FINANCE

Money Matters

How many of us have discussed CIPFA's consultation document on the future of stakeholder reporting with other colleagues in our authorities?

This is the start of a fundamental review of how we should report to our stakeholders in the 21st century.
Quite rightly, the consultation is encouraging us to start from first principles, ignoring the straitjacket of the diverse set of reporting requirements we have now, recognising that we may wish to seek changes to the current legislative framework.
CIPFA is trying to develop a framework which underpins all external reporting, both financial and non-financial, so it needs wider consideration than the finance team. However, this isn't helped by the use of the Prudential code as an example of a principles-based model in suggesting a future principles based reporting framework.
We are always going to have to provide some form of reports on our future plans and targets, for services and finances, as well as a backward report on outcomes against these. The document suggests a reporting framework should be developed around a forward plan and a performance report. We need to see reporting as a key part of our communication with local stakeholders, and integral to our communication strategies.
A specific element of the vision is to close the gap between low public perception and local government's overall improving performance.
It is interesting to see the consultation also picking up the debate on who should take personal responsibility for the reports, in terms of signing them. 
Since this is the start of the process, there will be more opportunity to comment later. So, if you've missed the end of July deadline, make sure the next stage of consultation gets wider consideration and its importance realised. n
Mary Hawkins is director of finance at Warwick DC and president of the Society of District Council Treasurers

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