Issue - meetings

[To receive an update on the review of compliance with CIPFA financial management code.]

Claire Nye, Director of Finance, presented the report on the review of Compliance with the CIPFA Financial Management Code.

The new Financial Code 2019, introduced by CIPFA, places increasing focus on the management of the Council’s finances. The Committee were advised that the Council is required to demonstrate that it is working towards this code and will be fully compliant by 2022. The Committee were presented with the first literation of the self-assessment on the Council’s performance against the Code. The Committee were advised that the new Financial Management Code is a useful tool that demonstrates good practice and assurance across the Council’s financial management.

The Committee were advised that the assessment demonstrates our compliance with the code. The Council has good financial management, very clear lines of reporting, transparent decision making and good budget monitoring. Budget managers are responsible for reporting on their budget monitoring with support and challenge from Finance, therefore promoting ownership across the authority and a one Council approach.

The code however highlights a few areas which could improve our performance and where work is already underway. 

One area was value for money, whilst the Council does deliver on value for money, we could be demonstrated in more detail. The Council will be looking to increase the use of benchmarking and making this more visible along with embedding the performance framework approved by Cabinet in March, around Relighting Our City, and strengthening the link between performance and finance.

Medium Term financial planning is another area which could be strengthened. The Council assesses its resilience over the medium term, and provides robust forecasts on demand and risk, however, currently we do not have a balanced budget over the medium term. Whilst this is in part due to the uncertainty around Government funding, it is also around how the Council best operates within a changing environment.

The Committee were advised the final area was around enhancing our work around options appraisals. There is good project management framework in place, but work was underway to see how this can be more agile and flexible, to ensure that responses are actioned more quickly when required.

The Committee asked if this document would be shared externally. The Director of Finance advised that was being presented to Committee so to be transparent and that the Auditors would have access to this and may use it as part of their assessment.

Further detail regarding the elements of the waterfall-based approach would be bought to a future meeting.

Resolved:

That the Council’s Review of Compliance with the CIPFA Financial Management Code be noted.