Salix Grants/Loan

Has anyone used Salix to fund capital schemes - if so how did you treat the funding? Grant or a loan? and did you charge internal interest?

Thanks in advance for any advice.
  • Hi Lisa. We use Salix loans to fund capital expenditure and treat the expenditure as being funded from borrowing. The receipt from Salix is treated as a loan liability in the Council's balance sheet. The half yearly repayments are taken to the balance sheet to reduce the loan liability. An amount equal to the annual repayment is charged as MRP in the Council's accounts with a credit to the CAA. No internal interest is charged.
  • We've followed the same logic as Stuart - for a number of small loans to Schools. Though to be honest the accounting hassle (especially when schools academise with a loan outstanding)is probably more than the tiny interest saving is worth, so would advise anyone else thinking of taking out such loans to factor that in.
  • Hi Lisa

    I know this is an old post but we are coming up against the same questions.  How did you account for it and how did you treat it under CFR as the advice conflict with The Code of Practice.  I am guessing you are through audit and they have agreed what you did by now.

    Any advice offered would be much appreciated.