body, in accordance with theHousing and Regeneration Act 2008 and Section 87 of the Co-operative and Community BenefitSocieties Act 2014. Our audit work has been undertaken so that we might state to the society's membersthose matters we are required to state to them in an auditor's report and for no other purpose. To the fullestextent permitted by law, we do not accept or assume responsibility to anyone other than the society and thesociety's members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of the board and auditors

As explained more fully in the statement of board member responsibilities, the board members areresponsible for the preparation of the financial statements and for being satisfied that they give a true andfair view. Our responsibility is to audit and express an opinion on the financial statements in accordancewith applicable law and lnternational Standards on Auditing (UK and lreland). Those standards require usto comply with the Financial Reporting Council's (FRC's) Ethical Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the FRC's website atwww.frc.org. uk/aud itscopeu kprivate.

Opinion on financial statements

ln our opinion the financial statements:

give a true and fair view of the state of the group and parent Associations's affairs as at 31 March 2017and of group's and parent Associations's surplus for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted AccountingPractice;and

have been prepared in accordance with the requirements of the Co-operative and Community BenefitSocieties 4c12014, the Co-operative and Community Benefit Societies (Group Accounts) Regulations1969, the Housing and Regeneration Act 2008 and the Accounting Direction for Private RegisteredProviders of Social Housing 2015.

a

a

o

Trident Housing Assoclatlon Llmlted and lts subsldlariesReport and financial statements for the year ended 3l March 2017 Page | 30

lndependent Auditor's Report to the Members of TridentHousing Association Ltd

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where we are required to report to you if, in our

opinion:

o the information given in the Report of the Board for the financial year for which the financial statementsare prepared is not consistent with the financial statements;

o adequate accounting records have not been kept by the parent society; or

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

o the parent society financial statements are not in agreement with the accounting records and returns; or

o wê have not received all the information and explanations we require for our audit.

ß'Þa L(PBDO LLP, statutory auditorBirminghamUnited KingdomDate +\ollzor?

BDO LLP is a limited liability partnership registered in England and Wales (with registered numberoc305127

' Trldent Housing Association Llmited and Its subsidiarlesReport and financial statements for the year ended 3l March 2017

Consolidated Statement of Comprehensive lncome

Note

Page | 3l

Turnover

Operating costs

Other operating income

Pension scheme closurecost

Operating surplus 3,6

Surplus on disposal of fixedassets

21

Other interest receivable andsimilar income

3

3

3

2017â'000

32,532

(27,2471

2016€'000

33,131

(28,164)

10

(6e)6,23

5,285

3

12

4,909

77

13

Movement in fair value ofinvestment properties

lnterest and financing costs 5 (3,2471 (3,619)

Surplus on disposal ofDorcas 124

Surplus before and aftertaxation and totalcomprehensive income forthe year 2,267 1,379

Consolidated numbers contain activities of Dorcas up to 30 March 2017 when the entity left the group.Dorcas activities are considered discontinued but have not been separately disclosed as they are immaterialto the group. All remaining activities are continuing.

The notes on pages 38 to 64 form part of these financial statements

90

Trldent Housing Assoclatlon Llmlted and lts subsldlarlesReport and flnanclal statements for the year ended 3l March 2017

Association Statement of Comprehensive lncome

Note

Page | 32

Turnover

Operating costs

Other operating income

Pension scheme closurecost

Operating surplus 3,6

(Deficit) Surplus on disposalof fixed assets

21

Other interest receivable andsimilar income

Movement in fair value ofinvestment properties

lnterest and financing costs 5

Surplus before and aftertaxation

Other comprehensiveincome for the year

Total comprehensive incomefor the year

3

3

3

2017Ê'000

18,266

(t3,t88)

20'16€'000

19,262

(14,526\

10

(6e)6,23

90

5,078

(4e4)

4,677

77

7

12 13

(3,2471 (3,619)

1,439 1,148

1,O23

2,462 1,148

The Association's results all relate to continuing activities.

The notes on pages 38 to 64 form part of these financial statements

' Trldent Houslng Association Llmlted and lts subsldiarlesReport and financial statements for the year ended 3l March 2017

Consolidated Statement of Financial PositionNote 2017

â'000

49

2,5957,192

9,836

(7,665)

2017€'000

176,065(26,815)

149,2503,3931,320

153,953

2,171

156,124

(137,398)

18,726

2016f'000

1,165

3,4674,729

9,361

(8,183)

Page | 33

2016e'000

176,648(25,207)

151,4413,6451,230

156,316

1,178

157,494

(141,035)

16,459

15,32817

1,114

16,459

Fixed assetsTangible assetsHousing Properties- Cost- Depreciation

Other fixed assetslnvestment properties

Totalfixed assetsCurrent assetsStocksDebtors - receivable within oneyearCash at bank and in hand

Greditors: amounts falling duewithin one year

Net current assets

Creditors: amounts falling dueafter more than one year

Pension fund liability

Total net assets

Share capitallncome and expenditure reserveRestricted reserveRevaluation Reserve

Accumulated funds

11

'11

1213

15,16

17

18

19

23

2017,446

1661,1',4

18,726

by the Board on út IY l>.¿tlThe financial statements werebehalf

A Ballard R TurtonGhair of the GroupAudit & Assurance Committee

Ghair of the Group Board

and were siqned on its

fi,\\M RuscoeCompany Secretary

The notes on pages 38 to 64 form part of these financial statements

Trident Houslng Associatlon Limlted and its subsldiarlesReport and flnanclal statements for the year ended 3l March 2017

Association Statement of Financial Position

Page I 34

Fixed assetsTangible assetsHousing properties- Cost- Depreciation

Other fixed assetslnvestment properties

Totalfixed assets

Current assetsStocksDebtors - receivable within oneyearCash at bank and in hand

Creditors: amounts falling duewithin one year

Net current assets/(liabilities)

Greditors: amounts falling dueafter more than one year

A BallardGhair of the Group Board

RChair of the GroupAudit & Assurance Gommittee

2016Ê'000

1,159

2,3983,396

6,953

(7,204)

signed on its behalf by:

Note2017

€'000

39

1,6975,749

7,485

(6,791)

2017€'000

176,065(26,815)

149,250

9,1321,320

153,702

154,396

(137,398)

16,998

15,86717

1,114

16,998

11

11

20'16Ê'000

'176,481(25,180)

151,301

3,2911,230

155,822

(251)

155,571

(141,035)

14,536

13,40517

1,114

14,536

1213

15,16

17

18

19

694

Pension fund liability 23

Total net assets

Share capitallncome and expenditure reserveRestricted reserveRevaluation Reserve

20

Accumulated funds

The financial statements were approved by the Board onrclsl2¡ ftand

The notes on pages 38 to 64 form part of these financial statements

Company Secretary

' Trident Housing Associatlon Limlted and lts subsldiarlesReport and financial statements for the year ended 31 March 2017

Consolidated Statement of changes in reserves

Page | 35

lncome andexpenditure

reserve€'000

15,328

1,904

90

124

17,446

lncome andexpenditure

reserve€'000

Restrictedreserve

â'000

17

149

166

Restrictedreserve

€'000

17

17

Revaluation

€'000

1,114

1,114

Revaluationreserve

Ê'000

1,',114

1,114

reserve Totale'000

16,459

2,053

124

18,726

Balance at 1 April 2016

Surplus/(deficit) for the year

Other Comorehensive lncomeUnrealised surplus/(deficit) onrevaluation of housing properties

Write back of Dorcas

Balance at 31 March 2017

90

Total€'000

15,080

1,379

Balance at 1 April 2015 13,949

'|,379Surplus and total comprehensiveincome for the year

Balance at 31 March 2016 15,328

The notes on pages 38 to 64 form part of these financial statements.

16,459

Trldent Housing Assoclation Limited and lts subsldiarlesReport and financial statements for the year ended 31 March 2017

Association Statement of changes in reserves

Page I 36

Balance at 1 April 2016 13,405

1,349Surplus/(deficit) for the year

Other Comprehensive lncomeUnrealised surplus(deficit) onrevaluation of housing properties 90

Dividend payment from TridentCharitable

1,O23

Balance at 31 March 2017 15,867

lncome andexpenditure

accountÊ'000

Balance at 1 April 2015 12,257

1,148Surplus and total comprehensiveincome for the year

Balance at 31 March 2016 13,405

The notes on pages 3B to 64 form part of these financial statements

lncome andexpenditure

account€'000

Restrictedreserve

€'000

17

17

Restricted

€'000

17

17

Revaluationreserve

€'000

1,114

1,114

Revaluationrêserve

€'000

1,114

1,114

Totalâ'000

14,536

1,349

16,998

Total€'000

13,388

1,148

90

023

resetve

14,536

' Trident Housing Assoclatlon Limlted and its subsidiariesReport and financial statements for the year ended 3l March 2017

Consolidated Statement of Cash Flows

2017â'000

Gash flow from operatingactivitiesSurplus for the financial yearAdjustments for:Depreciation of fixed assets- housing propertiesDepreciation of fixed assets- other fixed assetslnterest payable and financecostslnterest receivedSurplus/(deficit) on disposal offixed assetsDecrease / (increase) in debtor(lncrease) / decrease in stocks(Decrease) in creditors

Net cash generated fromoperating activities

Cash flow from investingactivities

Page | 37

Proceeds from sale of fixedassets - housing propertiesPurchase of fixed assets -housing propertiesPurchase of fixed assets - otherReceipt of grantlnterest received

I,962

(2,450)(548)

2112

2017€'000

2,267

2,542

797

3,247(121

6872

1,116(255)

10,580

(1,003)

(7,1141

2016Ê'000

430

(2,888)(375)128l3

(3,533)

2,700(r66)

(2,4201

20'16€'000

1,379

2,580

852

3,619(13)

177l247(r6)

(810)

7,761

(2,6921

(3,419)

Net cash from investing activities

Gash flow from financingactivitieslnterest paid

New loans - bankDebt issue costs incurredRepayment of loans - bank

(3,2471

(3,867)

Net cash used in financingactivities

Net increase in cash and cashequivalentsCash and cash equivalents atbeginning of year

Cash and cash equivalents atend ofyear

2,463

4,729

1,650

3,079

The notes on pages 38 to 64 form part of these financial statements

7,192 4,729

Trident Housing Association Llmlted and lts subsldiariesReport and financial statements for the year ended 3l March 20f 7 Page | 38

Notes to the financial statements

1 Legal status

The association is registered under the Co-operative and Community Benefit Societies Acl2014 and isa registered with the Homes and Communities Agency as a social housing provider.

2 Accounting policies

The financial statements of the Group and association are prepared in accordance with UK GenerallyAccepted Accounting Practice (UK GAAP) including Financial Reporting Standard 102 (FRS 102) andthe Housing SORP 2014: Statement of Recommended Practice for Registered Social HousingProviders and comply with the Accounting Direction for Private Registered Providers of Social Housing2015.

The preparation of financial statements in compliance with FRS 102 requires the use of certain criticalaccounting estimates. lt also requires group management to exercise judgement in applying thegroup's accounting policies (see below).

Basrs of consolidation

The Group accounts consolidate the accounts of the association and all its subsidiaries at 31 March2017 as if they formed a single entity. lntercompany transactions and balances between groupcompanies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using thepurchase method.

Significant judgements and estimates

ln preparing these financial statements, the key judgements and estimates have been made in respectof the following:

o lmpairment of tangible assets

A key judgement has been made in respect of whether there are indicators of impairment of theGroup's tangible assets. Factors taken into consideration in reaching such a decision include theeconomic viability and expected future financial performance of the asset and where it is a componentof a larger cash-generating unit, the viability and expected future performance of that unit.

The Association obtained a valuation from Nationwide in February 2O17 for their charged stock thatshows an EUV of Ê84.39m. Further stock is held through Barclays charged assets and THFC loanfacilities.

We have also considered the following additional impairment indicators: -. Long term voids - there are 13 long term voids this represents an insignificant proportion of the

totalstock.

' Obsolescence - there has been no unexpected decline in asset values

This provides sufficient reassurance that no impairment provisions are necessary in 2016117

' Trident Housing Assoclatlon Limlted and lts subsidiariesReport and financlal statements for the year ended 3l March 2017

Notes to the financial statements

2 Accounting policies (continued)

. Useful Economic Life of components

Page | 39

Each component has been assessed and an asset life determined. The useful life used for assetmanagement purposes has been used in the accounts.

o Financial instruments - borrowings - Negative compensation and funding indemnity clauses

Management have assessed the association's loan facilities as basic financial instruments. Theassociation's fixed rate loan facilities allow early payment of the principal and accrued interest inrelation to fixed interest tranches. There is an indemnity clause that requires the borrower to pay acompensation premium to the lender if market rates have fallen since the inception of the loan. Thereis also a clause that means that if market rates have increased, the borrower (i.e. Trident) wouldbenefit from a compensation premium.

Management do not consider that the clause allowing Trident to potentially receive a compensationpremium upon early repayment of some or all of the fixed rate loan liability makes this financialinstrument'non-basic'or'other'as outlined in FRS 102 section 11. Management consider that thisparticular loan clause is specifically compliant with section 11.9b) and 11.9c) of FRS 102 and that thesubstance of this loan arrangement was always that it was always intended to be a simple fixed rateloan arrangement

a lnvestment properties.

An estimate relates to the determination of carrying value of investments at fair value through profit andloss. ln determining this amount, the Group follows the lnternational Private Equity and Venture CapitalValuation Guidelines, applying the overriding concept that fair value is the amount for which an assetcan be exchanged between knowledgeable willing parties in an arm's length transaction. The nature,facts and circumstance of the investment drives the valuation methodology. 13 properties wereidentified as being market rent property. These properties are therefore not held for social benefit andhave been re-classified as an investment property at valuation Ê1.320m and will not be depreciated.

a Recoverability of debtors

The estimate for receivables relates to the recoverability of the balances outstanding at year end. Areview is performed based on assessing collectability at an individual debtor level to consider whetherthe debt is recoverable.

The business provides 100% against debts from former tenants (FT) and 40% against debts fromcurrent tenants (CT). The provision for FT has reverted back to 100% in the year based on evidencerelating to recoverability. In terms of 40o/o CT provision, an assessment based on % recoverabilitybased on age profile has been used and supported by the lncome Management Team. Thismethodology supports the 40% specific provision.

Turnover and revenue recognition

Turnover comprises rental income receivable in the year, income from shared ownership first tranchesales, sales of properties built for sale and other services included at the invoiced value (excludingVAT) of goods and services supplied in the year and revenue grants receivable in the year.

Rental and service charge income is recognised from the point when properties under developmentreach practical completion or otheruvise become available for letting. lncome from first tranche salesand sales of properties built for sale is recognised at the point of legal completion of the sale. Revenue

Trident Housing Assoclation Llmited and lts subsidiarlesReport and flnanclal statements for the year ended 3l March 2017 Page | 40

Notes to the financial statements

2 Accounting policies (continued)

grants are receivable when the conditions for receipt of agreed grant funding have been met. Chargesfor support services funded under Supporting People are recognised as they fall due under thecontractual arrangements with administering authorities.

Service charges

The Group adopts the variable method for calculating and charging service charges to its tenants andleaseholders. Expenditure is recorded when a service is provided and charged to the relevant servicecharge account or to a sinking fund. lncome is recorded based on the estimated amounts chargeable.

Value added tax

The Group charges Value Added Tax (VAT) on some of its income and is able to recover part of theVAT it incurs on expenditure. The financial statements include VAT to the extent that it is suffered bythe Group and not recoverable from HM Revenue and Customs. The balance of VAT payable orrecoverable at the year end is included as a current liability or asset.

lnterest payable

lnterest is capitalised on borrowings to finance developments to the extent that it accrues in respect ofthe period of development if it represents either:

a) lnterest on borrowings specifically financing the development programme after deduction of socialhousing grant (SHG) received in advance; or

b) A fair amount of interest on borrowings of the association as a whole after deductions of SHGreceived in advance to the extent that they can be deemed to be financing the developmentprogramme.

Other interest payable is charged to the income and expenditure account in the year.

Disclosure exemptions

ln preparing the separate financial statements of THA, advantage has been taken of the followingdisclosure exemptions available in FRS 102:. Only one reconciliation of the number of shares outstanding at the beginning and end of the period

has been presented as the reconciliations for the group and THA company would be identical;o No cash flow statement has been presented for the parent company, THA;o Disclosures in respect of THA's financial instruments have not been presented as equivalent

disclosures have been provided in respect of the group as a whole;o No disclosure has been given for the aggregate remuneration of the key management personnel of

THA, as their remuneration is included in the totals for the group as a whole.

Dividend payment

The Group Board on the 27th of March 2017 approved a cash dividend payment from TridentCharitable Housing Association to Trident Housing Association of €1,023k. The Group Board tookassurance that there were sufficient distributable reserves held within Trident Charitable HousingAssociation in order to make the cash dividend payment.

Going Concern

After making enquiries and reviewing the financial plan, the Board has a reasonable expectation thatthe Group has adequate resources to continue in operational existence for the foreseeable future. Forthis reason it continues to adopt the going concern basis in the financial statements.

, Trident Housing Association Limited and lts subsidlariesReport and financial statements for the year ended 31 March 2017

Notes to the financial statements

2 Accounting policies (continued)

Pensions

Page | 41

Final salary schemeThis scheme was closed to new entrants as at 31 March 2002 and the benefits of members securedwith an insurance company in December 2013.

Money purchase scheme

Contributions payable to this pension scheme are charged to the income and expenditure account inthe period to which they relate.

Housing properties

Housing properties are principally properties available for rent and are stated at cost less depreciation.Cost includes the cost of acquiring land and buildings, development costs, interest charges incurredduring the development period and expenditure incurred in respect of improvements.

The Association's development programme is managed by the lead social housing provider in theMatrix Partnership, whose management costs relating to development are charged to the Associationand capitalised.

Development department costs are capitalised where they are directly attributable to bringing theproperties into working condition for their intended use. Directly attributable costs are the labour costsof our employees arising directly from the construction or acquisition of the property and incrementalcosts that would have been avoided only if individual properties had not been constructed or acquired.

Works to existing properties which replace a component that has been treated separately fordepreciation purposes, along with those works that result in an increase in net rental income over thelives of the properties, thereby enhancing the economic benefits of the assets, are capitalised asimprovements.

Shared ownership properties are split proportionally between current and fixed assets based on theelement relating to expected first tranche sales. The first tranche proportion is classed as a currentasset and related sales proceeds included in turnover. The remaining element is classed as a fixedasset and included in housing properties at cost, less any provisions needed for depreciation orimpairment.

lnvestment properties

Investment properties consist of commercial properties and other properties not held for the socialbenefit or for use in the business. lnvestment properties are measured at cost on initial recognition andsubsequently at fair value as at the year end, with changes in fair value recognised in income andexpenditure. Fair value is determined by external valuers. No depreciation is provided.

Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year arerecorded at transaction price. Any losses arising from impairment are recognised in the incomestatement in other operating expenses.

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at thebalance sheet date and carried forward to future periods. This is measured at the undiscounted salarycost of the future holiday entitlement so accrued at the balance sheet date.

Trident Houslng Association Limlted and lts subsldiariesReport and financial statements for the year ended 3l March 2017

Notes to the financial statements

Major components:KitchensGas boilers/firesBathroomsWindows and external doorsElectricsRoof structure and coveringMechanical systems (heating, ventilation, plumbing)Environmental Works

Pagel42

2 Accounting policies (continued)

Government grants

Grants received since the transition date in relation to newly acquired or existing housing properties is

accounted for using the accrual model set out in FRS 102 and the Housing SORP 2014. Grant iscarried as deferred income in the balance sheet and released to income and expenditure account on a

systematic basis over the useful economic lives of the asset for which it was received. ln accordancewith Housing SORP 2014 the useful economic life of the housing property structure has been selected(see below).

Recycled capital grant fund

On the occurrence of certain relevant events, such as the sale of property, the HCA can direct theassociation to recycle capital grants or to make repayments of the recoverable amount. The Group

adopts a policy of recycling, for which a separate fund is maintained (recycled capital grant fund or

RCGF). lf unused within a three year period, it will be repayable to the HCA with interest. Any unusedrecycled capital grant held within the RCGF, which it is anticipated will not be used within one year isdisólosed in the balance sheet under creditors due after more than one year. The remainder is

disclosed under creditors due within one year.

Depreciation

Housing land and buildingsFreehold land is not depreciated. Depreciation of housing properties is charged so as to write off the

cost of freehold housing properties (net of social housing and other grants) to their estimated residual

value on a straight line basis over their expected useful economic lives as follows:

Housing Properties 100 years

20 years1 5 years30 years30 years40 years70 years30 years30 years

Housing properties, including those with individual components, which are depreciated over a period in

excess of 50 years are subject to impairment reviews annually. Other assets are reviewed forimpairment if there is an indication that impairment may have occurred.

Where there is evidence of impairment, fixed assets are written down to their recoverable amount,being the higher of the net realisable value or the value in use to the Group. Any such write down is

charged to operating surplus.

' Trident Housing Assoclation Limlted and its subsidiariesReport and financial statements for the year ended 31 March 2017

Notes to the financial statements

2 Accounting policies (continued)

Other fixed assefs

Page | 43

Depreciation is calculated to write off the cost less estimated residual value of other fixed assets on astraight line basis over their estimated lives as follows:

Housing fixtures and fittingsMotor vehiclesHousing furniture andequipmentDirect labour equipmentTenant amenities equipmentOffice equipmentLeasehold offices

15 to 30 years2 to 5 years5 to 7 years

3 years5 to 10 years4 to 10 years70 years

Leased assefs

Assets held under finance leases are included in the balance sheet and depreciated in accordancewith the Groups normal accounting policies. The present value of future rentals is shown as a liability.

The interest element of rental obligations is charged to the income and expenditure account over theperiod of the lease in proportion to the balance of capital repayments outstanding.

Rentals payable under operating leases are charged to the income and expenditure account on astraight line basis over the lease term.

Heritage assefs

There is no active acquisition policy for acquiring heritage assets. Any assets acquired are held aspart of the social investment strategy and are held at cost. The assets are maintained and preservedin accordance with the title restrictions and are accounted for under FRS 102.

Stock and properties for sale

Stock represents work in progress and completed properties, including housing properties developedfor transfer to other registered providers; properties developed for transfer to other registeredproviders; properties developed for outright sale; shared ownership properties. For shared ownershipproperties the value held as stock is the estimated cost to be sold as a first tranche.

Stock is stated at the lower of cost and net realisable value. Cost comprises materials, direct labourand direct development overheads. Net realisable value is based on estimated sales proceeds afterallowing for all further costs to completion and selling costs.

Loans, investments and short term deposits

All loans, instruments and short term deposits held by the Group, with the exception of the LendersOption Borrowers Option Loan and Cancellable embedded option arrangements are classified as basicfinancial instruments in accordance with FRS 102. These instruments are initially recorded at thetransaction price less any transaction costs (historical cost), FRS102 requires that basic financialinstruments are subsequently measured at amortised cost, however the Group has calculated that thedifference between the historical cost and amortised cost basis is not material and so these financialinstruments are stated on the balance sheet at historical cost. Loans and instruments that are payableor receivable within one year are not discounted.

Financial liabilities and equity

Financial liabilities and equity are classified according to the substance of the financial instrument'scontractual obligations, rather than the financial instrument's legal form.

Trldent Houslng Assoclation Limited and lts subsldlarlesReport and financial statements for the year ended 3l March 2017

Notes to the financial statements

2 Accounting policies (continued)

Cash and cash equivalents

Page l'14

Cash and cash equivalents in the Group's Consolidated Statement of Financial Position consists ofcash at bank, in hand, deposits and short term investments with an original maturity of three months orless.

Reserues

lncome received, and expenditure incurred, for restricted purposes is separately accounted for withinrestricted funds. Realised and unrealised gains and losses on assets held by these funds are alsoallocated to the fund.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by thefunders or which have been raised by the charity for a particular purpose.

The revaluation reserve is created from surpluses on asset revaluation.

Agency managed units

ln respect of units owned by the Association where the managing agent suffers the risks and hascontrol of the benefits, the income and expenditure and related assets and liabilities are not included in

the financial statements.

Leasehold sinking funds

Unexpected amounts collected from leaseholders for major repairs on leasehold schemes and anyinterest received are included in creditors

Trident Housing Association Limited and its subsidiariesReport and financial statements for the year ended 3l March 2017

Notes to the financial statements

3 Turnover, operating costs and operating surplus

Group

Social Housing LettingsGeneral needs housingSupported housingShared ownership

Other Social Housing ActivitiesCare and support services

Activities other than Social Housing ActivitiesHome ownersMarket rents and other income

Grant amortisation

Other operating income*

Pension scheme closure cost

Turnover2017

â'000

10,1956,554

372

2431,126

1,369

874

Operatingcosts2017

â'000

(7,451(4,620)

(280)

(2r5)(1,357)

(1,5721

Operatingsurplus

2017â'000

2,7501,934

92

4,776

(1621

28(2311

(203)

874

Turnover2016€'000

9,6946,767

325

2361,664

1,900

906

Operatingcosts2016â'000

(6,845)(5,385)

(277)

(206)(1,508)

('l,7141

(686)

10

(6e)

Page | 45

Operatingsurplus

20'16Ê'000

2,U9'1,382

48

4,279

30156

186

220

10

(6e)

4,908

17,121 (12,3451

l3,l6g (13,330)

16,786 (12,5O7)

13,539 (13,257) 282

Total 32,532 (27,247' 5,285 33,131 (28,223)

*Amounts recovered from the administration of the bank Kaupthing Singer and Friedlander are now greater than previously anticipated

Trident Housing Association Limited and its subsidiariesReport and financial statements for the year ended 3l March 2017

Notes to the financial statements

3 Turnover, operating costs and operating surplus

Association

Social Housing LettingsGeneral needs housingSupported housingShared ownership

Other Social Housing ActivitiesCare and support services

Activities other than Social Housing ActivitiesHome ownersMarket rents and other income

Grant amortisation

Other operating income *

lmpairment - DorcasPension scheme closure cost

Turnover2017

€'000

10,1955,828

372

997874

Operatingcosts2017

€'000

(7,&51(4,255)

(280)

(1,303)

Operatingsurplus

2017â'000

2,7501,573

92

4,415

(334)

(306)874

Turnover2016Ê'000

9,6946,728

325

236'l ,373

Operatingcosts2016Ê'000

(6,845)(5,377)

(277)

(206)(1,040)

Page | 46

Operatingsurplus

20't6Ê'000

2,8491,351

48

4,248

333

4,677

16,395 (t I,980)

(2151(1,088)

'16,747 (12,4ee)

30282437il

,609906

1

9;95

(1,246)(686)

10(e5)(6e)

363220

10(e5)(6e)

Total 18,266 (13,188) 5,078 19,262 (14,585)

* Amounts recovered from the administration of the bank Kaupthing Singer and Friedlander are now greater than previously anticipated

' 'Trident Housing Association Llmlted and lts subsidlaries

Report and financial statements for the year ended 3l March 2017

Notes to the financial statements

4 Income, Expenditure and Operating surplus on social housing lettings

Generalneeds

housing2017t'000

9,146

1,049

10,195

Supportedhousing

2017t'000

4,Us

2,109

6,554

Sharedownership

2017€'000

Total2017

â'000

13,922

3,199

17,121

(3,973)(2,1731

(2,r90)

(826)(643)

(2,540)

Page I 47

Total2016€'000

13,577

3,209

16,786

(4,070)(2,891)

(787)(748)

Group

lncomeRents receivableService chargesreceivable

Net rental income

ExpenditureServicesManagementResponsivemaintenancePlannedmaintenanceBad debtsDepreciation ofhousing properties

Operating surpluson social housinglettings

Void losses

(7,4451 (4,620)

2,750 1,934

(1r3) (535)

33r

41

372

(1,295)(1,8741

(1,617)

(667)(280)

(1,7121

(2,645)(r53)

(562)

(153)(357)

(750)

(33)(146)

(1 1)

(6)(6)

(78)

(2,117)

(1,894)

(280) (12,3451 (12,507)

4,776 4,279

(1) (64e) (510)

92

Trident Houslng Association Llmlted and lts subsidiarlesReport and financlal statements for the year ended 3l March 2017

Notes to the financial statements

4 lncome, Expenditure and Operating surplus on social housing lettings (continued)

Generalneeds

housing2017

Ê'000

9,146

1,049

Supportedhousing

2017€'000

4,010

I,818

5,828

Sharedownership

2017Ê'000

331

41

Total2017

Ê'000

13,487

2,908

Page | 48

Total2016Ê'000

13,538

3,209

16,747

(4,070)(2,885)

(2,1171

(786)(748)

(1,893)

Association

lncomeRents receivableService chargesreceivable

Net rental income

ExpenditureServicesManagementResponsivemaintenancePlannedmaintenanceBad debtsDepreciation ofhousing properties

Operating surpluson socialhousinglettings

Void losses

(7,4451 (4,255)

2,750 1,573

(113) (362)

10,195 372 16,395

(1,295)(1,874)

(1,617)

(667)(280)

(1,7121

12,4521(153)

(4e3)

(r53)(2541

(750)

(33)(r46)

(3,780)(2,1731

(2,1211

(826)(540)

(2,5401

(1r)

(6)(6)

(78)

(280) (11,980) (12,499)

4,415 4,248

(1) (476) (510)

92

' Trldent Houslng Assoclatlon Limited and its subsldlariesReport and financial statements for the year ended 3l March 2017

Notes to the financial statementslnterest and financing costs

Group and Association

Bank loanslndexation

Less: lnterest capitatised on construction of housing properties

Group2017

Ê'000The operating surplus for the year isstated after charging:

52017

8'000

3,20740

3,247

3,247

Association2017t'000

2,474

66

673612

220

21

Page | 49

2016Ê'000

3,62414

3,638(1e)

No interest was capitalised in the year to 31 March 2017.The average rate used to capitalise interest in2016 was 2.9o/o.

6 Operating surplus

3,619

Association2016

Ê'000

2,406

173

715748

330218

69

20

Depreciation of housing properties-annual chargeDepreciation of housing properties -Accelerated depreciation on replacedcomponentsDepreciation of other tangiblefixed assetsRent losses from bad debtsOperating lease charges- land and buildings- otherPension scheme closure costsAuditors' remuneration(excluding VAT):- Fees payable to the Company's

auditors for the audit of thefinancial statements

- Audit of the financial statementsof the Company's subsidiariespursuant to legislation

797642

2,476

66

740,u:

12

Group2016Ê'000

2,407

173

852748

16

36076523269

2021

7 Dividend Received

ln the year ended 31 March 2017 Trident Housing received a dividend of t1,022,564 from TridentCharitable Housing Association.

Trident Houslng Association Limited and lts subsidiarlesReport and financlal statements for the year ended 31 Ma¡ch 2017 Page | 50

Notes to the financial statements8 Taxation

The Association and its subsidiaries, Trident Reach the People Charity and Trident Charitable HousingAssociation, all have charitable status and therefore are not liable to pay Corporation Tax.

Trident Star Limited, a company limited by shares and incorporated under the Companies Act 2006, issubject to corporation tax. The company made a surplus in the year and believe that no tax is due on thesurplus in Trident Star Limited due to brought forward losses.

9 Staff costs

Group (excluding temporary agency costs)

Wages and salariesSocial security costsCost of defined contribution scheme

Average number of full-time equivalent persons (including theChief Executive) employed during the year based on a standardworking week of 36.5 hours.

Group

Office staffCare and support staffMaintenance staff

Totalemployees

Association (excluding temporary agency costs)

Wages and salariesSocial security costsCost of defined contribution scheme

Average number of full-time equivalent persons (including theChief Executive) employed during the year based on a standardworking week of 36.5 hours.

Office staff

Maintenance staff

2017€'000

12,318920185

2016Ê'000

13,5221,007

213

'13,423

Number

154390

31

14,742

Number

24235443

639575

€'000

2,62026170

Ê'000

2,977298

81

3,3562,951

Number

77

17

Number

78

17

Totalemployees 94 95

' 'Trldent Houslng Assoclatlon Llmlted and lts subsldlarlesReport and financlal statements for the year ended 31 March 2017

Notes to the financial statements

BasicsalaryÊ'000

9 Staff costs (continued)

Pension costs include the defined contribution scheme which was introduced following the closure of thefinal salary scheme in 20O2. All contributions have been paid during the year in respect of the definedcontributíon scheme. The Group introduced auto enrolment on the 1 November 2014.

10 Board members and executive directors

The key management personnel of the group comprise the Executive Directors.

Executive Directors2017 2017

Total

â'000

314

Page | 5l

2016Total

Ê'000

289298

Pensioncontributions

Ê'000

l6

,000Ê60Ê70,00

The emoluments of the directors as setout within the Association lnformationwere:

The full time equivalent number of staff who received emoluments:

Ê90,000Ê100,000Ê110,000

The highest paid director - Chief Executive

Ê70,000Ê80,000

tototototo

2017Number

2017€'000

120

2016Number

;

;

Ê80,00Ê90,00€100,001

The Chief Executive is an ordinary member of the pension scheme. The pension scheme is a money purchasepension scheme funded by annual contributions by the employer and the employee. No enhanced or specialterms apply. There are no additional pension arrangements.

The emoluments of directors disclosed above (excluding pensioncontributions but including benefits in kind) include amounts paid to:

2016Ê'000

107

Trident Housing Assoclatlon Llmlted and lts subsidiarlesReport and flnanclal statements for the year ended 31 March 2017

Audit &Assurance

Remuneration Committee

Page | 52

Notes to the financial statements

10 Board members and executive directors (continued)

The following were members of the committtees set out below and received remuneration for this as detailed

Remuneration &NominationGommittee

SafeguardingGommittee

Group Boardof

Management

Andrew Ballard

AbigailRobson

AbigailDavies

Frances Anderson

Rob Turton

Katie Kershaw

Colin Small

Matt Knopp

Elaine ElkingtonRosemarieAnderson

GillCombes

Nathan Talbott

John Morris

6,681

13,000

1,190

1,190

6,000

4,500

5,125

5,500

1,250

1,250

0

4,500

0

x xx

xxx

x

xx

xxxx

x

x

x

xxx

50,186

Abigail Robson, Abigail Davies and Frances Andreson retired during 2016117

Trident Housing Associdion Limited and its subsidiariesReport and financial statements for the year ended 3l March 2017

Notes to the financial statements11 Tangible fixed assets - housing properties

Page | 53

Total€'000

176,648285

1,2441,066

Group

CosfAt I April2016AdditionsProperties AcquiredWorks to Existing PropertiesTransfers from stockSchemes completedDisposalReplacement of components

At 31 March 2017

DepreciationAt 1 April2016Charge for the yearAccelerated depreciation on replacedassetsDepreciation on disposals

General needsUnder

Gompleted constructionâ'000 Ê'000

102,824 278188

1,186

Shared ownershipUnder

Gompleted constructiong'000 â'000

'11,912

11,912

609

SupportedUnder

Completed GonstructionÊ'000 â'000

6r,361 27397

rgzót(101)(374)

581,066

370(2,690)

(13)(2,7e1)

(387)

66(e34)

103,535

20,4541,649

¿166 60,152

4,144749

176,065

25,2072,47678

63(384)

3(550)

At 31 March 2016 21,782 687 4,346 26,815

Net book value

At 31 March 2017 81,753 466 11,225 55,806 149,250

At 31 March 2016 82,369 11,304 57,217 273 151,441

Expenditure on works to existing properties comprised new components capitalised Ê1 ,112,698 and capitalised improvements t1 ,112,698. Major works charged tothe income and expenditure account during the year totalled 1128,920.

278

Trident Housing Association Limited and its subsidiariesReport and financial statements for the year ended 3l March 2017

Notes to the financial statements11 Tangible fixed assets - housing properties (continued)

Page | 54

Totalâ'000

General needsUnder

Completed constructiont'000 t'000

Shared ownershipUnder

Completed constructionâ'000 t'000

11,912

11,912

609

SupportedUnder

Gompleted Gonstructiont'000 Ê'000

61,195

58370

1,06ô(2,524)

(13)

60,152

4,117747

3(521)

AssociationCosfAt 1 April20l6AdditionsWorks to Existing PropertiesSchemes completedTransfers from stockDisposalReplacement of components

At 31 March 2017

DepreciationAt 1 April2016Charge for the yearAccelerated depreciation on replacedassetsDepreciation on disposals

't02,824

1,186

(101)(374)

103,535

20,4541,649

63(384)

278188

27298

tezol

176,481286

1,244

1,066(2,625)

(387)

466 176,065

25,1802,47478

66(e05)

At 31 March 2017 21,782 687 4,346 26,815

Net book value

At 31 March 2017 81,753 466 11,225 55,806 149,250

At 31 March 2016 82,369 278 11,304 57,078 151,301

Expenditure on works to existing properties comprised new components capitalised t1 ,112,698 and capitalised improvements Ê128,920. Major works charged to theincome and expenditure account during the year totalled Ê63,618.

272

' ' Trident Housing Associatlon Llmited and its subsidlariesReport and financlal statements forthe yearended 3l March 2017

Notes to the financial statements12 Other Tangible fixed assets

Group

CosfAt 1 April 2016 (as restated)AdditionsDisposals

At 31 March 2017

DepreciationAt 1 April2016Charge for the yearDisposals

At 31 March 2017

Net book valueAt 31 March 2017

At 31 March 2016

Association

CosfAt 1 April2016AdditionsDisposals

At 31 March 2017

DepreciationAt 1 April2016Charge for the yearDisposals

At 31 March 2017

Net book valueAt 31 March 2017

Leaseholdoffice€'000

1,584

565

619

1,019

1,550

Plant andequipment

€'000

Page | 55

Totalâ'000

13,666548

(20e)

14,005

10,021797

(1e6)

10,622

3,383

3,645

12,830527

(20e)

13,148

9,539673

(1e6)

10,016

3,132

1 ,584 12,082548

(20e)

12,421

549,456

743(1e6)

10,003

965 2,418

2,626

1 550 11,280527

(20e)

11,598

56523

8,974650

(re6)

588 9,428

962 2,170

At 31 March 2016 985 2,306 3,291

Trident Houslng Assoclatlon Llmlted and lts subsldiarlesReport and financial statements for the year ended 31 March 2017

Page | 56

Notes to the financial statements12 Other Tangible fixed assets (continued)

lncluded within tangible fixed assets is a property, the Edgbaston Observatory commonly known as Perrott'sFolly, which is considered as a heritage asset under Section 34 Accounting Standards FRS 102. Perrott'sFolly was built in 1758 and has previously been used by the meteorological department of BirminghamUniversity and is considered by some to be the inspiration for one of the two towers in the Lord of the Ringsby J.R.R Tolkien.

13 Group and Association investment properties

At 1 AprilRevaluation

2017t'000

1,23090

2016Ê'000

1161,114

At 31 March 20171,320 1,230

Thirteen market rent properties held at valuation. The fair value hasbeen determined by external valuers JLL. The historic cost amount isÊ1 16k

ln valuing investment properties, a discounted cash flow methodologywas adopted with the following key assumptions: -

Discount Rate 7.75o/o - 8.00%Level of Long Term Annual Rent lncrease 2.50o/o - 3.00%

The surplus on revaluation of investment property of Ê90k has beencredited to the Statement of Comprehensive lncome for the year.

14 Fixed asset investments - Group undertakings

As at 31 March 2017, the Association had the following three Group undertakings:

Tride nt Charitable Housing Associafion LimitedTrident Housing Association owns all twelve ordinary shares of Ê1 each in Trident Charitable HousingAssociation Limited, a charitable association whose rules vest control in the Association. Trident CharitableHousing Association Limited is a regulated entity registered with the Homes and Communities Agency,however it's sole care home was sold in the year and the entity is dormant at the balance sheet date,withthe intention to delist from regulation and cease trading during 2017118.

Trident Reach the People CharityTrident Housing Association at all times will have a majority of the votes in Trident Reach the PeopleCharity. Trident Reach the People Charity is a charitable company limited by guarantee and not having ashare capital. lt was incorporated on 28 November 2008 and registered as a charity on 16 April 2009. ltcommenced trading on 1 October 2009.

Trident Star LimitedTrident Housing Association is the sole shareholder in Trident Star Limited, a company limited by shares,incorporated on 27 March 2009. After a period of non{rading, the company was relaunched in 2012fi3 asthe commercial vehicle of the Group.

r It " Trident Housing Assoclation Limited and lts subsidiariesReport and financial statements for the year ended 3l March 2017

Page | 57

Notes to the financial statements14 Fixed asset investments - Group undertakings (continued)

Dorcas Housing &Community Supporf Association Limited

Dorcas Housing & Community Support Association Limited is incorporated under the Co-operative andCommunity Benefit Societies Act 2015. The Group acquired Dorcas on 30 March 2011 for ÊNilconsideration. Dorcas left the Group on 30 March 2017.

All transactions between Group entities are carried out so that no party makes a surplus or deficit on thetransaction.

Trident Housing Association is the ultimate parent undertaking.

During the year the Association had the following intra-group transactions with Trident Reach the PeopleCharity, a non-regulated entity:

Trident Reach the People Charity to Trident Housing Associationlntra-group transactions Allocation basis

Employment costs of staff at housingschemesTenancy Support ServiceCentral Control DepartmentDevelopment functionFinance Staff

Payroll costs of scheme staff

Direct cost of servicePayroll costs of staffPercentage of payroll costsPercentage of payroll costs

2017€'000

1,052302150

1,504

2016e'000

1,173459130

17

1,779

Trident Housing Association to Trident Reach the People CharityAllocation basis

Recharge of rent on care homesService costs relating to care homesDepreciation of assets

Employment costs of Executive andCentralServicesCRB Checks

Provision of refurbishment servicesOffice overheadsVehicle costsICT systemsAudit and insurance brokerageConsultancies

Rent agreementActualcostsPercentage of depreciationcostsPercentage of payroll costs

Direct cost allocation

Labour and material costsDirect cost allocationDirect cost allocationStaff numbersDirect cost allocationPercentage of Payroll Costs

62

4724

2017€'000

,t:

9135

911214I

2016Ê'000

286

73

37812

16623861B44

1,111 1,086

Trldent Housing Association Limited and lts subsldlarlesReport and financlal statements for the year ended 3l March 2017

Notes to the financial statements

2017Ê'000

15

Association2017

€'000

Association2017

€'000

Association2017['000

2,948(2,1011

401280169

Association2016Ê'000

1,122

Association2016Ê'000

Association2016€'000

Page | 58'

2016Ê'000

5

2,159(1,451)

708

14 Fixed asset investments - Group undertakings (continued)

During the year the Association had the following intra-group transactions with Trident Star, a non-regulatedentity:

Trident Housing Association to Trident Star

Management services

15 Properties for sale

Allocation basis

Percentage of payroll costs

Group2017

Ê'000

Group2016€'000

Shared Ownership PropertiesCompleted properties

Properties developed for outright sale

16 Stocks

Maintenance materials and tenantamenities stocks

17 Debtors

Amount falling receivable within oneyear:

RentaldebtorsLess: provision for bad debts

Trade and other debtorsPrepayments and accrued incomelntercompany debtors

250250

250872

250872

1,122

Group2017

e'000

Group2016

Ê'000

37394349

Group2017

€'000

2,948(2,1011

Group2016

Ê'000

2,159(1,451)

847708847

I,035713

8721,887

256,4341

2,595 3,467 1,697 2,398

(t " 'Tr¡dent Housing Assoclation Limlted and lts subsldlariesReport and financial statements for the year ended 3l March 2017

Notes to the financial statements18 Creditors: amounts falling due within one year

Group2017

€'000

Housing loansTrade creditorsRents & Service Charges Receivedin AdvanceOther taxation and socialsecurity costsAccruals and deferred incomelntercompany creditorRecycled capital grant fundGrant creditor

3,101897

7,665

19 Creditors: amounts falling due after more than one year

Group and Association

Housing loansAmortisation of loan feesRecycled Capital Grant FundGrant Creditor

Group and Association

Opening balancelnputs to reserve:Grants recycled

8s3

288,644

16866

1

Group2016e'000

3,364774

504

2572,351

933

Association2017

Ê'000

3,101751

853

Page I 59

Association2016['000

3,365690

504

811,632

932

7,204

2016f'000

81,1 1g(800)294

60,422

20'16Ê'000

207

87

1021,048

5416

866

8,183 6,791

2017€'000

78,013(7241

1,39958,711

137,398 141,035

Loans are secured by specific charges on the housing properties of the group. The loans bearinterest at fixed rates ranging from 0.5% to 12.6% or at variable rates calculated at a marginabove the London lnter Bank Offer Rate.

Movements on recycled capital grant fund

2017€'000

294

1,120

Closing balance 1,414 294

Trident Houslng Assoclatlon Llmlted and its subsidiariesReport and flnanclal statements for the year ended 31 March 2017

Notes to the financial statements

19 Creditors: amounts falling due after more than one year (continued)

Movements in social housing grant

Group and Association

Opening balanceReceivedRecycledReleased

Closing balance

Group and Association

The housing loans are repayable as follows:

Housing loans repayable by instalmentsBetween one and two yearsBetween two and five yearsRepayable after five years

Wholly repayable between two and five yearsWholly repayable after five years

20 Share capital

2017Ê'000

6l,35521

(1,1201(680)

59,576

2017€'000

3,10116,37655,036

74,513

3,500

78,013

Association2017

€

43

Page | 60

2016Ê'000

62,215128(87)

(e01)

61,355

2016Ê'000

3,10016,32358,196

77,619

3,500

81,119

Association2016

€

At start of financial yearlssued during the yearShares cancelled in the year reDorcasShares cancelled in the year reTrident Charitable Housing

Group2017

Ê

(121

(21

Group2016

Ê

436969

43436955At end of financial year

Shares carry no right to a dividend or a distribution on winding up. Shareholders have a right to vote at theannual general meeting. When a shareholder ceases to be a shareholder their share is cancelled andbecomes the property of the Association. There are ten shares issued and fully paid, and no shares issuedbut not fully paid.The par value per share is Ê1.

Dorcas left the Group on the 30th March 2017 andTrident Charitable Housing sold its asset on the 6rh March2017.

{t ''' 'Trldent Housing Association Limlted and lts subsldlarlesReport and financial statements for the year ended 3l March 2017

Notes to the financial statements

21 Surplus on sale of propertiesShared

ownership:further

tranches€'000

Proceeds of salesLess: costs of sale

Surplus on disposal of fixed assets

22 Accommodation in management and development

Group

SocialHousingGeneral needs housing- Social- AffordableSupported housing and housing for older people"Care HomesLow cost home ownershipHome Owners

60(57)

430

773

OtherDisposals

€'000

1,848(2,3471

(4ee)

Total2017

€'000

1,908(2,4041

(4e6)

2017Number

Page I ôl

Total2016Ê'000

(353)

2016Number

(restated)

1,950247530

58103284

2,084288358

5795

287

Totalsocial housing 3,169 3,172

The basis of allocation of properties is based upon definitions as set out in the Welfare Reform and WorkAct.

Trldent Housing Assoclation Limlted and lts subsidiarlesReport and financial statements for the year ended 3l March 2017

Notes to the financial statements

22 Accommodation in management and development (continued)

GroupNon social housingMarket rentCommercialshop lets

Group and Association

Capital expenditure contracted for but not provided for inthe financial statements

Capital expenditure authorised but not yet contracted hencenot provided for in the financial statements

2017Number

16911

Page | 62

2016Number

17111

Total non social housing 180 182

Totalowned and managed 3,349 3,354

Housing under development

The group owns 56 properties (2016 - 56) that are managed on its behalf, under management agreements,by other bodies.

"lncluded in the above Group figures are 12 shared housing bedspaces (2016:12) included in the financialstatements of Trident Charitable Housing Association Limited are no shared housing bedspaces (2016: 5)which were managed by Trident Reach and 10 commercial units which are now managed by Trident Star.These units were previously managed by the Association. All other units are managed by, or under thedevelopment of, the Association.

23 Pension obligations

The pension scheme was closed in December 2O14.

24 CapitalCommitments

463

2017€'000

6,917

2016Ê'000

1,122

4,247

The Board expect the expenditure they have authorised to be fully financed by SHG, loan finance or othercapitalgrants.

" ' Trident Housing Associatlon Limlted and lts subsidiarlesReport and financlal statements for the year ended 31 March 2017

Page | 63

Notes to the financial statements25 Other financial commitments

Group

At 31 March 2017 the Group was committed to make the following payments under non-cancellableoperating leases in the year to 31 March 2017.

Operating leases which expire:

Within 1 yearBetweenlandSyearsAfter more than 5 years

Operating leases which expire:

Within l yearBetweenlandSyearsAfter more than 5 years

Land andbuildings

2017€'000

Land andbuildings

2017€'000

Other

2017€'000

199119

1

Land andbuildings

2016Ê'000

7651,1751,745

Land andbuildings

2016Ê'000

Other

201 6Ê'000

232238

6

5288535971

2,978 319 3,685 476

Association

At 31 March 2017 the Association was committed to make the following payments under non-cancellableoperating leases in the year to 31 March 2017.

330901702I

2937625571

Other

2017â'000

t9t119

1

Other

2016Ê'000

218238

6

2,612 311 2,933

26 Related party transactions

The current Chair of the Board provided services to the Group during the financial year whilst working forAltair. The totalvalue of the services provided was Ê19,152.

The CEO is also the company secr etary of Shahjalal Housing Co-operative Limited. Trident HousingAssociation Limited has had purchase transactions with Shahjalal, totalling ÊNil (2016: €Nil) and sales ofÊ115,756 (2016: Ê62,636) during the year. All transactions took place under normal commercial terms.

The previous Chair of the Board is also Chair of the Human City lnstitute. The Group has had purchasetransactions with the Human City lnstitute totalling E7,B7B (2016: eNlL).

lntra-group transactions between regulated and non-regulated entities are detailed in note 14.

462

Trldent Houslng Association Limlted and its subsldlarlesReport and financlal statements for the year ended 31 March 2017

Page ¡ 64

Notes to the financial statements

27 Legislativeprovisions

The Association and its subsidiary, Trident Charitable Housing Association Limited, are both incorporatedunder the Co-operative and Community Benefit Societies Act 2016, are registered social landlords, andexempt charities.

Trident Reach the People Charity is incorporated under the Companies Act 2006 and is registered as acharity.

Trident Star Limited, a company limited by shares, is incorporated under the Companies Act 2006.

Dorcas Housing & Community Support Association Limited is incorporated under the Co-operative andCommunity Benefit Societies Act 2015. Dorcas has left the Group.

28 Financial lnstruments

The carrying values of the financial assets and laibilities are summarised by category below

FinancialassetsMeasured at undiscounted amounts receivable

Rent arrears and other debtors

Cash

Amounts due from related undertaking

Financial liabilitiesMeasured at amortised cost

Loans Payable

Measured at undiscounted amount payable

Trade and other creditors

Amounts owed to related undertakings

'|7

8,177 5,437 6,818 4,104

19,19 80,390 83,683 80,390 83,705

Group2017 2016

€'000 Ê'000

Association2017 2016

€'000 e'000

846

5,749

223

3,396

847

7,192138

708

4,729

708

897

130

774 751 690

54

81,417 84,457 81,195 84,395