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Publication - Guidance

Guidance on the operation of Local Authority Housing Revenue Accounts (HRAs) in Scotland

Published: 3 Mar 2014
Part of:
Housing
ISBN:
9781784123093

Guidance relating to the role of Housing Revenue Accounts (HRA).

55 page PDF

1.5MB

55 page PDF

1.5MB

Contents
Guidance on the operation of Local Authority Housing Revenue Accounts (HRAs) in Scotland
Appendix 1

55 page PDF

1.5MB

Appendix 1

Table 1, Appendix: 1 HRA chargeable expenditures comparison

Schedule 15 Housing (Scotland) Act 1987 Service Expenditure (Objective) Analysis Scottish Government ( SG) HRA Statistical Return
Actual text of legislation Plain English version CIPFA coding Divisions and subdivisions SG coding Categories of HRA expenditure recorded by Scottish Government Statistical Return
Reference 1. Loan charges 1209 Depreciation and impairment of fixed assets 1.0 Loan charges
Section (a) the loan charges which the local authority are liable to pay for that year 'in respect of money borrowed by a local authority for the purpose of: Capital and interest payments on outstanding HRA debt 10740 Depreciation and impairment - dwellings 1.1 Debt principal
(i) the provision by them after 12th February 1919 of housing accommodation under the enactments referred to in paragraph New build council housing 10741 Depreciation and impairment - hostels 1.2 Debt interest
(ii) the provision or improvement by them of dwellings in 'accordance with improvement proposals approved by the 'Secretary of State under section 2 of the Housing (Scotland) Act 1949 c. 61 1949 or under section 105 of the Housing (Scotland) Act 1950 or 1950 c. 34. 'under section 13 of the Act of 1968 Capital improvements to existing housing 10742 Depreciation and impairment - all other HRA assets. 1.3 Debt management expenses
(iii) meeting expenditure on the repair of houses and other property to which the account relates Capital repairs to HRA properties
(iv) the improvement of amenities of residential areas under section 251 on land to which the account relates, Capital expenditure on residential amenities (but included at a time when estates were predominantly council estates and not multi-tenure)
(v) the alteration, enlargement or improvement under section 2(3) of any house Capital works (alteration, enlargement or improvement under section 2(3) of any house)
2. Supervision and management 1206 Supervision and management 2.0 Supervision and management (with sub-divisions of dwellings, hostels and other HRA properties)
Section (c) the expenditure incurred by the local authority for that year in respect of the repair, maintenance, supervision and management of houses and other property to which the account relates, other than the expenditure incurred by them in the administration of a rent rebate scheme; Supervision and management of HRA property excluding the administration of housing benefit which is General Fund expenditure 10715 Policy and management 2.1 Records of properties and tenants
10716 Managing tenancies 2.2 Waiting lists and application processing
10733 Rent collection and accounting 2.3 Lettings, tenancy agreements and transfers
10738 Special services 2.4 Rent collection and accounting
10739 Hostels 2.5 Advice services to actual or prospective council tenants
2.6 Property insurance
2.7 Caretaking
2.8 Cleaning
2.9 Grounds maintenance
2.10 Management of planned maintenance or modernisation programmes e.g. SHQS
2.11 Administration of repair requests from tenants
3. Repairs and maintenance 1205 Repairs and maintenance 3.0 Repairs and maintenance (with sub-divisions of dwellings, hostels and other HRA properties)
Section (c) the expenditure incurred by the local authority for that year in respect of the repair, maintenance, supervision and management of houses and other property to which the account relates, other than the expenditure 'incurred by them in the administration of a rent rebate scheme; Repair and maintenance of HRA property excluding the administration of housing benefit which is General Fund expenditure 10712 Responsive 3.1 Planned repairs and improvements: to maintain current property standards (eg. re-painting, replacing windows)
10713 Planned 3.2 Responsive repairs as requests arise (eg. to fix a broken window)
10735 Void repairs 3.3 Void repairs to make property suitable for reletting
10736 Special services 3.4 Running costs and maintenance of shared services: heating, lighting, lifts, concierge schemes.
10737 Hostels 3.5 Staff costs for third-party tradesman carrying out repairs and other similar expenditure such as recharges to the HRA from trading operations
4. Rent arrears and void rent losses 1210 Bad or doubtful debts 4.0 Movement in allowances for bad debts
Section (e) the arrears of rent which have been written off in that year as irrecoverable, and the income receivable from any houses to which the account relates during any period in that year when they were not let Rent arrears written off (rent arrears being still being pursued are not charged to the HRA until they are declared written off) and rents not collected due to voids 10743 Increase/reduction in provision. 4.1.1. Dwellings - Movement in allowances for bad debts
4.1.2 Hostels - Movement in allowances for bad debts
4.1.3 Other HRA properties - Movement in allowances for bad debts
5. Taxes, feuduties, rents and other charges 1211 Rent, rates, taxes and other charges 5.0 Other expenditure
Section (b) the taxes, feuduties, rents and other charges which the local authority are liable to pay for that year in respect of houses and other property to which the account relates; Council tax, water charges and other charges of empty HRA properties that are charged by the Council 10744 Lease rentals 5.1 Expenditure on housing stock which is no longer available for letting, such as that awaiting demolition (security etc.)
10745 Vacant properties: council tax 5.2 Costs associated with the maintenance of shops, lock-ups, garages etc. held on the HRA.
10746 Vacant properties: rent 5.3 Costs incurred on owner-occupied stock which should be re-charged to the HRA
10747 Irrecoverables 5.4 Council tax on void properties, rents and rates.
10748 Rates and water charges payable on nondwellings. 5.5 Rebates for protected tenants on housing support
5.6 Other miscellaneous payments that are not part of the normal upkeep of properties, or normal dealings with tenants.
6. Direction from Scottish Ministers
Section (g) such other expenditure incurred by the local authority as the Scottish Ministers direct shall be debited to the housing revenue account Any expenditure not listed above that is directed by Scottish Ministers

Table 2, Appendix: 1 HRA income comparison

Schedule 15 Housing (Scotland) Act 1987 Service Expenditure (Objective) Analysis Scottish Government ( SG) HRA Statistical Return
Actual text of legislation Plain English version CIPFA coding Divisions of service (Mandatory) Subdivisions of service (Discretionary) SG coding Categories of HRA expenditure recorded by Scottish Government Statistical Return
Reference 1. Rental income 1. Dwelling rents (Gross) 6.0 Rental income from lettable dwellings
Section (a) the income receivable by the local authority from standard rents; This is rents from houses, garages, shops, land and any other assets 6.1 Gross rents
6.2 Loss of rents from voids
6.3 Net rent income
2. Other income relating to taxes and service charges 2. Non-dwelling rents (Gross) 7.0 Rental income from Hostels
Section (b) any income receivable by the local authority for that year in respect of service charges, supplementary charges, feuduties and any other charges in respect of houses and other property to which the account relates; Other income which does not come from standard rents (a) Garages 7.1 Gross rents
(b) Shops 7.2 Loss of rents from voids
(c ) Rental from land 7.3 Net rent income
3. Housing Support Grant 3. Housing support grants 8.0 Rental income from other HRA assets/properties
Section (c) the housing support grant payable to the local authority for that year; Housing Support Grant was a revenue grant paid by Scottish Government that was paid to local authorities who had difficulty balancing their HRA. It was abolished from April 2013. (a) Housing support 8.1 Gross rents
(b) Hostel support 8.2 Loss of rents from voids
8.3 Net rent income
5. Investment income 4. Leasehold service charges 9.0 Service charges to tenants
Section (g) income, and receipts in the nature of income, being income or receipts arising for that year from the investment or other use of money carried to the account; This includes interest on any cash balances in the HRA plus income from any HRA investments 10.0 Government Grants ( HSG and Hostels)
10.1 Housing support grant
10.2 Hostel grant
6. Direction from Scottish Ministers 5. Charges for welfare services 10.3 Other government grants
Section (i) such other income of the local authority as the Scottish Ministers may direct Any income not listed above that is directed by Scottish Ministers to the HRA 11 Interest received
Section (5) For any year, the local authority may, with the consent of the Secretary of State, carry to the credit of the account, in addition to the amounts required by the foregoing provisions of this Schedule, such further amounts, if any, as they think fit. Any income not listed above that local authorities wish to go to the HRA but only with Scottish Ministers consent 7. Other income 12 Other income
12.1 Non-rental income relating to hostels
12.2 Payments from owner occupiers which are credited to the HRA.
12.3 Commissions, legal fees etc.
6. Hostels
8. Sums directed by Scottish Ministers that are income in accordacne with IFRS

Table 3 Chartered Institute of Public Finance and Accountancy

Service Expenditure (Subjective) Analysis
Code Divisions and subdivisions
501 Employees
5001 Direct employee expenses
5002 Indirect employee expenses
5003 Contributions to employee-related provisions
5004 Debits relating from soft loans - employees
502 Premises-related expenditure
5005 Repairs, alterations and maintenance of buildings
5006 Energy costs
5071 CRC allowances
5007 Rents
5008 Rates
5009 Water services
5010 Fixtures and fittings
5011 Apportionment of expenses of operational buildings
5012 Cleaning and domestic supplies
5013 Grounds maintenance costs
5014 Premises insurance
5015 Contributions to premises-related provisions
503 Transport-related expenditure
5016 Direct transport costs
5017 Recharges
5018 Contract hire and operating leases
5019 Public transport
5020 Transport insurance
5021 Car allowances
5022 Contributions to transport-related provisions
504 Supplies and services
5023 Equipment, furniture and materials
5024 Catering
5025 Clothes, uniform and laundry
5026 Printing, stationery and general office expenses
5027 Services
5028 Communications and computing
5029 Members' allowances
5030 Expenses
5031 Grants and subscriptions
5032 Private Finance Initiative and Public Private Partnership schemes
5033 Contributions to provisions
5034 Miscellaneous expenses
505 Third party payments
5035 Independent units within the council
5036 Joint authorities
5037 Other local authorities
5038 Health authorities
5039 Government departments
5040 Voluntary associations
5041 Other establishments
5042 Private contractors
5043 Other agencies
5044 Transport operators (in respect of concessionary fares)
5045 Debits relating from soft loans - third party payments
506 Transfer payments
5046 Schoolchildren and students
5047 Adult Social Services clients (Social Work clients in Scotland)
5048 Housing benefits
5049 Debits relating from soft loans - transfer payments
507 Support services
5050 Finance
5051 IT
5052 Human Resources
5053 Property Management/Office Accommodation
5054 Legal Services
5055 Procurement Services
5056 Corporate Services
5057 Transport Functions
508 Depreciation and impairment losses
5058 Depreciation
5059 Revaluation losses
5060 Loss on impairment of assets
5061 Amortisation of intangible fixed assets
5062 Movement in fair value of investment property
509 Income
5063 Government grants
5064 Other grants reimbursements and contributions
5065 Customer and client receipts
5066 Interest
5067 Recharges
5068 Credits resulting from soft loans
510 Capital financing costs
5069 Interest payments
5070 Debt management expenses

Table 4 Appendix 1: CIPFA Service Expenditure Analysis for housing-related activities

General Fund Revenue Account Scotland 2012-13 and 2013-14 Final
Divisions and subdivisions
108 Housing Services
1069 Housing strategy
1122 Registered social landlords
1071 Housing advice
1072 Housing advances
1073 Private sector housing renewal
10360 Administration of renovation and improvement grants
10192 Renewal activity
10361 Control orders
10362 Closing orders
10363 Slum clearance (unsubsidised)
10364 Slum clearance (subsidised).
1075 Homelessness
10201 Hostels (non- HRA support)
10202 Bed/breakfast accommodation
10365 Leasehold dwellings
10209 Other temporary accommodation
10366 Homelessness administration.
1076 Housing benefits payments
10367 Rent allowances paid
10214 Non- HRA rent rebates
10368 Discretionary additions in respect of HRA rebates.
1123 Rent rebates
10369 Rent rebates
1077 Housing benefits administration
10370 Rent allowances
10371 Rent rebates
1124 Contribution to the HRA
1079 Other council property
10218 Travellers' sites
10372 Non- HRA council property.
1125 Welfare services
1126 Housing support services (supporting people)
10373 Administration and commissioning costs
10374 Payments to providers.

Contact

Email: HRA Guidance