Arhag Annual Report 2019/2020

Contingent Assets The Association has disclosed contingent assets where there is a possible but uncertain obligation for Ekaya Housing Association to repay any funds arising from an overage clause with respect to the land, if Ekaya were to sell the property within 10 years, and any gain arises from the value of the land. Actual payment is contingent upon future disposal of housing properties. Contingent Liabilities The Association has disclosed contingent liabilities where there is a possible but uncertain obligation to repay social housing grant in the future. Actual payment is contingent upon future disposal of housing properties for which the grant was received. The Association also has a total SHGobligation of £11.6m (2019: £11.6m) attributable to the historical acquisition of 197 (2019: 208) units fromone registered provider of social housing. The obligation will only crystallise on the disposal of these units. The total (both recognised as a liability and not recognised) amounts to: 2020 (£’000) 2019 (£’000) Cumulative grant (gross): At the beginning of the year: 57,085 54,998 Movement in year - 2,087 57,085 57,085 A photocopying contract is currently being contested by Arhag. Should the dispute not be found in Arhag’s favour, the maximum estimated cost to the Association would be £12,000. A repairs contract has been terminated, final settlement from Arhag has been made based on the value Arhag believe to be the full and final amount. Should the dispute not be found in Arhag’s favour, the maximum estimated cost to the Association would be £42,000. 15. SHARE CAPITAL 2020 (£) Total shares issued at the beginning of the year 12 Movement (2) At the end of the year 10 The share capital of the Association consists of shares with the nominal value of £1 each issued to Association members. The shares carry no rights to dividends or any other distributions and are not capable of being repaid or provide any benefits to the holder in the event of a winding up of the Association. They carry an entitlement to vote at the Association’s Annual General Meeting. Annual Report 2019-2020 53