The Registered Housing Associations (Accounting Requirements) (Amendment) Order 1989

Made: 6th March 1989

Laid before Parliament: 10th March 1989

Coming into force: 1st April 1989

The Secretary of State for the Environment as respects England, the Secretary of State for Wales as respects Wales, and the Secretary of State for Scotland as respects Scotland, in exercise of the powers conferred upon them by section 24(1) and (5) of the Housing Associations Act 1985[^f00001], section 55(2) of the Housing Act 1988[^f00002] and of all other powers enabling them in that behalf, hereby make the following Order:

Citation and commencement

1

This Order may be cited as the Registered Housing Associations (Accounting Requirements) (Amendment) Order 1989 and shall come into force on 1st April 1989.

Interpretation

2

In this Order“the principal Order” means the Registered Housing Associations (Accounting Requirements) Order 1988[^f00003] and expressions used in this Order have the same meaning as in the principal Order.

Application

3

This Order applies to the accounts of associations in relation to any period of account ending on or after the date when this Order comes in force.

Amendments to the principal Order

4

• (1) For article 10 of the principal Order there shall be substituted the following:

(10) (1) The Rent Surplus Fund of an association required to maintain such a Fund shall be constituted and shown in the accounts according to the method set out in this article, and in this article“Fund” means Rent Surplus Fund. (2) The surpluses calculated in the manner determined under section 55(3) of the Housing Act 1988 shall be shown as such in the property revenue account. (3) The Fund shall be shown in the balance sheet, and the sums shown under paragraph (2) of this article shall be transferred to that Fund. (4) Where sums stand in the Fund in respect of previous periods, they shall be accumulated with any sums transferred to the Fund in respect of the period of account.

• (2) For the words“Grant Redemption Fund” there shall be substituted the words“Rent Surplus Fund” in the following provisions of the principal Order:

• paragraph 5(d) of Schedule 1 (balance sheet);

• Schedule 2 (income and expenditure account of an association which is not a co-ownership society) on each occasion where they occur;

• Schedule 4 (property revenue account of an association which is not a co-ownership society) on both occasions where they occur; and

• paragraph 2 of Schedule 7 (modified requirements for application to small associations).

• (3) In Schedule 3 (income and expenditure account of a co-ownership society), the words“less transfer to Grant Redemption Fund” shall be omitted.

• (4) In paragraph 5 of Schedule 7, for the words“section 53(3) of the 1985 Act” there shall be substituted the words“section 55(3) of the Housing Act 1988”.

Signed

Nicholas Ridley — Secretary of State for the Environment — 2nd March 1989

Peter Walker — Secretary of State for Wales — 6th March 1989

Malcolm Rifkind — Secretary of State for Scotland — 2nd March 1989

Explanatory note

(This note is not part of the Order)

Section 55 of the Housing Act 1988 provides for a Rent Surplus Fund to be kept by registered housing associations. This section replaces section 53 of the Housing Associations Act 1985 (c. 69) which provided for a Grant Redemption Fund. This Order makes consequential amendments to the Registered Housing Associations (Accounting Requirements) Order 1988 substituting for references to the Grant Redemption Fund references to the Rent Surplus Fund. References to the Grant Redemption Fund in relation to co-ownership societies and almshouses are omitted, as these associations will not be required to maintain Rent Surplus Funds. There is a consequential substitution of a statutory reference in Schedule 7 (modified requirements for application to small associations).

Footnotes

[^f00001]: 1985 c. 69; section 24 is amended by paragraph 17 of Schedule 6 to the Housing Act 1988 (c. 50).

[^f00002]: 1988 c. 50.

[^f00003]: S.I. 1988/395.