A report on the findings of the CIPFA Financial Management Code Self-Assessment for 2025/26.

The Committee received a report which explained that the Chartered Institute of Public Finance & Accountancy (CIPFA) Financial Management Code 2019, which set out standards of financial management, expected Local Authorities to be able to provide evidence that they had reviewed their financial management arrangements against the standards and that they had taken such action as might be necessary to comply with them.  Effectively, an annual self-assessment exercise had been required to assess compliance with the Code from 1 April 2021.

The 2025/26 self-assessment had identified the following key changes:

i)    A significantreduction inthe numberof internalaudit reportsthat had receivedlimited or noassurance in2024/25 (18%)compared with2023/24 (44%)which had been a significantfactor inthe ChiefAuditor’s AnnualAssurance Reportwhich had given a Reasonable assurance view for the year (2023/24 had been Limited assurance);

ii)   The2026/27 LocalGovernment FinanceSettlement provided muchmore clarity onfuture fundingfor theperiod 2026/27to 2028/29which inturn improvedthe Council’s medium term financial planning;

iii)  The Councilhad receivedadverse externalinspections onhousing andadult social careservices, anda jointinspection withother agenciesfor children’ssocial carewhich allhad recommendedimprovement plans.  Whilst theCouncil was makinggood progresson allthose areas,this work was stillunderway andwould continue into the next financial year.

The report stated that the self-assessment had identified that one standard (A - The leadership team is able to demonstrate that the services provided by the authority provide value for money) had reduced from a previous rating of Green to Amber and two standards (C - The leadership team demonstrates in its actions and behaviours responsibility for governance and internal control) and (G - The authority understands its prospects for financial sustainability in the longer term and has reported this clearly to members) had improved from Amber to Green.  All other standards remained as per the 2024/25 assessment.  A proposed action plan, setting out the required actions to improve those standards rated Amber to Green, was set out in Appendix 1.

A total of 12 standards (71%) had been RAG rated as Green with the remaining 5 (29%) as Amber.  The results of the self-assessment indicated an overall rating of Amber.

Resolved:       That the findings of the 2025/26 Financial Management Code Self-Assessment be noted.