CIPFA reviews transparency of local government accounts
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The Chartered Institute of Public Finance and Accountancy is seeking to identify the barriers to the public accessing and understanding local authority accounts.
The body has launched a consultation in an attempt to find out how easy it is for members of the public to hold their council to account.
The survey follows hot on the heels of a review of local government audit announced by the government last week, which will consider new measures to give the public better access to financial information produced by section 151 officers.
Don Peebles, head of policy and technical at CIPFA, said: “Local government accounts are the primary means by which the public can find out how their hard-earned taxes are being spent.
“Users should be able to access intelligible information that provides meaningful detail on how their council spends its money.
“Whether you’re a public sector finance professional, or a resident who wants to better understand where your council tax goes, we want to know how the accounts can better meet your needs.”
Last week, local government secretary James Brokenshire revealed the independent audit review, which will report next Spring, will be headed up by former Chartered Institute of Public Finance and Accountancy (CIPFA) president Sir Tony Redmond.
He said that restoring confidence in the audit regime needs to be accompanied by improvements in the way financial information is presented by local authorities.
Brokenshire said: “As a result, I have also asked Tony to include transparency of financial reporting within the scope of his review.
“To be absolutely clear, I am approaching this with an open mind but our aim must be to ensure that the financial reporting and audit framework helps members, section 151s and chief executives to make informed and responsible decisions about improvements and is more open and accountable to our citizens.
Responding this week to news of CIPFA’s consultation, Joseph Holmes, strategic director of resources at Winchester City Council, told Room 151: “It is very important in the current financial climate for councils to present financial information as simply and clearly as possible.
“We need to be able to tell the story of the council’s activities and performance and how taxpayer’s money has been spent on delivering these.
“Asking how the presentation of financial information can be improved, and the Redmond Review focussing on the role of audit as well as whether financial reporting facilitates scrutiny, will be really important in how we can enhance financial reporting in local government”.
Last year, at Room151’s LATIF North conference, Gareth Caller, head of the local government finance unit at the Ministry of Housing, Communities and Local Government, raised concerns about how well councils are presenting their investment and capital strategies online.
He said: “For every capital strategy, for every investment strategy that is really easy to find there is one that is buried either somewhere on page 437 of the budget council papers or in cabinet or executive papers with a summary report presented to cabinet.”
CIPFA’s new survey has been developed by CIPFA/LASAAC, an independent board which is a partnership between CIPFA and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC).
It runs until Friday 23 August 2019.
