From:                                   CIPFA FAN <cipfa@email.cipfa.org.uk>

Sent:                                    23 April 2020 17:17

To:                                        Pitt, Joanne

Subject:                                CIPFA FAN April Newsletter - COVID-19, Year-end Bulletin, and important updates

 

 

 

Finance Advisory Network Newsletter

23 April 2020

 

Events

Introduction to Local Government Finance

4 June, Webinar

17 November, London

18 November, Leeds

Introduction to Collection Fund Accounts

30 June, London

1 July, Manchester

20 October, London

21 October, Leeds

Introduction to Local Authority Capital Accounting

21 July, Leeds

22 July, London

8 October, London

Introduction to Accounting for Groups and Collaborative Arrangements

25 November, Leeds

26 November, Birmingham

27 November, London

Introduction to Adult and Children’s Social Care

28 April, Webinar

FAN Home

Advisor Update

Welcome to the April FAN Newsletter, a shorter one than normal as we have already issued three alerts since the March newsletter on key developments in respect of the Accounting Code and the 2019/20 accounts. To assist practitioners we have summarised the main messages below, along with other points of reference that we hope will be of practical assistance to subscribers at this challenging time.

Perhaps not surprisingly, the FAN team have been busy supporting practitioners and providing updates on COVID-19 support but also in responding to your many and diverse accounting queries. All three of the team have now delivered workshops via webinars and initial feedback from attendees has been very positive. No doubt webinars will not only be a mechanism of responding to the immediate social distancing rules, but something that will offer more flexibility and value to subscribers in a world beyond the virus.

We have all been part of supporting the key discussions at the Local Authority Accounting Panel (LAAP) and David has attended ‘virtually’ the CIPFA/LASAAC board meetings. Caroline continues to provide her Collection Fund support and Sandra has just delivered a webinar on budgeting…and in these unprecedented times the need for sound financial management and governance remains as high as ever.

We continue to monitor the Government’s guidance on COVID-19 in terms of our planned workshops and conferences and we will provide updates as it becomes clearer when social distancing rules on travel restrictions start to be eased.

That’s all for this month’s advisor update. The FAN team wish all practitioners good luck and we hope you continue to stay safe and well over the coming weeks and months.

David, Caroline and Sandra

 

Network and CIPFA News

Additional Support for 2019/20 Accounts – Feedback Requested Please

CIPFA is keen to obtain feedback on whether any additional support would be welcomed by practitioners in respect of preparing the 2019/20 accounts, over and above receipt of the ‘year-end’ bulletin and the materials covered in the FAN Accounts Closedown workshops from earlier in the year.

FAN have set-up a one question survey and we would very much appreciate your immediate thoughts. Obviously if you feel you have all the information you need from CIPFA right now and just wish to ‘get on with it’ we would also appreciate that feedback via the survey. Thank you.

FAN Events Update

The events listing this month includes our workshops already on the website that are currently still scheduled to take place in the more traditional face-to-face style and are open for bookings. These may be subject to change (i.e. delivered through a webinar delivery) depending on how long the social distancing requirements are in place. Please note that the two Introduction to Local Government Finance workshops originally scheduled for early June will now be delivered by webinar on 4 June.

Updates on these and all our other planned workshops for 2020 will follow in future newsletters and through social media, so please follow us on Twitter and LinkedIn (see links below) so that you don’t miss any updates or important announcements.

CIPFA and the FAN team thank you for your patience during this uncertain time.

CIPFA Year-end Bulletin

The Local Authority Accounting Panel (LAAP) have been reviewing a draft year-end bulletin following the recent decision by CIPFA/LASAAC not to revise the 2019/20 Code requirements. LAAP is due to meet again shortly to finalise the bulletin, however it is hoped that it will be issued in the next week.

Topics likely to be covered include Dedicated Schools Grants, IFRS 16 deferral to 2021/22, COVID-19 impact on measurement of assets and liabilities, accounting for McCloud and Sargeant Judgements, amendment to accounts publication dates under regulation and disclosure of accounting standards issued but not yet adopted.

2020/21 Code – Update

Following the decision to defer the IFRS 16 Leases standard to 2021/22, the draft 2020/21 Code will need to be updated to reflect CIPFA/LASAAC’s decision on the deferral of the standard. The updated Code will then require formal approval by CIPFA/LASAAC and FRAB, therefore the anticipated publication date for the Code will be later than previously expected. Further updates will follow once the timelines are clearer.

Summary of the accounting impact of recent government announcements on Covid-19 support

Pulling together all the recent changes, FAN and CBRS have summarised the accounting impact of government announcements on COVID-19 support, including:

  • Expanded Retail Discount 2020/21
  • Business Grants
  • NNDR 1 2020/21 S31 Grants paid in advance
  • Deferral of Central Share
  • Council Tax Hardship Scheme

This has been included in a COVID-19 FAQ page on the CIPFA website.

Additional £1.6bn Funding Announced for Local Government

Last month the government announced that it would be providing local authorities with an additional £1.6bn via a S31 grant. The individual allocations for this were made to local authorities on 3 April 2020. The funding is un-ringfenced and whilst it can be used at the local authority’s discretion across all services facing pressures, it is expected that it will be used “to help respond to coronavirus (COVID-19) pressures across all the services they deliver. This includes increasing support for the adult social care workforce and for services helping the most vulnerable, including homeless people".

In the past few days, the government has announced a further £1.6bn for local authorities, making a total provision of £3.2bn to help them deal with the immediate impacts of Coronavirus. This additional £1.6bn will also be un-ringfenced with individual allocations to be announced shortly.

In additional to the above, £850m in social care grants will now be paid up front in April, rather than during April, May and June, to help ease the immediate pressure on cash flows.

Further details on the above measures can be found here .

European Structural and Investment Funds: Coronavirus (COVID-19) Response

The Government have published a series of documents and updates regarding the 2014 to 2020 European Structural and Investment Funds Programme and the response to COVID-19.

Additional COVID-19 advice and support for local authorities

CIPFA has set-up an online hub for COVID resources which can be found here

Essential guidance for local authorities on all aspects of the coronavirus support can be found on the GOV.UK website.


FAN Tax Advisory Services (FANTAS)

If you have any enquiries regarding the FANTAS tax updates or suggestions for topics to be covered by FANTAS, please contact Jen Thompson (jthompson@deloitte.co.uk / 0115 9363749) or Ben Powell (bpowell@deloitte.co.uk / 07881 804171). Further information for subscribers to the TAS service can be found at our dedicated website area.

CIPFA Thinks

Don’t forget to periodically check CIPFA Thinks to see the latest set of articles, comments and publications covering topical aspects of public finance and issues specific to local government.

Follow FAN on Twitter and connect to us on LinkedIn

David, Sandra and Caroline regularly tweet details of relevant news stories, FAN event updates, CIPFA consultation alerts, COVID-19 updates, etc. We encourage subscribers to follow us on Twitter for the latest news, so even if you don’t ‘tweet’ yourself, it’s a great way to keep updated on key issues affecting local authority finance and accounting. Click to find David Sandra and Caroline on Twitter, or search for all our network advisor tweets using the hashtag #cipfanetworks.

We can also be found on LinkedIn and increasingly use social media for additional FAN updates, so if you are on LinkedIn then please feel free to connect to us: David , Sandra and Caroline or the join the FAN Linkedin Group .

LinkedIn Discussions

CIPFA has its own LinkedIn group where you can find up to date announcements and discussions on all the latest issues in the public sector. Why not join in one of the discussions or start a conversation of your own?

 

News Roundup

 

CIPFA does not accept responsibility for the use of external websites and any external content hyperlinked, and accompanying text in this newsletter, does not represent CIPFA endorsement of any views or data presented.

Inquiry launched into local authority commercial investments

Public Finance 21.04.20

The Public Accounts Committee has launched an inquiry into local authority investments in commercial properties.

Government urged to do more for adult social care sector

Public Finance 17.04.20

Government proposals to provide additional support to the adult social care sector in England have been met with a lukewarm response.

Councils handed further relief

Public Finance 17.04.20

The UK government has introduced new measures to give local authorities greater financial relief during the coronavirus pandemic

Social care 'an afterthought' in UK coronavirus response, says leaked letter

The Guardian 16.04.20

Care bosses warn death toll in care homes and community may be higher than in hospitals.

A stretch too far: council commercial investment

Public Finance 14.04.20

The framework governing capital investment by local authorities has been tested to breaking point by councils borrowing cheaply to invest in commercial property, according to a recent NAO report

Stephen Sheen: Accounts simplification isn’t happening. What next?

Room 151 15.04.20

CIPFA/LASAAC had made clear that they were considering radical proposals to streamline the 2019-20 statement of accounts.

Rob Whiteman: Crisis Underlines Necessary Focus On Prevention For Public Sector

Forbes 14.04.20

For CFOs, making money last longer and go further is a daily challenge. Times of crisis show us that at any time, unplanned risks and unidentified threats can rattle services, supply chains, and market demand.

Thousands of firms receive financial help from councils

LocalGov 14.04.20

Almost 100,000 small businesses across the country have already been paid a share of more than £1bn to help support them through the coronavirus crisis, the Local Government Association (LGA) has said.

Counties warn against a blanket council tax deferral scheme

LocalGov 08.04.20

County councils have warned that a blanket council tax deferral scheme could create significant financial problems for local government.

Concerns over Autumn budgeting after regulators reject Accounting Code simplifications

Public Finance 07.04.20

CIPFA is concerned that regulators refusals to radically simplify the 2019-20 Accounting Code will put public finance professionals under huge pressure and impact 2021-22 budgeting.

CIPFA interview: The key priorities for local government

AAT Comment 01.04.20

Here we talk to CIPFA, the accountancy body for public services on what they believe the key priorities are for local governments in regards to coronavirus.

Matt Hancock urged to 'move faster' to get care workers protective kit

The Guardian 28.03.20

Shortages heighten concerns for those working with suspected Covid-19 patients.

Councils coronavirus Q&A with Andy Burns, CIPFA

Public Finance 26.03.20

Council finance officers around the UK are joining the fight against the coronavirus outbreak. PF talks to CIPFA associate director Andy Burns about the challenges they are facing.

Local Government finance teams on the front line helping business

AAT Comment 24.03.20

The LGC reported that Rob Whiteman, chief executive of the Chartered Institute of Public Finance & Accountancy, has said that the financial effects on local government will be profound.

 

Publications

IFRS 16 Leases: An Early Guide for Local Authority Practitioners

Code of Practice on Local Authority Accounting in the United Kingdom 2020/21

Financial Management Code

Financial Management Code Guidance Notes

Code of Practice on Local Authority Accounting in the United Kingdom: Disclosure Checklist for 2019/20 Accounts

Service Reporting Code of Practice for Local Authorities (2020/21 Edition)

 

Finance Advisory Network Advisors

David Ellis

01502 584395 /
07879 665950
david.ellis@cipfa.org

Caroline Newman
01964 533097 /
07919018938
caroline.newman@cipfa.org

Sandra Beard
02476 591922 /
07718242835
sandra.beard@cipfa.org

CIPFA | The Chartered Institute of Public Finance & Accountancy

 

If you are unable to see the message above clearly, read it online.

This e-mail is part of your network service. If you no longer wish to receive Finance Advisory Network emails please update your preferences. Find out more about our privacy policy.

The Chartered Institute of Public Finance and Accountancy, 77 Mansell St, London, E1 8AN
Registered with the Charity Commissioners of England and Wales No. 231060 and with the Office of the Scottish Charity Regulator No.SCO37963 © CIPFA 2020. All rights reserved.

...