Financial Statements 2016 | Page 89

8. Operating surplus Group Group Association Association 2016 2015 2016 2015 £000 £000 £000 £000 The operating surplus is arrived at after charging/(crediting): Depreciation of housing properties (Note 3) 7,929 6,979 4,373 3,617 Depreciation of Social/Non Social Housing (Note 2) 114 129 671 881 Less: write off component disposals/increased on disposals (346) (357) (204) (110) Depreciation Charge 7,697 6,751 4,840 4,388 Depreciation of other tangible fixed assets 1,762 1,945 1,003 1,067 Auditors’ remuneration (excluding VAT) Fees payable for the audit of the financial statements 118 161 41 54 In respect of other services 26 44 3 5 Operating lease payments 1,604 1,015 311 272 Repairs and maintenance expenditure 10,768 10,440 5,590 5,651 In addition £4.851 million of repairs has been capitalised in the year 2016 (2015: £4.718 million) 9. Taxation on surplus on ordinary activities No Corporation Tax charge arises in the Association as a result of an exemption due to charitable status (2015: £Nil). The Group Corporation Tax charge is within bchs and arises on management services provided to Co-operatives within Birmingham and the Black Country. Financial Statements 2016 87