36 BCa/21/15 HOUSING REVENUE ACCOUNT (HRA) FINANCIAL OUTTURN 2020/21 PDF 221 KB
Cabinet Member for Finance
Decision:
It was RESOLVED:-
1.1 That the 2020/21 HRA financial outturn as set out in this report benoted.
1.2 That the transfer of £2.941m, being the HRA revenue surplus for the year (£2.607m more than planned) as per paragraph 6.4, to the Strategic Priorities Reserve be approved.
1.3 That the HRA capital carry-forward requests referred to in paragraph 6.18 of this report totalling £10.323m be approved.
Reason for Decision:-
To ensure that Members are kept informed of the outturn position for both HousingRevenue andCapital andto approveearmarked reservetransfers and carry forwardrequests.
Alternative Options Considered and Rejected: Transfer funds of £2.941m to the Strategic Priorities earmarked reserve and not support the carry forward of £10.323m HRA capital costs. This was not the recommended option because there would be insufficient capital resources available in 2021/22 to complete the schemes in progress.
Any Declarations of Interests Declared: None
Any Dispensation Granted: None
Minutes:
36.1 The Cabinet Member for Finance, Councillor Ward provided Members with a summary of significant areas in the report.
36.2 Councillor Ward proposed the recommendations in the report. This was seconded by the Cabinet Member for Housing, Councillor Osborne.
36.3 Councillor Arthey referred to the income variance for rents and asked for clarification for the variance referred to in paragraph 5.2 and 6.6 of the report.
36.4 The Assistant Director for Housing stated that the rents had been set too low and that this was an adjustment to the budget.
36.5 Councillor Busby questioned the adverse variance of £1m due to the increase of the value of the Council’s properties and asked where this was shown in the budget.
36.6 In response the Assistant Director for Corporate Resources provided details of the accounting methods of the General Fund and the Housing Revenue Accounts. Properties had to be valued each year as part of the Statement of Accounts. Depreciation for housing did impact on the HRA account and was a real charge. The increase of valuation of properties had decreased the depreciation of the properties. The increase in value of the properties were shown in the balance sheet.
It was RESOLVED:-
1.1 That the 2020/21 HRA financial outturn as set out in this report benoted.
1.2 That the transfer of £2.941m, being the HRA revenue surplus for the year (£2.607m more than planned) as per paragraph 6.4, to the Strategic Priorities Reserve be approved.
1.3 That the HRA capital carry-forward requests referred to in paragraph 6.18 of this report totalling £10.323m be approved.
Reason for Decision:
To ensure that Members are kept informed of the outturn position for both HousingRevenue andCapital andto approveearmarked reservetransfers and carry forwardrequests.