Statutory Instruments
2004 No. 556
LOCAL GOVERNMENT, ENGLAND
The Accounts and Audit (Amendment) Regulations 2004
Made
3rd March 2004
Laid before Parliament
10th March 2004
Coming into force
1st April 2004
The First Secretary of State, in exercise of the powers conferred upon him by section 27 of the Audit Commission Act 1998( 1 ) and of all other powers enabling him in that behalf, and after consulting in accordance with section 27(3) of the 1998 Act, the Commission, such associations of local authorities as appear to him to be concerned and such bodies of accountants as appear to him to be appropriate, hereby makes the following Regulations—
Citation, commencement and application
1. —(1) These Regulations may be cited as the Accounts and Audit (Amendment) Regulations 2004 and shall come into force on 1st April 2004.
(2) These Regulations shall apply in England only( 2 ).
Amendment of the Accounts and Audit Regulations 2003
2. Subject to regulation 3 of these Regulations, in regulation 7 of the Accounts and Audit Regulations 2003 (statement of accounts)( 3 ), for paragraph (5) there shall be substituted—
“ (5) In the case of a local authority which is required by section 74 of the 1989 Act (duty to keep Housing Revenue Account) ( 4 ) to keep a Housing Revenue Account, the statement of accounts required by paragraph (1) shall include also an account in respect of a reserve for major repairs to property of the authority to which section 74(1) of the 1989 Act for the time being applies (to be called a major repairs reserve), showing in particular—
(a) a credit of an amount in respect of any change for depreciation included in the Housing Revenue Account for that year under item 8 of Part II of Schedule 4 to the 1989 Act;
(b) a debit in respect of any capital expenditure, within the meaning of section 16 of the Local Government Act 2003 (“capital expenditure”) ( 5 ) , which was—
(i) incurred in that year;
(ii) met by payments out of the major repairs reserve; and
(iii) in respect of any land, houses or other property to which section 74(1) of the 1989 Act for the time being applies, other than capital expenditure for the purpose of demolition of any such property;
(c) a debit in respect of any repayment, made in that year, of the principal of any amount borrowed where the repayment was met by payments out of the major repairs reserve; and
(d) a debit in respect of the meeting of any liability, in that year, in respect of credit arrangements, other than any liability which, in accordance with proper practices, must be charged to a revenue account, where the meeting of that liability was met by payments out of the major repairs reserve. ” .
Saving
3. Nothing in these Regulations shall affect any requirements in respect of accounts for the 12 months ending on 31st March 2003 or in respect of accounts for the 12 months ending on 31st March 2004.
Signed by authority of the First Secretary of State
Nick Raynsford
Minister of State,
Office of the Deputy Prime Minister
3rd March 2004
1998 c. 18 (“the 1998 Act”).
The Secretary of State’s functions under the 1998 Act, so far as exercisable in relation to Wales, are transferred to the National Assembly for Wales by article 2 of the National Assembly for Wales (Transfer of Functions) Order 1999 ( S.I. 1999/672 ); see the entry in Schedule 1 for the 1998 Act.
Section 74 is amended by section 222 of and paragraph 24(2) of Schedule 18 to the Housing Act 1996 (c. 52) .