The CIPFA FM Code has been designed to support good practice in financial management and help local authorities demonstrate financial sustainability. It builds upon the underlying principles of leadership, accountability, transparency, professional standards, assurance, and sustainability.
This is the first time many areas of local government financial management have been codified, with CIPFA creating the FM Code following extensive engagement with senior leaders in public finance from across the United Kingdom over the last nine months.
Carol Culley, Deputy Chief Executive and City Treasurer, Manchester City Council, said:
“The Local Government Faculty Board welcomes this development and believes the CIPFA FM Code will support Chief Financial Officers, Section 95 Officers and Section 151 Officers in managing the increasingly complex issues of public finance.
“I would strongly urge people to respond to the consultation. The feedback will help shape this into a strong code that provides a proportionate and effective response to the significant challenges being faced by local authorities.”
Margaret Lee, Executive Director of Corporate and Customer Services, Essex County Council, said:
“Local government has faced funding reduction since 2010 and growing pressures on public services, both of which are challenging the financial sustainability of local authorities.
“Stronger financial management is essential within the sector, particularly where budgets show a consistent use of unplanned reserves, a growth in overspending, and a lack of medium- and long-term planning.”
Don Peebles, Head of Policy and Technical, CIPFA, said:
“Following our substantial road testing with the public finance community on the CIPFA FM Code, we’re keen to hear from all interested parties on what will become the new professional standard for local government financial management.
“I’m sure that the CIPFA FM Code has been keenly anticipated and I now look forward to receiving input from the sector.”
You can find the draft CIPFA FM Code for consultation on CIPFA’s website. All responses must be provided by email to FMcode@cipfa.org by 30 April 2019.
For further information please contact the CIPFA press office on T: 020 7543 5703 or E: Liam.Macandrew@cipfa.org.
Notes to editor:
CIPFA’s Local Government Faculty Board strongly supports the development of the CIPFA FM Code. Carol Culley is on the Board, and together with Margaret Lee is joint-Chair of the FM Stakeholder Group.
CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. CIPFA shows 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.