1. Introduction Getting Started Link to Model Homepage Download the User Guide... 5

Transcription

1 Five ear Financial Projections User Guide 2013

2 Contents 1. Introduction Getting Started Link to Model Homepage Download the User Guide Download the FFP model Using the model Financial Projections and Assumptions Ratios Trends and Comparators Governance Statement Comments Upload completed model View progress for this return Print your model Help Appendix 1 Data Entry Detail Appendix 2 Ratios Five ear Financial Projections - User Guide 2013 Page 1 of 37

3 1. Introduction 1-1. The Guidance Note Financial Viability of Registered Social Landlords: Information Requirements outlines the information requirements from different RSLs. This guidance was revised in May It can be found by following this link: The requirement to provide financial projections in a standardised format was introduced for a number of larger RSLs in The requirement has been extended since then and now covers all RSLs with the exception of : Independent Abbeyfield Societies RSLs with less than 250 units who are not developing, unless they are the parent of an RSL that is required to submit Five ear Financial Projections The Five ear Financial Projections (FFP) system is a spreadsheet-based system designed to collect the financial projections and related information of RSLs in Scotland. The information provided by RSLs is used to calculate a number of standard financial ratios, and the workbook provides details of these ratios and compares them to data from prior years for the individual RSL and their area of the sector The information provided is used by the SHR as part of its annual review of the financial viability of RSLs and in making decisions on the level of engagement that the SHR will have with individual RSLs. It is also used to allow developing trends, patterns and emerging issues to be identified and considered across the sector Following a consultation in the spring of 2013 the FFP was amended to include cashflow information. This updated 2013 guide gives users detailed guidance on the completion of the revised return. It provides details of how the system is accessed and what data we expect to be input in each of the sections. Five ear Financial Projections - User Guide 2013 Page 2 of 37

4 2. Getting Started 2.1 Link to Model Each RSL has one or more nominated users for the FFP system. These users are provided with a username and password which are used to log into the web-based hosting system which carries the return. Amendments to users details can be requested by contacting the SHR at SHR_-_BAU@scotland.gsi.gov.uk or any of the Analysts listed in section 9 of this document The Five ear Financial Projections Model (the Model or workbook )can be accessed via the link on our website (within Submit information to SHR ) or by typing in the following URL (web address) into your internet browser and clicking Go to connect: ou will be prompted for your User name and Password, as provided to you separately by e- mail. Enter your details and click Handy Hint It is helpful to add the URL to your favourites list. In Internet Explorer, select Favourites from the tool bar and select add favourites from the favourites menu. The URL will be saved in your favourites list If you have not received or have lost your password or cannot access the system for any other reason, please contact the Scottish Housing Regulator s Helpdesk. (See Section 9 Help for details). Five ear Financial Projections - User Guide 2013 Page 3 of 37

5 2.2 Home page Please note if you are the Finance contact for more than one RSL you will be taken to the following screen ou now have the option of selecting the appropriate RSL. On selecting an RSL you will be taken to the screen below Please note you will have the ability to roam between all RSLs that you are responsible for without the need to logoff and login again. Simply return to the Home page and select a different RSL Users responsible for only one RSL will be taken directly to the following screen Section 5 of this User Guide takes you through each of the bulleted steps on this page, and how to enter information into the Model once it has been downloaded. Five ear Financial Projections - User Guide 2013 Page 4 of 37

6 3. Download the User Guide 3-1. This document is the User Guide Before choosing one of the other options, please download the User Guide (PDF file) by clicking on either Guidance, user guide or Download the User Guide. ou may also find it useful to print the User Guide for reference purposes If you are unsuccessful, the following error message will appear: 3-4. This User Guide is also available on the SHR website: If you cannot access the User Guide, please contact the Scottish Housing Regulator Helpdesk. (See Section 9 Help for details). Five ear Financial Projections - User Guide 2013 Page 5 of 37

7 4. Download the FFP model 4-1. The Excel spreadsheet model needs to be downloaded from the SHR website and saved locally onto your own PC or network prior to completion Click on Download the Five ear Projections Model to follow the link. NOTE: If you use a broadband connection, the download is likely to take seconds. If you use a modem connection, the download will take longer. File size approx. 1.0 Mb When the following dialogue box appears, select Save When your browser appears, choose or create the folder in which to save a copy of the model. Some of the functionality of the workbook will not work correctly until a local copy of the return has been saved This workbook is in Excel format (.xls). It can be saved in this format, or in Excel 2010 format (.xlsx) If saving it in Excel 2010 format, please ensure that it is saved as an Excel workbook with macros. Five ear Financial Projections - User Guide 2013 Page 6 of 37

8 4-6. The file will be named using the convention : FFP13REGhhmmss FFP: 13: REG: indicating five-year financial projections indicating the year of submission the RSL s registration number with SHR. (3 digits including leading zeroes, excluding any letters. hhmmss; indicates the time of download (hour, minutes and seconds) and will be inserted automatically The file can be saved with a different name should you wish. However, the upload process relies upon names being in a fixed format so submitted models should be named in accordance with this convention ou have now completed the download of the model to your system, and it is ready for you to complete. Five ear Financial Projections - User Guide 2013 Page 7 of 37

9 5. Using the Model When you open the model on your system, you should choose the enable macros option and you will be taken directly into the workbook for your RSL The workbook contains five visible worksheets, these are : 1. Projections & Assumptions; 2. Ratios; 3. Trends & Comparators; 4. Governance Statement; and 5. Comments Each worksheet is shown below NOTE: ou may find it useful to print the model to familiarise yourself with the content. See Section 8 Printing your model ou may now proceed with entering the data for your financial projections. The majority of information should be entered in 000 to one decimal place. Where percentages are required these are also entered to 1 decimal place. Housing units are entered in whole numbers. 5.1 Financial Projections & Assumptions Select the Projections & Assumptions worksheet to display the Income and Expenditure, Balance Sheet, Cashflow and Additional Information fields to be completed. For example: Five ear Financial Projections - User Guide 2013 Page 8 of 37

10 There have been changes made to this workbook since the return. Completion of the model should, for most items, be self-explanatory. However, details of the information to be entered into each field is provided at Appendix The majority of information should be entered as positive values in 000 to one decimal place. Where percentages are required these are also entered to 1 decimal place. Where field names are in (brackets) this indicates that negative values should be entered. If you are uncertain how the information should be entered please refer to the detailed guidance in Appendix Financial outturns and forecasts for the Income & Expenditure Account, Balance Sheet, Cashflow and Additional Information should be entered into the model in the yellow cells. Outturn for 2012/13 will be actual or forecast depending on whether or not 2012/13 accounts are finalised Cells should not be left blank. Where zero values are required a 0 should be entered. Do not enter spaces or All the text and the formulae in the pale green cells are protected and therefore cannot be modified The data input can be saved at any time Where projections are calculated elsewhere for import to the return, e.g. a separate Excel workbook, Brixx or other software, it is possible to cut and paste the data into the relevant cells on the return. However you should not paste over any of the subtotal rows as this will overwrite the formulae in the return with values. Returns where formulae are overwritten will not be accepted The Projections and Assumptions worksheet has been set-up to print on A4 Landscape over 4 pages, with each section (Income & Expenditure, Balance Sheet, Cashflow and Additional Information) on separate pages This year s return also includes changes in the way in which Comments are provided. Context specific comments can now be added against selected lines, indicated by a yellow box to the right of the data entry. See section 5.5 for more details. Five ear Financial Projections - User Guide 2013 Page 9 of 37

11 5.2 Ratios When all the required fields have been completed on the Financial Projections & Assumptions worksheet and the input has been saved, select the Ratios worksheet Primary ratios and Secondary ratios are calculated automatically by the system based on the information provided in the financial projections and will be displayed as follows: Primary ratios Financial Capacity interest cover (%), interest cover adjusted (%), adjusted gross surplus/net debt (%), net debt/adjusted net surplus (years), gearing (%) Efficiency voids (%), arrears (%), bad debts (%), staff costs/turnover (%) Liquidity quick ratio Profitability gross surplus/deficit (%), net surplus/deficit (%) Five ear Financial Projections - User Guide 2013 Page 10 of 37

12 Secondary Ratios Financing HAG & other government grants (%), net debt per unit ( ), debt per unit ( ), net interest per unit ( ), net debt : net rent, effective interest rate (%). Diversification income from non-rental activities (%) Growth turnover growth (%), operating cost growth (%), fixed asset growth (%), net debt growth (%), capital and reserves growth (%) Explanations and the detail of the calculations for these ratios can be found in Appendix The worksheet has been set-up to print on A4 Landscape over 2 pages If you find errors in the ratio fields this may suggest there are errors in the Financial Projections. Please review your input. If there are still errors please contact one of the Financial Analysts listed at section 9. Five ear Financial Projections - User Guide 2013 Page 11 of 37

13 5.3 Trends & Comparators Having reviewed the ratios, select the Trends & Comparators worksheet The trends & comparators worksheet has been pre-populated with: historic data for the previous two financial years based on financial information previously submitted to us, and primary ratios calculated from the financial projections; median and quartile primary ratios for 2011/12 - for your RSL s classification group and the median for the sector as a whole; financial trends ( 000) for 2010/11 to 2017/18 for your RSL - turnover, operating costs, net housing assets, cash & current investments (closing balance), debt, net assets/capital & reserves The worksheet has been set-up to print on A4 Landscape on one page. Five ear Financial Projections - User Guide 2013 Page 12 of 37

14 5.4 SHQS & Governance Statement Select the SHQS & Governance Statement worksheet Using the drop-down menus as appropriate please answer all the questions relating to the SHQS RSLs should confirm that the data entered in the above section agrees with the SHQS information provided in the APSR Under the Governance statement ensure the date is entered in the correct format (dd/mm/yyyy) along with the name of the Chairperson and Director authorising the return Click the form complete button and the system will carry out a validation check. If this identifies any errors please review your input before contacting one of the Financial Analysts listed below. Clicking on the button again will stop the validation check The worksheet has been set-up to print on A4 Landscape on one page. Five ear Financial Projections - User Guide 2013 Page 13 of 37

15 5.5 Comments Select the Comments worksheet. This worksheet has changed from the return. It is now possible to enter context specific data against selected lines. There is also still an opportunity to enter General Comments Please insert any comments into the boxes provided. These comments boxes can also be accessed directly from the Financial Projections and Assumptions worksheet by clicking the hyperlink in the Comments box to the right of certain lines on this sheet shown as <<<<<>>>>>. Once a comment has been entered this box will show See Comment ou can return directly to the Financial Projections and Assumptions worksheet from the Comments worksheet by clicking the Line xx hyperlink in the box to the left of each comments field, headed Click to Return. This will return you to the same area of the Financial Projections and Assumptions worksheet as the comment refers to Comments are limited to 1,000 characters, with the exception of the General Comments which are limited to 2,500 characters The model is now complete and can be saved and closed ready for upload/submission to the Scottish Housing Regulator. Five ear Financial Projections - User Guide 2013 Page 14 of 37

16 6. Upload completed model 6-1. Access the Home Page as detailed in section 2 Getting Started or click on the return to home page option Click on Upload Completed Model 6-3. Then click on the Browse button to show the following page: Five ear Financial Projections - User Guide 2013 Page 15 of 37

17 6-4. When you have located your completed model, which should be named in accordance with the protocol at paragraph 4-6, double click on it to copy its file location to the browse field or click on the file name and click Open to show the file path in the browse field Click on the Upload Return button. If you use a broadband connection, the upload is likely to take seconds. Slower connections will take longer. Do not click the Upload Return button more than once as this can cause problems with the system 6-6. Although this process should be fairly quick, please allow a couple of minutes for the process to complete before calling the helpdesk (See Section 9) 6-7. If the upload is successful, a confirmation message will be displayed as follows and an will be sent to you confirming receipt. NOTE: If you have captured and uploaded the wrong file the message will still show received successfully and the error will only become apparent when the Scottish Housing Regulator opens the file for review. Please take care to submit the correct file Following submission, if you need to amend and resubmit your projections, please call the Helpdesk. See Section 9 Help for details. Five ear Financial Projections - User Guide 2013 Page 16 of 37

18 7. View progress for this return 7-1 The progress of your submission can be reviewed by selecting View Progress for this return from the Home page. i. Model Downloaded you have downloaded the model to your computer. ii. Submission uploaded you have uploaded the completed model to The Scottish Housing Regulator for review. iii. Re-Submission Requested following discussion and review with you, a resubmission has been requested. iv. Submission Uploaded the model has been re-submitted to the Scottish Housing Regulator. Five ear Financial Projections - User Guide 2013 Page 17 of 37

19 8. Print your model 8-1. As the model is Excel based, it can be printed off using the File, Print options on your tool bar From this dialogue box you can then either print: the entire work book all tabs in the model the active sheet you are in one tab on the model, or a selection of the model you have highlighted. Five ear Financial Projections - User Guide 2013 Page 18 of 37

20 9. Help 9-1. Help with this system is provided in the form of the On-line User Guide and Helpdesk support from the Financial Analysis Team. Before contacting the Helpdesk, please ensure that you have read the on-line User Guide. Technical problems may need to be referred to our IT department for specialist attention Helpdesk contacts are individual to your RSL and are stated in the you received with your user name and password. Any queries concerning the FFP return should be directed to Simon Stone in the first instance. If he is unavailable, please contact one of the other analysts listed below: Nigel Gregory Tel: Pauline McFadden Tel: Brendan Ramage Tel: Simon Stone Tel: Five ear Financial Projections - User Guide 2013 Page 19 of 37

21 Data Entry Detail APPENDIX 1 These notes are intended as a helpful guide. However, this return should at all times be completed in accordance with the SORP and Accounting Determination. Financial Projections & Assumptions Row Item Comment / Formulae Comment Field 8 Income & Expenditure Account 9 Blank 10 Gross Rents Gross Rental income due for available socially rented properties in the financial year. This includes Mid-Market Rent, shared ownership and Mortgage to Rent properties, garages and lockups. Enter as a positive number. 11 Service Charges Total charges due for other services provided, e.g. care services, supplied over and above a tenancy. Enter as a positive number. 12 Formula - Gross Rent & Service Line 10 + Line 11 charges 13 Rent loss from voids Rent losses arising from available properties which are vacant. Enter as a positive number. 14 Formula - Net Rent & Service Line 12 - Line 13 charges 15 Developments for sale income Income from the sale of units developed solely for out-right sale, including those to other RSLs. This includes the sale of the first tranche of shared equity properties, but excludes stair-casing sales and RTB income. Enter as a positive number. 16 Other income. All other income not already included in lines 14 or 15. E.g. factoring income, income from management services, income from subsidiaries. Income from the sale of further tranches of shared ownership properties or Right to Buy sales should not be included here but at Line 35. Please provide a comment with further details. Enter as a positive number. 17 Formula - Turnover Sum of lines 14 to 16 Five ear Financial Projections - User Guide 2013 Page 20 of 37

22 18 Blank 19 Housing depreciation Annual depreciation charge on socially rented properties only. Depreciation in relation to other assets recorded under line 28. Enter as a positive number. 20 Impairment written off (back). Impairment on socially rented properties only. Impairment of other assets recorded under line 28. Enter as a positive number. 21 Blank 22 Management costs Total management costs relating to the properties the rent for which is included at Line 10 above. Enter as a positive number. 23 Planned Maintenance - Direct costs 24 Re-active & voids maintenance - Direct costs All direct costs incurred in planned maintenance so far as these costs are revenue expenses. Enter as a positive number. Capitalised expenditure should be recorded on the cashflow and reflected in the movements on the Balance Sheet. All direct costs incurred in reactive and voids maintenance so far as these costs are revenue expenses. Enter as a positive number.. Capitalised expenditure should be recorded on the cashflow and reflected in the movements on the Balance Sheet. 25 Maintenance overhead costs All the indirect costs incurred for all types of maintenance, so far as these costs are revenue expenses. Enter as a positive number.. Capitalised expenditure should be recorded on the cashflow and reflected in the movements on the Balance Sheet. 26 Bad debts written off (back) Include here the write off of bad debts relating to both rental and trade debtors. Enter as a positive number. 27 Developments for sale costs The total cost of properties developed for sale and sold during the period, including the cost of the first tranche element of shared ownership properties sold during the period.. Include costs on developments for ultimate sale to another RSL. Costs incurred on properties developed for sale which remain unsold at the period end should be recorded at Line 58. Enter as a positive number. 28 Other Costs Any other revenue costs incurred not already included in rows 21 to 28, including depreciation or impairment of non-social housing assets, the cost of providing services over and above a tenancy, the costs of managing non-housing properties. Please provide a comment with further details. Enter as a positive number. 29 Formula Sum of lines 22 to Blank 31 Formula - Operating Costs Sum of lines 19, 20 & Exceptional Items (Income) / Expense 33 Formula - Operating surplus (Deficit) Please show exceptional items of income as negative values, and exceptional costs as positive. Please provide a comment to describe the exceptional item(s). Turnover less Operating Costs : Line 17 - Line 31 - Line 32 Five ear Financial Projections - User Guide 2013 Page 21 of 37

23 34 Blank 35 Profit (loss) on sale of fixed assets Surpluses from the sale of all fixed assets including land, buildings, and non-social housing assets. This includes any surpluses derived from the sale of social housing properties, subsequent tranches of shared equity properties and right to buy sales. Properties developed for sale are excluded and should be reported at Line 15. Enter profit as a positive number, losses as a negative number. 36 Interest Receivable and other Includes interest receivable and similar income such as dividend receipts. Enter as income 37 Interest payable and similar charges 38 Blank 39 Formula - Surplus (Deficit) on ordinary activities before tax 40 Blank 41 Tax on surplus on ordinary activities 42 Blank 43 Formula - Surplus (Deficit) for the year 44 Blank a positive number. Includes interest payable and similar financing charges. Interest and similar charges capitalised during the period should not be shown here but at Line 184. Enter as a positive number. Line 33 + Line 35 + Line 36 Line 37 Corporation Tax payable for the period. Enter as a positive number. Line 39 - Line BALANCE SHEET 46 Blank 47 Intangible Fixed Assets Net book value of any intangible fixed assets. Enter as a positive number. 48 Blank 49 Title - Tangible Fixed Assets 50 Housing Properties - Gross cost or valuation Gross cost or valuation of housing properties including social housing properties under construction. Properties under development for sale or for shared equity should not be included here but at line 58. Enter as a positive number. 51 Blank 52 Housing Depreciation Accumulated depreciation of properties included in Line 50. Enter as a positive number. 53 HAG / SHG Accumulated amount of capital grant received, or forecast to be received, in relation to properties included at Line 50. Enter as a positive number. Five ear Financial Projections - User Guide 2013 Page 22 of 37

24 54 Other government grants Accumulated amount of any other government or local authority grants received, or forecast to be received, in relation to properties included at line 50. Enter as a positive number. 55 Negative Goodwill Goodwill is the difference between the fair value of the consideration and the fair value of the underlying assets. Where the value of the underlying assets is greater than the consideration then the goodwill is negative. Although this is negative goodwill it should be entered as a positive number to ensure that the formula at Line 56 works correctly. 56 Formula - Net Housing Assets Line 50 - Sum (Lines 52:55) 57 Blank 58 Investments Net book value of all investments treated as fixed assets. This includes assets for sale. Enter as a positive number. 59 Other fixed assets Net book value of any other fixed assets (such as IT, commercial properties, offices etc) not included in Lines 47, 50 or 58. Enter as a positive number. 60 Formula - Total Fixed Assets Sum lines 47, 56, 58 & Blank 62 Title - Current Assets 63 Net Rental Debtors Total amount of outstanding rent receivable at the end of the period, less any provision for bad rental debt. Any pre-payment of rent should not be netted off, and should be reported as Other Short Term Creditors at Line 71. Enter as a positive number. 64 Other debtors, stock and WIP Total other outstanding amounts receivable at the end of the period, plus the value of any stock held and any assets under construction at the end of the period. Enter as a positive number. 65 Investments (non-cash) Non-cash short term investments not treated as fixed assets. Short term-deposits should be included at Line 66. Enter as a positive number. 66 Cash at bank and in hand Total cash and bank balances, including short term deposits. Overdrafts should be shown at Line 70. Enter as a positive number. 67 Formula - Total Current Assets Sum lines 63:66 68 Blank 69 Title - Creditors : Amounts falling due within One ear 70 Loans & overdrafts due within one year Total amount of any overdrafts or loans due within 12 months including the amount due to be paid to longer term loans within the next 12 months. Enter as a positive number. Five ear Financial Projections - User Guide 2013 Page 23 of 37

25 71 Other short term creditors Any other current liabilities not included in Line 70. Enter as a positive number. 72 Formula - Total Current Liabilities Sum of lines 70 and Blank 74 Formula - Net Current Assets Total Current Assets minus Total Current Liabilities : Line 67 - Line 72 (Liabilities) 75 Blank 76 Formula - Total Assets less current Line 60 + Line 74 liabilities 77 Blank 78 Title - Creditors : Amounts falling due After One ear 79 Loans due after one year The total amount of loans repayable in more than 12 months from period end. Enter as a positive number. 80 Other long-term creditors Other amounts payable in more than 12 months not included in Lines 79 or 82. Enter as a positive number. 81 Formula Creditors due after one Sum of Lines 79 and 80. year 82 Provisions for liabilities and charges Any provisions, less those included at Line 63, that have been set aside in accordance with FRS 12 Provisions, contingent liabilities and contingent assets. Enter as a positive number. 83 Formula Net Assets Total assets less current liabilities, less long term creditors less provisions. Line 76 - Line 81 Line Blank 85 Title - Capital & Reserves 86 Share capital Total value of shares issued 87 Revaluation reserve Net value of all fixed asset revaluations and impairments 88 Restricted, designated and revenue reserves All other reserves not include above Formula in forecast years : Previous years reserves plus current year surplus (deficit): Line 88 (Prior ear) + Line 43. Enter as a positive number. 89 Formula - Total Capital & Sum Lines 85:88. Reserves 90 Blank 91 Pension liability - as included Memo Item. Enter as a positive number. above 92 Intra-Group Debtors - as included Memo Item. Total amounts owed to the RSL from other bodies within the Group. Five ear Financial Projections - User Guide 2013 Page 24 of 37

26 above 93 Intra-Group Creditors - as included above. 94 Blank Enter as a positive number. Memo Item. Total amounts owed by the RSL to other bodies within the Group. Enter as a positive number. 95 CASHFLOW 96 Blank 97 Title - Net Cash from Operating Activities 98 Operating Surplus (Deficit) The Operating Surplus or Deficit for the period. This figure is drawn from Line 33. Surpluses are shown as positive, deficits as negative. 99 Depreciation & Amortisation Add back of the annual charges for depreciation and amortisation for all asset categories. This should normally be entered as a positive value. 100 Impairments / (Revaluation enhancements) Enter the net value required to add back any charge for impairments, or remove any revaluation enhancements, made to fixed assets in the period. Net reductions in asset values should be shown as positive, increases in asset values should be shown as negative. 101 Increase / (Decrease) in Creditors Movement in Creditors from the beginning to the end of the period. Increases should be shown as positive, decreases as negative. For many RSLs this will match the movements in Lines 72 and (Increase) / Decrease in Debtors Movement in Debtors from the beginning to the end of the period. Increases should be shown as negative, decreases as positive. 103 (Increase) / Decrease in Stock & WIP Movement in Stock and Work in Progress from the beginning to the end of the period. Increases should be shown as negative, decreases as positive. 104 Gain / (Loss) on sale of fixed assets The difference between the NBV of an asset and the actual purchase price achieved. Gains over the NBV should be shown as positive, losses should be shown as negative. 105 Other non-cash adjustments Any other non-cash entries included in the Operating Surplus / Deficit that need to be added back. Please provide a comment with additional information. Sum Lines 98: Formula Net Cash from Operating Activities 107 Blank 108 Tax (Paid) / Refunded Enter any tax paid / refunded for the period. Tax paid should be shown as negative, tax received should be shown as positive. 109 Blank Five ear Financial Projections - User Guide 2013 Page 25 of 37

27 110 Title - Returns on Investment and Servicing of Finance 111 Interest Received Include both interest received and similar income. Show as a positive figure. 112 Interest (Paid) Include both interest paid and similar charges. Show as a negative figure. 113 Formula - Returns on Investment Line 111+ Line 112 and Servicing of Finance 114 Blank 115 Title - Capital Expenditure and Financial Investment 116 (Construction or acquisition of Housing properties) Capitalised expenditure on the purchase or development of new or existing (e.g. from another RSL) social housing units. This excludes payments to acquire or develop first tranche shared ownership and units built for outright sale as these are included in the operating surplus / (deficit). It includes the purchase of land for social housing development where development plans are in place. Values should be entered as a negative. 117 (Improvement of Housing) Capitalised expenditure on the improvement of existing properties. This includes component replacement and any capitalised maintenance costs. Values should be entered as a negative. 118 (Construction or acquisition of other Land & Buildings) 119 (Construction or acquisition of other Fixed Assets) Capitalised expenditure on the purchase or development of all other land and buildings, including commercial properties, wider social use properties and land purchased for which development plans are not yet in place ( Land-banking ). Values should be entered as a negative. Capitalised expenditure on the purchase or development of all other fixed assets including vehicles, capital IT and intangible fixed assets. Values should be entered as a negative. 120 Sale of Social Housing Properties The proceeds generated from the sale of social housing properties. This includes RTB receipts, but excludes the proceeds from the sale of first tranche shared equity properties or the sale of units built for outright sale as these are included in the operating surplus / (deficit). It includes income from the sale of subsequent tranches of shared equity / shared ownership properties (stair-casing). Values should be entered as a positive. 121 Sale of other Land & Buildings The proceeds generated from the sale of other land and buildings, such as commercial properties or undeveloped land. It excludes the proceeds from the sale of first tranche shared equity properties or the sale of units built for outright sale as these are included in the operating surplus / (deficit). Five ear Financial Projections - User Guide 2013 Page 26 of 37

28 122 Sale of Other Fixed Assets The proceeds generated from the sale of other fixed assets, such as vehicles. 123 Grants (Repaid) / Received The receipt or repayment of grants towards the cost of the acquisition and construction of housing properties. Transactions should be recorded in the period in which they are actually received / paid, NOT necessarily the period in which the corresponding capital expenditure occurs or liability accrues. Entries may therefore not be in the same year as entries in Line 151. Receipts should be shown as a positive value, repayments as a negative value. 124 Formula - Capital Expenditure and Financial Investment Sum Lines 116: Blank 126 Formula - Net Cash Before Sum Lines 106, 108, 113 & 124 Financing 127 Blank 128 Title Financing 129 Equity Drawdown Net movement in shares 130 Debt drawdown The total value of funds drawn down from all arrangements with a repayment schedule of more than 12 months. This excludes overdrafts and similar arrangements. Values should not be netted off against repayments. Enter as a positive value 131 (Debt repayment) The total value of funds repaid in relation to all arrangements with a repayment schedule of more than 12 months. This excludes overdrafts and similar arrangements. It includes payments made in the last final year of long-term loans. Values should not be netted off against drawdowns. Interest payments should be 132 Working Capital (Cash) Drawn / (Repaid) recorded at line 112. Enter as a negative value. Net value of funds drawn / repaid against overdrafts and similar short term arrangements. Net drawings should be shown as positive, net repayments as negative. Please provide a comment with additional information where required. 133 Formula - Net Cash from Financing Sum Lines 129: Blank 135 Formula - Increase / (Decrease) in Line Line 133 Net Cash) 136 Blank 137 Title - Cash Balance 138 Balance Brought Forward Total cash on hand and at bank at 1 April of the forecast year. This includes short Five ear Financial Projections - User Guide 2013 Page 27 of 37

29 term deposits. Where bank accounts are overdrawn they should be included here with a zero balance, and the overdraft as a current liability. Formula in projected years : Previous years Closing Balance (Line 140) 139 Formula - Increase / (Decrease) in Line 135 net cash 140 Formula - Closing Balance Previous years Closing Balance plus current year Increase / (Decrease) in Net Cash (Line Line 139) 141 Formula Compare closing cash balances on Balance Sheet and Cashflow. Compares value at Line 140 with that at Line 66. Negligible differences are ignored. 143 ADDITIONAL INFORMATION 144 Blank 145 Title - Units: 146 Number of units owned at end of period 147 Number of units managed at end of period (exclude factored units) Number of housing units owned and available for rent at the end of the period. Include any units managed by others, shared equity properties until they have been fully stair-cased, Mid-market and Mortgage to Rent properties. All figures should be whole integers. Formula for projected years : Number of units owned at end of prior year plus changes in-year. (Line Line Line Lines 168:170) Total number of housing units managed and available for rent at the end of the period. Includes units owned by other bodies, but exclude units where RSL is factor only. All figures should be whole integers. 148 Blank 149 Number of new units added during the year. 150 Blank 151 Title - Financed by: This line and line 159 are to be completed in relation to how units are financed, rather than the type of unit. This line relates to the addition of housing units completed / purchased during the period by traditional means. In general it relates to the creation of new-build housing using grant / borrowing. All types of affordable housing should be included Low-cost home ownership / shared equity properties should be counted as whole units until they are fully stair-cased. All figures should be whole integers. The addition of units should be reported in the year in which they become available for rent. Five ear Financial Projections - User Guide 2013 Page 28 of 37

30 152 HAG / SHG The use of grants from the Scottish Government towards the capital investment in new housing units added at line 148. These should be recorded in the year in which units are added at line 148. This may not be the year in which Grant is actually received. The actual receipt of Grant will be recorded at line Other public subsidy The use of grants from other public bodies, including local authorities, towards the capital investment in new housing units. These should be recorded in the year in which units are added at line 148. This may not be the year in which the subsidy is actually received. 154 Private finance Typically this will be the amount borrowed from banks, building societies and other lenders towards meeting the cost of the capital investment in new housing units. These should be recorded in the year in which units are added at line 148. This may not be the year in which the borrowing is actually drawn-down. 155 Sales The use of the proceeds from sales towards the capital investment in social housing units. These should be recorded in the year in which units are added at line 148. This may not be the year in which the receipts are actually received. These should be recorded in the period the proceeds are applied rather than the period in which they are received i.e. the year in which units are added at line Cash Reserves The use of the RSLs own reserves towards the capital investment in new social housing units. These should be recorded in the year in which units are added at line 148. Where reserves reflect the previous receipt of grants or from the sale of properties, this funding should be recorded in lines 151, 152 or Other Any other sums towards the capital investment in new social housing units not already included in Lines 151 to 156. Figures should be included in the year in which units are added at line 148 such that the total of Lines 151 to 156 reflect the total cost of the units added at Line 148. Please provide a comment with additional information. 158 Formula - Total cost of new units Sum Lines 151:156. This should reflect the full capital expenditure on the new social housing units recorded at Line Blank Five ear Financial Projections - User Guide 2013 Page 29 of 37

31 160 Number of other units added during year This line and line 148 are to be completed in relation to how units are financed, rather than the type of unit. This line relates to the addition of housing units completed / purchased during the period by non-traditional means such as SST, MTR etc. All types of affordable housing should be included Low-cost home ownership / shared equity properties should be counted as whole units until they are fully stair-cased. All figures should be whole integers. The addition of units should be reported in the year in which they become available for rent. 161 Blank 162 Title - Financed by: 163 Stock Transfer private finance The use of private finance (borrowing) to fund stock transfer. Figures should be included in the year in which units are added at line Mortgage to rent private finance The use of private finance (borrowing) to fund acquisitions under the mortgage to rent scheme. Figures should be included in the year in which units are added at line Other Any other funding of other housing units not included at lines Figures should be included in the year in which units are added at line 159 such that the total of Lines 162 to 164 reflect the total cost of the units added at Line 159. Please provide a comment. 166 Formula - Total cost of other units Sum Lines 162:164 This should reflect the full capital expenditure on the other housing units recorded at Line Blank 168 Title - Number of Units lost during year from: 169 Sales including Right to Buy Total number of social housing units sold, including those under RTB, during the period. 170 Demolition Number of housing units no longer available for rent through demolition, or being earmarked for demolition, during the period 171 Other Number of housing units no longer available for rent not already included in Lines 168 or 169. Please provide a comment. 172 Blank 173 Title - Assumptions (%) 174 General Inflation The RSL s assumption on the general rate of inflation. In per cent. 175 Rent increase (Margin above general inflation) The margin over the RSL s assumption on general inflation for social rent income. In per cent. E.g. If General Inflation is 3%, and Rent increases are 4%, then you should enter 1% here. Five ear Financial Projections - User Guide 2013 Page 30 of 37

32 176 Operating cost increase (Margin above general inflation) 177 Direct maintenance cost increase (Margin above general inflation) The margin over the RSL s assumption on general inflation for operating costs. In per cent. E.g. If General Inflation is 3%, and Operating Costs increases are 4%, then you should enter 1% here. The margin over the RSL s assumption on general inflation for direct maintenance costs. In per cent. E.g. If General Inflation is 3%, and Direct Maintenance Cost increases are 4%, then you should enter 1% here. 178 Average cost of borrowing Average rate of interest on all types of debt or similar long-term funding arrangements. 179 Employer s Contributions for Enter percentage of salary contributed by employers to employees pension benefits pensions (%) in the period. This should exclude any amounts in relation to deficit recovery plans 180 Employer s Contributions for Enter the total cost of the employers contribution to employees pension benefits in pensions ( 000) the period. This should exclude any amounts in relation to deficit recovery plans. Value should be entered in as a positive value. Total payments due in-year towards SHAPS pensions fund past service deficits excluded from line SHAPS Pensions deficit contributions ( 000s) 182 Blank 183 Capitalised maintenance costs Maintenance costs which have been capitalised during the period. This sum will be included alongside component replacement costs and recorded at Line Capitalised devt admin costs. Not covered by allowances Administration costs relating to development which have been capitalised during the period. This sum will also be included in the figures at Lines 116 to Capitalised interest costs Interest costs which have been capitalised during the period. This figure will be additional to the figures at Line Blank 187 Total staff costs (including NI & pension costs) Total cost of directly employed staff during the period. This should include secondees, and temporary or agency staff employed to cover vacancies or absences, but will exclude professional fees and other contracted out services. Include the pensions deficit contributions reported at line 180. Five ear Financial Projections - User Guide 2013 Page 31 of 37

33 Comments Boxes A number of lines in the return have the facility to add a comment against them. These are indicated in this Appendix by a in the Comments Field column. The Comments box for a given line can be accessed by clicking in the yellow box to the right of the data entry shown as <<<<<>>>>>.. This will take you to the relevant part of the Comments worksheet. When a comment has been entered the yellow box will show See Comment. Comments are limited to 1,000 characters. For reference this note totals around 600 characters. Comments boxes provided against sub-total lines are for general comments on that section, or specific comments in relation to lines in that section which do not have a dedicated Comments box. In addition there is a General Comments box which can be accessed from the yellow box on Line 7. This box is limited to 2,500 characters. Five ear Financial Projections - User Guide 2013 Page 32 of 37

34 RATIOS APPENDIX 2 Primary Ratios Calculation Purpose Financial Capacity Interest Cover (%) (Operating surplus/(deficit) + housing depreciation + impairment + interest receivable - major repairs capitalised - development admin costs (not covered by allowances) capitalised) / (interest payable + interest capitalised) Interest cover adjusted (%) (Operating surplus/(deficit) + housing depreciation + impairment + interest receivable - major repairs capitalised development admin costs (not covered by allowances) capitalised + profit/(loss) on sale of assets) / (interest payable + interest capitalised) Adjusted gross surplus / net debt (%) (Operating surplus/(deficit) + housing depreciation +impairment - major repairs capitalised - development admin costs (not covered by allowances) capitalised) / net debt Net debt / adjusted net surplus (years) Net debt / (net surplus/(deficit) + housing depreciation + impairment - major repairs capitalised - development admin costs (not covered by allowances) capitalised interest capitalised) To indicate the extent to which the interest payable on loans is covered by cash generated from operations. To indicate the extent to which the interest payable on loans is covered by cash generated from operations plus cash generated from sales, including RTBs To indicate what percentage of net indebtedness can be repaid from the annual operating surplus, adjusted to a cash basis To indicate how many years it would take to repay net indebtedness from annual net surplus, adjusted to a cash basis, after interest payments Gearing (%) Net debt / capital & reserves and grants To consider the proportion of debt to retained surplus and grant (similar to debt:equity) Five ear Financial Projections - User Guide 2013 Page 33 of 37

35 Secondary Ratios Calculation Purpose Efficiency Voids (%) Rent loss from voids / gross rents receivable To show the percentage of income lost as a result of properties being void (unoccupied) Arrears (%) Net rental arrears / (gross rents + service charges receivable) To show the level of rent arrears being carried, after provision for doubtful debt Bad debts (%) Bad debts written off / (gross rents + service charges To show the percentage of gross rental & Staff costs / turnover (%) receivable) Staff costs / turnover (excluding turnover from developments for sale) service charge income lost from bad debts. To show the staff costs incurred to generate income Liquidity Quick Ratio (x) Current assets / current liabilities To monitor solvency, and the ability to pay liabilities as they fall due Note: a low ratio may indicate either poor solvency, or good treasury management Profitability Gross surplus / (deficit) (%) Net surplus / (deficit) (%) Gross operating surplus (deficit) (excluding housing depreciation) / turnover (excluding developments for sale) Net surplus (deficit) /excluding housing depreciation/ turnover (excluding developments for sale) To monitor operating performance, before funding commitments To monitor operating performance, after sales, tax and funding commitments Financing HAG & other government (%) (HAG + other government grants) / (gross housing fixed asset cost - Revaluation Reserve) To show the proportion of housing assets funded by grants Net debt per unit ( ) Net debt / number of units owned To show the average amount borrowed, less cash and near cash, to finance each unit owned Debt per unit ( ) Debt / number of units owned To show the average amount borrowed to finance each unit owned Net interest per unit (owned) ( ) (Interest payable interest receivable) / units owned To indicate the average cost of financing for each unit owned. A negative result indicates Five ear Financial Projections - User Guide 2013 Page 34 of 37

36 that the RSL has more cash than debt Net debt : net rent (x) Net debt / (gross rents receivable - rent losses from To indicate the multiplier of net debt/net voids) rental income after void loss. Effective interest rate (%) Interest payable interest receivable / net debt To review the average cost of financing Diversification Income from non-rental activities (%) Growth Turnover growth (%) Operating cost growth (%) Fixed asset growth (%) Net debt growth (%) Capital & reserves growth (%) Definition of debt Definition of net debt Turnover (excluding developments for sale) net rents & service charges) / turnover (excluding developments for sale) To review the proportion of income derived from non-rental or diversified activities Current year turnover (excluding developments for To monitor growth in turnover sale) prior year turnover (excluding developments for sale) / prior year turnover (excluding developments for sale) (Current year operating costs (excluding housing To monitor growth in operating costs depreciation) - prior year operating costs (excluding housing depreciation)) / prior year operating costs (excluding housing depreciation) (Current year net fixed assets prior year net fixed To monitor growth in fixed assets assets) / prior year net fixed assets (Current year net debt prior year net debt) / prior To monitor growth in net debt year net debt (Current year capital & reserves prior year capital & To monitor growth in capital and reserves reserves) / prior year capital & reserves All loans, overdrafts & bridging or development finance All loans, overdrafts & bridging or development finance minus cash and current asset investments Five ear Financial Projections - User Guide 2013 Page 35 of 37