Decision details

Legacy Adjustments to the Housing Revenue Account (HRA) EXE24-083

Decision Maker: Executive

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

To agree legacy adjustments to the Housing Revenue Account (HRA).

Decision:

The Executive RESOLVED

That  (i)    the additional work since the setting of the budget identifying the further £782k reduction in historic recharges to the Housing Revenue Account (HRA) be noted;

          (ii)   it be noted that this results in a cumulative adjustment of £2.9 million to the benefit of HRA reserves, improving the financial stability of the HRA;

          (iii)  it be noted that an impact on the General Fund of £2.1 million was included in the 2024/25 budget and that the further impact of £782k can be covered by the Capitalisation Direction provisionally approved by the Government; and

          (iv)  it be noted that the interest on balances of £460k will improve the HRA reserves and improve its viability. The impact on the General Fund can be covered by the Capitalisation Direction provisionally approved by the Government.

Reason:   To correct the historic accounting treatment of recharges and interest receipts debited and credited to the HRA, increasing the HRA reserve balance accordingly.

Reason Key: It is likely to result in the Council incurring significant expenditure or savings.;

Wards Affected: (All Wards);

Recommend to Council?: No;

Consultees

Cllr Roberts, Portfolio Holder.

Contact: Stephen Fitzgerald, Strategic Director for Finance (Section 151 Officer) Email: stephen.fitzgerald@woking.gov.uk.

Report author: Stephen Fitzgerald

Publication date: 13/09/2024

Date of decision: 12/09/2024

Decided at meeting: 12/09/2024 - Executive

Effective from: 21/09/2024

Accompanying Documents: