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

MINISTERIAL FOREWORD

Margaret Burgess
Minister for Housing and Welfare

I am very pleased to introduce this Guidance on the Operation of Local Authority Housing Revenue Accounts ( HRAs) in Scotland.

Council tenants are coming under greater and greater financial pressures which means Scottish Government must do all it can to help. The Housing (Scotland) Act 1987 set out the requirements for local authorities to maintain a dedicated housing revenue account in relation to their housing stock. This Guidance summarises the legal basis for having a separate council landlord account and lists the accounting and auditing protocols which local authorities must adhere to when submitting their housing accounts to Audit Scotland.

The aim of the Guidance is to ensure that tenants of local authorities receive the maximum benefit from their rents and ultimately the best standards of service. It will assist in promoting consistency in the way in which HRAs operate in Scotland and in by promoting the efficient use of resources. It will also help ensure transparency in the operation of the account and the recording of financial information so that tenants can better understand how their housing service is delivering benefit to them and at what cost in line with the requirements of the Scottish Social Housing Charter

A wide range of organisations and individuals have contributed to the drafting of this guidance and towards its quality assurance. I would like to thank those involved and, in particular, would like to mention the significant contributions made by Registered Tenant Organisations, the Chartered Institute of Public Finance and Accountancy ( CIPFA) Scotland, Audit Scotland, the Convention of Scottish Local Authorities ( COSLA), the Chartered Institute of Housing ( CIH) and numerous local authority housing professionals who prepare housing revenue account returns.

My officials will continue to monitor the relevance and effectiveness of this guidance and will publish updates as required. We would be happy to receive comments which can be sent to hraguidance@scotland.gsi.gov.uk. However, if tenants or their representatives have specific concerns about the way in which housing revenue accounts are operating they should, in the first instance, contact one of a number the relevant organisations detailed in section 10 of the Guidance.

Margaret Burgess