Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 26
26
Deferred
Paragraph: 117
The Department, in consultation with the Chartered Institute of Public Finance and Accountancy, must resume...
Recommendation
The Department, in consultation with the Chartered Institute of Public Finance and Accountancy, must resume the introduction of a standardised statement of service information and costs for local authority accounts as soon as actions to address the audit backlog have been implemented. We expect a standardised statement could be introduced for financial years starting in 2024. At the same time, it must ensure that local authority accounts disclosures outside this statement are streamlined by removing requirements that are now covered by the new statement.
Government Response Summary
The government remains committed to a standardised statement but defers its introduction until the audit backlog is cleared, citing concerns about adding new requirements at this time. CIPFA will first focus on developing better performance reporting, which could be a precursor to the statement.
Paragraph Reference:
117
Government Response
Deferred
HM Government
Deferred
We remain committed to the prospect of a standardised statement. However, introducing this now would add a new requirement onto auditors and accounts preparers at a time when the immediate priority must remain clearing the backlog before we can then turn to issues of long-term reform. In the meantime, CIPFA is keen to ensure that the focus should be on developing better performance reporting so that the accounts and statements that accompany them are able to convey the key messages to the user. Through its updated strategic workplan, CIPFA LASAAC will focus on an overview of performance and summary financial information note. Following this work CIPFA LASAAC will then make any final decisions on any proposed changes to the Code, including determining the best mechanisms to report performance and summary financial information. This could become the precursor to the standardised statement of information and costs.