Responding to COVID-19: insight, support and guidance
Find out more about the Code of Practice on Local Authority Accounting in the United Kingdom (the Code), prepared by the CIPFA/LASAAC Local Authority Code Board.
CIPFA/LASAAC greatly appreciates all the responses received to the recent stakeholder survey. A summary of the survey feedback is now available. This outlines, in a number of charts, the responses to the survey for each of the different self-identified respondent groups. It includes a text analysis of the open feedback provided by respondents, highlighting topics which were frequently referred to. Also available is a selection of open feedback comments received.
CIPFA/LASAAC is grateful for the survey responses and for submissions made regarding the Code 2021 Invitation To Comment (ITC). CIPFA/LASAAC recognises that stakeholder time for further engagement will be limited. Two discussion papers have been developed to indicate areas where CIPFA/LASAAC would appreciate further dialogue, where this is possible and additional to comments already received.
In order to maximise impact and minimise the resources required for responding, representative societies and groups may wish to collaborate to provide collective feedback for their group or society, rather than each individual member providing a response.
The papers relate to:
A summary overview of the discussion papers, which can be used as a basis for discussion or presentation, is also provided in case this is of assistance.
The responses already received are greatly appreciated and have assisted CIPFA/LASAAC in considering the Code for 2020/21. CIPFA/LASAAC is aware that the initial response time was extremely limited and welcome continuing responses, preferably by 31 December 2019, as part of ongoing stakeholder feedback.
If you have any queries please do not hesitate to contact the CIPFA/LASAAC support secretariat on 0131 221 8644.
Following a review of its operations and following initial feedback from stakeholders, CIPFA/LASAAC has developed a vision statement to set out the principles which should inform future Code development. The vision statement is:
UK local authority annual accounts should be widely recognised as an exemplar for clear reporting of the financial performance and position of complex public sector bodies. Users of accounts should be able to access the information they want to help them to understand the finances of an authority and to take practical and informed decisions.
Three strategic themes will support progress towards this:
The CIPFA/LASAAC Vision Statement and the Strategic Implementation Plan provide more information on implementation proposals, with wider stakeholder engagement being a key aspect to inform developments.
Local authorities in the United Kingdom are required to keep their accounts in accordance with ‘proper practices’. This is defined, for the purposes of local government legislation, as meaning compliance with the terms of the Code of Practice on Local Authority Accounting in the United Kingdom.
The Code specifies the principles and practices of accounting required to prepare a statement of accounts that gives a true and fair view of the financial position and transactions of a local authority.
The Code is reviewed continually and is normally updated annually. The code for 2019/20 is available as either a book or online for download
CIPFA/LASAAC has also issued a feedback statement on the amendments to the Code following the consultation processes in the summer of 2018. Please note that this feedback statement does not form any part of the 2019/20 Code.
CIPFA/LASAAC has issued an update to the 2018/19 Code of Practice to provide transitional provisions for changes in accounting practices or treatment for modifications of exchanges of financial liabilities that do not result in derecognition which arise as a result of clarifications in IFRS 9 Financial Instruments: Prepayment Features with Negative Compensation (IASB October 2017) and minor augmentations to the provisions relating to exchanges between an existing borrower and lender.
The update to the 2018/19 Code must be read in conjunction with the 2018/19 Code published by CIPFA in April 2018. The update includes tracked changes to appropriate extracts of the 2018/19 Code with both new and amended paragraphs required to form the revised 2018/19 Code.
The update has been made available to purchasers of the 2018/19 Code.
Under its governance framework, CIPFA/LASAAC remains the accounting standard setter for local authorities. The Code also continues to be the authoritative source of accounting guidance for local authorities across the UK.
Download the CIPFA/LASAAC Constitution for the Board's terms of reference. The Financial Reporting Advisory Board (FRAB) and the Memorandum of Understanding between FRAB bodies can be found on the gov.uk website.