Purpose

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

Content

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.