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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.
IFRS 16 Deferral
Just to confirm that the
decision of CIPFA/LASAAC not to amend the 2019/20 Code requirements
does not impact on the previous decision taken to defer IFRS 16 in
the Code.
To clarify, IFRS 16 Leases
has been deferred a year and will now come into the Code for
2021/22 with a transition date of 1 April 2021.
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 currently considering
the final draft of the bulletin which it is hoped will be issued
before the end of the week.
Topics likely to be covered
include 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.
Local government finance
circular 6/2020: non-domestic rates relief for 2020-2021
The document aims to inform a mutual understanding
amongst local authority practitioners. It includes general
information relating across the different reliefs, and specific
information relating to each relief applicable in 2020/20221.
Local government finance
circular 7/2020, business rates incentivisation scheme 2018-2020
This Local Government Finance Circular provides
details of the outcome of the Business Rates Incentivisation Scheme
for 2018-19 and the final individual local authority targets for
2019-20.
The Annual Governance
Statement for 2019/20 - Matters to consider as a result of the
coronavirus pandemic
The CIPFA Better Governance
Forum has issued a briefing for its subscribers on how to take
account of the impact of coronavirus on the Annual Governance
Statement (AGS). This is a short summary of key points for FAN,
WFAN and SFAN subscribers. The full briefing is available to subscribers of
the Better Governance Forum (BGF). Please contact Diana
Melville if you would like to subscribe to BGF but don't
currently.
Reflecting the challenges
from Coronavirus in the AGS
The AGS assesses governance
in place during 2019/20 so the majority of the year will be
unaffected by coronavirus. The conclusion on whether or not
governance is fit for purpose should reflect the normal operations.
However coronavirus will
have impacted on governance during March 2020 and authorities also
need to ensure that the AGS is current at the time of its
publication, so it is essential therefore that the AGS reflects the
impact of the COVID-19 pandemic on governance. Where necessary, a
second conclusion on the adequacy of governance arrangements during
this period could be included to make clear the impact.
The impact on governance
may fall into the following broad categories:
- Impact on business as usual in the
delivery of services
- New areas of activity as part of
the national response to coronavirus and any governance issues
arising
- The funding and logistical
consequences of delivering the local government response
- Assessment of the longer term
disruption and consequences arising from the coronavirus
pandemic.
Once the crisis is over
authorities are likely to conduct a review of the lessons to be
learned from its response. This could be a suitable area for
inclusion as one of the organisation’s significant governance
issues.
For full details of the
requirements of the Annual Governance Statement see Delivering Good
Governance in Local Government Framework 2016 and the Code of
Practice on Local Authority Accounting in the United Kingdom
2019/20.
Revisions to 2019/20
financial reporting requirements
On 6 April, CIPFA/LASAAC
considered radical proposals to streamline the 2019/20 accounts, in
an effort to alleviate the pressure on budget holders and finance
teams that have been diverted from their normal duties.
However, from extensive
discussions, it was clear that the proposed simplification and
reduction proved unacceptable to regulators and auditors.
Separately, HM Treasury has advised us that some of CIPFA’s
proposals arguably might not provide the information still
necessary for Whole of Government Accounts (WGA).
CIPFA has consistently been
briefed by local government CFOs that the workload associated with
minor changes only would outweigh any benefits for stretched
finance teams. Therefore, in order to create certainty for both the
preparers and auditors of accounts, the CIPFA/LASAAC Board resolved
that in the absence of regulator and audit support, the status quo
position will hold for full application of the 2019/20 Code.
In acknowledging that,
sadly, radical change is not possible on this occasion, CIPFA
nonetheless encourages the application of local judgement on what
disclosures should be made in order to alleviate organisational
pressures on councils.
CIPFA has issued this statement in respect of the CIPFA/LASAAC
decision.
The Scottish Landfill Tax
(Standard Rate and Lower Rate) Order 2020
This Order specifies the standard rate and lower
rate for Scottish landfill tax for disposals on or after 1 April
2020. The standard rate is £94.15 and the lower rate is £3.00. Tax
is to be calculated by reference to the weight and types of
material disposed of, as provided for in section 13 of the Landfill
Tax (Scotland) Act 2014.
The Council Tax Reduction
(Scotland) Amendment (No. 3) (Coronavirus) Regulations 2020
Scottish Statutory
Instruments2020 No. 108
These Regulations amend the Council Tax Reduction
(Scotland) Regulations 2012 and the Council Tax Reduction (State
Pension Credit) (Scotland) Regulations 2012. The amendments
increase the amount of earnings that are to be disregarded in
calculating the income of an applicant for the purposes of an award
of council tax reduction. The increases operate during the 2020/21
tax year, after which the current thresholds are reapplied.
The amendments reflect the
temporary increase in the basic amount of working tax credit made
by section 77 of the Coronavirus Act 2020 (c.7).
The Non-Domestic Rates
(Coronavirus Reliefs) (Scotland) Regulations 2020
Scottish Statutory
Instruments2020 No. 101
These Regulations introduce two reliefs in relation
to non-domestic rates and the financial year beginning on 1 April
2020.
Scottish Fiscal Commission
Fiscal Update
The Scottish Fiscal
Commission wrote to the Social Security Committee
enclosing an update on the Scottish Government’s budgetary position
due to shifts in commitments since its last publication. It
considers the implications of coronavirus and the delivery of the
UK Budget in March. The report also includes commentary on the
possible effects of the coronavirus outbreak on the economy and the
Scottish Budget. (Newsdirect 28.04.2020)
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