Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 10
10
Acknowledged
Paragraph: 56
Accounting Code too expensive, restricting access for local authority account users.
Conclusion
The Code of Practice on Local Authority Accounting (the Accounting Code) is a statutorily recommended guidance document for preparing and understanding local authority accounts, but it is too expensive to be accessed by all possible users of the accounts. If made accessible, it could also serve to keep the agreed purposes of the accounts visible to the whole sector.
Government Response Summary
The government acknowledges it may be beneficial to consider how to encourage the use of the Accounting Code and will consider this alongside CIPFA as they reform financial reporting, but does not commit to making the Code freely available.
Paragraph Reference:
56
Government Response
Acknowledged
HM Government
Acknowledged
The Accounting Code is produced by CIPFA, an independent body which sets the principles and practices of accounting required to prepare financial statements which give a true and fair view of the financial position and transactions of a local authority. Chief Financial Officers in local authorities are responsible for ensuring they comply with the Accounting Code and all local bodies receive public funding which can be utilised to support the production and audit of their annual accounts in line with CIPFA’s Accounting Code. We accept it may be beneficial to consider what else can be done to encourage the use of the Accounting Code and will consider this alongside CIPFA as it takes steps to reform local authority financial reporting.