Sch 18 para 4
(1) In Part VI of the Local Government and Housing Act 1989 (housing finance), after section 78 (directions as to proper accounting practices) insert— Directions as to treatment of service charges, &c. (78A) (1) The Secretary of State may give directions as to what items or amounts are to be regarded as referable to property within a local housing authority’s Housing Revenue Account where one or more parts of a building have been disposed of but the common parts remain property within that account. (2) Any such direction also has effect for the purposes of any Housing Repairs Account kept by the authority. (3) Directions under this section may give the authority a discretion as to whether items or amounts are accounted for in the Housing Revenue Account or any Housing Repairs Account or in another revenue account. (4) In this section “ common parts ” includes the structure and exterior of the building and common facilities provided, whether in the building or elsewhere, for persons who include the occupiers of one or more parts of the building. Directions as to accounting for work subject to competitive tendering. (78B) (1) This section applies where work is carried out by a local housing authority which has successfully bid for the work on a competitive basis. (2) The Secretary of State may give directions— (a) to secure that the amount debited to the Housing Revenue Account or any Housing Repairs Account of the authority in respect of the work reflects the amount of the authority’s successful bid for the work rather than expenditure actually incurred; (b) allowing an authority to credit to its Housing Revenue Account any surpluses reasonably attributable to work undertaken on or in connection with property within that account. (3) Directions under subsection (2)(a) may make provision for determining the amount to be treated as the amount of the authority’s successful bid. References in this Part to expenditure shall be construed as references to the amount falling to be debited in accordance with the directions. (4) Directions under subsection (2)(b) may make provision as to the ascertainment of the surpluses referred to and the circumstances in which a surplus is or is not to be taken to be attributable to property within an authority’s Housing Revenue Account. (2) The above amendment has effect for the financial year beginning on 1st April 1997 and subsequent financial years.