Consultation: Public Financial Management and CIPFA’s Whole System Approach

CIPFA would like your comments about our new paper: Public Financial Management (PFM) and the PFM International Architecture – A Whole System Approach.  Details on the consultation and how to provide feedback may be viewed here.

Comments should be received by 5 March 2010

CIPFA Statement on the Role of the Chief Financial Officer in Local Government

Last summer CIPFA launched its Statement on the Role of The Chief Financial Officer in Public Services. Following the launch of the overarching statement, we have now updated our 2003 Statement on the Role of the Finance Director in Local Government. The was approach has been to follow closely the format and principles of the overarching statement but to add in as necessary additional content relating to the unique statutory position of the role in local government.

Download PDF [168KB]

Application Note to Delivering Good Governance in Local Government: Framework

The Application Note advises on the application of the Statement on the Role of the Chief Financial Officer in Local Government under the CIPFA/SOLACE Framework Delivering Good Governance in Local Government. It illustrates :

• how the governance requirements to support the principles in the CFO statement build on the governance requirements that need to be reflected in an authority’s local code set out in the CIPFA/SOLACE Framework and guidance note

• how the annual governance statement can reflect compliance with the CFO statement for reporting purposes.

Please download the consultation by clicking HERE. Comments are requested by 29 January 2010.

Transport Infrastructure Assets Code:
Guidance to support asset management, financial management and reporting

In 2006 H M Treasury and the Department for Transport commissioned CIPFA to carry out a review of accounting, management and finance mechanisms for local authority transport infrastructure assets. The final review report was issued in 2008, following extensive consultations, and the Government’s response, which accepted the review’s findings and recommendations, was published in January 2009. To support implementation, the Government asked CIPFA to produce a new Code that would deliver robust, consistent financial information to support transport asset management, financial management and reporting.

The main driver for the Code is to help transport authorities to develop robust, consistent information to support effective management of the assets, to understand the true costs of holding and maintaining them and to deliver improved long term value for money and service improvements to users. In the 2009 Budget Report, implementation of the Code was included in the Public Value Programme because of its potential to help authorities to deliver efficiency savings.

A key principle is that the same data and systems serve all the potential uses for the Code generating asset management financial data in a form that can be readily used to report the assets on a current value basis in Whole of Government Accounts. H M Treasury is setting a timetable for a gradual transition to reporting on this basis for highways assets, building up to a full audited dry run in 2011/12 and the withdrawal of historic cost based reporting from 2012/13, and will be providing more detailed guidance shortly.

A draft of the Code has now been published for consultation.

Other materials to support implementation, are also available.

A set of specific consultation questions are below (and can also be downloaded from here). However, we would also welcome views on any aspect of the report or the draft Code. Consultation responses will be used to inform the final version of the Code to be published next February.

This version of the Code applies to local highway infrastructure and has been developed in conjunction with the Highways Asset Management Financial Information Group (HAMFIG) which includes representatives from England, Scotland and Wales. The intention is that once this version is finalised, a further version will be produced to cover other local transport network assets, ie tram, light rail and underground systems. One aim of the present consultation therefore is to seek the views of authorities who hold such networks on the further work needed to support their asset management and financial management.

Responses should be submitted, preferably by e-mail, so that they will be received by 14 December 2009. All comments will be considered a matter of public record.

Comments should be sent to:

Gail Main
Policy and Technical Directorate
CIPFA
3 Robert Street
London
WC2N 6RL

Tel: 020 7543 5677
Email: gail.main@cipfa.org.uk

Questions for Consultation

1. Do you agree that the Code meets the purposes stated in section 1.1.
   
   
2. Are the tools to support implementation of the Code helpful and appropriate? Is anything else required?
3. Is the relationship to other guidance clear?
   
   
4. Do you have any comments on the amended asset classification and its proposed use?
   
   
5. Is the description of the building blocks and the way they are used in the high level model clear and appropriate? Is any further guidance required on this?
   
   
6. GRC – the approach in the code is designed so that so long as authorities develop reasonable inventory, the process of calculating GRC should be relatively quick and straightforward. Has this object been achieved? Is the guidance clear? Is anything further required?
   
   
7. Is the approach to calculating depreciation set out in section 7 clear and appropriate? Is anything further required?
   
   
8. Is the detailed guidance on the application of the code to individual asset types, including interim solutions to deal with present data deficiencies, clear and appropriate? Is anything further required?
   
   
9. Are there any further issues that need to be addressed in the code or where more detailed guidance or exemplification would be helpful?
   
   
10. The intention is to extend the Code to support asset management and financial management of other local transport network assets, i.e. tram, light rail and underground systems. Would changes need to be made to the high level principles, building blocks and financial model to support this and what additional guidance and supporting materials will be required?

Treasury Management Code – comments sought to help complete the revision process

Your comments are sought to help CIPFA’s Treasury Management Panel complete the revision process of the Treasury Management Code.

The suggested revisions are shown in the PDF consultation document

Please send any comments to mandy.bretherton@cipfa.org.uk by 18 September 2009. Many thanks in advance for your consideration.

Best Value Accounting Code of Practice 2010/11 - Consultations

Two consultation papers have been issued regarding BVACOP 2010/11.

The first paper covers the proposed amendments to the definition of ‘Total Cost’ and amendments to the Standard Subjective Analysis.  These are mainly to bring BVACOP in line with the IFRS-based Code of Practice on Local Authority Accounting that will apply for 2010/11.

DOWNLOAD: Consultation Paper
DOWNLOAD: Section 2 - Definition of Total Cost
DOWNLOAD: Section 4 - Standard Subjective Analysis

Comments are invited by 18 September 2009.

Please send your comments, preferably by email to

Paul Mason (paul.mason@cipfa.org.uk)
CIPFA
3 Robert Street
London
WC2N 6RL

The second paper covers the proposed amendments to Section 3 - Service Expenditure Analysis for England and Wales.

DOWNLOAD: Consultation Paper
DOWNLOAD: Section 3 - Service Expenditure Analysis

Comments are invited by 18 September 2009.

Responses to this consultation paper should be sent preferably by email to: (bvacop@cipfa.org.uk)

Sukhjit Gill
CIPFA
No 1 Croydon
12-16 Addiscombe Road
Croydon
CR0 0XT

The CIPFA/LASAAC Local Authority Code Board has released the 2010 Code Exposure Draft and Invitation to Comment for public consultation. The 2010 Code, which is the first to be prepared under International Financial Reporting Standards (IFRS), would apply to accounting periods starting on or after 1 April 2010.

There have been concerns that the move to IFRS could potentially impact on Council Tax and housing rents. CIPFA has therefore had discussions with the Department for Communities and Local Government and the devolved administrations in Scotland, Wales and Northern Ireland to ensure any impacts can be minimised, if not avoided. Initial proposals for the necessary measures are set out in the consultation document and, based on discussions to date, we anticipate that measures will be in place in time for authorities to set their 2010/11 budgets.

The transition to IFRS is one of the most important changes to local government financial reporting for a number of years. The consultation closes on 11 September.  We would welcome comments on any aspect of the draft Code for 2010/11, so please take the time to contribute your views, and help us make this critical change a success.  A form to help you prepare your response is available.

Code of Practice on Local Authority Accounting in the United Kingdom - SORP - Invitation to Comment

The CIPFA/LASAAC Local Authority SORP Board has today released the 2009 SORP Exposure Draft and Invitation to Comment for public consultation. The 2009 SORP would apply to accounting periods starting on or after 1 April 2009. The proposed developments are:

(a) Adopting requirements for accounting for PFI schemes and similar arrangements that are consistent with the adaptation of IFRIC 12 Service Concession Arrangements contained in the Government's 2009/10 Financial Reporting Manual (FReM) and Whole of Government Accounts' requirements.

(b) Including more detailed and in some respects different requirements for accounting for council tax and national non-domestic rates in England, Scotland and Wales and rates in Northern Ireland.

(c) Removal of larger parishes and community councils from the list of bodies to which the SORP applies.

(d) Accounting for reorganised local authorities.

(e) Other minor amendments.

Comments on the SORP Invitation to Comment are invited by 8 February 2009.

Invitation to comment (22 pages)
Extract of ITC Questions (5 pages)
2009 SORP Exposure Draft (26 pages)

Consultations on Financial and Stakeholder Reporting by Local Authorities

This is a time of great change for local authority accounting and reporting. CIPFA is therefore seeking views on the future direction of financial and stakeholder reporting by local authorities in two separate but linked consultations.

'Back to Basics' asks what format the Statements of Accounts should take following the introduction of IFRS in 2010/11, and how they can be made more relevant to stakeholders.

'Telling the Whole Story' is aimed at start a debate on the future of wider stakeholder reporting, focusing on local people’s needs and providing the information and tools needed to hold local authorities to account.

Responses are invited by 31 July 2008. Please send these, preferably by email to:

Back to Basics: basics@cipfa.org.uk or Paul Mason, Policy and Technical Directorate, CIPFA, 3 Robert Street, London WC2N 6RL

Telling the Whole Story: alison.scott@cipfa.org.uk or Alison Scott, Policy and Technical Directorate, CIPFA, 3 Robert Street, London WC2N 6RL

DOWNLOAD: Telling the Whole Story Consultation Paper (40 pages) - PDF [212KB]
DOWNLOAD: Telling the Whole Story Questions (3 pages) - Word [99KB]
DOWNLOAD: Back to Basics Consultation Paper (30 pages) - PDF [184KB]
DOWNLOAD: Back to Basics Questions (7 pages) - Word [211KB]