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FAN COVID-19 Alert
7 April 2020
CIPFA FAN has provided this
Alert to support all finance practitioners accounting under the
2019/20 Code of Practice on Local Authority Accounting in the
United Kingdom (the Code). We hope you find it of benefit.
Changes to financial
reporting deadlines for 2019/20 accounts (England)
MHCLG has now confirmed the
details of the planned revisions to the Accounts and Audit
Regulations in a letter to authorities on 3 April. The revised
regulations are due to be made this week, extending the statutory
audit deadline for 2019/20 for all local public authorities, apart
from health service bodies.
The publication date for
audited accounts will move from 31 July for Category 1 authorities
and 30 September for Category 2 authorities to 30
November 2020 for all local authority bodies.
To give local authorities
more flexibility, the requirement for the public inspection period
to include the first 10 working days of June (for Category 1
authorities) and July (for Category 2 authorities) has been
removed. Instead local authorities must commence the
public inspection period on or before the first working day
of September 2020. This means that draft accounts
must be approved by 31 August 2020 at the
latest however they may be approved earlier...there will be
no requirement to wait for a common inspection period.
Authorities must therefore publish
the dates of their public inspection period this
year. MHCLG recommend authorities provide public notice on their
websites (where available) when the public inspection period would
usually commence, explaining why they are departing from normal
practice for 2020.
In relation to the meetings
needed to approve draft and final accounts, separate regulations have been made to enable
meetings to be held remotely, and to hold and alter the frequency
and occurrence of meetings without the need for further notice.
Note that the above amendments
relate to England only. Regulatory dates in Wales and Scotland are
on a different basis, however feedback from the regulators has
indicated there is no requirement for them to amend the respective
regulations as there is already flexibility to permit publication
of accounts beyond the stated dates.
Revisions to 2019/20
financial reporting requirements
COVID-19 represents the
greatest challenge faced by public services in a generation,
placing local government under greater pressure than ever before.
Yesterday, 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 over the last week, it is 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 has
today 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.
Following the discussions
at CIPFA/LASAAC a year-end Bulletin for 2019/20 will now be
finalised in conjunction with the Local Authority Accounting Panel.
FAN will provide further updates as soon as information is
available.
Revisions to NNDR 3
Requirements (England)
As a consequence of the
accounts deadlines being pushed back by MHCLG the submission
deadline for the NNDR 3 return will be 31 July 2020 for the
unaudited version and 30 November for the audited form. MHCLG have
stated they will endeavour to get the form out to authorities by 1
May.
COVID-19 advice portal for
local authorities
Essential guidance for
local authorities on all aspects of the coronavirus support can be
found on the GOV.UK website
We hope this update is
helpful and that you stay healthy and safe during these
unprecedented times.
David, Caroline and Sandra
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