Financial Statements 2017 Financial Statements 2017 | Page 69

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