CIPFA, the Chartered Institute of Public Finance and Accountancy, has launched its Financial Management (FM) Code, to drive improvement in financial management for councils across the United Kingdom.
The new Code is the first from the Institute in almost 15 years, and brings together many areas of local government financial management into one place. It follows extensive engagement with senior leaders in public finance from across the country.
Rob Whiteman, CIPFA CEO, said:
“The development of the FM Code has been a massive collaborative undertaking. CIPFA is hugely grateful to all the professionals who have supported the creation of guidance that the sector as a whole can get behind.
“Our ambition is to embed good financial management as an organisational responsibility. It is vital that, as a sector, we break down historically siloed ways of working and move towards a sense of collective responsibility when it comes to finance.”
The FM Code is based on a set of standards and principles, including organisational leadership, transparency, assurance and sustainability. Its aim is to place financial management at the heart of policy and decision making in local government.
Local Government Minister Luke Hall MP said:
“Not only is robust financial management essential to running public services well, taxpayers rightfully expect their councils to use their hard-earned money wisely too. I welcome this new Code by CIPFA which clearly sets out key principles and standards for all councils to follow.”
Gareth Davies, Comptroller & Auditor General, National Audit Office, said:
“We welcome the new CIPFA FM Code which should help local bodies improve their standards of financial management and cope with the financial challenges they are facing.”
Welcoming the new Code, Fiona Kordiak, Director of Audit Services at Audit Scotland, said:
“Consideration of financial management and financial sustainability is at the heart of Scottish public sector audit. The new Code is an excellent resource to support improvement and will help both local authorities and auditors alike.”
Although the FM Code comes into effect from April 2020, in recognition of the pressures facing local authorities, 2021/22 will be the first full compliance year for the Code. This allows authorities a shadow year to work towards full implementation.
CIPFA will be providing support and guidance over the next 12 months to aid this process.
ENDS
Notes to Editors
- Access to the FM Code is included in the CIPFA Publications subscriptions at no extra cost. Packages of support are also available to support the implementation of the Code. More information on packages and the Code itself can be found here.
- While the Code is not statutory, CIPFA would encourage councils to adopt its principles into practice.
- The FM Code is only one of the CIPFA Codes of Practice. CIPFA also hold the Prudential Code, the Treasury Management Code and the Accounting Code of Practice.
For further information please contact the CIPFA press office on T: 020 7543 5737 or E:ashleigh.moore@cipfa.org
About CIPFA
CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. CIPFA leads the way in public finance globally, standing up for sound public financial management and good governance around the world as the leading commentator on managing and accounting for public money.