single issue ITC accounting for schools in local authorities

21-02-2014

The 2014/15 Code of Practice on Local Authority Accounting in the United Kingdom – Single Issue Invitation to Comment – Accounting for Schools in Local Authorities in England and Wales

This consultation closed on 4 April 2014.

CIPFA/LASAAC has released the single issue consultation – Accounting for Schools in Local Authorities in England and Wales relating to the 2014/15 Code of Practice on Local Authority Accounting in the United Kingdom (the Code), Exposure Draft (ED) Addendum and Invitation to Comment (ITC) for public consultation. The 2014/15 Code will apply to accounting periods starting on, or after, 1 April 2014.   

The consultation paper seeks views on the report of the Joint HM Treasury and CIPFA/LASAAC Public Sector Accounting for Schools Working Group – The Accounting Treatment of Local Authority Maintained Schools in England and Wales.

The proposed amendments in the 2014/15 Code focus exclusively on issues relating to accounting for local authority maintained schools, in England and Wales, and on which CIPFA/LASAAC wishes to seek interested parties’ views.

The changes propose an adaptation in an Addendum to the 2014/15 Code.  However, the consultation also focuses on the application of the new group accounting standards. The introduction of the new group accounts standards to the 2014/15 Code was subject to an earlier consultation in 2013 which is still available: 2014/15 Code of Practice on Local Authority Accounting in the United Kingdom (the Code) Exposure Draft (ED) and Invitation to Comment (ITC) for public consultation. It is possible that further application guidance will need to be issued by the CIPFA Local Authority Accounting Panel (LAAP). The consultation seeks interested parties views on whether and what type of application guidance may be needed.

This is an issue which will affect both local authorities and schools and will be of interest to schools promoters such as religious bodies and we would recommend that accounts preparers discuss the consultation paper with the relevant parties.

The Exposure Draft is a separate document set out below. The ITC summarises the proposed changes to the Code. Where CIPFA/LASAAC is interested in specific issues, consultation questions have been included in the ITC. Interested parties are invited to provide responses to questions in the ITC, preferably in electronic format. In order to assess comments properly interested parties are asked to support comments with clear accounting reasons and, where applicable, preferred alternatives.  Interested parties are also invited to provide any other information or issues they consider relevant in relation to accounting for local authority maintained schools. 

Please send your responses to code.responses@cipfa.org.

Invitation to Comment (PDF, 112 KB) 

Appendix to the ITC - the Accounting Treatment of Local Authority Maintained Schools in England and Wales (PDF, 466 KB) 

Exposure Draft Addendum to the 2014/15 Code (PDF 101 KB)

In the interest of providing a clear way forward for the 2014/15 financial statements CIPFA/LASAAC has specified on an exceptional basis a reduced consultation period of 6 weeks.

This consultation will close on 4 April 2014.