Local Income Tax

On 26 May Steve Freer, CIPFA's Chief Executive, made a further important presentation to the Balance of Funding Review Steering Group, chaired by Nick Raynsford, on the Institute's research concerning Local Income Tax (LIT).

CIPFA’s latest report concludes that, if LIT is introduced, it might:

• supplement rather than replace the council tax;
• be matched by parallel reductions in national income tax rates;
• be set only by larger, multi-service local authorities (probably unitary councils, county councils, metropolitan and London boroughs) selecting from a menu of about five pre-determined tax rates; and
• be collected by the Inland Revenue largely through the PAYE system.

Steve Freer, said:
“If local income tax (LIT) is to be introduced in the UK it must be designed in a way which is relatively easy for the Inland Revenue and employers to handle. We need a simple common sense model that avoids unnecessary elaboration. It is also critically important that, as individual taxpayers, we can see and understand clearly how much we are paying and to which local authority. Again simplicity is vital to achieve clear accountability.

"We believe that we have now developed a model which meets these criteria"

“CIPFA’s latest research points to what may be a realistic and practical way forward. National income tax rates could be lowered at the margin, creating the opportunity for a modest local income tax to be levied by larger, multi-service councils. Both income taxes – local and national – would be deducted from our pay packets and, for efficiency, collected through the Inland Revenue.

“The council tax would continue to operate alongside LIT with the result that local government would be able to raise a significantly larger proportion of its resources locally, reducing dependence on funding from Government.”

Read the report at http://www.local.odpm.gov.uk/finance/balance/bof25.pdf

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Positive About Disability’ kitemark

The CIPFA Group has been accredited with the ‘Positive About Disability’ kitemark.

Audit Committee Principles in Local Authorities in Scotland

CIPFA in Scotland, in partnership with the CIPFA Directors of Finance Section, have published its guidance on audit committee principles entitled ‘Audit Committee Principles in Local Authorities – A Guidance Note’. The guidance assesses how the principles can be delivered in practice and the roles and responsibilities of the key stakeholders. An audit committee remit is included along with an Audit Committee Principles Matrix. For further details click here

LASAAC Annual Report

LASAAC has issued an Annual Report for 2003/4. This is the first annual report from LASAAC and provides an indication of the role of the Committee and the achievements during the year. For further details click here

Upcoming Events

17-06-2004 Financial Standards Workshop, Edinburgh
30-06-2004 Audit Committee Principles Workshop, Edinburgh
22 & 23-10-2004 The Weekend School, Stirling

CIPFA in Wales Capital Conference 2004

The programme for this event which will specifically address issues from a perspective appropriate for Wales has been finalised and is planned for delivery in June. This year the conference will concentrate on the Prudential Code for Capital Finance and the Treasury Management Code of Practice. Further details are available at http://www.cipfa.org.uk/wales/events.cfm.

Annual Conference 2004

This two day residential conference will take place at the Vale of Glamorgan Hotel on the 18-19th November 2004. Building on the success of previous events this conference promises a prestigious line up of invited speakers to present issues of national and strategic importance which impact on the Welsh public sector scene. The conference is aimed at senior public sector managers and decision makers and enables them to focus on the bigger picture.

To support the event, an exhibition area has been reserved as well as the opportunity for involvement in workshop sessions, which will form part of the conference programme. Building upon the success of the 2003 event the CIPFA in Wales Annual Dinner will remain a feature of the overall event when a number of distinguished guests will be invited to join the delegates. A corporate brochure is available outlining opportunities to exhibit, provide workshops and sponsor the Conference.

Public Training Course Programme

A new programme of training courses will be introduced into Wales in the autumn in collaboration with colleagues from IPF. These courses will be geared towards anyone working within the public sector in Wales and who view the available topics either as tools for improving the effectiveness of an individual’s existing role or as a means of knowledge expansion and professional development. Some courses will be appropriate for those will little formal training in public sector finance but on whom there is an expectation that the effective and efficient management of public funds is one of their key responsibilities. Contact wales@cipfa.org for further information regarding this new development.

Publication: Improving the Closure Process

Following a successful series of workshops organised in collaboration with the Audit Commission in Wales an occasional paper has been published drawing upon the information shared at the sessions. This resume provides a useful aide memoir to those involved with the closure of accounts process in local authorities and related bodies in Wales. To order a copy of this publication at £30 (plus VAT and postage) please contact wales@cipfa.org.

Improving Financial Management and Effectiveness in the Public Service: The CIPFA FM Model

Strong and effective financial management is key to well-managed and sustainable public services.

The CIPFA Financial Management Model (FM Model) is a web-based self-assessment tool that examines financial management in the public services. It tests how an organisation measures up against 42 good practice statements and places that organisation into a spectrum of three ‘styles’- Enabling Transformation, Supporting Performance and Securing Stewardship - to build a picture of how finances are working and identify areas for improvement. A key feature is the ability to survey opinion throughout the organisation.

The FM Model sits on a secure website that lets users score and evidence the good practice statements, revisit, collate and report on their scores and target questions at key people to test views and opinions. It offers organisations the opportunity to:

• Manage strategic risk through self-assessment;
• Identify strengths and areas for improvement;
• Prioritise improvement;
• Be better prepared for inspections and audit;
• Review and track its progress over time;
• Benchmark performance against other comparable organisations

The CIPFA FM model will be launched at the CIPFA conference in Brighton. Delegates to the conference will be able to view the site on the CIPFA stand.

CCAB Guidance on Anti-Money Laundering

The Consultative Committee of Accountancy Bodies (CCAB) has published guidance to accountants on the anti-money laundering sections of the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2003. Read the document at http://www.ccab.org.uk/

Accountants Investigation and Discipline Board (AIDB) scheme approved

The AIDB has formally approved its scheme and CIPFA Council confirmed the Institute’s participation in the scheme in May. The AIDB is charged with investigating and hearing professional disciplinary cases involving members of CIPFA, ACCA, CIMA and ICAEW that involve important issues affecting the public interest in England and Wales. Further information see June 2004 Spreadsheet or visit http://www.frc.org.uk/aidb/.

CIPFA Spectrum – Issue number 5 June 2004

• Assessing value for money in the private finance initiative
• NHS financial forecasting
• Central/local government funding
• Valuing heritage assets
• Statements on internal control
• Accountability of the regulatory state

CIPFA Spectrum is mailed to all CIPFA members and students with Public Finance. It is also available, together with back issues, at www.cipfa.org.uk/pt/spectrum.cfm

New Corporate Rates for PMPA

The Public Management and Policy Association (PMPA) is a national membership organisation, managed by CIPFA, dedicated to helping managers, policy makers and academics keep in touch with and understand the wider cross-cutting developments in public policy making that affect the governance, general and financial management of the public services. In addition to excellent networking and personal development opportunities across the public services, the benefits package includes:

• Priority booking for PMPA lectures
• Subscription to Public Money and Management
• Up to three PMPA reports each year
• The PMPA quarterly review

New corporate rates are now available which start at £350 for up to five persons registered by their employing organisations to receive the benefits package. For further information and details on individual membership rates please see http://www.cipfa.org.uk/pmpa or email sandra.harper@cipfa.org.

Independent Commission on Good Governance in Public Services

CIPFA and the Office for Public Management (OPM) are supporting the Independent Commission in a project to establish a common framework for good governance in public services. The project is sponsored by the Joseph Rowntree Foundation. The first public consultation has now closed, with around 50 responses received and 25 key stakeholder organisations attending consultation meetings. Following written evidence submitted by CIPFA/OPM, the Independent Commission’s Chair, Sir Alan Langlands, has been invited to give evidence to the Committee on Standards in Public Life’s 10th Inquiry.

Public Money and Management (PMM)

The June edition of PMM, CIPFA’s Policy Journal, is now available. The theme is public service finances and is explored through articles on devolution, the Barnett formula, PFI, NHS spending; and gambling as a government revenue source. For further information on PMM, which celebrates 25 years of publication in 2005, and details on how to subscribe, please see www.cipfa.org.uk/pt/pmm.cfm.

Tom Sowerby Award – winner announced

Following a competitive nomination process, a judging panel of CIPFA members and students has chosen Dave Sexton as the 2004 winner of the Tom Sowerby Award for Outstanding Service to CIPFA Students. Dave works at Anglia Polytechnic University, and is well known to CIPFA students and members as a lecturer, committee volunteer, Chair of ACIPFAL and supporter of the National Student Forum.

The choice of Dave Sexton for the award was endorsed by the Members and Students Development Board on 6 May, and he will receive his award from President Hilary Daniels at a ceremony during the Career Conference (part of CIPFA’s Annual Conference) on 16 June. Tom Sowerby himself is also hoping to attend this year for the first time. All conference delegates are invited to the presentation, which will take place at 12.15.

To see the Career Conference programme and book a place, go to:
http://www.cipfa.org.uk/cipfa2004/conference/component.cfm

New AAT Fast Track scheme to be launched at CIPFA Conference

CIPFA and the Association of Accounting Technicians (AAT) have teamed up to provide a new fast track route to chartered accountancy. In future, AAT members will be able to take a bridging paper known as the AAT Fast Track Module, which will gain them a full exemption from CIPFA’s Certificate Stage and allow them to complete the professional qualification in just two years.

The new AAT Fast Track scheme will be launched at CIPFA’s Annual Conference on 16 June 2004 (after the Tom Sowerby Award presentation). There will be a lunchtime launch event, and all conference delegates are invited to attend, so please come along and find out more about this exciting new initiative.

For more information on the AAT Fast Track scheme, contact CIPFA’s educational advisers on 020 7407 9010 or email aatfasttrack@cipfa.org.

Updated assessment strategy now online

A revised version of CIPFA’s assessment strategy can now be found in the student pages of our website. To download the assessment strategy, go to: http://www.cipfa.org.uk/eandt/download/AssessmentStrategyApril04_.pdf

IPF’s Chester Office hosts a Chinese local government delegation On Friday 14 May a delegation from the Bureau of Finance of Guangzhou Municipality in China visited IPF’s Chester Office to learn how UK local authorities deal with asset management planning. David Bentley, Lead Adviser to IPF’s Asset Management and Planning (AMP) Network gave the presentation as IPF’s offices were turned into a lecture theatre for the day. David Brindley, Manager, IPF Property and Software said: “Perhaps the oddest result of the discussion was that we don’t realise what a strange system of government and finance we have until you try to explain it to someone from another Country” Consulting with customers The IPF Market Research Unit’s Museums User Survey Evaluation (MUSE) team are organising a conference on consulting with customers for museum staff on 5 July in central London. For more information email: muse@ipf.co.uk. Prudential Code – survey The CIPFA Finance Advisory Network (FAN) is conducting a survey on the views of local authorities on the introduction and implementation of the Prudential Code. The results of the survey will be discussed at the IPF workshop at CIPFA Conference. Results of the survey can be fed back to participants who are unable to attend the workshop. To take part in the survey visit: www.ipfprudentialcode.net/survey/prudentialcode.htm and follow the online instructions. New training available on local government trading and charging The Local Government Act 2003 has given councils new trading and charging powers that have wide ranging implications. IPF have developed a new training course to help local authorities understand their powers and duties to trade and charge for services. The course is aimed at finance and procurement staff and anyone involved with or interested in trading or charging activities in a local authority. The one-day training course as part of the 4ps/ IDeA Procurement Training modules also attracts ODPM/ LGA Capacity Building Fund subsidy. Training sessions will take place in London on 1 and 18 June. For more information contact Jason Cole on 01403 791587 or Jason.cole@ipf.co.uk.

New Conference Centre Website The Queen Anne's Gate Conference Centre has launched a new Website that can be visited at www.qagconferences.co.uk. The new EU Consolidated Procurement Directive – moving towards implementation The CIPFA Procurement and Commissioning Forum (PAC) are organising workshops across the country from June to September about the new procurement directive. The workshops will be highly focused and aim to cut through the technical jargon of the changes and give delegates a practical action plan to assist with internal implementation. For more information visit: http://www.ipf.co.uk/procurement/ pac/events/EUConsolidated04.htm Managing supply and demand in the housing market The CIPFA Housing Advisory Network (HAN) have teamed up with a number of key speakers from around the country to share best practice experiences about how local authorities can successfully intervene in the market place – whether this will stimulate demand, increase supply or a combination of the two. The workshops will take place around the country in June and July. For more information visit: www.ipf.co.uk/bestvalue/BVQ/Housing/Events/ managingsupplyanddemand.htm. Freedom of Information and Tendering - Are You Ready? The CIPFA Procurement and Commissioning Forum and CIPFA Better Governance Forum are organising workshops across the country about the Freedom of Information Act 2000 and the Freedom of Information (Scotland) Act 2002. The Acts give the public right of access to most of the recorded information held by all public authorities. How certain is your organisation about commercial confidentiality clauses in contracts with third parties, are they satisfactory to safeguard you from having to release critical information to aggrieved or unsuccessful tenderers? For more information visit: http://www.ipf.co.uk/procurement/pac/ events/freedomofinformation04.htm.

CIPFA in Wales: The Prudential Code for Capital Finance and the Treasury Management Code of Practice 24 June 2004 Cardiff More... CIPFA/ISACA IT Audit Seminar 2004 29-30 June Birmingham More... CIPFA Local Authority Accounting: SORP 2004 and BVACOP 29 June 2004 York More... CIPFA Local Authority Accounting: SORP 2004 and BVACOP 7 July 2004 London More... CIPFA Charity Panel Course - The Compact between the Statutory and Voluntary/Community Sector 7 July 2004 London More... Supporting People: Improving Value for Money 13 July 2004 London More... The CIPFA Local Government Finance for Councillors Seminar 14 July 2004 London More... Introduction to the Audit of Construction Contracts 22 July 2004 London More... The CIPFA Health Finance Conference 2004 7-8 October 2004 York More...		Councillors’ Guide to Local Government Finance 2004 Fully Revised Edition - BOOK (2004) More... The CIPFA FM Model: Improving Financial Management and Effectiveness in the Public Service More... An Introductory Guide to Housing Finance in England 2004 (Fully Revised Second Edition) More... A Good Practice Guide to the Financial Management of Housing Benefit in England 2004 (Fully Revised Second Edition) More... Further Education Finance Manual (Fully Revised Second Edition) More... Councillors’ Guide to Local Government Finance 2004 Fully Revised Edition - CD ROM (2004) More...

Training and Conference Centre Rooms for Hire The CIPFA group has a number of training and conference rooms which are available for hire in various central London locations: CIPFA, Robert Street (WC2N). Charing Cross/Embankment stations. For further information, visit http://www.cipfa.org.uk conference_centre.cfm CETC, Borough High Street (SE1). Borough station. Contact marilyn.clarke@cipfa.org for details. IPF, Queen Anne's Gate (SW1H). St James Park station. Contact Conf.Centre@ipf.co.uk for details.

Out and About The CIPFA conference is being held on 15-17 June in Brighton. At the AGM on 17 June Mike Barnes will take up his Presidency of the Institute. Steve Freer has been invited to attend the London Borough of Lewisham Public Accounts Committee on 22 June to gve a presentation on the issues relating to the proposals for a Local Income Tax. The President, Mike Barnes, will address delegates at the Gala Dinner of the ACIPFAL Conference on 1 July in Newcastle. Steve Freer will also give a presentation on "Developing the Institute".

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