Irvine Group Financial Statement 2009

Financial Statements
Year ended 31 March 2009

Financial
Statements
Year ended 31 March 2009
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Financial Statements
For the year ended 31 March 2009
The Riverside Group Limited
Industrial and Provident Society Registered Number 30670R
Contents
Highlights five year summary
The Board, Executives and Advisors
Group Chairmans statement
Operating and financial review
Report of the Board
13
Report of the independent auditors
17
Group income and expenditure account
18
Statement of total recognised

surpluses and deficits
19
Group balance sheet
20
Group cash flow statement
21
Company income and expenditure

account and balance sheet
22
Notes to the financial statements
23
Revitalising
neighbourhoods
cleaner, greener, safer.
Highlights five year summary

For the year ended 31 March
2009

Income and expenditure account
Turnover
000
249,278
Operating surplus
000
24,950
Surplus on ordinary activities before tax
000
9,736
Balance sheet
Tangible assets
Loans repayable after more than one year
Reserves: Designated and restricted

Income and expenditure

Consolidation
000
000
000
000
000
Accommodation figures
Total housing stock, owned and managed
Units
Statistics
Interest cover
(surplus before interest payable, depreciation &
impairment divided by net interest payable)
2008
Restated
2007
2006
2005
251,801
34,496
13,315
176,162
16,824
6,197
122,680
21,159
14,322
110,215
22,322
16,474
1,692,132 1,648,068 1,589,833

621,674 569,313 508,493
66,269
63,696
54,372
89,653
80,092
62,770
152,340 155,815 161,038
832,959
272,227
51,101
54,051

770,720
240,970
44,239
44,512

51,762
52,339
52,641
40,579
39,071
1.9
1.7
1.7
2.2
2.3
Gearing
(long term loans as % of Social Housing Grant
plus reserves)
56.4
53.0
48.1
52.5
49.4
Voids and bad debts as % of rent

and service charge receivable
2.7
4.4
3.4
2.8
3.1
Days
14.5
17.8
21.5
15.9
15.8
Rent arrears
(rent arrears divided by net rent and service
charges receivable multiplied by 365 days)
All figures have been extracted from current and prior years audited financial statements.
Tranforming lives
investing in the future.
The Board, Executives and Advisors

1
President
Registered auditors
1. K Clifford Cook OBE KStJ FCA
KPMG LLP
St James Square
Manchester
M2 6DS
The Board of
3
Group Chairman
2. Professor J N Tarn OBE DL FRIBA
Group Vice Chairman
3. P Brant LLB BL
Group Treasurer
4. P R Deyes BCom FCA
Members
P J Chesters MA (retired 31 March 2009)

(Not pictured)
5. P J Han (appointed 1 April 2009)

6. A M Jones (appointed 3 June 2009)
R M Kelly (appointed 2 April 2008)
7
(retired 3 June 2009) (Not pictured)
7. P H Raw FRICS FBEng MFPWS

A J Redmond BA(Hons) ACA

(retired 31 March 2009) (Not pictured)
8. M Steinberg OBE FRSA

(appointed 1 April 2009)
9. Y Turgut BSc MSc FCA
9
10
Group Directors
Group Chief Executive
10. D F Shackleton CBE MA(Oxon)
11
12
FCIH FRSA MAPM*
Group Deputy Chief Executive

& Group Finance Director
11. J E Baggaley BA(Hons) FCA*
12. D A Jepson BA(Hons) MBA*
Group Director Subsidiaries
J Heverin MSc DPA FCIH
13
14
(retired 31 March 2009) (Not pictured)
Group Director of
Corporate Services
13. R Clawson BSc(Hons)
Group Director, Housing Services
14. J R W Wood BSc(Hons) FIH
15
ManagingDirector ECHG
15. D Caren BSc MA MBA CQSW*
Principalsolicitors
Brabners Chaffe Street
Horton House
Exchange Flags
Liverpool
L2 3YL
Trowers & Hamlins
Sceptre Court
40 Tower Hill
London
EC3N 4DX
Principalbankers
National Westminster
Bank PLC
22 Castle Street
Liverpool
L69 2BE
Secretary and
Registered Office
L F Hughes BA(Hons) MBA CertCIH
Solicitor
2 Estuary Boulevard
Estuary Commerce Park
Liverpool
L24 8RF
Registered Numbers
Post 18 December 2008
Industrial and Provident Society
Registered number: 30670R
Pre 18 December 2008
Company Limited by
Guarantee: 4091048
Post 1 April 2009
Tenant Services Authority
Registered Number: L4537
Pre 1 April 2009
Tenant Services Authority
Registered Number: L4294
* Co-opted Board Members
Group Chairmans statement

We are presenting these results in the context of an
astonishing year. As I reflect on the past 12 months
and look forward to the next, it is hard not to conclude
that Riverside is facing some of the most difficult
operating conditions any of us can remember.
Traditionally housing association activity has been
seen as counter cyclical in other words we have been
well placed to prosper in times of economic downturn.
However we cannot consider ourselves immune from
the consequences of the current turmoil. In the housing
market, we have seen a collapse of prices and fall off
of activity as the severe constraint on lending
has effected the number of people able to access
mortgages. We have seen our own sales of affordable
homes fall, and have had to be fleet footed to ensure
that we are able to offer other options so that properties
generate income and do not stand empty. However
there is a significant financial cost which we need to
manage, although ironically this comes at a time when
demand for our housing for rent and of course the
core services which go with it is burgeoning.
The dramatic fall in values seen in the commercial
market over the last year have also been felt by the
Groups property company, Prospect (GB) Ltd.
Prospect has been quick to amend its strategy in
response to the challenging market conditions it faces
and we are confident it is well placed to ride out the
current turmoil in the commercial property market.
The collapse of the housing market bubble has been a

significant factor in the onset of recession, and whether
we believe there are signs of green shoots or not,
the Riverside economy faces increasing challenges.
I am very concerned at the prospect of rent deflation
when we have such pressures on our services, and we
will continue to make the case to government and
the Tenant Services Authority for a change to rent
regulation. Notwithstanding negative RPI , many of
our real costs continue to rise. Whilst we must continue
our drive to take excessive cost out of the business and
maximise value for money, we must not compromise
excellence.
Amidst all of this we have seen fundamental changes
to our regulatory and funding context with the
creation of the Tenant Services Authority and Home
and Communites Agency. We welcome the renewed
energy and focus they are bringing. We have had the
opportunity to engage directly with both the Chairman
and Chief Executive of the Homes and Communities
Agency, and look forward to welcoming the Chief
Executive of the Tenant Services Authority to address
Board members at our annual conference in November.
However the creation of two separate and powerful
new agencies will, in time, create pressures which we
will need to reconcile as we seek to balance investment
in developing services for existing customers with the
provision of much needed new homes for new ones.
Both present a call on limited resources, but if we are
to fulfil our mission of transforming lives, revitalising
neighbourhoods, we must find creative and innovative
ways of doing both. Now is not the time to retrench,
and it is precisely at these times that the Board must
show strong leadership. Nothing less is expected of an
association of our scale and pedigree.
Going forward, we must learn to manage risk in a
climate of great uncertainty. We dont know how
quickly the economy will recover, but we must be
prepared for alternative scenarios, whether it is steady
recovery from next year, or medium term stagnation.
We dont know which political party will form the next
government, but we must be prepared to influence
politicians across the spectrum, and ensure that housing
gets the best deal possible. However we do know that
after 2011 the nations public finances will be severely
constrained, and that whoever leads us, we are facing
a prolonged period of public sector austerity for all
service providers. There is no point being overwhelmed
by circumstances too many people depend upon our
homes and services and we must be there for them.
But we will only do this by being cost effective and

focused in the delivery of our core services, and brave
and innovative in our delivery of new homes.
These financial statements give a clue about how we
are going to achieve this. They demonstrate that amidst
the grey skies, Riversides performance continues to be
robust both in terms of our financial position, where we
have exceeded our target surplus, and our performance
in delivering the key service outcomes which are vital to
delivering customer delight. I am particularly pleased
to be able to report a steady improvement across a
range of performance indicators, and this year we are
presenting a more detailed analysis of performance in
these statements.
So how have we been able to achieve this? I believe
there are a couple of key factors.
First, we have completed the initial phase of a process
of consolidation, to create a simpler and more effective
organisation. We have called this Better Together, and
on 1st April this culminated with the amalgamation
of seven of our former subsidiaries with the parent
association to create a new Riverside. We achieved this
against all odds a change in regulator, an adverse
funding climate, multiple pension arrangements and I
would like to take the opportunity of thanking all our
stakeholders who demonstrated their trust in this

organisation by providing their vital support. This could
not have happened without the full support of Board
members across the Group, and I pay tribute to their
courage and commitment. Better Together could easily
have been seen as a threat, but rather Board members
have embraced it as an opportunity to refocus and
adopt changed roles which, I believe, will enable more
meaningful engagement in driving performance and
developing appropriate local strategies. During this
period we have also been fortunate enough to be
able to strengthen the membership of the Board of
The Riverside Group Limited and we have welcomed a
number of new members bringing additional strategic,
financial and community skills.
I believe we have put in place a Riverside which is
strategically focused, more efficient delivering at least
3 million savings over 5 years to re-invest in improved
services and more homes and better equipped to
engage with communities and deliver improved services.
This is precisely the type of organisation we need to
weather the storm and prosper in the challenging
climate I have described. As we plan ahead, we look
forward to the second stage of Better Together, where
discussions are under way to achieve further benefits
by bringing our colleagues in ECHG into these simpler
working relationships.
The second factor is the dedication and performance
of an impressive staff team led by a remarkable
Chief Executive. For the second year running, their
commitment to excellence has been recognised by
winning the title of Social Landlord of the Year,
and I felt enormous pride in accepting the award
on their behalf in May.
It seems appropriate to finish by paying particular
tribute to Deb, our Chief Executive. I was delighted
when her outstanding contribution to housing was
acknowledged by the award of a CBE in the Queens
New Years Honours List. Of course, this brought
recognition at the highest level of what we have known
for some time the vision and leadership which has seen
Riverside grow and prosper over the last decade, and her
wider contribution to the sector through her work with
the National Housing Federation. I know Deb is deeply
respected across the whole movement, and this puts
Riverside in a strong position to influence housing policy
and investment going forward.
John Tarn
Group Chairman
Operating and financial review

Principal activities
The Riverside Group Limited is the ultimate parent

entity of the Riverside Group. During the year the Group
consisted of ten Registered Social Landlords (RSLs);
providing general needs housing at affordable rents, low
cost home ownership, sheltered and supported housing
and services for people who need additional housing
related support. These subsidiaries also promoted
regeneration and provide investment in the communities
in which they operate. There are non RSLs within the
Group including property investment and management
companies, commercial trading companies and joint
ventures. These companies seek to make profits to
contribute to the overall aims of the Group. The Group
also contains charitable trusts and technical subsidiaries.
On 1 April 2009 eight of the Group's RSLs (with the
exception of ECHG and The St. Michael's Housing
Trust) amalgamated to form one RSL, The Riverside
Group Limited. ECHG and the non RSLs continue to be
subsidiaries of The Riverside Group Limited.
Objectives and strategies
The Corporate Plan is written in three parts as follows:

Part 1 Strategic plan: this sets out Group Objectives,
or the ends that we need to achieve to deliver the
Groups vision. It describes new or enhanced
programmes of activities required to deliver these
objectives. The objectives are as follows:
We will transform lives by
Delivering excellent housing services and support
Acquiring and building more affordable homes
Supporting vulnerable residents to live with dignity
in their own homes
Helping our residents become more prosperous
We will revitalise neighbourhoods by
Improving our homes so that they are decent,
modern and warm
Focusing our services in places where we can make
a difference
Managing places so that they are cleaner, greener
and safer
Part 2 Performance plan: this identifies Performance

Objectives, based around the enablers or means which
need to be in place to deliver the vision. These focus on
continuous improvement, organisational development
and organisational structure.
Part 3 Business plan: this establishes the resources the
Group requires to deliver the Group and Performance
Objectives; the income required to fund activities and
priorities for expenditure.
Measurable Group targets have been set for each of
these objectives, these have been used as the basis of
establishing targets for all subsidiaries and corporate
departments.
Operating review
Improvement of our housing stock remains a priority

and during the year the Group spent a total of
101.5 million on its new and rehabilitated stock
(2008: 125.4 million). A further 75.2 million
(2008: 83.9 million) was spent on routine
maintenance and non-capitalised major repairs
across the Group.
All this expenditure, together with investment in wider
community regeneration was targeted in line with the
Groups neighbourhood investment strategies. These are
designed to deliver the sustainable communities which
are essential to the maintenance of the housing stock
and therefore the strength of the balance sheet.
In addition, the Group remains focused on the 2010
Decent Homes target.
Performance in the period

Operational key indicators
2008/09 has been a very solid performance year for
Riverside with 11 of our 17 targets having been matched
or exceeded, a further three showing improvement since
last year, and only three which neither improved nor
met target. Many Key Performance Indicators (KPIs) are
showing strong movement towards the three-year target
in our Performance Plan with a number being ahead of
where we would have expected in Year One.
Our tenants overall satisfaction with services provided

by the landlord exceeded target across the Group (at
79%). This sees a continuations of a very encouraging
trend, with satisfaction improving steadily over the
past four years, reflecting our ongoing investment in
delivering excellent custormer services (see page 12,
fig. 1). Our commitment to improving satisfaction
levels has been reflected and strengthened in our
comprehensive review of resident involvement which
has re-shaped our delivery mechanisms. Our new
involvement structure maximises formal and informal
involvement opportunities; it helps us to capture
residents needs and wishes whilst responding
to business needs and external changes which include
the establishment of the new Tenant Services Authority.
For telephone callers to our Customer Service Centre,
average call waiting time has shown a massive
improvement over the year with performance improving
by more than 50% (from 74 to 34 seconds).
The graph in fig. 2 shows all four repairs response time
targets have been achieved at Group level which places
Riverside comfortably above the national average
performance level. Not only is our performance in
this area strong, it has also been steadily improving.
Our partnering arrangement with Morrison Facilities
Services in North Merseyside is now well established
and providing effective value for money services with
additional community development benefits. This
relationship will be strengthened when a new contract
for repairs to properties in the South East is launched
in July.
In difficult economic circumstances for our tenants,
current rent arrears performance has still shown
substantial improvement from 8.0% last year to
6.7% this year against a target of 7.5% (fig. 3).
Following a major focus on relet times the year-end
position has shown a vast improvement from 12 months
previously; 39.7 days this year against 52.7 days last
year, even with a higher turnover (9.2% against last
years 8.2%). This performance is better than target
(43 days) and equates to a reduction in void rent loss
of approximately 400k.
Whilst we continue to work in challenging areas with

Housing Market Renewal status and where we have
demolition programmes, stock void and not available
for letting indicator will remain high for some time.
However the Group target was achieved.
We have captured our best gas servicing performance
for the last four years with a year-end position of
0.9% which, at Group level represents upper quartile
performance.
Group turnover for the year to 31 March 2009 decreased
by 1.0% to 249.3 million (2008: 251.8 million).
Operating surplus decreased to 10.0% of turnover
at 25.0 million (2008: 34.5 million). This reduction
is due to a 10.0 million property impairment within
Prospect (GB) Limited, the Group's commercial property
company. The impairment consists of 8.6m charged
to the Income and Expenditure account (see note 9) in
addition to a 1.4m reduction in the revaluation reserve
(see note 20).
The financial statements include 1.6 million turnover
and 0.04 million operating loss from the Groups joint
venture activities, all of which are in the early stages of
development.
Financial review
Void losses were 1.8% of gross rent receivable in the
year, down from 2.3%. Bad debt write-offs decreased
to 0.9% from 2.1%, following a higher than normal
charge last year, as a result of ECHG's adoption of the
Group's calculation basis. The surplus before tax for
the year was 9.7 million (2008: 13.3 million).
The decrease in operating surplus as a result of
the property impairment being partially offset by
the increased surplus on the sale of property at
18.7 million (2008: 12.3 million). Net interest
payable has increased to 33.8 million
(2008: 33.4 million).
The major movements on the Group's consolidated

balance sheet are:
An increase in fixed assets of 44.3 million which
relates to the ongoing construction of social
housing properties and investment in housing stock.
A reduction in debtors greater than one year of
17.0 million as a result of the ongoing stock
investment by the stock transfer subsidiaries and
Community Seven. This reflects a reduction in
the obligation of the respective local authorities
to carry out improvement works to housing stock
transferred to Riverside.
An increase in long term loans of 53.6 million,
which relates to the increase in borrowing across
the Group to finance the construction of and
improvement to the housing stock.
A reduction in provisions and liabilities of
20.6 million. 18.1 million of this relates to
a reduction in the outstanding commitments for
improvement works to properties transferred from
Local Authorities. The stock transfer subsidiaries
and Community Seven are required to complete
these works on behalf of their respective Local
Authority.
Trends in performance over the last five years are shown
on page 3 of these financial statements.
Dynamics of the Group
The Group faces a number of key risks that could impact

on future performance, some of which are referred to
elsewhere in the annual report. Other examples include:
The impact of the credit crunch on both the
availability of funding and the wider property
market.
Income restriction due to rent increase regulations
and the prospect of low inflation.
The availability of, and increased competition for,
social housing grant.
Increased expectations from customers, including
the need to deal with anti-social behaviour.
Changes in the Supporting People income regime.
Requirements to fund future pension liabilities.
Changes to Decent Home Standards and
Eco-homes ratings.
The Group has allocated actions, as appropriate, to
attempt to mitigate these risks, as part of the risk
management process.
Investment for the future
The Groups annual surplus is vitally important for a

number of reasons: continued investment in improved
services and new homes; meeting commitments to
lenders; raising further finance; providing protection
against the unexpected and allowing further growth
and diversification.
Diversification of the Groups activities brings the
benefit of alternative revenue streams, together with
the opportunity for greater efficiency and economies
of scale.
The Group has continued its focus on establishing
efficiency as one of the five strategic objectives of the
Group's Corporate Plan.
Financial review
The principal accounting policies of the Group are set

out in note 1 to the financial statements. The Group has
adopted the accounting treatment for shared ownership
properties per the Statement of Recommended Practice
"Accounting for Registered Social Landlords" (updated
2008) and as a result the 2008 figures have been
restated. The impact on reserves was 3.3m.
10
Capital structure and treasury policy
Effective treasury risk management is crucial both to

financial performance and balance sheet stability.
Treasury management is operated centrally in
accordance with Board approved objectives and
operating parameters, set out in the Group Treasury
Policy and treasury strategy of each subsidiary.
Key issues the treasury strategies seek to address are
funding and liquidity risk, interest rate risk, covenant
compliance and exposure to counterparties. The Group
borrows at both fixed and floating interest rates.
Derivative instruments are used to manage its exposure
to interest rate fluctuations.
The treasury strategies are carefully tailored to meet
the needs of the individual subsidiaries and the overall
Group. Strategies are tested by business plan sensitivities
and evolve through a process of regular review and
refinement. Regular updates on all treasury activities
are given to the Group Finance Committee.
Group borrowings total 630.3 million (2008:

576.6 million), the increase being due to the
continuing development programme in RHA and
the progressing improvement programmes in the
stock transfer subsidiaries. New debt drawn in the
year totalled 60.4 million (2008: 70.9 million).
Interest costs increased to 38.2 million (2008:
35.9 million). The average rate of interest paid
in the year declined slightly to 6.1% from 6.8%.
Gearing increased to 56.4% (2008: 53.0%),
whilst interest cover increased to 1.9.
The Group has 147.5 million of unutilised committed
borrowing facilities. Each of the stock transfer
subsidiaries has a committed facility covering the
life of their business plan.
Going concern
After due consideration, the Board is confident that the

Riverside Group has adequate resources to continue
in operational existence for the foreseeable future.
Accordingly, it continues to adopt the going concern
basis in preparing the Riverside Groups financial
statements.
Statement of Compliance
The form and content of the operating and financial

review has been prepared in line with the recommended
practice provided by the Statement of Recommended
Practice Accounting for Registered Social Landlords
(Updated 2008). The statement has also been prepared
in accordance with Reporting Standard 1: Operating
and Financial Review.
J E Baggaley
& Group Finance Director
11
Fig. 1
Overall satisfaction with service provided by landlord

Group target 75%
80.0%
75.0%
70.0%
65.0%
March 2005
Fig. 2
March 2006
March 2007
Repairs Response
March 2008
Group target 1 97%

2 94%
100.0%
Emergency Repairs
completed in the
1 same day1
98.0%
% completed in target
March 2009
96.0%
Emergency Repairs
2 completed the
next day1
94.0%
92.0%
Urgent Repairs
completed within
target2
90.0%
88.0%
86.0%
84.0%
March 2005
Fig. 3
March 2006
March 2007
March 2008
March 2009
Routine Repairs
completed within
target2
Current rent arrears

Group target 7.8%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
March 2005
12
March 2006
March 2007
March 2008
March 2009
Report of the Board

The Board is pleased to present its report and the
audited consolidated financial statements for the year
ended 31 March 2009
Principal activity
The Riverside Group Limited is an Industrial and

Provident Society incorporated under the Industrial
and Provident Society Act 1965 and a Registered Social
Landlord, and is the ultimate holding company within
a group structure (the Riverside Group). Details of
members of the Riverside Group are given on page 37
of these financial statements.
The Riverside Group Limited exercises control over the
members of the Riverside Group through the provision, in
the rules or articles of association of each entity, for the
appointment and removal of a majority of the subsidiary
Board.
The Riverside Group Limited is responsible for
establishing the Riverside Groups overall policies and
strategies, for monitoring compliance with Group values
and performance against Group targets, within a clearly
defined framework of delegation and system of control.
The Riverside Group Limited oversees the work of the
Riverside Group, providing a number of corporate
services to Group members. The operational relationship
between The Riverside Group Limited and its subsidiary
undertakings is managed through a series of intra-group
agreements.
Review of business and

future developments
The review of business and future developments is

discussed in the Group Chairmans statement and the
operating and financial review on pages 8 to 12.
The Board of Directors
The Board of Directors of The Riverside Group Limited

are listed on page 5.
The Directors holding office during the period 1 April
2008 to 8 July 2009 are detailed below:
P Brant LLB BL
P J Chesters MA (retired 31 March 2009)
P R Deyes BCom FCA
P J Han (appointed 1 April 2009)
A M Jones (appointed 3 June 2009)
R M Kelly (appointed 2 April 2008), (retired 3 June 2009)
P H Raw FRICS FBEng MFPWS
A J Redmond BA(Hons) ACA

(retired 31 March 2009)
M Steinberg OBE (appointed 1 April 2009)

Professor J N Tarn OBE DL FRIBA
Y Turgut
BSc MSc FCA
In accordance with the rules, P Brant, P R Deyes and

Professor J N Tarn retire at the Annual General Meeting,
and being eligible, offer themselves for re-election.
The principal activity of the Riverside Group is the

provision of affordable rented accommodation and
appropriate support services for people in need.
P J Han, A M Jones and M Steinberg will offer themselves

for election at the Annual General Meeting.
On 18 December 2008, The Riverside Group Limited

converted from a Company Limited by Guarantee to an
Industrial and Provident Society.
Whilst the Board is responsible for the Riverside Groups

overall policy and strategy; management is delegated
to the Group Chief Executive. The Group Directors are
the senior management team appointed, and act as
executives within the authority delegated by the Board.
They meet every two months under the chairmanship
of the Group Chief Executive in order to consider all
matters that will be reported to The Riverside Group
Limited Board, its subsidiary boards, and all major
management issues. This meeting is a key decision
making forum for the management of the Riverside
Group, reviewing all proposed policy changes and the
comparative performance of subsidiaries and divisions
and also assessing the management implications of
decisions taken by members of the Riverside Group.
Post balance sheet events
The amalgamation of The Riverside Group Limited

occurred on 1 April 2009. The Riverside Group Limited
participated in this amalgamation along with eight of
Riverside's RSL subsidiaries (with the exception of ECHG
and The St. Michael's Housing Trust). The amalgamation
rationalises the Group structure with all the assets and
liabilities of the RSL members, including those of The
Riverside Group Limited being amalgamated into one
RSL, The Riverside Group Limited.
The Board confirm that there have been no other events
since the financial year end that have had a material
effect on the financial position of the Group.
Executive Directors
The Group Directors hold no interest in the share capital

of any member of the Riverside Group.
13
Corporate governance
The Board is committed to integrity and accountability

in the stewardship of the Riverside Groups affairs. The
National Housing Federation (NHF) Code of Governance
is a Riverside Group policy requirement underpinning all
governance issues. The Riverside Group complies with
the NHF Code of Governance except that, to allow an
appropriate balance between renewal and continuity,
the Chair of the Board may be requested to extend his
or her service as Chair for a limited period; and that,
to promote a culture of openness, Audit Committees
within Riverside meet with paid staff present. In
addition, the Group Chief Executive is appraised by
the Group Chairman.
The external auditors have undertaken non-audit work
for the Group during the year ended 31 March 2009.
More information about the level of fees paid for this
work is set out in note 9 to the financial statements.
The Group Audit Committee has a protocol with the
external auditors, which sets out policies for determining
what non-audit work can be undertaken by the external
auditors and procedures for periodic review and
selection of external auditors.
Corporate role of the Board
The Board comprises eight non-executive Board

members, together with the Group Chief Executive,
the Group Deputy Chief Executives and the Managing
Director of ECHG, who are all co-opted members.
Terms of reference are issued to the Board. Board
members act in the interest of the Riverside Group and
not on behalf of any interest group.
The principal obligations of the Board to the Riverside
Group are:
to be committed to the values and objectives of
the Riverside Group
to develop strategy and drive the Riverside Groups
core policies
to uphold the NHF Code of Governance
to represent the Riverside Group and enhance its
profile externally
The Board is drawn from a wide background and
its members are selected to ensure that they bring
relevant experience, skills and understanding to the
discussions and decision making process of the Board.
A system of annual appraisal has been implemented,
both in relation to individual members and the Board
as a whole.
14
The Board meets formally six times a year for regular

business, including approval of the Budget and Business
Plan. Board members also attend an annual conference
to discuss future strategy. Also in attendance at Board
meetings are the Group Directors and the Assistant
Company Secretary.
Reporting to the Board are the Group Membership
Committee, the Group Finance Committee, the Group
Audit Committee and the Remuneration Committee.
Group Membership Committee
The Group Membership Committee considers Board
appointments, including co-options, and submits
recommendations to the Board.
A range of recruitment techniques is used to secure a
wide choice of candidates for vacancies on the Board,
including advertising externally. It comprises Professor
J N Tarn (Chair), P Brant, P R Deyes and B T Lawlor.
Group Finance Committee
The Group Finance Committee is a non-executive
committee and meets four times a year. Its members
are P R Deyes (Chair), P J Han and Professor J N Tarn.
It recommends to the Board the adoption of the annual
financial statements, and oversees the raising
of finance.
Group Audit Committee
The Group Audit Committee is a non-executive
committee and meets four times a year, addressing
internal and external audit issues. Its members are
P J Han (Chair), P R Deyes, N Rimmer and M D Taylor.
Remuneration Committee
The Remuneration Committee is a non-executive
committee. Its members are Professor J N Tarn (Chair),
P R Deyes and C J Kennefick. It agrees the appointment
of Group Directors and their remuneration, after taking
external advice. The Directors are not present at the
meeting when their salaries are determined.
J Green joins the Committee as the Chair to consider
non-executive remuneration. It also agrees the brief
within which the Group Chief Executive can negotiate
staff salaries with the union, Unite. The Committee
takes specialist human resources advice from external
consultants.
Internal controls assurance
The Board has reviewed the effectiveness of the

system of internal control for the year ended 31 March
2009 and to the date of approval of these financial
statements. The Board complies with the requirements
set out in Circular 07/07 Internal Controls Assurance

issued by the Regulator (the Circular). This statement
of compliance with the Circular has been reviewed by
the auditors and their report is given on page 17. For
the year ended 31 March 2009, the Board can make the
following statement required by the above Circular:
The Board is the ultimate governing body and
is responsible for the Groups system of internal
control.
The system is designed to provide the Board
with reasonable but not absolute assurance that
problems are identified on a timely basis and dealt
with appropriately; that assets are safeguarded
against unauthorised use or disposition; that
proper accounting records are maintained; and
that the financial information used within the
business or for publication is reliable. Control is
exercised through an organisational structure
with clearly defined levels of responsibility and
authority and appropriate reporting procedures.
The identification of major business risks, and the
appropriate response, is ongoing through a bottom
up risk management process that involves staff
across the Group. This process has been in place
for the year ended 31 March 2009 and to the date
of approval of these financial statements. Risk
maps are reviewed by the Group Directors and
approved by the appropriate Boards.
On reviewing the effectiveness of the Groups
system of internal control, the Board has
considered the following:
Management reports on operational and
financial matters
Key performance indicators
Management assurances on internal controls
Risk management activities
Internal audit reports (including Fraud and
Loss Register)
Quality management systems
External audit reports
External regulatory reports
Group policies which have been established in the
following areas have been adopted throughout the
Group by all subsidiaries:

Equality and diversity

Finance (including anti-fraud)
Human Resources Management
Customer Care and Information
Health and Safety
Procurement
Risk Management
Growth
Environment
The anti-fraud policy sets out the commitment

to preventing fraud. All staff are responsible
for ensuring that systems of internal control
are operated effectively. Confidential reporting
arrangements are in place to protect and to allow
staff to voice their concerns and know that they
will be properly investigated.
The Riverside Group has a written code on
business ethics which sets out guidelines for all
staff to ensure the highest standards of conduct
in business dealings and this has been adopted
throughout the Group.
During the year there were no identified
weaknesses in internal controls which resulted in
material losses, contingencies or uncertainties that
require disclosure in these financial statements.
Statement of the Boards responsibilities
The Board of Directors are responsible for preparing the

Board of Directors Report and the financial statements
in accordance with applicable law and regulations.
Industrial and Provident Society law requires the
Board of Directors to prepare financial statements
for each financial year. Under those regulations
the Board of Directors have elected to prepare the
financial statements in accordance with UK Accounting
Standards.
The financial statements are required by law to give
a true and fair view of the state of affairs of the
Association and of the surplus or deficit for that period.
In preparing these financial statements, the Board of
Directors are required to:
select suitable accounting policies and then apply
them consistently;
make judgements and estimates that are
reasonable and prudent;
state whether applicable UK Accounting
Standards and the Statement of Recommended
Practice have been followed, subject to any
material departures disclosed and explained
in the financial statements; and
prepare the financial statements on the going
concern basis unless it is inappropriate to presume
that the Association will continue in business.
The Board of Directors are responsible for keeping
proper accounting records that disclose with reasonable
accuracy at any time the financial position of the
Association and enable them to ensure that its financial
statements comply with the Industrial and Provident
Societies Acts 1965 to 2002, the Housing Act 1996
15
and the Accounting Requirements for Registered

Social Landlords General Determination 2006. They
have general responsibility for taking such steps as are
reasonably open to them to safeguard the assets of the
Association and to prevent and detect fraud and other
irregularities.
Policy on payment of creditors
The Board of Directors is responsible for the

maintenance and integrity of the corporate and
financial information included on the Groups website.
Legislation in the UK governing the preparation and
dissemination of financial statements may differ from
legislation in other jurisdictions.
Changes in fixed assets
The directors who held office at the date of approval of

this Board report confirm that, so far as they are each
aware, there is no relevant audit information of which
the Groups auditors are unaware; and each director
has taken all the steps that they ought to have taken
as a director to make themselves aware of any relevant
audit information and to establish that the Groups
auditors are aware of that information.
Employees
The Riverside Groups policy is to consult directly

with employees through regular team meetings and
through negotiation and consultation with the union,
Unite. Additional information is given through internal
communication systems.
Emphasis is placed on training for all staff using both
internal and external facilities to encourage staff in
personal development.
Suitable procedures are in operation to support the
Riverside Groups policy that disabled persons shall be
considered for employment and subsequent training,
career development and promotion on the basis of their
aptitudes and abilities.
Equality and diversity
The Riverside Groups policies reflect its commitment

to equality and the value it places on diversity in all
aspects of its work.
Financial contributions to housing

related work
Contributions by the Riverside Group to housing related

work during the year totalled nil (2008: 7,877).
No donations for political purposes were made during
the year.
16
In the absence of any dispute, the Riverside Groups

policy is to pay non-development invoices within
30 days of the date of approval of the invoice.
Development creditors, paid under certificate, are
settled within 21 days of the valuation date.
The movements in fixed assets during the year are set

out in note 11 to the financial statements.
Single European currency
The accounting system is capable of accommodating

the Euro.
Tenant involvement
The Board actively encourages tenants involvement

in decision making by promoting formal mechanisms
of tenant involvement. There is one tenant member
on the Group Board and clear reporting arrangements
have been established between tenant associations
and the Board. Across the Group, 25 tenants sit on
subsidiary and divisional Boards. A clear complaints
policy is issued to all tenants.
Investment Power
The Association's Rules permit investment of monies

not immediately required to carry out its objectives,
as it determines and is permitted by law.
Status
The RiversideGroup Limited was a company limited

by guarantee, incorporated under the Companies
Act 1985 up until 18 December 2008 when its status
changed to an industrial and provident society
incorporated under the Industrial and Provident
Societies Act 1965. It is registered with The Tenant
Services Authority as a Registered Social Landlord as
defined by the Housing Act 1996.
Annual General Meeting
The Annual General Meeting will be held on

28 September 2009.
Auditors
A resolution for the re-appointment of KPMGLLP

as auditors of The Riverside Group Limited will be
proposed at the Annual General Meeting.
Professor J N Tarn
Chairman
8 July 2009
Report of the independent auditors

to the members of The Riverside Group Limited
We have audited the financial statements of The
Riverside Group Limited ('the Group') and the Company
for the year ended 31 March 2009 which comprise the
Income and Expenditure Accounts, the Statement of
Total Recognised Surpluses and Deficits, the Balance
Sheets and the Cash Flow Statement and the related
notes. These financial statements have been prepared
under the accounting policies set out therein.
This report is made solely to the Groups members, as a
body, in accordance with Schedule 1 paragraph 16 to the
Housing Act 1996 and section 235 of the Companies Act
1985. Our audit work has been undertaken so that we
might state to the Groups members those matters we
are required to state to them in an auditors report and
for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to
anyone other than the Group and the Groups 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
The responsbility of the association's Board for the

preparation of the Board's report, and the preparation
of financial statements in accordance with applicable
United Kingdom law and UK accounting standards
(UK Generally Accepted Accounting Practice) are set
out in the Statement of Board's Responsbilities on
pages 15 and 16.
Our responsibility is to audit the financial statements
in accordance with relevant legal and regulatory
requirements and International Standards on Auditing
(UK and Ireland).
We report to you our opinion as to whether the financial
statements give a true and fair view and are properly
prepared in accordance with the requirements of the
Companies Act 1985, the Housing Act 1996 and the
Accounting Requirements for Registered Social Landlords
General Determination 2006. We also report to you
whether in our opinion the information given in the
Board Report is consistent with the audited financial
statements.
We also report to you if, in our opinion, the Group has
not kept proper accounting records, if we have not
received all the information and explanations we require
for our audit, or if information specified by law regarding
the directors remuneration and other transactions is not
disclosed.
We read the other information accompanying the

financial statements and consider whether it is
consistent with those statements. We consider the
implications for our report if we become aware of
any apparent mis-statements within it.
Basis of audit opinion
We conducted our audit in accordance with

International Standards on Auditing (UK and Ireland)
issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the
amounts and disclosures in the financial statements.
It also includes an assessment of the significant
estimates and judgements made by the Board in the
preparation of the financial statements, and of whether
the accounting policies are appropriate to the Groups
circumstances, consistently applied and adequately
disclosed.
We planned and performed our audit so as to obtain all
the information and explanations which we considered
necessary in order to provide us with sufficient evidence
to give reasonable assurance that the financial
statements are free from material misstatement,
whether caused by fraud or other irregularity or error.
In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the
financial statements.
Opinion
In our opinion:
the financial statements give a true and fair
view, in accordance with UK Generally Accepted
Accounting Practice, of the state of affairs of the
Group and of the Company as at 31 March 2009
and of Group's surplus for the year then ended;
the financial statements have been properly
prepared in accordance with the Companies Act
1985, the Housing Act 1996 and the Accounting
Requirements for Registered Social Landlords
General Determination 2006; and
the information given in the Board Report is
consistent with the financial statements.
KPMG LLP
Chartered Accountants
Registered Auditor
St James Square
Manchester
M2 6DS
17
Group income and expenditure account

for the year ended 31 March 2009

Notes
2009

000

Turnover: Group and share of joint venture
250,878
Less: share of joint venture turnover
(1,600)

Group turnover
2
249,278
Operating costs
2
(224,328)

Group operating surplus
2
24,950
Share of operating loss in joint ventures
(37)
Surplus on sale of property
6
18,652

Surplus on ordinary activities before interest
9
43,565
Interest receivable and other income
7
4,364
Interest payable and similar charges
8
(38,193)

9,736
Taxation
10
456
Share of joint venture taxation
4

Surplus for the year
10,196

253,570
(1,769)
251,801
(217,305)
34,496
(100)
12,296
46,692
2,530
(35,907)
13,315
(89)
6
13,232
80,092
10,196
(15,074)
8,896
3,069
2,474

89,653
62,770
13,232
(13,137)
8,808
5,223
160
3,036
80,092
Income and expenditure account at 1 April 2008 restated

Transfer to reserves
20
Transfer from reserves
20
Amortisation of negative goodwill
20
Actuarial gain
20 & 26
Prior year adjustment
32

Income and expenditure account at 31 March 2009

2008
000
Restated
All of the above results derive from continuing operations.
There is no material difference between the surplus on ordinary activities before tax and the surplus for the year as
reported and their historical cost equivalent.
The notes on pages 23 to 59 form an integral part of the financial statements.
There are no historical cost surpluses or deficits other than those recognised within the income and expenditure account.
18
Group statement of total recognised surpluses and deficits


Notes
2009

000

Surplus for the financial year
10,196
Actuarial gain on pension scheme
20 & 26
2,474
Recognised on acquisitions
20
(406)
Prior year adjustment
32

Total recognised surpluses relating to the year
12,264
Unreleased (deficit) / surplus on revaluation of properties
20
(3,605)

Total recognised since last annual report
8,659
2008
000
Restated
13,232
160
3,036
16,428
4,995
21,423

Group reconciliation of movement of funds

2009
000
2008
000
Total recognised surpluses

Total funds at 1 April 2008
20

Total funds at 31 March 2009
20
8,659
299,603

308,262
21,423
278,180
299,603

19
Group balance sheet

as at 31 March 2009

Notes
2009
2008

Restated

000
000
000
000
Fixed assets
Tangible assets
11

1,692,132
1,648,068
Social Housing Grant
11
(817,107)
(811,626)
Investments
12
21,848
30,206
Investment in joint venture
Group share of gross assets of joint ventures 12
524
993
Group share of gross liabilities of joint ventures 12
(417)
(980)

107
13

896,980
866,661

44,441
61,454
Current assets
Investments
12
Debtors
13
Properties for sale
14
Cash at bank and in hand

14,058
75,100
45,364
16,042

150,564
15,031
75,929
40,795
131,755
Creditors: amounts falling due within one year 15

Net current assets

Total assets less current liabilities
(104,020)

46,544

987,965
(105,905)
25,850
953,965
Debtors greater than one year
13
Creditors: amounts falling due after

more than one year
Deferred income
Provisions for liabilities and charges
16
19
28
634,317
367
45,019
588,292
423
65,647
Capital and reserves

Non-equity share capital
1
Consolidation reserve (negative goodwill)
20
Designated reserves
20
20

152,340
66,269
89,653

987,965
155,815
63,696
80,092
953,965

The financial statements on pages 18 to 59 were approved by the Board on 8 July 2009 and were signed on its
behalf by:
Professor J N Tarn, Group Chairman
P R Deyes, Group Treasurer
D F Shackleton, Group Chief Executive
L F Hughes, Secretary
20
Group cash flow statement


2009

000
Net cash inflow from operating

activities (note 21)
Returns on investments and
servicing of finance
Interest received
Interest paid

Net cash (outflow) from returns on
investments and servicing of finance
2008
Restated
000
000
000
53,526
57,141
4,476
(43,243)

2,256
(30,504)
(38,767)
(28,248)
Taxation
Tax paid
(165)
(107)
Capital expenditure and

financial investment
Cash paid for housing construction
(65,654)
(63,979)
Cash paid for other fixed assets
(6,460)
(2,463)
Cash received for fixed asset investments
2,481

Expenditure on capitalised improvements
(35,894)
(61,434)
Social Housing Grant received
22,154
17,434
Receipts from property sales
32,081
19,021

Net cash (outflow) from capital

expenditure and financial investment
(51,292)
(91,421)
Management of liquid resources

Increase / (decrease) in short term deposits
973
(5,312)

Net cash inflow / (outflow) from

management of liquid resources
973

Net cash (outflow) before financing
(35,725)
(5,312)
(67,947)
Financing
Loans raised
60,429
70,895
Loan principal repayments
(6,798)
(9,470)

Net cash inflow from financing

53,631
61,425

Increase / (decrease) in cash (note 22)

17,906
(6,522)

21
Company income and expenditure account


Notes

Turnover
Operating costs

Surplus on ordinary activities before interest
Interest receivable
7
Interest payable
8

Taxation
10

Surplus for the financial year
Income and expenditure account at 1 April 2008
Actuarial gain

Income and expenditure account at 31 March 2009
2009
000
19,558
(19,409)

149
75
(29)

195
(275)

(80)
375
231

526
2008
000
19,314
(19,274)
40
79
(51)
68
(117)
(49)
319
105
375

There is no material difference between the surplus on ordinary activities before tax and the surplus for the year
as reported, and their historical cost equivalent. All of the above results derive from continuing operations.
Company balance sheet

as at 31 March 2009

Notes
2009

000
Fixed assets
Tangible assets
11
1,757
Investment in joint ventures
460

2,217
Current assets
Investments

Debtors
13
2,397
73

2,470
Creditors: amounts falling due within one year
15
(4,012)

Net current liabilities
(1,542)

Total assets less current liabilities
675

Creditors falling due after more than one year
Provisions for liabilities and charges
28
Capital and reserves
1

2008
000
2,013
175
2,188
1,200
4,213

5,413
(6,860)
(1,447)
741

149

126
240

526

675

375
741

22
Notes to the financial statements*

*All notes relate to the Riverside Group unless otherwise stated.
1 Principal accounting policies

Basis of accounting
The financial statements have been prepared under

the historical cost convention, and in accordance
with applicable United Kingdom Accounting and
Financial Reporting Standards and the Statement
of Recommended Practice for Registered Social
Landlords issued in 1999, revised in 2008. The financial
statements are in accordance with the Companies
Act 1985, The Housing Act 1996 and comply with the
Accounting Requirements for Registered Social Landlords
General Determination 2006. The accounting policies
adopted have been applied consistently year on year.
Basis of consolidation
The financial statements are group statements and

consolidate the financial statements of The Riverside
Group Limited and its subsidiary undertakings. The
financial statements have been prepared in accordance
with FRS 2 'Accounting for Subsidiary Undertakings'.
The consolidated income and expenditure account
includes the results of the Groups equity interests and
results of the Groups joint ventures in accordance with
FRS 9 'Associates and Joint Ventures'.
Details of subsidiaries and joint ventures are included in
note 12 to the financial statements.
Supported housing
In addition to its own directly managed supported

housing schemes, the Riverside Group owns a number
of schemes that are run by outside agencies. Where the
Riverside Group carries the financial risk all the schemes
income and expenditure is included in the income and
expenditure account. Where the agency carries the
financial risk only the income and expenditure which
relates solely to the Riverside Group is included. Other
income and expenditure of schemes in this category is
excluded from the income and expenditure account.
Supporting People Contract Income
Supporting People contracts are entered into with local

authorities. There are two types:
(i) A block subsidy is determined for each tenancy
based on support services provided.
(ii) A block gross contract is a fixed sum payable based
upon the number of qualifying bed spaces, subject
to minimum occupancy levels as agreed with local
authorities.
Turnover
Turnover comprises rental and service charge income

receivable, certain revenue grants from local authorities
and the Homes and Communities Agency together with
other income.
Turnover of The Riverside Group Limited mainly
comprises of the recharge of salaries and other
overheads.
Turnover of the joint ventures comprises the receipts
from the sale of sustainable housing components and
other income.
Retirement benefits
The Group operates a group pension scheme, contributes

to local government pension schemes and the Social
Housing Pension Scheme (SHPS), all providing benefits
based on final pensionable pay. The assets of the
schemes are held separately from those of the Group.
The Group also contributes to defined contribution
schemes.
The assets of the pension schemes are measured using
market values. The liabilities of the pension schemes
are measured using a projected unit method discounted
at the current rate of return on a high quality corporate
bond of equivalent term and currency to the liabilities.
23
Due to the nature of SHPS, it is not possible to identify

the share of underlying assets and liabilities belonging to
individual participating employers. As a result, no surplus
or deficit is included in the financial statements and the
accounting charge for the period is represented by the
employer contribution payable.
Excluding SHPS, the surpluses of the pension schemes
(to the extent that they are recoverable) or deficits are
recognised in full. The movements in the schemes'
surpluses/deficits are included in the income and
expenditure account and shown in the statement
of total recognised surpluses and deficits, under the
heading actuarial gains and losses.
Fixed assets
Tangible fixed assets are stated at cost less accumulated

depreciation. The cost of housing land and properties
comprises purchase price together with incidental costs
of acquisition and improvements, including related
administration charges.
Depreciation and impairment
Depreciation is charged on a straight line basis over

the expected useful economic lives of the assets at the
following rates:
Housing properties (newbuild) over 100 years to
residual value.
Housing properties (rehabilitated) over 50 years
to residual value.
Freehold and long leasehold offices over 15 years
to residual value.
Fixtures and fittings over 10 years.
IT equipment over 3 to 5 years.
Setting up costs (included within housing
properties) over 10 years.
Leasehold improvements over the term of the lease.
24
Assets in the course of construction are held at cost

and are not depreciated until reclassified as housing
properties completed.
Housing properties are principally properties available
for rent. Cost includes the cost of acquiring the land and
buildings, development costs and expenditure incurred in
respect of improvements.
An annual impairment review of housing properties
is undertaken in accordance with FRS 11, and where
appropriate the carrying value is adjusted to take
account of permanent diminutions in value.
First tranche shared ownership sales
Riverside Group has adopted the accounting treatment

per the SORP 2008 such that:
Shared ownership properties are split proportionally
between current and fixed assets based on the first
tranche proportion;
First tranche proportions are accounted for as
current assets and the related sales proceeds
shown in turnover; and
The remaining element of the shared ownership
property is accounted for as a fixed asset so that
any subsequent sale is treated as a part disposal
of a fixed asset.
Amortisation of goodwill
Negative goodwill arising on the acquisition of

subsidiaries represents the excess of the fair value of
the identifiable net assets acquired over the fair value
of the consideration given and is included in reserves.
Negative goodwill is recognised in the income
and expenditure account in the periods in which the
non-monetary assets are recovered, whether through
depreciation or sale.
Improvements to property
Other grants
Expenditure on improvements to existing housing

properties which will generate increased future rents or
otherwise add to the value is capitalised as part of the
cost of the properties.
Capitalisation of administration costs
Expenditure incurred on general repairs to housing

properties is charged to the income and expenditure
account in the year in which it is incurred.
Pre-contract costs
Costs incurred in bidding for and securing contracts for

the supply of products and services under the Private
Finance Initiative are recognised as expenses incurred
up to the date of announcement of preferred bidder.
Where the Group is successful in attaining preferred
bidder status, those costs incurred after attaining
preferred bidder status that are directly attributable
to the contract are recognised as an asset.
Properties for Sale
Completed properties for outright sale and property

under construction are valued at the lower of cost and
net realisable value. Cost comprises materials, direct
labour and direct development overheads. Net realisable
value is based on estimated sales price after allowing for
all further costs of completion and disposal.
Where developments have been financed wholly or

partly by Social Housing Grant (SHG) and other capital
subsidies, the cost of these developments has been
reduced by the amount of the grant received. SHG
received in excess of current development costs is shown
as a current liability.
SHG received for items of cost written off in the income
and expenditure account is matched against those costs.
When properties are demolished, with the intention
of redevelopment, a contingent liability is recognised
related to the repayment of SHG.
Other grants are receivable from local authorities and

other organisations. Capital grants are utilised to reduce
the capital cost of housing properties, including land
costs. Grants in respect of revenue expenditure are
credited to the income and expenditure account in the
same period as the expenditure to which they relate.
Administration costs relating to development activities

are capitalised only to the extent that they are directly
attributable to the development process and in bringing
the properties into their intended use.
Investments
Fixed asset investments are stated at market value.

Current asset investments listed on the London Stock
Exchange are stated at cost. Money market deposits are
also stated at cost. Investment properties are carried
at the lower of cost and net realisable value, and in
accordance with SSAP 19 Accounting for Investment
Properties are revalued annually.
Liquid resources
Liquid resources are readily disposable current asset

investments, which include some money market deposits,
held for more than 24 hours that can only be withdrawn
without penalty on maturity, or by giving notice of more
than one working day.
Value Added Tax
The Riverside Group is partially exempt in relation to

value added tax (VAT), and accordingly is able to recover
from HM Revenue and Customs part of the VAT incurred
on expenditure. At the year end VAT recoverable or
payable is included in the balance sheet. Irrecoverable
VAT is accounted for in the income and expenditure
account.
If a property is sold, SHG may be repayable but is

normally available to be recycled and is credited to a
Recycled Capital Grant Fund or Disposal Proceeds Fund
and included in the balance sheet in creditors.
25
Taxation
The charge for taxation is based on the surplus or deficit

for the year and takes into account deferred taxation
arising from timing differences between the treatment
of certain items for taxation and accounting purposes.
Leased assets
Rentals payable in respect of operating leases are

charged to the income and expenditure account on
a straight-line basis over the lease term.
Work in progress
Work in progress on developments for sale is stated at

the lower of cost and net realisable value.
Loan issue costs and interest payable
The cost of raising loans is amortised over the period

of the loan.
The deferred cost is offset against the liability and
included within creditors: amounts falling due after
more than one year, in accordance with FRS 4,
'Capital Instruments'.
Loan interest payable is charged to the income and
expenditure account at the relevant rates based on
the carrying amount of the debt.
Designated reserves
These represent reserves earmarked for a specific use

and are not part of free reserves.
Charitable reserve
This reserve represents donations and legacies received

for which expenditure has not yet been incurred.
Some of the funds have restricted use, but the
non-restricted funds in the reserve are available
to meet expenditure that falls within the Group's
objectives for which statutory or other finance is
not available.
26
Consolidation reserve
This represents the excess of the fair value of assets

acquired over the consideration given in respect of the
identifiable assets and liabilities acquired. The reserve is
amortised to the income and expenditure account in the
periods in which the non monetary assets are recovered,
whether through depreciation or sale.
Derivatives
The Group applies the provisions of FRS 13 in the

treatment of financial instruments and derivatives.
The Group uses interest rate swaps to reduce exposure
to future increases in interest rates on floating rate loans.
The notional principal is not reflected in the Groups
balance sheet. Payments made under swaps
are accrued over the payment period on a straight line
basis and adjusted against interest payable on loans.
The Riverside Group Limited is an Industrial and

Provident Society incorporated under the Industrial
and Provident Society Act 1965 and not having a share
capital. In the event of a winding up, the liability of
individual members to contribute towards the liabilities
of the company shall not exceed 1.
2 Turnover, operating costs and operating surplus

2009

Operating

Turnover
Cost of sales Operating costs surplus/(deficit)

000
000
000
000
Social housing activities
Lettings (note 3)
210,494

(178,957)
31,537
Other social housing activities
Development for sale
Management services
Community regeneration
Other

Non-social housing activities
Lettings
Developments for sale
Other

Total
3,118
3,299

24,957

241,868

(2,998)

(2,998)

(1,608)
(4,834)
(22,167)

(207,566)

120
1,691
(4,834)
2,790
31,304
3,239
3,509
662

7,410

249,278

(3,133)

(3,133)

(6,131)
(10,521)

(110)

(10,631)

(218,197)
(7,282)
376
552
(6,354)
24,950

2008 Restated

Operating

Turnover
Cost of sales Operating costs surplus/(deficit)

000
000
000
000
Social housing activities
Lettings (note 3)
206,192

(174,105)
32,087
Other social housing activities
Development for sale
Management services
Community regeneration
Other

Non-social housing activities
Lettings
Developments for sale
Other

Total
6,490
950

25,516

239,148

(6,190)

(6,190)

(1,338)
(5,184)
(19,346)

(199,973)

300
(388)
(5,184)
6,170
32,985
2,527
9,870
256

12,653

251,801

(8,663)

(8,663)

(14,853)
(2,415)

(64)

(2,479)

(202,452)
112
1,207
192
1,511
34,496
27
3 Income and expenditure from social housing lettings

General Supported
Shared

housing
housing ownership

000
000
000
Income from lettings
Rent receivable net of
identifiable service charges
121,545
30,791
1,847
Income for support services
1,477
21,672

Service charges receivable
3,860
20,834

Net rental income
126,882
73,297
1,847

Homes and Communities Agency
grants for major repairs
4,616

Other revenue grants
40
900

Turnover from lettings
131,538
74,197
1,847

Expenditure on lettings
Management
(23,961)
(39,749)

Services
(6,581)
(18,821)
(833)
Routine maintenance
(44,454)
(8,494)

Major repairs expenditure
(14,712)
(7,150)

Bad debts
(1,977)
24

Depreciation of housing properties
(8,353)
(1,185)
(130)
Impairment of housing properties
(82)

(2,000)

Operating costs on lettings
(100,120)
(75,375)
(2,963)

Operating surplus
on social housing lettings
31,418
(1,178)
(1,116)

Void loss
(1,912)
(1,748)

Particulars of turnover from non-social housing lettings

Student accommodation
Market rent

28

Key worker
2009
housing
Total
000
000
2008
Restated
Total
000
2,912
157,095
160,984

23,149
25,783

24,694
12,069

2,912
204,938
198,836

4,616
5,392

940
1,964

2,912
210,494
206,192

66
(63,644)
(51,235)
(140)
(26,375)
(23,810)
(423)
(53,371)
(58,740)
(2)
(21,864)
(25,163)

(1,953)
(4,207)

(9,668)
(9,134)

(2,082)
(1,816)

(499) (178,957) (174,105)

2,413
31,537
32,087

(3,660)
(4,715)

2009
000
2008
000
988
2,251

3,239
1,029
1,498
2,527
4 Directors emoluments
The Directors are defined for the purpose of this note as the members of the Board and Group Directors of
The Riverside Group Limited. Directors appointed after the end of the financial year are not included in the disclosure.
This satisfies the definition included in the Accounting Requirements for Registered Social Landlords General Determination
2006. The Group Directors do not receive any chargeable benefits in kind other than company cars.
The emoluments of the Directors are set out below.

Emoluments (including pension contributions and benefits in kind)
Termination payments

Total emoluments
Highest paid Director Group Chief Executive

Emoluments (excluding pension contributions)
Accrued annual pension at year end
Expenses reimbursed to Directors not chargeable to income tax
2009
000
2008
000
1,234
132

1,366
1,276

1,276
231
57
231
54
14
The 2009 figures include additional payments in the form of one-off bonuses paid to several Directors.
The number of Directors who received emoluments (excluding pension contributions) in the following ranges was:

Nil
5,001 10,000
10,001 15,000
15,001 20,000
20,001 25,000
65,001 70,000
95,001 100,000
105,001 110,000
115,001 120,000
120,001 125,000
125,001 130,000
145,001 150,000
165,001 170,000
230,001 235,000
2009
Number
2008
Number
3
2
1
1
1

1
1
1
1
1
1
1
15

4
2
1
1
1
1
1
1

2

1
1
1
17
Certain Group Directors, including the Group Chief Executive, are required under their contracts of employment to retire at
the age of 60; consequently, the benefits provided to them by the Riverside Group Pension Scheme have been amended
to reflect this commitment, which is not applicable to any other staff. In all other respects, the Group Chief Executive is an
ordinary member of the Scheme. The Group does not make any further contribution to an individual pension arrangement
for the Group Chief Executive. Contributions were made to the Riverside Group Pension Scheme at a rate of 17.5% of
pensionable salary in 2009. This applies to all staff including Group Directors. Further details on the Scheme are given in
note 26 to the financial statements.
29
5 Employee information
Staff numbers
The average number of persons (including the Group Directors) employed during the year was (full time equivalent):

Office staff and care support workers
Wardens, caretakers, cleaners and maintenance staff

2009
Number
2008
Number
2,186
136

2,322
2,027
171
2,198

2009
000
2008
000
Wages and salaries

Social security costs
Other pension costs

55,791
4,667
4,152

64,610
54,430
4,786
3,970
63,186
Staff costs (for the above persons)

Staff costs and numbers referred to above relate to all staff employed by the Riverside Group, including wardens, but
exclude staff costs and numbers employed by the managing agents at supported housing schemes.
6 Surplus on sale of property

Proceeds of sales
Cost of sales

Surplus on sale of property
2009
000
35,052
(16,400)

18,652
2008
000
29,695
(17,399)
12,296
7 Interest receivable and other income

Bank and other interest receivable
Income from listed investments

Bank and other interest receivable

30
2009
000
4,278
86

4,364
Group
2008
000
2,443
87
2,530

75

Company
79
8 Interest payable and similar charges

Group

Bank loans and overdrafts
Other loans
Other interest payable

Other interest payable
2009
000
2008
000
33,284
4,747
162

38,193
30,356
4,290
1,261
35,907

2009
000
Company
2008
000

29
51
9 Surplus on ordinary activities

Surplus on ordinary activities is stated after charging:
2009

000
Depreciation for the year:
Housing properties
9,746
Other tangible fixed assets
2,748
Impairment charge for the year:
Housing properties
2,082
Investment properties and properties awaiting sale
8,633
Auditors remuneration:
For audit services
232
For non-audit services
tax advisory
162
other
53
Operating lease rentals:
Land and buildings
1,281
Other
407

Group
2008
000
10,192
2,270
1,816
246
111
93
1,242
343

Company
Surplus on ordinary activities is stated after charging:
2009
2008

000
000
Depreciation charge for the year:
Other tangible fixed assets
613
519
Auditors remuneration:
For audit services
19
32
For non-audit services
tax advisory
140
108
other
38
34
Operating lease rentals:
Land and buildings
283
569
Other
113
174
31
10 Tax on surplus on ordinary activities

Analysis of charge in period
Current tax charge
Deferred tax charge / (credit)

2009
000
2008
000
424
(880)

(456)
58
31
89
Factors affecting tax charge for period

The tax assessed for the year is lower than the standard rate of corporation tax in the UK (28%).
The differences are explained below:

2009

000
2008
000
Profit on ordinary activities before tax

Profit on ordinary activities multiplied by the standard rate of
corporation tax in the UK of 28% (2008: 30%)
Effects of:
Expenses not deductible for tax purposes
Short term timing differences
Profits exempt from tax due to charitable exemption
Adjustment to tax charge in respect of previous periods
Utilisation of tax losses
Depreciation in excess (less than) of capital allowances
Change of rate

Current tax charge
Deferred taxation
The movement in the year is as follows:

At the beginning of the year
(Credit) / charge for the year

At the end of the year

9,736
13,015
2,726
3,905
1,983

(5,123)
(6)
952
(108)

424
72
(24)
(3,661)
(58)
114
(286)
(4)
58

2009
000
92
(880)

(788)
2008
000
61
31
92
The elements of the deferred tax asset and amounts not provided are as follows:

Provided

000
Difference between accumulated depreciation and
capital allowances
471
Losses
(1,259)

(788)
32
Group
Unprovided
000

10 Tax on surplus on ordinary activities continued

Company

2009
2008

000
000
Analysis of charge in period
Current tax charge
123
150
Deferred tax (credit) / charge
123
(33)
Prior period tax charge
29

275
117
Factors affecting tax charge for period

The tax assessed for the year is higher than the standard rate of corporation tax in the UK (28%).
The differences are explained below:

2009

000
Profit on ordinary activities before tax

Profit on ordinary activities multiplied by the standard rate of
corporation tax in the UK of 28% (2008: 30%)
Effects of:
Losses
Adjustment to tax charge in respect of previous periods
Expenses not deductible for tax purposes
Depreciation (less than) / in excess of capital allowances
Short term timing differences
Profits exempt from tax as a result of charitable exemption
Change of rate

Current tax charge
Deferred taxation
The movement in the year is as follows:

At the beginning of the year
Charge/(credit) for the year

At the end of the year
The elements of the deferred tax asset and amounts not provided are as follows:

Difference between accumulated depreciation and capital allowances
Losses
Other timing differences

2008
000

195
68
54
20

29
72
26

(29)

152
1
150
58
(66)
(24)

11
150

2009
000
(123)
123

2008
000
(90)
(33)
(123)

Provided
000
Unprovided
000
33
11 Tangible fixed assets

Group
Cost
At 1 April 2008 (restated)
Schemes completed
Additions
Disposals
Improvements to existing properties
Reclassification

At 31 March 2009
Depreciation
At 1 April 2008
Reclassification
Charge for the year
Impairment
Eliminated in respect of disposals

At 31 March 2009
Net book value (before SHG)

at 31 March 2009
at 31 March 2008 (restated)
At 1 April 2008
Receivable in the year (net)
Schemes completed
Disposals
Reclassification

At 31 March 2009
Net book value (after SHG)

at 31 March 2009
Social
housing
properties
held for
letting
000
Non-social
housing
properties
held for
letting
000
Total
housing
properties
held for
letting
Social
housing
properties
under
construction
000
000
1,542,855
45,944
4,807
(27,210)
24,646
1,609

1,592,651
8,555

8,555
1,551,410
45,944
4,807
(27,210)
24,646
1,609

1,601,206
58,768
(45,944)
33,507
(265)
(2,871)
43,195
55,023
(1,873)
9,538
2,082
(2,129)

62,641
705

78

783
55,728
(1,873)
9,616
2,082
(2,129)

63,424

1,530,010
7,772
1,537,782
43,195
1,487,832
7,850
1,495,682
58,768
746,934
4,161
22,046
(13,223)
40

759,958
1,680

1,680
748,614
4,161
22,046
(13,223)
40

761,638
29,580
14,686
(22,046)
(40)
22,180

770,052
6,092
776,144
21,015
740,898
6,170
747,068
29,188
Improvements to existing properties consists of 24.6m capitalised costs in addition to 22.6m non-capitalised
improvements, which have been charged to the income and expenditure account.
34
11 Tangible fixed assets continued

Group

Completed
shared
ownership
properties
000
Shared
ownership
Freehold
properties
and long
under
Total
leasehold
construction
properties
offices
000
000
000
Fixtures
vehicles
and
computer
equipment
000
Total
000
Cost
70,712
10,950 1,691,840
12,251
11,667 1,715,758
Schemes completed
21,963
(21,963)

Additions
5
16,825
55,144
524
6,117
61,785
Disposals
(2,526)

(30,001)
(505)
(849)
(31,355)
Improvements to existing properties

24,646

24,646
Reclassification
1,888
(6)
620
(146)
104
578

At 31 March 2009
92,042
5,806 1,742,249
12,124
17,039 1,771,412
Depreciation

At 1 April 2008
1,024

56,752
3,941
6,997
67,690
Reclassification

(1,873)

1,873
Charge for the year

130

9,746
755
1,993
12,494
Impairment

2,082

2,082
(2)

(2,131)
(149)
(706)
(2,986)

At 31 March 2009
1,152

64,576
4,547
10,157
79,280
at 31 March 2009
At 1 April 2008
Receivable in the year (net)
Schemes completed
Disposals
Reclassification
At 31 March 2009
at 31 March 2009
90,890
5,806
1,677,673
7,577
6,882
1,692,132
69,688
10,950
1,635,088
8,310
4,670
1,648,068
27,253

4,407
(143)

6,179

(4,407)

811,626
18,847

(13,366)

811,626
18,847
(13,366)
31,517
1,772
817,107
817,107
59,373
4,034
860,566
7,577
6,882
875,025
42,435
4,771
823,462
8,310
4,670
836,442
35
11 Tangible fixed assets continued

Housing properties and offices include freehold and long leasehold land and buildings as analysed below (net of SHG
and depreciation):

2009
2008

Restated

000
000
Housing Properties
Freehold
854,691
818,509
Long leasehold
5,875
4,953

860,566
823,462
Offices
Freehold
Long leasehold

5,328
2,249

7,577
6,042
2,268
8,310
The net book value of tangible fixed assets includes Nil (2008: Nil) in respect of assets held under finance leases.
Company

Cost
At 1 April 2008
Additions
Disposals

At 31 March 2009
Depreciation
At 1 April 2008
Charge in year

At 31 March 2009
Net book value at 31 March 2009

Net book value at 31 March 2008
36
Fixtures and
IT equipment
000
Leasehold
improvements
000
Total
000
1,344
500
(246)

1,598
1,791
(14)

1,777
3,135
486
(246)
3,375
596
435
(117)

914
526
178

704
1,122
613
(117)
1,618

684
1,073
1,757
748
1,265
2,013
12 Investments
A. Fixed assets
The principal subsidiary undertakings consolidated within the financial statements as at 31 March 2009 all of which were
controlled by The Riverside Group Limited, unless otherwise stated, were as follows:
Name of undertaking
Nature of undertaking
Principal activity
Berrybridge Housing Limited
Registered Industrial and Provident Society
Registered Social Landlord
Bowlee Park Housing Association Limited
Carlisle Housing Association Limited
Community Seven Limited1
Registered SocialLandlord
ECHG (Contracting) Limited2

Company incorporated and limited by

guarantee under the Companies Act 1985
Design and build service
ECHG (Harrow) Homes plc3
Public Limited Company
Property investment
ECHG (Kensington & Chelsea)

Public Limited Company
Homes plc3
Property investment
ECHG (No 1) Limited2
Property investment
ECHG Services Limited2


Property management
English Churches Housing Group Limited
Lee Valley Housing Association Limited
Registered SocialLandlord
Naylands (51-68) Limited4


guarantee under the Companies Act1985
Property management
Prospect (GB) Limited


shares under the Companies Act 1985
Property development and

investment
Riverside Consultancy Services Limited


Design and build services
Riverside Housing Association Limited
Riverside North East Limited
Riverside Regeneration Limited


Urban regeneration initiatives
Riverside Urban Services Limited1


Leasing of offices premises
The St Michaels Housing Trust1

Charitable Trust

Management of supported
housing
Circle Limited5

Joint Venture company incorporated and

limited by shares under the Companies Act 1985
Construction waste recycling
Compendium Group Limited6

Joint Venture company incorporated and limited

by shares under the Companies Act 1985
Strategic urban regeneration

and development
Wave Homes Limited

Company incorporated and limited

by shares under the Companies Act 1985
Design and manufacture of

sustainable housing systems
For key to numbering, see overleaf.
37
12 Investments continued
1
2
3
4
5
6
Entity is a wholly-owned subsidiary undertaking of Riverside Housing Association Limited.

Entity is a wholly-owned subsidiary undertaking of English Churches Housing Group Limited.
Entity is a wholly-owned subsidiary undertaking of ECHG (No 1) Limited.
Entity is 76% owned by English Churches Housing Group Limited.
Entity is 22.5% owned by The Riverside Group Limited.
Entity is 50% owned by The Riverside Group Limited.
(i) Investments in subsidiaries

Cost
(ii) Other investments

8% Treasury Stock 2017
Charifund
Investment properties (see (iii) below)
Investment in Joint Ventures
Other

(iii) Investment properties

Valuation at 1 April 2008
Additions
Revaluation

Valuation at 31 March 2009
2009

38
2008

655
2009
000
372
4,683
14,784
107
2,009

21,955
655
Group
2008
000
355
6,923
20,919
13
2,009
30,219

2009
000
20,919
1,967
(8,102)

14,784
Group
2008
000
19,439
99
1,381
20,919
B. Current assets

Unit Trusts, Investment Trusts and listed investments
on the London Stock Exchange
Money market deposits and charged bank accounts

Company
2009
000
3,206
10,852

14,058
Group
2008
000
3,068
11,963
15,031
13 Debtors

Group
2009
000
2008
000

13,628
(5,348)

8,280
16,334
(6,545)
9,789
Social Housing Grant receivable

Other debtors
Prepayments and accrued income
Corporation tax
Amount due from joint venture

6,030
54,719
5,193
788
90

75,100
10,681
44,862
10,434

163
75,929
Amounts falling due after more than one year:

Amounts falling due within one year:
Gross rent arrears
Less: bad debt provision

Net rental debtors
44,441
61,454
A debtor of 43.4m (2008:61.2m) has been established representing the obligation of the local authorities that
transferred stock to the Groups stock transfer subsidiaries and Community Seven Limited to have improvement
work carried out to the properties. The stock transfer subsidiaries and Community Seven Limited are contracted
by the local councils to carry out these improvement works on their behalf.

Company

2009
2008

Restated

000
000
Amounts owed by Group undertakings
Prepayments and accrued income
Corporation tax
Other
Pension

11
1,643

705
38

2,397
2,720
753
123
617
4,213
14 Properties for sale

Properties under construction
Completed properties

2009
000
5,384
39,980

45,364
Group
2008
000
39,962
833
40,795
39
15 Creditors: amounts falling due within one year

Bank loans (see note 17)
Other loans (see note 17)
Trade creditors
Rent and service charges received in advance
Capital grants received in advance
Other creditors
Recycled Capital Grant Fund (see note 16a)
Disposal Proceeds Fund (see note 16a)
Accruals and deferred income
Corporation tax
Bank overdraft

2009
000
5,387
380
8,016
6,656
6,184
27,425
6,112
151
43,279
430

104,020
Group
2008
000
4,647
380
12,324
7,039
8,392
23,219
190
285
47,473
92
1,864
105,905
Capital grants received in advance will be utilised against the related capital expenditure.

Amounts owed to group undertakings
Other creditors and accruals
Bank overdraft

40
2009
000
1,058
2,954

4,012
Company
2008
000
3,538
3,152
170
6,860
16 Creditors: amounts falling due after

more than one year

Long term loans (see note 17)
Recycled Capital Grant Fund (see note 16a)
Disposal Proceeds Fund (see note 16a)
Other

2009
000
2008
000
621,674
10,258
2,037
348

634,317
569,313
16,666
1,260
1,053
588,292
Long term loans are secured by fixed and floating charges on the Riverside Groups properties.
16a Creditors: Analysis of Disposal Proceeds Fund and

Recycled Capital Grant Fund
Disposal Proceeds Fund disclosure

2009
000
2008
000
Opening balance
Inputs to reserve:
Grants recycled
Interest accrued
Major repairs and works to existing stock

Closing balance
1,545
632
No amounts are due for repayment to the Tenant Services Authority.

Recycled Capital Grant Fund disclosure

Opening balance
Inputs to reserve:
Grants recycled
Interest accrued
Major repairs and works to existing stock

Closing balance
No amounts are due for repayment to the Homes and Communities Agency.
958
48
(363)

2,188
989
59
(135)
1,545

2009
000
2008
000
16,856
13,473
4,025
619
(5,130)

16,370
5,636
824
(3,077)
16,856
41
17 Debt analysis

Due within one year
Bank loans
Other loans

2009
000
2008
000
5,387
380

5,767
4,647
380
5,027
576,617
950
46,932
(2,825)

621,674
523,346
950
47,312
(2,295)
569,313
Due after more than one year

Bank loans
Local authority loans
Other loans
Less finance costs capitalised

Housing loans, included in creditors falling due within one year and creditors falling due after more than one year,
bear rates of interest between 1.7% and 11.6%, and fall due for repayment as follows:

Debt maturity profile
In one year or less
Between one and two years
Between two and five years
In five years or more

Less:
Loans due in one year or less
Finance costs capitalised

42
2009
000
2008
000
5,767
42,851
29,659
551,989

630,266
5,027
16,358
49,753
505,497
576,635
5,767
2,825

621,674
5,027
2,295
569,313
18 Derivatives and financial instruments

The operating and financial review on pages 8 to 12 includes an explanation of the role financial instruments have
had during the period in managing the risks the Riverside Group faces in its treasury activities.
Financial assets and liabilities
Financial assets and liabilities at 31 March 2009 have book and fair values as detailed below.

Book Value
000
Fair Value
000
Charifund
8% Treasury stock 2017
Interest rate swap agreements
Unit trusts, investment trusts and listed investments

4,683
372

3,206

8,261
4,683
372
(21,332)
3,206
(13,071)
Fixed asset investments are detailed at note 12A(ii). The investment in 8% Treasury Stock 2017 is held as a
requirement of the loan from Funding For Homes Limited and cannot be disposed of until the loan has been repaid
(see note 27). The investment in Charifund is held by virtue of a Board decision to actively provide for the bullet
repayment of the loans due to HACO Limited and Funding For Homes Limited in 2017 and 2018 respectively.
The fair value of the interest rate swap agreements at 8 July 2009 was 17.4m in favour of the counterparties.
Interest rate risk profile of financial assets
With the exception of the investment of 372,000 (2008: 355,000) in 8% Treasury Stock 2017, all investments
have variable rates of return. Money market deposits and other cash deposits, all of which are denominated in
sterling, bear interest at variable rates based upon LIBOR.
Interest rate risk profile of financial liabilities

Floating rate
Fixed rate
Interest free

2009
000
2008
000
194,485
434,831
950

630,266
133,895
441,790
950
576,635
The floating weighted rate financial instruments comprise sterling denominated bank borrowings that bear interest
at rates based upon LIBOR. The weighted average rate of interest paid on the fixed rate debt during the year is
6.14% and the weighted average of the period for which the interest rates are fixed is 14.4 years.
Borrowing facilities
Undrawn committed borrowing facilities at 31 March 2009 were as follows:

Expiring between 1 and 3 years
Expiring in more than 5 years

2009
000
2008
000

147,460

147,460
15,000
127,683
142,683
64.4m of the undrawn committed borrowing facilities requires fixed charged security to be placed with the lender
before it can be utilised.
43
19 Deferred income
Deferred income relates to a receipt of 1.1m arising from the transfer to the Riverside Group of another associations
HACO fixed interest debt of 11.0m as compensation for the decrease in long-term interest rates. The balance of 0.4m
(2008: 0.4m) is released over the remaining life of the loan.
20 Reserves

Arising on acquisition
Transfer from income and
expenditure account to reserves
Revaluation of fixed assets
Transfer to income and
expenditure account from reserves
Actuarial gain on pension scheme

At 31 March 2009
Consolidation
reserve
(negative goodwill)
000
155,815

(406)

Charitable
reserve
(designated)
Other
reserves
(designated)
Income and
Expenditure
Account
000
000
609

63,087

80,092
10,196

299,603
10,196
(406)
15,074
(3,605)
(15,074)

000
000
Total
(3,605)
(3,069)

(8,896)
11,965

2,474
2,474

152,340
609
65,660
89,653
308,262
The consolidation reserve arose on the merger of Newcastle and Whitley Housing Trust Limited and English Churches
Housing Group Limited with the Group. The difference between the fair value of assets acquired and consideration
provided gave rise to negative goodwill of 164.3m. Cumulative amortisation of this reserve is 11.6m. In addition
0.4m has been put to the reserve, being goodwill on the acquisition of Wave Homes Limited on 17 June 2008.
The revaluation of fixed assets consists of 1.4m for Prospect Investment properties, and 2.4m for Riverside Housing
Association Charifund investments.
44
21 Reconciliation of operating surplus to net cash inflow

from operating activities

2009

000

24,950
14,576
26,648
(14,656)
1,509
499

53,526
Operating surplus
Depreciation charge
Decrease in other debtors and prepayments
Decrease in other creditors and accruals
Decrease / (increase) in rent arrears
Fixed assets written off

Net cash inflow from operating activities
2008
000
Restated
34,496
14,278
30,991
(22,382)
(127)
(115)
57,141
22 Reconciliation of net cash flow to movement

in net debt
2009
000
2008
000
Increase / (decrease) in cash in the year

Increase in loans
Movement in liquid resources

Change in net debt resulting from cash flows
17,906
(53,631)
(973)

(36,698)
(6,522)
(61,425)
5,312
(62,635)
Finance costs capitalised

Net debt at 1 April 2008

Net debt at 31 March 2009
530

(36,168)
(561,173)

(597,341)
(7)
(62,642)
(498,531)
(561,173)
23 Analysis of net debt

Loans due within one year
Loans due after one year
Current asset investments

Total

At
1 April
Cash
Other
2008
flows
changes
'000
000
000
(1,864)
(5,027)
(569,313)
15,031
_______
(561,173)
17,906
6,798
(60,429)
(973)
______
(36,698)

(7,538)
8,068

______
530
31 March
2009
'000
16,042
(5,767)
(621,674)
14,058
_______
(597,341)
45
24 Capital commitments
2009
000

Capital expenditure that has been contracted for but which
has not been provided for in the financial statements
2008
000
Capital expenditure that has been authorised by the

Board but which has not yet been contracted for

Grants to be generated from the above expenditure contracted not provided for
Grants to be generated from the above expenditure authorised by the Board
41,269
28,715
28,065
66,851
2009
000
2008
000
28,742
9,631
10,179
32,011
The remaining commitments will be fully financed from internal cash resources and existing loan facilities as required.
25 Financial commitments
At 31 March 2009 annual commitments under non-cancellable operating leases were as follows:

Expiring within one year
Expiring between two and five years
Expiring in five or more years

Expiring within one year
Expiring between two and five years
Expiring in five or more years

46
2009
000
Land &
Buildings
Other
142
357
727

1,226
149
138
4

291
Group
Land &
Buildings
40
70
1,166

1,276
2008
000
Other
79
217
141
437

2009
000
Land &
Buildings
Other

569

569
61
52

113
Company
Land &
Buildings

569

569
2008
000
Other
44
64
66
174
26 Pension information
FRS17 Retirement Benefits
i) The Riverside Group Pension Scheme
The Riverside Group operates a pension scheme providing benefits based on final pensionable pay. The contributions
are determined by an independent qualified actuary on the basis of triennial valuation using the projected unit
method. The most recent formal valuation was 31 March 2008. This has been updated for FRS 17 purposes to 31
March 2009 by an independent qualified actuary. The assumptions used are the best estimates chosen from a range
of possible actuarial assumptions which, due to the timescale covered, may not necessarily be borne out in practice.
The major assumptions used in this valuation are:

Inflation
Rate of discount on scheme liabilities
Rate of salary increase
Rate of increase of pensions in payment
Rate of increase of deferred pensions
2009
2008
2007
2006
2005
2.5%
6.7%
3.5%
2.5%
2.5%
3.4%
6.3%
4.4%
3.4%
3.4%
3.1%
5.3%
4.1%
3.1%
3.1%
2.9%
5.1%
3.7%
2.9%
2.9%
2.8%
5.6%
3.6%
2.8%
2.8%
2009
2008
20.2
23.1
18.8
21.7
20.2
23.1
18.8
21.7
Life expectancy male non-pensioner

Life expectancy female non-pensioner
Life expectancy male pensioner
Life expectancy female pensioner
The fair value of the schemes assets at 31 March 2009, which are not intended to be realised in the short term and
may be subject to significant change before they are realised, and the present value of the schemes liabilities, which
are derived from cash flow projections over long periods and are thus inherently uncertain, were:

Fair value of assets
Present value of liabilities

Surplus / (deficit) in the scheme
2009
000
2008
000
2007
000
2006
000
2005
000
47,100
54,700
55,500
50,200
38,400
(46,700)
(57,200)
(59,700)
(55,400)
(44,500)

400
(2,500)
(4,200)
(5,200)
(6,100)
47
26 Pension information continued

The market value of the assets of the scheme and the expected long term rates of return at 31 March 2009 were:
Market value

Equities
Fixed Interest Bonds
Index Linked Bonds
Corporate Bonds
Cash

Total
2008
000
2007
000
2006
000
2005
000
33,100
37,600
39,100
35,700
26,400
5,800
6,900
6,600
5,500
4,500
3,300
4,300
3,900
3,100
2,500
4,800
5,700
5,400
4,200
3,600
100
200
500
1,700
1,400

47,100
54,700
55,500
50,200
38,400
Equities
Index Linked Bonds
Corporate Bonds
Cash

Total
7.50%
7.50%
7.50%
7.25%
7.25%
3.70%
4.55%
4.85%
4.35%
4.75%
3.70%
4.55%
4.85%
4.35%
4.75%
6.70%
6.30%
5.30%
5.10%
5.55%
3.70%
4.55%
4.85%
4.35%
4.75%

6.68%
6.76%
6.76%
6.48%
6.55%
Expected long term return
Analysis of the amount charged

to operating profit

Current service cost
Past service cost

Total operating charge
Analysis of the amount credited

to other finance income

Expected return on pension scheme assets
Interest on pension liabilities

Net return
48
2009
000
2009
2008
2007
2006
2006

2009
000
2008
000
2007
000
2006
000
2005
000
2,000
2,400
2,500
2,200
2,200

2,000
2,400
2,500
2,200
2,200

2009
000
2008
000
2007
000
2006
000
2005
000
3,300
3,800
3,300
2,500
2,200
(3,600)
(3,200)
(2,800)
(2,500)
(2,300)

(300)
600
500

(100)

Movement in surplus / (deficit) during year

2009
000
2008
000
2007
000
2006
000
2005
000
Deficit in scheme at beginning of the year

Movement in year:
Past service cost
Contributions
Other finance income
Actuarial gain in STRSD

Surplus / (deficit) in scheme at end of the year
(2,500)
(4,200)
(5,200)
(6,100)
(7,700)
Amount recognised in the statement of

total recognised surpluses and deficits
(STRSD)

Actual return less expected return on
pension scheme assets
Experienced gains / (losses) arising on
the scheme liabilities
Changes in assumptions underlying the
present value of the scheme liabilities

Actuarial gain / (loss) recognised in STRSD
History of experience surpluses

and deficits
(2,000)
(2,400)
(2,500)
(2,200)
(2,200)

2,800
2,400
2,300
2,000
2,400
(300)
600
500

(100)
2,400
1,100
700
1,100
1,500

400
(2,500)
(4,200)
(5,200)
(6,100)

2009
000
2008
000
(13,100)
(6,700)
3,100
500
2007
000
2006
000
2005
000
400
7,700
1,300
900
(100)
1,100
12,400
7,300
(600)
(6,500)
(900)

2,400
1,100
700
1,100
1,500

2009
2008
2007
2006
2005
(13,100)
(27.8%)
(6,700)
(12.2%)
400
0.7%
7,700
15.3%
1,300
3.4%
Experienced gains / (losses) on liabilities (000)

% of scheme liabilities
3,100
6.6%
500
0.9%
900
1.5%
(100)
(0.2%)
1,100
2.5%
Total amount recognised in STRSD (000)

2,400
5.1%
1,100
1.9%
700
1.2%
1,100
2.0%
1,500
3.4%
Difference between actual and expected

returns on assets (000)
% of scheme assets
49

Reconciliation of Assets
Assets at beginning of period
Employer contributions
Employee contributions
Benefits paid
Expected return on plan assets
Assets out / under performance

Assets at end of period
Reconciliation of liabilities
PBO at the beginning of period
Oeprating charge
Interest cost
Benefits paid
Actuarial gain / loss
Change in assumptions

Projected benefit obligation at end of period
Recognition of surplus
Surplus / (Deficit) Brought forward
Finance Income
Actual less expected investment return
Acutarial gain
Contribution gain

Surplus / (Deficit) Carried forward
(PBO: Projected benefit obligation)
50
2009
000
2008
000
54,700
2,800
900
(1,900)
3,700
(13,100)

47,100
55,500
2,400
800
(1,100)
3,800
(6,700)

54,700
57,200
2,000
3,600
900
(1,500)
(3,100)
(12,400)

46,700
59,700
2,400
3,200
800
(1,100)
(500)
(7,300)

57,200
(2,500)
(300)
(13,100)
15,500
800

400
(4,200)
600
(6,800)
7,800
100
(2,500)

ii) Other defined benefit pension schemes
The Riverside Group also makes contributions to other defined benefit pension schemes. Berrybridge Housing Limited and
Lee Valley Housing Association Limited contribute to the Merseyside Pension Scheme. Bowlee Park Housing Association
Limited contributes to the Greater Manchester Pension Fund. Carlisle Housing Association Limited contributes to the
Cumbria Local Government Pension Scheme. Each entity is a participating employer in its respective scheme.
The most recent actuarial valuations of these schemes have been updated for FRS 17 purposes by independent qualified
actuaries. The disclosures represent each entitys share of the overall schemes assets and liabilities. As permitted by
FRS 17 the disclosures for these entities have been consolidated. The assumptions used, which have been combined on
a weighted average basis on asset values, are the best estimates chosen from a range of possible actuarial assumptions,
which due to the timescale covered may not necessarily be borne out in practice.
The major assumptions used in this valuation are:

Inflation
Rate of discount on scheme liabilities
Rate of salary increase
Rate of increase of pensions in payment
Rate of increase of deferred pensions
Life Exp male non-pensioner
Life Exp female non-pensioner
Life Exp male pensioner
Life Exp female pensioner
2009
2008
2007
2006
2005
3.28%
7.08%
4.93%
3.28%
3.28%
3.60%
6.17%
5.26%
3.60%
3.60%
3.11%
5.40%
4.74%
3.11%
3.11%
2.92%
4.90%
4.55%
2.92%
2.92%
2.89%
5.41%
4.47%
2.89%
2.89%
21.4
24.2
21.1
23.9
21.4
24.2
21.1
23.9
The fair value of the schemes assets at 31 March 2009, which are not intended to be realised in the short term and
may be subject to significant change before they are realised, and the present value of the schemes liabilities, which
are derived from cash flow projections over long periods and are thus inherently uncertain, were:

Fair value of assets
Present value of liabilities

Deficit in the schemes
2009
000
2008
000
2007
000
2006
000
2005
000
20,137
24,243
26,885
24,661
18,155
(21,906)
(25,758)
(27,253)
(26,717)
(21,690)

(1,769)
(1,515)
(368)
(2,056)
(3,535)
51

The market value of the assets of the scheme and the expected long term rates of return at 31 March 2009 were:
Market value

Equities
Index Linked Bonds
Property
Other
Cash

Total
2008
000
2007
000
2006
000
2005
000
10,511
13,617
16,171
14,922
10,784
3,948
4,670
5,044
4,881
3,598
1,477
2,075
2,100
1,843
1,404
1,367
1,852
2,377
1,783
1,622
2,142
782
214
403
179
692
1,247
979
829
568

20,137
24,243
26,885
24,661
18,155
Equities
Index Linked Bonds
Property
Other
Cash

Total
7.44%
7.52%
7.54%
7.05%
7.53%
4.16%
4.72%
4.72%
4.34%
4.71%
5.32%
5.41%
4.75%
4.32%
4.74%
6.32%
6.41%
6.42%
5.94%
6.40%
6.64%
6.65%
6.60%
1.35%
5.33%
0.90%
5.20%
5.21%
3.97%
4.75%

6.26%
6.57%
6.60%
6.03%
6.52%
Expected long term return
Analysis of the amount charged to

operating profit

Past service cost

Total operating charge
Analysis of the amount credited to

other finance income

Expected return on pension scheme assets
Interest on pension liabilities

Net return
52
2009
000
2009
2008
2007
2006
2005

2009
000
2008
000
2007
000
2006
000
2005
000
669
682
806
764
806
88
423
250
(450)

757
1,105
1,056
314
806

2009
000
2008
000
2007
000
2006
000
2005
000
1,567
1,730
1,468
1,221
1,095
(1,606)
(1,479)
(1,329)
(1,186)
(1,056)

(39)
251
139
35
39

Movement in surplus / (deficit) during year

2009
000
Deficit in scheme at beginning of the year

Movement in year:
Past service cost
Contributions
Other finance income / (expenditure)
Actuarial gain / (loss) in STRSD

Deficit in scheme at end of the year
(1,515)
2008
000
(368)
2007
000
2006
000
2005
000
(2,056)
(3,535)
(2,635)
(669)
(682)
(806)
(764)
(806)
(146)
(423)
(250)
450

526
647
670
743
658
(39)
251
139
35
39
74
(940)
1,935
1,015
(791)

(1,769)
(1,515)
(368)
(2,056)
(3,535)
Amount recognised in the statement of

total recognised surpluses and deficits
(STRSD)
2009
2008
2007
2006
2005

000
000
000
000
000

Actual return less expected return on
pension scheme assets
(4,134)
(1,936)
117
3,016
735
Experienced losses arising on the scheme liabilities 4,208
1,289
2
(957)
(74)
Changes in assumptions underlying the present
value of the scheme liabilities

(293)
1,816
(1,044)
(1,452)

Actuarial gain / (loss) recognised in STRSD
74
(940)
1,935
1,015
(791)
History of experience surpluses
and deficits

Difference between actual and
expected returns on assets (000)
% of scheme assets
Experienced gains / (losses) on liabilities (000)
Total amount recognised in STRSD (000)
2009
000
2008
000
2007
000
2006
000
(4,134)
(20.5%)
(1,936)
(8.0%)
117
0.4%
3,016
12.2%
735
4.1%
4,208
19.2%
1,289
5.0%
2
0.0%
(957)
(3.6%)
(74)
(0.3%)
74
0.3%
(940)
(3.7%)
1,935
7.1%
1,015
3.8%
(791)
(3.7%)
2005
000
53

Reconciliation of assets

Assets at beginning of period
Employer contributions
Benefits paid
Expected return on plan assets
Assets out / (under) performance

Assets at end of period
2008
'000
24,243
526
211
(420)
1,567
(5,991)

20,136
26,885
648
219
(632)
1,673
(4,549)
24,244
25,758
815
1,606
211
(420)
(6,065)

21,905
27,253
1,074
1,479
219
(601)
(3,666)
25,758
(1,515)
(39)
(5,991)
6,065
(289)

(1,769)
(368)
251
(4,550)
3,666
(514)
(1,515)
Reconciliation of liabilities
Projected Benefit Obligation at beginning of period
Operating charge
Interest cost
Benefits paid
Actuarial gain / loss

Projected Benefit Obligation at end of period
Recognition of surplus
Surplus / (Deficit) Brought forward
Finance Income
Actual less expected investment return
Actuarial gain
Contribution gain

Surplus / (Deficit) Carried forward
54
2009
'000

(iii) Defined contribution pension schemes
The Riverside Group also contributes to defined contribution schemes. The cost for the year was 4,070k (2008:
6,043k).
(iv) The Social Housing Pension Scheme
Riverside North East Limited (RNE) and English Churches Housing Group Limited (ECHG) participate in the Social
Housing Pension Scheme (SHPS). SHPS is a multi-employer defined benefit scheme. The Scheme is funded and is
contracted out of the state scheme.
Up to March 2007, the Scheme operated a single benefit structure, final salary with a 1/60th accrual rate.
From April 2007 there were three benefit structures available, namely:
Final salary with a 1/60th accrual rate.
Final salary with a 1/70th accrual rate.
Career average revalued earnings with a 1/60th accrual rate.
RNE and ECHG have elected to operate the final salary with a 1/60th accrual rate benefit structure for active members
as at 1 April 2007. RNE have closed the Scheme to new entrants, whilst ECHG have elected to operate the final salary
with a 1/60th accrual rate benefit structure for new entrants from 1 April 2007.
During the accounting period RNE paid contributions at the rate of 15.9%. Member contributions varied between
4.1% and 6.1% depending on their age.
As at the balance sheet date there were 13 active members of the Scheme employed by RNE and 301 employed by
ECHG. RNE and ECHG continue to offer membership of the Scheme to its employees.
It is not possible in the normal course of events to identify the share of underlying assets and liabilities belonging to
individual participating employers. Accordingly, due to the nature of the Scheme, the accounting charge for the period
under FRS 17 represents the employer contribution payable.
During the accounting period the employer contribution rates for ECHG were 16.4%. Member contributions varied
between 4.1% and 6.1% depending on their age.
Following a change in legislation in September 2005 there is a potential debt on the employer that could be levied by
the Trustee of the Scheme. The debt is due in the event of the employer ceasing to participate in the Scheme or the
Scheme winding up.
The debt for the Scheme as a whole is calculated by comparing the liabilities for the Scheme (calculated on a buyout
basis i.e. the cost of securing benefits by purchasing annuity policies from an insurer, plus an allowance for expenses)
with the assets of the Scheme. If the liabilities exceed assets there is a buy-out debt.
The amount of the debt therefore depends on many factors including total Scheme liabilities, Scheme investment
performance, the liabilities in respect of current and former employees of the employer, financial conditions at the time
of the cessation event and the insurance buy-out market. The amounts of debt can therefore be volatile over time.
55
27 Contingent liabilities
As at 31 March 2009, the Riverside Group had a contingent liability totalling 372,000 (2008: 355,000) in respect of
its entire holding of 8% Treasury Stock 2017. This stock is held by the Trustee for Funding For Homes Limited, subject
to certain rights, and could be sold should a fellow borrower fail to service the interest or repay the stock.
Following the demolition of properties on certain sites, costs of 407,109 (2008: 407,109) have been written off, and
the related grant has been written back. A contingent liability to a maximum of 2,122,931 (2008: 2,122,931) exists
in respect of this grant; in the unlikely event of the sale of the land, the grant becomes repayable to the extent of any
surplus generated on sale.
At the financial year end the Riverside Group had a contingent liability of 7m (2008: 6m) in connection with a debt
service guarantee arrangement in favour of Royal Bank of Canada Europe Limited (RBC). Should any of Bowlee Park
Housing Association, Berrybridge Housing Limited, Carlisle Housing Association Limited, Community Seven Limited or
Lee Valley Housing Association Limited (all members of the Riverside Group) default on loan arrangements with RBC,
the above liability may be called upon.
English Churches Housing Group has performance guarantees with Barclays Bank totalling 225,000 (2008: 310,001).
28 Provisions for liabilities and charges

Group
2009
000
2008
000
Improvement programme
(i)

Pension liabilities
(ii)
Other

At 31 March 2009
43,174
1,369
476

45,019
61,228
4,015
404
65,647
2009
000

Company
2008
000
Pension liabilities
(ii)
240
The company pension deficit has been included in the Group pension disclosure note 26.
(i) Improvement programme

On the transfer of properties from local councils to the Groups four stock transfer subsidiaries and Community Seven
Limited, the subsidiaries were contracted to carry out improvement works to those properties. A provision of 43.2m
(2008: 61.2m) has been made in respect of the subsidiaries outstanding commitments to their local councils to carry out
improvement work.
(ii) Pension liabilities
In line with the full adoption of FRS 17 Retirement Benefits the net deficit on the RiversideGroup Pension Scheme and
Local Authority funds are recognised as a liability on the balance sheet (note 26).
56
29 Housing stock

Group
Dwellings owned and in management
2009
2008

Number
Number
Social housing
General housing
33,966
34,897
Supported housing
10,352
9,851
Shared ownership
1,952
1,635
Key worker
362
447

Total social housing

46,632
46,830
3,736

50,368
3,387
50,217
Non social housing

Student accommodation
421
Market rent
37
Specialist housing
241

Total owned and managed
51,067

Staff accommodation
113
Awaiting major repair/disposal
582

Total Stock
51,762
421
37
305
50,980
126
1,233
52,339
453
200
Dwellings managed for other organisations

Total managed social housing
Accommodation in development at the year end
30 Related party transactions

Two Board members of The Riverside Group Limited are tenants of The Riverside Group Limited. Their tenancies are
on normal commercial terms, and they cannot use their position to their advantage. There are no other related party
transactions.
There are no other related party transactions.
57
31 Post Balance Sheet

The amalgamation of The Riverside Group Limited occurred on 1 April 2009. The amalgamation rationalises the Group
structure with all the assets and liabilities of the Registered Social Landlord members (with the exception of ECHG and
The St Michael's Housing Trust) being amalgamated into one Registered Social Landlord, The Riverside Group Limited.
32 Prior year adjustment

The prior year adjustment reflects a change in the accounting for shared ownership first tranche sales.
Under the SORP for Registered Social landlords the 2005 shared ownerhship sales of property were treated as follows:
All shared ownership (SO) properties were classified as fixed assets;
Proceeds from first tranche disposals were credited against the cost of SO properties; and
Surplus/deficit on second and subsequent tranche SO sales were accounted for in the Income and Expenditure
Account as differences between the net sale and the carrying value.
Changes to this acounting treatment as recommended in the SORP 2008 such that:
SO properties are split proportionally between current and fixed assets based on the first tranche proportion;
First tranche proportions must be accounted for as current assets and the related sales proceeds shown in
turnover; and
The remaining element of the SO property must be accounted for as a fixed asset so that any subsequent sale is
treated as a part disposal.

Revenue reserves
As previously stated at 31 March 2008
Add: Surplus on first tranche shared ownership sales (see below)
Cumulative adjustment to 31 March 2007
As restated 2007/08 (note 2)

Revenue reserves as at 31 March 2008 restated (note 20)
Cumulative
adjustment to
31 March 2008
000
76,756
3,036
300
80,092
Shared Ownership first tranche sales

Surplus on first tranche shared ownership sales
Proceeds cumulative to 31 March 2007
Cost sales adjustment to 31 March 2007
Proceeds as restated at 31 March 2008 (note 2)

Cost sales adjustment to 31 March 2008

Revenue reserves as at 31 March 2008 restated

35,594
(32,558)
6,490
(6,190)
3,336
58
32 Prior year adjustment continued

Tangible fixed assets

Social
Social Completed
Shared
Social
housing
housing
Shared Ownership
housing
properties
under Ownership properties
grant
held for construction properties
under
letting construction
Balance as previously stated

at 31 March 2008
1,545,916
73,983
63,994
15,529
26,993
Reclassification of:
First tranche sales

31,853
4,390

Costs

(15,215)
(28,845)
2,311

Surplus from prior years

6
(5)

Cross subsidy
(3,061)

3,321

260
2007/08:
First tranche sales

3,054

Costs

(2,671)
(11,275)

Surplus from prior years

Balance as at 31 March 2008
restated (note 11)
1,542,855
58,768
70,712
10,950
27,253
Current
assets
Properties
for sale
21,062
(36,243)
41,748
3,036
(3,054)
13,946
300
40,795
59
This page is intentionally blank.
60
Contact us
www.riverside.org.uk
email: enquiries@riverside.org.uk
Customer Service Centre
24 hours a day, 365 days a year
0845 111 0000
With inclusive call packages or mobile phones,
it may be cheaper to call 0345 111 0000
You can also visit your local office
(for more details visit our website or call us)
We are happy to accept Typetalk calls
Minicom: 0845 111 7766

Registered Office:
2 Estuary Boulevard,
Estuary Commerce Park,
Liverpool L24 8RF
A charitable Industrial and
Provident Society No. 30670R
Tenant Services Authority No. L4537
ugust 2009
A
Details correct at time of printing
Printed on 75% recycled paper with
25% from FSC-certified sources
R8/006-0809V1.0C

Irvine Group Financial Statement 2009

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Irvine Group Financial Statement 2009

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Financial Statements

Year ended 31 March 2009

The Board, Executives and Advisors

Group Chairmans statement

Operating and financial review

Report of the Board

Report of the independent auditors

Group income and expenditure account

Statement of total recognised

Group balance sheet

Group cash flow statement

Company income and expenditure

Notes to the financial statements

Highlights five year summary

1,692,132 1,648,068 1,589,833

Voids and bad debts as % of rent

The Board, Executives and Advisors

1. K Clifford Cook OBE KStJ FCA

5. P J Han (appointed 1 April 2009)

(retired 3 June 2009) (Not pictured)

7. P H Raw FRICS FBEng MFPWS

(retired 31 March 2009) (Not pictured)

8. M Steinberg OBE FRSA

FCIH FRSA MAPM*

Group Deputy Chief Executive

(retired 31 March 2009) (Not pictured)

* Co-opted Board Members

Group Chairmans statement

The collapse of the housing market bubble has been a

But we will only do this by being cost effective and

stakeholders who demonstrated their trust in this

Operating and financial review

The Riverside Group Limited is the ultimate parent

Objectives and strategies

The Corporate Plan is written in three parts as follows:

Part 2 Performance plan: this identifies Performance

Improvement of our housing stock remains a priority

Performance in the period

Our tenants overall satisfaction with services provided

Whilst we continue to work in challenging areas with

The major movements on the Group's consolidated

Dynamics of the Group

The Group faces a number of key risks that could impact

Investment for the future

The Groups annual surplus is vitally important for a

The principal accounting policies of the Group are set

Capital structure and treasury policy

Effective treasury risk management is crucial both to

Group borrowings total 630.3 million (2008:

After due consideration, the Board is confident that the

The form and content of the operating and financial

Overall satisfaction with service provided by landlord

Group target 1 97%

Current rent arrears

Report of the Board

The Riverside Group Limited is an Industrial and

Review of business and

The review of business and future developments is

The Board of Directors

The Board of Directors of The Riverside Group Limited

(retired 31 March 2009)

M Steinberg OBE (appointed 1 April 2009)

BSc MSc FCA

In accordance with the rules, P Brant, P R Deyes and

The Board, Executives and Advisors

Group Chairmans statement

Operating and financial review

Report of the Board

Report of the independent auditors

Group income and expenditure account

Group balance sheet

Group cash flow statement

Notes to the financial statements