Page 21 - NEHA 2020 Annual Report

Directors’ Responsibilities Statement
Board Policies
The Board considers and approves certain key policies and strategies relating to the financial framework and viability of the Association (including the 30-year Long Term Financial Plan, Treasury Management Policy, and the Budget) and other core areas (such as the Asset Management Strategy, Tenant Services & Engagement Strategy Risk Management Policy and the Health and Safety Policy).
In 2020 the Board reviewed the following policies:
• Risk policy
• Financial Policies & procedures
• Crisis Management policy
• Policy on entering partnerships with Third Party Organisations
• Directors Expenses policy
• Schedule of matters reserved for the Board
• Terms of Reference for Tenant Services & Engagement Committee
• Value for Money policy.
Financial Review
Turnover was €5.2m in 2020 compared to €3.8m in 2019 reflecting increased rental income and the impact of increased payment and availability income from new housing additions. Rental income increased by €296k in 2020 and payment & availability income increased by €1.09m.
North & East generated a surplus of €248k in 2020 compared to €331k in 2019. The surplus for 2020 is inclusive of income reversal provisions of €115k including the introduction of a bad debt provision against rental income, anticipated rental income refunds due to the impact of Covid-19 and P&A refund. The management and Board expect North & East to maintain an operating surplus year on year going forward.
Operating Expenses were €4.2m in 2020 compared to €3.1m in 2019 reflecting a €312k increase in expenditure
on repairs and maintenance, €149k increase in other direct costs, €147k increase in salaries and training, €375k increase in depreciation due to increased stock and €91k increase in other overheads. The key drivers of increasing expenditure include the direct costs of managing additional stock, scaling operations, improved governance, oversight, and assurance initiatives.
Turnover in 2020
Fixed assets
was €5.2m compared to €3.8 in 2019
of €56.2m in 2020 compared to €39.6m in 2019
Annual Report 2020 | 21