Issue - meetings

To receive a report and presentation on the new CIPFA Financial Management Code.

The Chief Finance Officer gave a presentation on the new Chartered Institute of Public Finance and Accounting (CIPFA), Financial Management Code (the Code). He explained that the new Code was amongst a number of measures CIPFA had issued in response to concerns about the financial resilience of local authorities.

The Code is based around six key principles of good financial management to ensure councils have appropriate arrangements in place. Each of these principles is supported by a set of guidance standards against which Councils should be assessed and is structured around 7 areas of focus and the standards for compliance under each of those.

He advised that we will decide how best to monitor our compliance with the Code when we receive CIPFA’s best practice guidance. This will be discussed as the new committee structure is developed but would appear to fit well with the remit of the Audit Committee.

The Chief Finance Officer advised that the Council had undertaken a self-assessment against the standards in the Code and identified our level of compliance and the areas on which we can improve. He expressed the view that the Council is performing well but identified some areas for improvement such as training and reviewing the format and content of reports to make them easier to understand. He agreed to a request to circulate the self-assessment to the Committee.

The Chief Finance Officer referred to the recent Peer Review and that its report may identify constructive suggestions, that overlap with the Code, for further improvements.

The Committee noted the report and presentation on the CIPFA Financial Management Code.