In England and Wales, the Best Value Accounting Code of Practice (BVACOP) is given legislative authority by regulations which identify the accounting practices it propounds as ‘proper practices’ under the Local Government Act 2003. In Scotland this is derived from the Local Government in Scotland Act 2003. In Northern Ireland, too, primary legislation has given statutory effect to a Best Value framework.

This year BVACOP provides even more practical guidance on all formal financial disclosures required in relation to the Best Value regime. It is also available in CD-ROM format to enable wide and cost-effective access.

Total cost provides a consistent financial framework for local authorities to accurately cost and compare services. The definition of total cost covers front line services, costs which should be allocated to service providers, and those costs held as central corporate or non-distributed costs. The definition of total cost has been revised to reflect fully the impact of the Code of Practice on Local Authority Accounting in the United Kingdom 2007 (the SORP) on total cost.

The Service Expenditure Analysis (SEA) in Section 3 of the 2007 BVACOP provides for the segmental reporting requirements of the statement of account and is fully consistent with the requirements of the SORP. For 2007, most services’ SEAs have been amended. Significant amendments have been made to the Education Services, Social Services and Police SEAs, and an SEA for the National Parks is included for the first time.

Section 2 – the definition of total cost – and Section 3 – the service expenditure analysis provide the mandatory requirements of BVACOP.

Section 4, good practice guidance, includes the apportionment of overheads and recharges, capital charges and retirement benefits. It also includes guidance on the treatment of partnership transactions and trading operations, and the recommended standard subjective analysis.

Why BVACOP?

• It establishes ‘proper practices’ with regard to consistent financial reporting for services.
• BVACOP is an official CIPFA statement. All local authorities in the United Kingdom are expected to adopt its mandatory requirements and detailed recommendations.
• It is also expected that CIPFA members will comply with all the mandatory requirements of BVACOP as it defines best practice in terms of financial reporting.

When is it applicable?
BVACOP 2007 has United Kingdom-wide applicability with separate editions for England and Wales, Scotland and Northern Ireland to accommodate the differing regional developments in Best Value statutory guidance across the United Kingdom. BVACOP 2007 applies to all local authority services throughout the United Kingdom from 1 April 2007.

Why a new Code?
BVACOP is reviewed on an annual basis to ensure that it develops in line with the needs of modern local government, Best Value and public services reform. This is increasingly important as the Best Value regimes are becoming more sophisticated and are evolving constantly.

BVACOP 2007 is issued in loose-leaf format, within a durable binder (optional). It is also available on CD-ROM, which comes complete with a licence for networking to all bona fide employees and elected members of the purchasing local authority. The terms of licences for other categories of purchaser are available on request from CIPFA’s Publications Department.

Download the Contents: Word | PDF

£560.00 (+VAT) = £658.00 for the CD-ROM

£280.00 for the loose-leaf update pack only

£21.00 (+VAT) = £24.68 for the durable binder