The Prudential Code for Capital Finance in Local Authorities was updated in 2011.  As part of this update the prudential indicator which compared net borrowing to the capital financing requirement was changed to compare net debt.  CIPFA is now seeking views on a further change from net debt to gross debt.

Please send your responses to the consultation questions to mandy.bretherton@cipfa.org.uk by Wednesday 29 February 2012.

Webinar - Consultation on the Code of Practice on Local Authority Accounting in the United Kingdom
A webinar highlighting the key issues in the consultation on the Code of Practice on Local Authority Accounting can be accessed here.

Have your say on the Open Public Services White Paper

The Government recently published its Open Public Services White Paper. To help shape our response, we are asking members to share their insights.

If you would like to have your say, please complete our online white Paper consultation by 22 August 2011. All views will be anonymous.

The Code of Practice on Local Authority Accounting in the United Kingdom 2011/12 Code Update and 2012/13 Code - Invitation to Comment

The CIPFA/LASAAC Local Authority Code Board usually issues updates to the Code of Practice on Local Authority Accounting annually.  However, there have been a number of developments to statutory accounting or disclosure requirements which have taken place since the publication of the 2011/12 Code. These items have an effective date of earlier than the 2011/12 financial year.  In the interests of assisting practitioners with the interaction of these reporting requirements and the Code the CIPFA/LASAAC Code Board has decided to issue a 2011/12 Code Update.

As a result, CIPFA/LASAAC has released the 2011/12 Code Update as well as the 2012/13 Code Exposure Draft and Invitation to Comment (ITC) for public consultation. The 2011/12 Code Update (and 2012/13 Code) will apply to accounting periods starting on or after 1 April 2011. The 2012/13 Code will apply to accounting periods starting on or after 1 April 2012.

CIPFA/LASAAC’s intention in preparing both the 2011/12 Code Update and the 2012/13 Code was to minimise the number of changes.  The amendments in the 2011/12 Code Update (which will also be included in the 2012/13 Code) reflect legislative changes and other minor amendments.  The amendments to the 2012/13 Code reflect changes in accounting standards and other areas where CIPFA/LASAAC wishes to seek respondents’ views.

One particularly complex area is the issue of which school land and buildings should be recognised on local authority balance sheets (this primarily affects authorities in England and Wales).  This issue forms part of the overall Code consultation, but is presented as a separate ITC document for ease of reference. The proposed changes, will, subject to the consultation process, be included in the 2011/12 Code Update (and the 2012/13 Code).

The Exposure Draft of the 2011/12 Code Update and the 2012/13 Code is provided as a number of files.  The Exposure Drafts are listed in numerical order and follow the order of the section in the ITC in which an issue is discussed, not to the section of the Code itself, as a number of issues affect more than one Section of the Code.

In addition, CIPFA/LASAAC is undertaking a post-implementation review of the Code following the first year adoption of IFRS and is seeking respondents’ views on any areas of the Code where additional guidance or improvements to the Code would be helpful.  CIPFA/LASAAC is also seeking feedback from respondents on whether or not its governance arrangements for the Code could be improved to meet the needs of stakeholders.

Issues considered in the Consultation
1) Issues in the main Invitation to Comment
The significant changes being proposed in the main ITC are as follows:

a) New and amended requirements arising out of legislation (the Accounts and Audit (England) Regulations 2011, the Remuneration Report (Scotland), etc.)

b) Other changes.

CIPFA/LASAAC is also seeking respondents’ views on a number of key reporting areas eg, the Explanatory Foreword/Management Commentary and the possible future adoption of the measurement requirements of the Code of Practice on Transport Infrastructure Assets.

The Invitation to Comment summarises the proposed changes to the Code.  Where CIPFA/LASAAC is interested in specific issues, consultation questions have been included in the ITC. However, CIPFA/LASAAC welcomes comments on any aspect of the draft 2011/12 Code Update and the draft 2012/13 Code.  In order to assess comments properly CIPFA/LASAAC would prefer respondents to support comments with clear accounting reasons and, where applicable, preferred alternatives.

Invitation to Comment 2011–12 Code Update and 2012-13 Code (Main ITC) - PDF

ED Section A – Item 1 – Accounts and Audit (England) Regulations 2011 - PDF
ED Section A – Item 2 – the HRA (Accounting Practices) Directions 2011- PDF
ED Section A – Item 3 – Remuneration Report (Scotland) - PDF
ED Section A – Item 4 – Accounting for Local Authority Pension Funds Scotland - PDF
ED Section A – Item 5 – Minor Amendments – for New Statutory Guidance in Scotland - PDF
ED Section A – Item 6 – Accounts Direction Northern Ireland District Councils - PDF
ED Section A – Item 7 – Business Rates Supplements and Community Infrastructure Levy - PDF
ED Section A – Item 8 – Minor Amendments Statutory Changes Code Update - PDF
ED Section A – Item 9 – Minor Amendments – Accounting and Financial Reporting - PDF
ED Section B – Item 10 – Explanatory Foreword – 2012-13 Code - PDF
ED Section B – Item 10 – Management Commentary – Future Approach - PDF
ED Section B - Item 11 – IFRS 7 Financial Instruments Disclosures (Transfers of Financial Assets) - PDF
ED Section B – Item 12 – IASB Conceptual Framework Phase 1 - PDF
ED Section B – Item 13 – Model 1 – Voluntary Adoption of the Measurement Provisions of the Code of Practice on Transport Infrastructure Assets - PDF
ED Section B – Item 13 – Model 2 – Voluntary Adoption of the Measurement Provisions of the Code of Practice on Transport Infrastructure Assets - PDF
ED Section B – Item 14 – Minor Amendments 2012-13 Code - PDF
ED Section B – Item 15 – Foreword and Consequential Changes to the 2012-13 Code - PDF

We would be grateful if authorities could use the following form to respond to the consultation as this will speed up the analysis:
ITC Response Sheet Main ITC - Word

2) Schools land and buildings
The move to International Financial Reporting Standards (IFRS) has meant that the treatment of non-current schools’ assets has been subject to further discussion and debate.  The CIPFA/LASAAC Local Authority Code Board considers that it is important, that, where possible a resolution to the debate is presented in the Code.  It therefore considers it necessary to consult on this issue as part of the overall Code consultation.   CIPFA/LASAAC anticipates that the proposed amendments included in this consultation should (subject to the consultation process) be included in the 2011/12 Code Update (and the 2012/13 Code).

Respondents to this part of the consultation are also invited to discuss the issues raised in the consultation paper with the relevant stakeholders to the assets in question, for example, governing bodies and the trusts that hold the property.

Invitation to Comment - Accounting for Non-current Schools’ Assets - PDF
Annex to Invitation to Comment for Non-current Schools’ Assets - PDF

ED Accounting for Non-current Schools’ Assets - PDF

We would be grateful if authorities could use the following form to respond to the consultation as this will speed up the analysis:

ITC Response Sheet – Accounting for Non-current Schools Assets - Word

The consultation closes on 30 September 2011.

Service Reporting Code of Practice 2012/13 - Consultation

LAAP has recently issued a consultation regarding SeRCOP 2012/13. The consultation covers the proposed amendments to the Service Expenditure Analysis for England and Wales and the standard subjective analysis.

Download: SeRCOP Consultation
Download: Total Cost
Download: Service Expenditure Analysis for England and Wales
Download: Recommended Standard Subjective Analysis

Comments are requested by 16 September 2011 as follows:

In respect of the standard subjective analysis, to
Laura Deery (laura.deery@cipfa.org.uk)
CIPFA
3 Robert Street
London WC2N 6RL

In respect of the Service Expenditure Analysis, to
Sukhjit Gill (sercop@cipfa.org.uk)
CIPFA
No 1 Croydon
12-16 Addiscombe Road
Croydon
CR0 0XT

CIPFA launches consultation on a Code of Practice for Knowledge and Skills in Public Sector Pensions Finance

In December 2010, CIPFA published an interim compliance statement that public sector pension funds were encouraged to adopt to demonstrate their approach to providing practitioners and members with the training and skills required to carry out their roles as the financial managers and decision-makers in public sector pensions finance.

In this compliance statement, CIPFA set out its intention to formalise the requirements set out in the statement as a Code of Practice and committed to consulting with stakeholders in the process.

We are now pleased to invite stakeholders to comment on the draft Code of Practice.

(The consultation draft is provided as a PDF file for which you will need Adobe Acrobat reader version 8 or later to view. The reader can be downloaded free at http://get.adobe.com/uk/reader/).

We would be grateful for your comments on the draft Code of Practice by Friday 10 June 2011. Comments should be sent by email to nigel.keogh@cipfa.org.uk

Consultation on Proposed Capital Finance Arrangements under the New Housing Finance System

The abolition of the housing subsidy system will require changes to the capital financing arrangements for housing, particularly with the change in Item 8 determination. This paper sets out CIPFA’s proposals for changes to the capital financing arrangements under the new arrangements and focuses on two key areas:

• Management of Debt
• Depreciation

These proposals have been drawn up by a sub group of CIPFA’s Local Authority Housing Panel, Treasury Management Panel and Local Authority Accounting Panel and our thanks go to these Members who have helped to formulate the proposals.

DOWNLOAD THE CONSULTATION DOCUMENT [PDF file]

We are seeking both general comments on the proposals as set out and comments on the specific issues highlighted by Thursday 31 March 2011. Comments should be sent by email to julian.smith@cipfa.org.uk.

New draft – The Role of the Head of Internal Audit in Local Government

The Role of Head of Internal Audit Statement in Local Government draft is now available to download. It follows on from the generic statement that was issued in December 2010. Click to download a copy here – please email keeley.lund@cipfa.org.uk with any comments by 19 January 2011.

NHS White Paper Consultation

The reforms set out in the NHS White Paper are the most fundamental changes to the NHS that we have seen for many years, and clearly they create a range of challenges, not only in the NHS, but across the local authority and voluntary sectors as well.

Links to the main White Paper and four supporting papers are provided below:

Liberating the NHS, White Paper
Equity and excellence: Liberating the NHS

First cut responses from CIPFA to these can be downloaded here:

Best Value Accounting Code of Practice 2011/12 - Consultation

LAAP has recently issued a consultation regarding BVACOP 2011/12. The consultation covers the proposed amendments to the definition of ‘Total Cost’ and to the Service Expenditure Analysis for England and Wales.

Download: BVACOP Consultation
Download: Total Cost
Download: Service Expenditure Analysis for England and Wales
Download: Recommended Standard Subjective Analysis
Download: BVACOP Headings

The BVACOP headings, available via the fifth download above, and all prior versions of the headings, are licensed under the Open Government License: www.nationalarchives.gov.uk/doc/open-government-licence/open-government-licence.htm.

Please note this only relates to use of the headings, and not the remainder of the BVACOP guidance.

Comments are requested by 17 September 2010 as follows:

In respect of Total Cost, to

Laura Deery (laura.deery@cipfa.org.uk)
CIPFA
3 Robert Street
London WC2N 6RL

In respect of the Service Expenditure Analysis, to

Sukhjit Gill (bvacop@cipfa.org.uk)
CIPFA
No 1 Croydon
12-16 Addiscombe Road
Croydon
CR0 0XT

Code of Practice on Local Authority Accounting in the United Kingdom 2011/12 - Invitation to Comment

The CIPFA/LASAAC Local Authority Code Board has released the 2011/12 Code Exposure Draft and Invitation to Comment for public consultation. The 2011/12 Code will apply to accounting periods starting on or after 1 April 2011.

CIPFA/LASAAC’s intention in preparing the 2011/12 Code was to minimise the number of changes.  However, some change is inevitable to ensure the Code reflects current accounting standards and legislation. The main changes being proposed are as follows:

a) Adopting new requirements on accounting for heritage assets

b) New and amended requirements arising out of legislation (Carbon Reduction Commitment Scheme, Business Rate Supplements, Community Infrastructure Levy, etc.)

c) Other changes

The Invitation to Comment summarises the proposed changes to the Code.  Where the CIPFA/LASAAC is interested in specific issues, consultation questions have been included in the ITC.  However, CIPFA/LASAAC welcomes comments on any aspect of the draft Code for 2011/12.  In order to assess comments properly CIPFA/LASAAC would prefer respondents to support comments with clear accounting reasons and, where applicable, preferred alternatives.

The Exposure Draft of the 2011/12 Code is provided as a number of files.  The section number relates to the section of the ITC in which an issue is discussed, not to the section of the Code itself, as a number of issues affect more than one.

The consultation closes on 24 September 2010.  A form to help you prepare your response is available.

Download:

Invitation to Comment

ED Section 2a - Heritage Assets
ED Section 2b - Heritage Assets Consequential Changes
ED Section 3 - Carbon Reduction Commitment
ED Section 4 - Community Infrastructure Levy
ED Section 5 - Business Rate Supplements
ED Section 6 - Remuneration Reporting
ED Section 7 - Authorised for Issue (Wales)
ED Section 8 - CFO Statement
ED Section 9a - Related Party Disclosures
ED Section 9b - Annual Improvements 2009 and Other Minor Changes
ED Section 9c - Annual Improvements May 2010
ED Section 9d - IFRS Mitigation Regs
ED Section 9e - Foreword and Related Editorial Changes

We would be grateful if authorities could use the following form to respond to the consultation as this will speed up the analysis:

CIPFA Statement on the role of the Head of Internal Audit in public service organisations

The draft was launched for consultation by CIPFA's President at the Audit Conference on 19th May.

CIPFA sees this work as a demonstration of its commitment to effective internal audit and believes that the Statement will help clarify the role of the HIA and raise its profile.

Please contact Clive Darracott, Technical Manager if you have any queries: clive.darracott@cipfa.org.uk 020 7543 5670.

If you would like to be kept up to date with developments in this area, please click here.

CIPFA Statement on the Role of the Chief Financial Officer in Local Government

Last summer CIPFA launched its Statement on the Role of The Chief Financial Officer in Public Services. Following the launch of the overarching statement, we have now updated our 2003 Statement on the Role of the Finance Director in Local Government. The was approach has been to follow closely the format and principles of the overarching statement but to add in as necessary additional content relating to the unique statutory position of the role in local government.

Download PDF [168KB]