LAA Finance Update

Phillip Lomas from the GONW Finance Team, updates you on the latest developments around LAA Finance including:

• 2007/08 Grant Determination Letters (GDLs)
  
• 2006/07 Statements of Grant Usage (SoG) and Annual Report
  
• Quarterly Finance Forum

2007/08 Grant Determination Letters (GDLs)

The GDLs have all now been issued, although at the time of “going to press” we have still not had confirmation of the final breakdown by funding streams.

1. For 4 star Authorities, the new GDLs provide complete flexibility on all Revenue allocations (with the exception of Sure Start), enabling the spending of allocated funds on either capital or revenue and effectively across all blocks (as no Statement of Grant usage is required in respect of these allocations).
   
2.  For non-4 star rated authorities normal block “restrictions” apply (i.e. spend should be in line with block allocations). Also, all capital allocations (for both 4 star and other authorities) must be spent on capital (and statements of grant usage prepared and submitted to the GO). However, although the current GDLs for non-4 star authorities also require revenue allocations to only be spent on revenue, the covering letter to the GDLs does indicate that CLG are looking to relax this requirement by an addendum letter at some future point. This is particularly aimed at recognising the (capital) commitments that may already have been made on NRF in particular.
   
3. There have been a number of queries from authorities relating to “errors” in the GDLs. Once we have been able to confirm the final funding streams and reconciled the GDL for each LAA, we will need to confirm with CLG exactly what approach they want to adopt to any necessary “corrections” to GDLs.

2006/07 Statements of Grant Usage (SoG) and Annual Report

1. Tailored templates for recording grant usage, together with guidance on their completion have already been sent out to all Round 1/2 Authorities.
   
2. There was a requirement to complete draft statements of grant usage and return them to the GO by 1st June 2007, to aid Departments with the closing of their Accounts.
   
3.  Final SoGs including 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, must be returned to the GO no later than 1st July 2007

Quarterly Finance Forum

1. The fourth meeting of the NW LAA Finance Forum took place on 4th May 2007. Peter Barnes-Austin from CLG was present and able to give first-hand responses to a number of queries raised by the meeting. An Action log of issues is maintained and is available for review via the following link:
   
2.  Peter also outlined the processes that would need to be gone through following CSR 2007 to confirm Departmental allocations to the “new LAAs” and ensure these were incorporated in new grant determinations for April 2008.