The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Chartered Institute of Housing (CIH) have today launched a new joint Voluntary Code of Practice for local authorities for use with their Housing Revenue Accounts (HRA).
The voluntary code, coproduced by CIPFA and CIH, aims to give local authorities the tools necessary to control and evaluate the performance of their HRA and increase the value it returns to both councils and rate payers. It expands upon areas not previously covered by legislation or guidance and will help authorities assess and develop effective governance and financial management frameworks for their HRA so that local authorities that abide by the code can be assured that their HRA is being managed appropriately.
Alongside the release of the code, CIPFA has also launched a unique, IT based, HRA Self-financing Performance Toolkit, which generates an in-depth assessment for local authorities to judge their performance against a series of benchmarks.
CIPFA’s Lead Housing Advisor, Dr Louise Dunne commented:
“This code will give assurance to local authorities in accounting for the management of their Housing Revenue Account to tenants, rate payers and government.
“When resources are stretched and budgets are tight, local authorities need something to help them realise their goals easily and cost effectively. The new joint CIPFA and CIH code alongside CIPFA’s new toolkit provides just that.”
Ben Taylor, Assistant Director at CIH consultancy, said:
“Local Authorities need to ensure they have appropriate arrangements in place to manage their self-financed HRA. This principles based code will give a framework to stock owning councils to help the HRA remain viable while contributing fully to meeting housing needs in a way that is accountable to tenants, members and other stakeholders.”
The Chartered Institute of Housing (CIH) is the independent voice for housing and the home of professional standards. Our goal is simple – to provide housing professionals with the advice, support and knowledge they need to be brilliant. CIH is a registered charity and not-for-profit organisation. This means that the money we make is put back into the organisation and funds the activities we carry out to support the housing sector. We have a diverse and growing membership of more than 22,000 people who work in both the public and private sectors, in 20 countries on five continents across the world.