Chartered Institute of Public Finance and Accountancy
LASAAC CIPFA Scottish Branch

Guidance and Publications

This page includes guidance produced by LASAAC for local authorities in Scotland, all of which is available for download. Any guidance produced is automatically circulated to local authorities in Scotland.


LASAAC Issues Guidance on Heritage Assets

Following queries received, LASAAC has decided to issue guidance to support appropriate and proportionate implementation of Heritage Asset accounting requirements for 2011/12.   Scottish local government organisations will naturally already have determined their approach to implementing the new requirements. The guidance is therefore most likely to provide an information base for discussions between finance staff and external auditors.

The guidance addresses:

To download the guidance please click here.


Holding To Account: Using Local Authority Financial Statements

A. Background and Objective

The adoption of International Financial Reporting Standards (IFRS) in the Code of Practice is a significant change for UK local authorities.

This change will provide readers of local government financial statements with both fresh opportunities and new challenges.

The opportunities arise from the chance to take a step back and consider how the financial statements should be used.

The challenges arise from the need to interpret and understand a new presentation of financial information.

LASAAC has issued a document which is intended to help readers of Scottish local government financial statements make the most of the opportunities and minimise the challenges. The document is primarily aimed at those charged with governance, particularly elected members, but will also be of use and relevance to other readers of the financial statements.

While the document is clearly based on the Scottish environment much of the content will be relevant UK wide.


B. Consultation Comments
A public consultation process was undertaken, with comments being received from local authority Audit Committee members (chair/vice chair), ACCA, ICAS, Directors of Finance and accounting practitioners. Responses indicated a high level of support for the objective and content of the document.

Comments included:


C. Change and Impact on Public Services
The main target audience for the document is elected members, since they are primarily responsible for the governance of local authorities. It is recognised that the whole document may not be read, in its entirety, by members however the document is envisaged to prompt change through:

Use as a reference document by members and interested parties
Use by a variety of individuals and organisations as a supplement to, and support for, the training and professional development of elected members

The document is expected to lead to change and impact on public service provision through improved corporate governance. In particular the document supports potential improvement in the stewardship of public resources, the management of risk to public resources and the financial sustainability of public service delivery


D. Download the Document
To download the document click here.

 

LASAAC Mandatory Guidance on Council Dwelling Valuation Methodology

LASAAC has issued formal guidance that by 2015/16 at the latest the valuation of Council Dwellings must be achieved using a Beacon Approach (Adjusted Vacant Possession) methodology.

To see the formal guidance, which also explains the background to this requirement, please click here.

Valuation of Council Dwellings under IFRS
LASAAC has issued guidance clarifying that use of average discounted right to buy sale prices for the valuation of Council Dwellings is not consistent with the requirements of the draft IFRS based Code of Practice. The guidance presumes that there will be no significant change to Council Dwelling valuation requirements as a result of the ‘Invitation to Comment’ process on the draft Code of Practice. If significant change occurs the guidance may be modified. The guidance as it stands may affect some authorities’ valuation of Council Dwellings on transition to IFRS as at 1 April 2009.

The guidance is available here.

LASAAC 2010/11 Annual Report
To download a PDF version of the 2010/11 LASAAC Annual report, click here.

LASAAC 2009/10 Annual Report
To download a PDF version of the 2009/10 LASAAC Annual report, published in June 2010, click here.

LASAAC 2008/09 Annual Report
To download a PDF version of the 2008/09 LASAAC Annual report, published in June 2009, click here.

LASAAC 2007/08 Annual Report
To download a PDF version of the 2007/08 LASAAC Annual report, published in June 2008, click here.

LASAAC 2006/07 Annual Report
To download a PDF version of the 2006/7 LASAAC Annual report, published in June 2007, click here.

LASAAC 2005/06 Annual Report
To download a PDF version of the 2005/6 LASAAC Annual report, published in June 2006, click here.

LASAAC 2004/05 Annual Report
To download the 2004/2005 LASAAC Annual Report published in May 2005 click here

LASAAC 2003/04 Annual Report
To download the 2003/2004 LASAAC Annual Report published in May 2004 click here

Accounting for the Common Good
LASAAC has provided guidance on accounting for the common good. The guidance, entitled Accounting for the Common Good: A Guidance Note for Practitioners was the subject of an successful initial consultation with a wide range of stakeholders. The guidance sets out consistent and modern financial reporting requirements as well as prescribing, for the first time, the formal requirement for asset registers. To download this document please click here.

Accounting For Interest On Reserves
LASAAC have issued guidance that interest on reserves, such as Insurance Fund reserves, should not be a direct movement on the reserve but should be routed through the Income & Expenditure Account. For more information click here.
The original LASAAC Guidance Note No. 2 on accounting for interest, 'Statement on the Calculation and Allocation of Loans Fund Interest and Expenses', is also available to download here.

Accounting for Insurance in Local Authorities
LASAAC has issued guidance on the operation of insurance funds in Scotland, entitled "Accounting for Insurance in Local Authorities in Scotland". Click here to download. 

Local Authority Reserves
LASAAC has issued guidance entitled The Statutory Basis for Accounting and Disclosing Reserves in Local Authorities in Scotland. To download the guidance click here.

FRS 17 Police/Fire Commuted Sums
There has been recent debate on the accounting treatment of FRS 17 commuted sums and the subsequent concern about the impact upon carry forward arrangements prescribed by the Scottish Executive. LASAAC has worked with both the Scottish Executive and Audit Scotland to clarify the position and to reach agreement on a way forward. This paper sets out guidance on the proposed treatment.

Improvements to Published Financial Information - Summarised Accounts
Following a successful pilot project in partnership with Inverclyde Council, LASAAC has recommended core minimum summarised financial information to be produced by local authorities who may wish to present financial information in a summarised manner e.g. in public performance reports. The design and presentation is a matter for each local authority although the LASAAC recommendation represents the minimum information for publication.

Modified Group Accounts - A Practical Checklist
LASAAC has issued guidance to local authorities in Scotland on modified group accounts. The guidance entitled Modified Group Accounts: A Practical Checklist has been designed as a practical tool to enable practitioners to commence planning for the modified group accounts requirements within the 2004 SORP. The guidance has been circulated to all local authorities in Scotland. Download the Guidance

Trading Accounts Publication
CIPFA have published A Best Value Approach to Trading Accounts - A Guidance Note for Local Authority Practitioners. This guidance note has been prepared jointly by the CIPFA Directors of Finance Section and LASAAC and has been distributed to all local authorities and stakeholders in Scotland. The guidance note provides practical guidance on significant trading operations as defined in the Local Government in Scotland Act 2003. To download a PDF of the guidance, please click here.

FRS 17 Retirement Benefits: HRA Accounting Entries
LASAAC has now released an interim guidance note which details the accounting entries for the application of FRS 17 Retirement Benefits to the Housing Revenue Account in Scotland. This guidance, which was sent to all local authorities on 8 April, complements CIPFA?s LAAP Bulletin 56 and should be read in conjunction with that bulletin.  It is expected that CIPFA will produce a further LAAP Bulletin shortly which addresses the FRS 17 accounting entries for the HRA. This guidance has however been released by LASAAC at the earliest possible stage, and on an interim basis, to enable local authorities in Scotland to address the accounting entries for 2003/4. For a copy of the interim guidance click here

Consent to Borrow for Grants to Community Groups
The Scottish Executive has released Finance Circular 5/2007. The circular relaxes the conditions under which local authorities can borrow to finance grants made to community groups. To view this document please click here

SORP 2007
The CIPFA/LASAAC Joint Committee has released an early extract of the 2007 SORP.  The extract addresses financial instruments and enables practitioners to familiarise themselves with the SORP requirements in advance of formal publication in July 2007. For more information click here.

Surplus Assets
At the June meeting LASAAC briefly discussed surplus assets and noted that the CIPFA Directors of Finance Section has issued a briefing note on surplus assets which reiterates the SORP requirements in relation to surplus assets. Click here for more information

2006/7 Financial Statements - Local Authority Charitable Trust Funds
The Office of the Scottish Charity Regulator (OSCR) has now agreed and clarified the submissions to be made by local authorities for 2006/7.  The submissions, which require to be made by 31 December 2007, are set out in a confirmation letter sent to OSCR. The letter is available to read by clicking here.

LASAAC Responses to CIPFA Consultations on Reporting
 
LASAAC has responded to two CIPFA consultation papers.
 
The first paper, 'Back To Basics', seeks views on the potential format and content of the financial statements when International Financial Reporting Standards are implemented. LASAAC has provided responses to the specific questions, generally favouring the opportunity to simplify and focus the financial statements for accounts users. The response is available here.
 
The second paper, 'Telling The Whole Story', requests views on how authorities can improve general stakeholder reporting, including performance reporting and communication of service plans. LASAAC has provided a general response welcoming the initiative but suggesting that more research on stakeholder needs would be beneficial prior to establishing a reporting framework. In addition other suggestions are made relating to further development. The response is available here.

Public Benefit OFR
LASAAC provide comments on the CIPFA discussion paper on public benefit operating financial review statements.  LASAAC commented upon the complex information relationship between local authorities and their stakeholders. Click here to download.

Performance and Improvement Circular 2/2005
The Scottish Executive has issued Circular 2/2005 to replace Circular 1/2005.  The Circular addresses public performance reporting and provides direction to local authorities in Scotland on the disclosure of trading accounts and summarised accounts.  The Circular embraces LASAAC's work on trading accounts and summarised accounts. To download click here (PDF)

Capital Expenditure and the new Prudential Framework
The new prudential framework became effective from April 2004.  There has been, and there will continue to be, much debate on the effect on the accounting treatment of capital expenditure.  LASAAC has prepared a paper is therefore to add some clarity to the debate.  The paper is in the form of frequently asked questions and is aimed at service staff as a well as finance practitioners.  You can download a copy here

2007 Code of Practice on Local Authority Accounting - Invitation to Comment
CIPFA/LASAAC has launched the consultation for the 2007 SORP.  Responses are now closed. Read more