Issue - meetings

Local government finance in the UK has been governed by primary legislation, regulation and professional standards as supported by regulation. The general financial management of a local authority, however, was not supported by a professional code. CIPFA introduced a Financial Management code (FM Code) to provide guidance to local authorities. This report provides the results of an Officer review against the key standards in the code.

RECOMMENDATION

The Committee notes:

The publication of the FM Code and the requirement for it to be applied from 1 April 2020.

That the first year, 2020/21, is a shadow year where local authorities can demonstrate that they are working towards full implementation which, for the first full year of compliance, will be 2021/22.

That an initial assessment has been carried out at APPENDIX A of the Council’s assessed level of compliance compared to the Standards contained in the FM Code.

There is an item on the Internal Audit Plan 2021/22 to review progress against actions raised in the initial review.

The Head of Corporate Services advised members the completion of the self-assessment doc in appendix A had raised practical recommendations and actions in most areas. As these are important, they should be reported to Audit Committee at each meeting.

Budget consultation for residents and business was of high importance, together with performance monitoring. Implementation of service boards will assist, but reporting must be expanded. Financial controls must be embedded in each area of organisation. Further stress testing needed over 10 years, but there will always be difficulty will always be getting accurate number. Members noted the need for priority of actions, with individual responsibility and clear timescales.

RECOMMENDATION

The Committee noted:

The publication of the FM Code and the requirement for it to be applied from 1 April 2020.

That the first year, 2020/21, is a shadow year where local authorities can demonstrate that they are working towards full implementation which, for the first full year of compliance, will be 2021/22.

That an initial assessment has been carried out at APPENDIX A of the Council’s assessed level of compliance compared to the Standards contained in the FM Code.

There is an item on the Internal Audit Plan 2021/22 to review progress against actions raised in the initial review.