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

Sent:                                    29 May 2020 14:55

To:                                        Pitt, Joanne

Subject:                                CIPFA SFAN Newsletter - May 2020

 

 

 

Scottish Finance Advisory Network Newsletter

May 2020

 

Events

Introducing the CIPFA Financial Management Code

4 June Webinar

Special Councillor Conference – Understanding the impact of COVID-19 on your council

11 June Webinar

CIPFA Scotland AGM 2020

12 June Webinar

SAN Series 38 Scotland – Getting Organised ‘Structures, Governance and Performance for Asset Management

16 June Webinar

Local Government Accounting Conference - COVID-19 and the impact on local authority financial reporting

23 June, Webinar

Introduction to Local Authority Capital Accounting

22 July, Webinar

SFAN Home

Advisor Update

Welcome to the May SFAN Newsletter

The FAN team are continuing to support a ‘business as usual’ approach by providing all of our planned workshops virtually via webinars up until at least the end of July. Our workshops for later in the year currently continue to be advertised as face to face events although this is being reviewed on an ongoing basis and may be subject to change dependent upon Government guidance.

Anyone booking onto a face to face event that is subsequently changed to webinar delivery will be notified of the change in good time and we will of course continue to keep you updated via future newsletters and social media. Please do follow us on Twitter and LinkedIn (see links below) so that you don’t miss any updates or important announcements.

In terms of what we have been up to, David recently attended the CIPFA/LASAAC and LAAP meetings that shaped the way forward for the Accounting Code, and has also been busy updating the draft 2020/21 Code for the deferral of IFRS 16 Leases to 2021/22. Caroline has been working on the draft 2020/21 Code with David, answering technical queries and providing consultancy support to authorities and Sandra has been supporting CIPFAs new Social Care Advisory Network (SCAN) during its first month as well as attending the recent LASAAC meeting.

That’s all for this month’s advisor update. Please stay safe.

David, Caroline and Sandra

 

Network and CIPFA News

CIPFA Bulletin 05 - Closure of the 2019/20 Financial Statements

The 2019/20 Year-end Bulletin has been published and is available to download on the CIPFA website.

Included in the bulletin are many issues that have been raised with CIPFA and FAN directly over recent weeks, including Sargeant Judgements, Going Concern, Covid-19 grants, impact of Covid-19 on asset measurement and impairment, and accounting standards issued but not yet adopted. There are also appendice covering IFRS 16 and a useful checklist of potential COVID-19 issues for narrative reporting.

CIPFA Bulletin 04 Treasury and Capital Management Update

CIPFA’s Treasury and Capital Management Panel have also issued CIPFA Bulletin 04 with general guidance to complement the Prudential and Treasury Management Codes and also guidance in response to challenges raised by COVID-19.

Whole of Government Accounts Submission Dates update

HM Treasury have extended the timetable for Whole of Government Accounts 2019/20 English local authority submissions (via OSCAR II) to - cycle 1 deadline 30 September, cycle 2 deadline 4 December. The Scottish Government website advises that local authorities in Scotland should use the same WGA guidance as England but for material to be sent to WGA_mailbox@gov.scot in place of the LG_returns email address.

Local government finance circular 8/2020: COVID-19 grant funding schemes (as amended)

This circular contains the amended guidance for grant funding schemes: small business grant fund and retail, hospitality and leisure grant fund guidance. This circular supersedes circular 5/2020.

Local government finance circular 9/2020: COVID-19 grant funding scheme phase 2

This circular contains the guidance for phase 2 of the grant funding schemes: small business grant fund and retail, hospitality and leisure grant fund guidance. This is an annex to circular 8/2020.

Local government finance circular 10/2020: COVID-19 local authority accounts 2019-20

This circular sets out the reduction in the reporting burden for the management commentary for 2019-20 and other non-statutory advice.

Local Government Accounting Conference - COVID-19 and the impact on local authority financial reporting - 23 June, Webinar

This year’s June local government accounting technical update for England, Scotland and Wales is being delivered by Webinar in light of current circumstances, hopefully also combatting any geographical barriers. This Local Authority Accounting Conference is the key event for practitioners to find out about the very latest developments and issues for local government financial reporting both now and in future years. This year’s conference will specifically focus on the impact of COVID-19 and what this will mean for accounting, financial reporting and auditing going forward.

Benefits of attending

  • Hear the latest updates on proposed changes to the Local Authority Accounting Code
  • Understand the key accounting issues created by COVID-19 that will impact on financial reporting, including non-current asset valuations and pensions
  • Consider the impact on your 2019/20 and 2020/21 Annual Governance Statements and action plans
  • Explore the Code requirements for local authority accounting for the myriad of grant schemes announced by the UK parliament (including the devolved administrations) in response to the crisis
  • Update on the latest position on IFRS 16 implementation
  • Hear from the auditors on their expectations for the 2019/20 accounts and the reasons for their approach.

The conference will be of interest to all finance professionals working in local authorities and other bodies reporting under the CIPFA/LASAAC Local Authority Accounting Code of Practice, plus those who supply services to the sector. The pricing for these webinars is £145 plus VAT for FAN/WFAN/SFAN/PFAN subscribers, and £195 plus VAT for non-subscribers.

Prepaid places are not eligible for these conferences as they fall outside of the network service plan.

2020/21 Code

Normally the Accounting Code of Practice is published on 1 April in the financial year to which it applies. However, because the public sector has deferred the application of IFRS 16 Leases and CIPFA/LASAAC has agreed with that deferral the draft version of the 2020/21 Code (which included implementation provisions for IFRS 16) had to be updated to reflect that deferral.

The FAN team have been closely involved in updating the 2020/21 Code, removing IFRS 16 and restoring the IAS 17-based requirements. The other changes to the 2020/21 Code remain unchanged. Decisions also have to be made about the issue of the reporting requirements for IFRS 16 Leases. The proposed changes will require formal approval, including consideration by CIPFA/LASAAC, FRAB (and will also have to be approved by CIPFA and LASAAAC) before the Code can be published. FAN will provide updates on the anticipated publication date in future alerts and newsletters, but at this stage publication is anticipated in late June or early July.

Audit Scotland – COVID-19: Impact on public audit in Scotland

Scotland’s public services are under exceptional pressure due to COVID-19. This report describes the approach to be taken by Audit Scotland during these circumstances as pragmatic, flexible and consistent. This paper sets out the principles of Audit Scotland’s approach and their financial and performance audit programmes. It also outlines plans for assessing the impact of COVID-19 on public bodies and reviewing the Scottish public sector’s response to the pandemic.

Consequentials – A positive step in right direction says COSLA

On May 15, Leaders decided to distribute the £155 million consequentials using a well-established formula - Grant Aided Expenditure (GAE) + Special Islands Needs Allowance (SINA). This recognises not only the vast range of issues the COVID-19 response presents for Councils, but also the differences in population, geography and deprivation.

The first cost collection exercise estimates a net additional cost of around £95m to Councils for the period March to end June.

Loss of income due to facility closures, fees and charges, etc, has been identified as the most significant cost pressure.

Leaders agreed that COSLA will work on a joint letter for the Chancellor, focused on the impact of loss of income.

Meetings are now planned with SOLACE and Directors of Finance to start discussions on medium to long-term financial strategies that address the needs of Local Government, and this work will underpin the work of COSLA’s Recovery Special Interest Group.

Summer Budget Revision 2020 to 2021

This document provides information to support the ‘Budget (Scotland) Act 2020 (Amendment) Regulations 2020’ – the Summer Budget Revision.

The purpose of the Summer Budget Revision is to amend the Budget (Scotland) Act 2020, which authorises the Scottish Government's spending plans for the financial year 2020-21. This is an additional budget revision, brought forward to set out for Parliament detail of the budget measures taken by Scottish Ministers in response to the COVID-19 emergency.

European Charter of Local Self-Government (Incorporation) Bill introduced

Andy Wightman has introduced the European Charter of Local Self-Government (Incorporation) (Scotland) Bill to the Scottish Parliament. The Bill seeks to incorporate the European Charter of Local Self-Government into Scots law, in an attempt to strengthen the “status and standing” of local government. Along with the Bill , several other documents have also been published, including a Policy Memorandum, Financial Memorandum, Delegated Powers Memorandum, Explanatory Notes and Statements on Legislative Competence for the Bill.

Coronavirus (COVID-19): Business support fund grant statistics

This document contains statistics on the Coronavirus (COVID-19) business support fund grants including the number of awards granted and the value of these awards. These statistics are be updated on a weekly basis.

Coronavirus (COVID-19): state aid - guidance for public authorities

This document sets out the European Commission’s (Commission) general approach on how State aid rules can support measures in Scotland and within EU Member States to address the impacts of COVID-19.

Local Government: COSLA has provided an update to the Local Government & Communities Committee regarding essential work being undertaken by local government in response to COVID-19.

Additional COVID-19 advice and support for local authorities

CIPFA has set-up an online hub for COVID resources.

Essential guidance on all aspects of coronavirus can be found on the

Gov.Scot website.

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.

 

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.



From the Scottish Government Website

COVID-19 budget revision

Pandemic response funding details published

27 May 2020

Covid funding plea

UK Government urged to provide clarity on consequentials

23 May 2020

Schools to re-open in August

Safe return planned through mix of schools and home learning

21 May 2020

Additional £40m support for key sectors

The Scottish Government’s Business Support Fund has increased by £40m to provide additional support for key sectors of the Scottish economy

20 May 2020

£50 million for social care

Funding to help with additional COVID-19 costs

12 May 2020

Second Coronavirus (Scotland) Bill

Further measures to help Scotland’s response to the outbreak

11 May 2020

General News

Nicola Sturgeon to confirm first phase of lockdown easing

Nicola Sturgeon unveiled a four phase "route map" last week which was aimed at restarting society while suppressing the virus.

BBC 28.05.20

Test and trace system kicks off in England and Scotland

A team of 25,000 contact tracers are making their first phone calls to track down people who will be told to self-isolate under a new scheme in England.

BBC 28.05.20

Scottish Government revises budget to take account of COVID-19 spending

The budget revision allocates £4.01bn of expenditure to the COVID-19 emergency.

Holyrood 27.05.20

Covid funding deal for Scotland ‘deeply problematic’, says finance secretary

The Scottish Government has called for greater clarity from the Treasury over coronavirus-related funding after last minute grant adjustments left it with £70m less than expected.

Public Finance 26.05.20

Douglas Ross resigns as Under Secretary of State for Scotland

Junior minister Douglas Ross has resigned after Dominic Cummings' defence of his trip to County Durham during the coronavirus lockdown.

BBC 26.05.20

Scotland bans Covid-19 support to firms based in tax havens

The Scottish parliament has voted to block companies based in tax havens from using millions of pounds in coronavirus relief funding, in emergency legislation.

The Guardian 21.05.20

Additional £58 million to help Scotland tackle coronavirus

The UK Government has today announced an additional £58 million to help the devolved administration in Scotland respond to the challenge of the coronavirus.

GOV.UK 16.05.20

Scottish Government wary of ending lockdown too quickly

A “precautionary” approach to lifting the lockdown in Scotland will limit the risk of a second wave of the virus north of the border, the Scottish Government has said.

Public Finance 15.05.20

New chair of Scottish local government watchdog

Elma Murray has been appointed interim chair of the Accounts Commission following the resignation of Graham Sharp.

Public Finance 07.05.20

Scottish call for ‘greater fiscal flexibility’

The Scottish Government has pressed for greater fiscal flexibility to allow it to manage the impact of coronavirus on the Scottish economy.

Public Finance 06.05.20

New financial model ‘could deliver unlimited homes on zero-subsidy basis’

Scotland’s local authorities could build an unlimited number of homes for social rent on a zero-subsidy basis under new proposals outlined by the think tank Common Weal.

Scottish Housing News 05.05.20

Call for new Scottish housing model after coronavirus

A post-pandemic finance model for Scotland’s public rented housing sector could deliver a vital economic stimulus after the lockdown and allow councils to build unlimited high-quality homes without subsidy at a lower cost than present

The National 04.05.20

Small firms welcome new £100m support package

A new £100m grant support package for smaller businesses and newly self-employed people has opened for applications.

BBC News 30.04.20

Scottish education review delayed 'due to Coronavirus'

Education Secretary John Swinney said the final report from the review would now not be published until June 2021.

BBC News 29.04.20

CIPFA June 2020 exams

CIPFA has confirmed students will be able to take the June exams at home, or can choose a private setting other than their home – but no exams will be offered either at workplaces or CIPFA venues.

PQ Magazine 29.04.20

 

Publications

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

IFRS 16 Leases: An Early Guide for Local Authority Practitioners

IFRS 9 Financial Instruments: A Guide for Local Authority Practitioners

Service Reporting Code of Practice for Local Authorities 2020/21

Financial Management Code

Financial Management Code Guidance Notes

 

Finance Advisory Network Advisors



David Ellis

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

Caroline White
01964 533097 /
07919018938
caroline.white@cipfa.org

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

CIPFA | The Chartered Institute of Public Finance & Accountancy

 

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