Page 40 - NEHA 2020 Annual Report

Notes to the Financial Statements
for the period ended 31 December 2020
14. Security and charges relating to bank borrowings
Ulster Bank loans of €1,092,201 are secured by a series of charges over various assignments and first legal mortgage charges over 17 residential units at Moneymore, Drogheda, Co. Louth and 1 residential unit at Cedarvale, Althumney Woods, Navan, Co. Meath.
Bank of Ireland loans of €772,731 are secured by a first legal mortgage and charge over 17 units at Stamanaran, Blackrock, Co. Louth.
15. Reserves
The Income and Expenditure reserve represents cumulative surpluses and deficits recognised in the Income Statement. All approved Housing Bodies are required to designate elements of their income and expenditure reserve for the long term systematic repair and refurbishment of housing stock which is known as a sinking fund. For the purposes of SORP Accounting by registered social housing providers, such designations are considered to be an internal matter and therefore are not to be disclosable in the primary statements.
Of the total reserves of €2,898,486 (2019: €2,650,940) held at the Balance Sheet date, North & East internally designate €1,640,343 (2019: €1,238,280) as a designated reserve for repairs and refurbishment of housing stock.
16. Company status
The company is limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding €1 towards the assets of the company in the event of liquidation.
17. Capital commitments
At the financial year end date the company had entered into contracts for future capital expenditure amounting to €6,900,000.
18. Pension commitments
The company operates a defined contribution scheme, ‘Pension Scheme Fund’, for its employees. The scheme is externally financed in that the assets of the scheme are held separately from those of the company in an independently administered fund. The contributions made in the financial year amounted to €21,665 (2019: €17,831).
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