LAA Finance Update

2007/08 Grant Determination Letters (GDLs)

1. In view of the number of changes that have been required to grant determinations, including, for example, inclusion of Deprived Area Funding (DAF) from DWP in the LAAs, CLG are intending issuing “adjusting” GDLs to all authorities affected by changes. These were sent out last week (ending 28/09/2007).
   
   
2. These “adjusting” GDLs provide the confirmation on the “flexibilities” to be allowed for NRF funding, i.e. ability of LAs to spend on capital as well as revenue, as well as formally confirming the increased “capitalisation limit” of £10k for recording asset information.
   
   
3. Please note that any carry-over funding from 2006/07 will NOT be included in the ”adjusted” GDLs. This carry-over will probably have to be reported on as part of mid-year Statement of Grant returns (see paragraphs 5/6 below).
   
   2006/07 Statements of Grant Usage (SoG) and Annual Report
   
   
4. I would like to say a big thank you to all Round 1/2 LAAs for the timely submission of your 2006/07 Statements of Grant usage and associated Annual Report (i.e. audit certification).
   
   2007/08 Statements of Grant Usage (SoG) and Annual Report
   
   
5. For 2007/08 dates have now been been specified for the SoG returns (by way of the accompanying letter to any revised GDLs). For information these are as follows:
   
   - Half year returns - by 29 November 2007
   - Forecast Expenditure return - by 13 March 2008
   - First Draft of End Year returns - by 2 June 2008
   - Final End Year returns - by 27 June 2008
   
   
6. The exact formats of these is still to be agreed by CLG, but I would expect it to be similar to that used for the final 2006/07 returns – with the exception, identified above, that any 2006/07 carry-over LAA grant will have to be reported on (and I presume will have been spent by 30 September 2007!) For Round 3 Authorities, a blank copy of the 2006/07 SoG and associated guidance are available.
   
    Blank Statement of Grant Usage form for 2006-07
    Cash Accruals Guidance for Statement of Grant Usage
   
   
7. Remember that only the Final SoGs will require a signed certificate (annual report) by the Chief Finance Officer, confirming that he/she has received a reasonable assurance from the Authority’s Chief Internal Auditor that the SoG fairly presents the eligible expenditure for the financial year.
   
   Quarterly Finance Forum
   
   
8. Talking of which, after a summer recess, I have set the date for the next Forum meeting as Tuesday 2 October, in City Tower. An Agenda has been issued.
   
   
9. At the meeting I hope to introduce Philip Worsfold from CLG, who is Peter Barnes-Austin’s successor. I hope Philip will be able to give an update on progress on the Area-based grants and any emerging finance issues associated with progress from the LGWP to Act. As I understand it all Departments are supposed to have agreed what funding will be covered by the Area-based mechanism by the end of September – although I am not sure whether the 3-year settlements will be announced any earlier than the usual beginning of December deadline for local authority funding.
   

Phillip Lomas
Regional Finance Manager
0161 952 4496
phillip.lomas@gonw.gsi.gov.uk