2005/06 has been another successful year for DAMHA. The Association remains financially strong, with our audited accounts showing an increase in turnover of 5.2% and a surplus of £162,000.

The Balance Sheet continues to be healthy as the value of the housing stock completed and in the course of construction increased by £1.5m to £30m. Overall £2.8m was spent on the acquisition and development of housing properties, the costs being financed by a combination of private loans, social housing grant and the Association's own cash reserves.

Income and Expenditure for year ended
31st March

2005 £'000

2006 £'000

Turnover 4,346 4877     Weekly charge income
Less: Net Operating costs

(3516)

(3636)

Cost of providing services and carrying out repairs

Operating Surplus 830 1241
Surplus (deficit) on property sales 99 (48)
Interest receivable and similar income 61 66 Interest earned on investments
Interest payable and similar charges

(841)

(793)

Interest paid on loans

Surplus for the year 149 466
Transfer from/(to) designated reserves (1149) (1978) Set aside for asset management
Transfer from revaluation reserve 176 (605) Allowable transfer following increase in valuation of properties
Income and Expenditure account brought forward

6,989

6,165

Income and Expenditure account carried forward

6,165

5,258

Balance Sheet at 31st March

2005 £'000

2006 £'000

Fixed Assets
Housing Properties 28,033 29,538
Other Tangible Assets 599 577 Offices and equipment
Investments

255

299

28,887

30,414

Current Assets Cash at bank and money owed to us
Debtors 248 328
Investments 8 10
Cash at bank and in hand

595

1215

851

1553

Creditors
Amounts falling due within one year

(1,026)

(1,202)

Debts repayable in the short term

Net current assets

(175)

351

Total assets less current liabilities

28,712

30,765

Creditors

Amounts falling due after more than one year

12,020

13,651

Debts repayable in the longer term

Reserves
Revaluation reserve: housing properties 6,960 6,235
Revaluation reserve: investments 124 168
Income and expenditure account 6,165 5,258
Designated reserves 3,312 5,131
Restricted reserves 131 322

28,712

30,765

Disclaimer
The above figures have been extracted from our full audited financial statements, on which the auditors expressed an unqualified opinion and which have been submitted to the Charity Commission and the Housing Corporation. These summarised accounts may not contain sufficient information to allow for a full understanding of the Association's financial affairs. For further information the full annual accounts and auditors report should be consulted.

A copy of our annual report can be provided on request.

Rent Reforms
The Government introduced guideline 'target rents', (commencing April 2002) to be based on a 70% earnings and 30% capital value formula, to be phased in over a ten-year period.

The Association confirms its intention to move toward charging target rents over a 10-year implementation period. In order to ensure continued financial viability in the longer term and to minimise the impact of levying increasing charges on what are seen as less attractive properties, the charges in respect of older one bedroom stock will be restructured over 10 years, whilst newer two bedroom stock will be restructured over five years.

If the Association chose not to follow the guidelines, the Housing Corporation may have declined to award Social Housing Grants, which are needed to improve older homes and develop new. The Government Policy is subject to a three-year review.

Average weekly maintenance charge (Excluding service charge) for rented homes.
  2006

 2005

  
One Bed Home £43.73 £40.49  
Two Bed Home

 £55.12

 £52.00