Source · Select Committees · Public Accounts Committee
Recommendation 27
27
Accepted
Alternative accounting frameworks risk inconsistency; simplifying standards proves difficult for bodies.
Conclusion
CIPFA’s evidence to us highlights its view that no alternative accounting frameworks are without their disadvantages, and that departures from the existing regime may risk reducing consistency with the rest of the public sector and require adjustments to feed in to the Whole of Government Accounts.87 The Department highlighted the difficulty CIPFA, HM Treasury and other bodies have had making collective progress on simplifying standards.88 78 Public Accounts Committee, Eleventh Report of Session 2021–22, Local auditor reporting on local government in England, HC 171, para 12 79 TAR0015, para 1.3 80 TAR0001 81 TAR0014 82 TAR0015 83 TAR0014 4.2, 4.3 84 Qq 8–9 85 Qq 91–93 86 Q 91 87 TAR0015, para 10.8 88 Q 35 Timeliness of local auditor reporting 17
Government Response Summary
The government states it has agreed with the committee's observation. It has begun early work on reforms, including a review of the most complex areas of local authority accounting, particularly non-investment assets and pensions, with further updates expected after the summer.
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Recommendation implemented 6.2 On 17 July 2023, Minister Rowley, gave evidence to the Levelling Up, Housing and Communities Committee inquiry into local financial reporting and audit. This followed his letter to the Committee of 14 July 2023 which updated on early work to deliver reforms across the system, including reviewing the most complex areas of local authority accounting, with a particular focus on the valuation of non-investment assets and pensions and associated auditing requirements. 6.3 The Permanent Secretary has written to the Committee alongside the publication of this Treasury Minute to summarise this work. The Committee will be provided with a further update after the summer once this work has progressed further.