A report on the Chartered Institute of Public Finance & Accountancy Financial Management Code, which sets out the standards of financial management for local authorities to assess themselves against.

Stuart Donnelly, Financial Planning & Strategy Manager, submitted a report on the The Financial Management Code 2019 (FM Code), which had been introduced by the Chartered Institute of Public Finance & Accountancy (CIPFA).  The Code set out the standards of financial management for local authorities.  Local authorities had been expected to comply fully with the FM Code from 1 April 2021, with 2020/21 effectively being a shadow year.  An initial self-assessment of the Council’s standing against each of the Financial Management Standards had been carried out in March 2020 by the Financial Planning & Strategy Manager in conjunction with the Council’s Section 151 Officer using a RAG Rating approach.  The outcome of the initial review had been ‘amber’ with eight Green ratings, nine Amber ratings and no Red ratings.  Similarly, the initial findings of the 2021/22 self-assessment had also been ‘amber’ with the results set out in the report and compared with the assessment carried out in July 2020.  The movements in RAG Rating were due to clarifications and/or better understanding of the requirements of the Code following publication of the guidance and did not necessarily represent an improvement or deterioration in the actual position.

Resolved:     That the findings of the 2021/22 Financial Management Code Self-Assessment be noted.