Local Councils Collection Funds Accounting Support

Local Councils Collection Funds Accounting Support

Graham Oliver, CIPFA, edited by Kate Hill, BA (Hons)

As part of the Government’s response and support to local government, you can now spread any deficits on the Collection Fund over a three-year period, instead of achieving a full recovery in the following year.

It is a reasonable expectation that most Collection Funds will go into deficit, both on the Council Tax side, and further into deficit on the Business Rates side due to COVID-19, with the combination of non-payment and zero or limited growth compared to the assumptions made when the budgets were set.

This has put pressure on Councils Medium-Term Financial Strategies (MTFS). The estimation of these Collection Fund positions is critical to s151 officers’ awareness of the full extent of adverse pressures when setting their 2021/22 budgets and MTFS.

How Can Moore Insight Help?

Our expert consultant, Graham Oliver (CIPFA), has extensive knowledge of Collection Fund accounting and regulations, and a proven track record of advising councils in this area.

That experience includes working with:
  • Harlow District Council – advising on the changes to localisation of business rates in April 2013, including a monitoring regime and appeals calculation process.
  • Advising various councils on collection fund accounting and collection fund deficit calculations, their resolution and producing budget estimates of the Collection Fund position (Stratford upon Avon DC, LB Sutton and LB Lambeth).
  • Production of quarterly calculations for various councils of their business rate appeals position and production of their audit working papers.
  • Year-end closure of the Collection Fund for various authorities (South Kesteven DC, Huntingdonshire DC).

We can help you

  • Look back at your Collection Fund standing over the past three years, running an analysis between the budget and actuals.
  • Review your current position for 2020/21 using:
    • Your current Council Tax and Business Rates data
    • Historic analysis
    • Current collection rates and impact on the bad debt position
  • Estimate your position on the Collection Fund at an early stage, to feed into budget discussions.
  • Provide a forward look on the Collection Fund for the period of the MTFS.

What is the Outcome?

  • A considered report setting out the estimated position for the current financial year and MTFS period on the Collection Fund, along with details of assumptions used within the model.

For more information, get in touch with the Moore Insight team: info@moore-insight.com