Council chiefs last week gave their backing to a raft of changes to the local government treasury management code in the wake of the Icelandic banking crisis.
Beefed-up scrutiny committees and approval protocols, training of elected members and additional reporting of investment strategies should all be incorporated into the code, the Local Government Association agreed.
The changes were proposed in a Chartered Institute of Public Finance & Accountancy (CIPFA) consultation, which closed last Friday. Proposed changes would see a mid-year report compiled in addition to the annual report currently required.
The consultation followed calls from, among others, the communities and local government select committee and the Audit Commission to review the code.
The LGA said: “The changes represent a well-judged response to the CLG select committee and other reports. The strengthening of the code to require clear accountability and provision of appropriate training is particularly helpful.”
The CIPFA code was originally conceived following the collapse of the Bank of Credit and Commerce International in the early 1990s.
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