Purpose

Consideration and potential rectification of
the financial issues arising from the review.

Content

Resolved

That (i)   a total
amount of £3,841,106 be transferred from the General Fund to
the HRA to rectify the Sheerwater Estate Regeneration Project
transactions originally charged to the HRA;

       
(ii)  interest of £649,476 be
transferred from the General Fund to ensure the HRA is fully
compensated;

       
(iii)  it be noted that the transfer of
the Yellow Phase land remains paused, and a report will be brought
back to Executive on the land transfer;

        (iv) the total
impact on the General Fund of £4.49 million will be funded by
an existing legacy risk reserve. This reserve has been established,
specifically to manage HRA legacy risks, through the existing
Capitalisation Directives provisionally approved by the
Government;

       
(v)  the Strategic Director for Finance
should make the necessary changes to the relevant budgets and the
associated accounting entries; and

        (vi) it be
noted that approved Debt Standstill and Cash Sweep arrangements
will remain in place to ensure the Council continues to recover
surplus cash from ThamesWey Group.