PrintCIPFA and LASAAC work together to help Local Authorities to deliver Best Value
CIPFA Directors of Finance Section1 and LASAAC² have issued a consultation document that will help Scottish local authorities to meet their new obligations under the Local Government in Scotland Act, which received Royal Assent this week.
Speaking in Parliament, Peter Peacock, Deputy Minister for Finance ands Public Services, described this legislation as replacing Compulsory Competitive Tendering (CCT), “with best value, which means decisions made in the right environment at the local level, not measures prescribed by central Government.” He went on to say that it offers “flexibility, quality and value for money.”³
This new guidance is the first to be published to help in implementing the Act.
“This move to best value will enable Scottish local authorities to use innovative means to secure improved public services” said David Sawers, Chair of CIPFA Directors of Finance Section, “but this more flexible approach to service delivery makes it all the more important that the stewardship of public funds is ensured. That's why we are moving forward to develop our new guidance - A Best Value Approach To Trading Accounts.”4
Section 12 of the Local Government in Scotland Bill requires local authorities to maintain trading accounts for significant trading operations. LASAAC and the CIPFA Directors of Finance Section have developed this draft guidance to help practitioners meet their statutory obligations.
Carolyn Williamson, vice chair of LASAAC and Director of Finance and Inverclyde Council said, “We have long been anticipating this move to best value for Scottish local authorities. LASAAC has a key role in setting the accounting framework for local government in Scotland, and therefore in delivering the changes required by the Act. By publishing this draft guidance so soon after the passing of the Act, we expect that local government finance professionals will have greater confidence in working in this new and exciting environment.”
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Notes to editors
1. CIPFA Directors of Finance Section is a Specialist Interest group of CIPFA in Scotland. Its membership comprises the Directors of Finance of the 32 Scottish local authorities. Representatives of CIPFA Scotland Secretariat and CoSLA are invited to attend meetings. The Chair is David Sawers, Director of Finance at Angus Council.
2. LASAAC (Local Authority (Scotland) Accounts Advisory Committee) is charged by Scottish Office Circular 5/1985 to recommend the form of accounts and accounting practice for Scottish local authorities. The membership of the committee comprises persons nominated by CIPFA, the Controller of Audit, CoSLA, ICAS, the Scottish Executive and ACCA.
3. Stage 3 debate on the Local Government in Scotland Bill, 8 January 2003, Column 16762, Official Report.
4. A Best Value Approach To Trading Accounts - A Guidance Note For Local Authority Practitioners is intended for finance practitioners and is based on the contents of the Local Government in Scotland Bill. The Bill effectively ends the system of compulsory competitive tendering which has existed since 1980 and replaces it with a framework for monitoring and reporting on the financial performance of `significant trading operations'. Alongside this, the Bill introduces a statutory duty to adopt proper accounting practice, and it is anticipated that this guidance will be incorporated within CIPFA's Best Value Accounting Code of Practice (BVACOP) for use by Scottish authorities.
For further information, contact:
Martin Mathers
Parliamentary and Media Officer
CIPFA in Scotland
0131 718 2712