this occurs all authorities must follow the Prudential Code. This involves setting various prudential limits and indicators that must be approved by Full Council.

PUBLIC WORKS LOAN BOARD (PWLB)

A body, now part of the Debt Management Office (a government agency), which lends money to public bodies for capital purposes. At present nearly all borrowers are local authorities. Monies are drawn from the National Loans Fund and rates of interest are determined by the Treasury.

RELATED PARTIES

Two or more parties are related parties when at any time during the financial period:

• One party has direct or indirect control of the other party or
• The parties are subject to common control from the same source or
• One party has influence over the financial and operational policies of the other party to an extent that the other party might be inhibited from pursuing all times its own separate interests or
• The parties, in entering a transaction, are subject to influence from the same source to such an extent that one of the parties to the transaction has subordinated its own separate interests.

RELATED PARTY TRANSACTIONS

A related party transaction is the transfer of assets or liabilities or the performance of services by, to, or for, a related party irrespective of whether a charge is made. The materiality of related party transactions should be judged not only in terms of their significance to the council, but also in relation to its related party.

RENT ALLOWANCE

A subsidy (housing benefit) payable by the council to low-income tenants in private rented accommodation.

RESERVE

The residual interest in the assets of the council after deducting all its liabilities. The Movement in Reserves Statement shows the true economic cost of providing the council's services, represented by the line 'Surplus or (deficit) on the provision of services. Some income and expenditure is required to be recognised on a different basis or in a different accounting period (in accordance with legislation) in the General Fund. These differences are shown in the line 'Adjustments between accounting basis and funding basis under regulations. Voluntary transfers to or from the General Fund balance also affect the amount to be funded from council tax; these are shown in the line 'Transfers to or from reserves available to fund services. The Movement in Reserves Statement also shows Other Comprehensive Income and Expenditure, for example revaluation gains.

RESIDUAL VALUE

Of an asset is the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

REVALUATION RESERVE

From April 2007, this replaced the former Fixed Asset Restatement Account. The Revaluation Reserve, like the Fixed Asset Restatement Account, measures the gains or losses on assets where a revaluation has taken place.