CIPFA Financial Management Code
A presentation from the Director of Finance on the recently introduced Financial Management Code, to bring the Committee up-to-date with its requirements.
Additional documents:
Decision:
Resolved
(1) That the presentation on the CIPFA Financial Management Code be noted
Minutes:
The Committee considered a presentation from the Director of Finance, that gave details of the recently introduced Chartered Institute of Public Finance and Accountancy (CIPFA) Management Code.
CIPFA had developed the code in order to set out standards of financial management across local government, and to make it clear to Chief Financial Officers that the responsibility for good financial management sat with the entire Leadership Team of an authority, including senior officers and elected members.
The Code had also been introduced as a result of the financial difficulties faced by Northamptonshire County Council, which had led to the reorganisation of local government in Northamptonshire.
The Assistant Director – Finance explained that the code covered six key principles, with 17 standards broken down into seven sections – the responsibilities of the chief finance officer and leadership team; governance and financial management style; long to medium-term financial management; the annual budget; stakeholder engagement and business plan; monitoring financial performance; and external financial reporting.
The code required local authorities to prepare for the code during 2020/21, with full compliance expected during 2021/22. Local authorities could decide themselves how to monitor, report and scrutinise compliance with the code.
The Assistant Director – Finance explained that an early assessment of the requirements of the code had been undertaken. One area for improvement had been identified in relation to balance sheet monitoring.
In response to questions from the Committee, the Director of Finance said that there was not currently any reference to external auditors needing to audit against the code, however that could change.
Resolved
(1) That the presentation on the CIPFA Financial Management Code be noted