8. OPERATING SURPLUS
2017 2016
£’000
£’000
The operating surplus is arrived at after charging/(crediting):
Depreciation of housing properties (Note 3)
7,437
7,929
Depreciation of Social/Non Social Housing (Note 2)
122
114
Less: write off component disposals/increased on disposals
(280)
(346)
Depreciation Charge
7,279
7,697
Depreciation of other tangible fixed assets
1,656
1,762
Auditors’ remuneration (excluding VAT)
Fees payable for the audit of the financial statements
117
118
In respect of other services
59
26
Operating lease payments
1,672
1,604
Repairs and maintenance expenditure
10,918
10,768
In addition £3.602 million of repairs has been capitalised in the year (2016: £4.851 million)
9. TAXATION ON SURPLUS ON ORDINARY ACTIVITIES
The Corporation Tax charge arises on management services provided to Co-operatives within Birmingham and the Black Country.
Financial Statements 2017
67