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Room151's Treasury Survey on IFRS9 Statutory Override & MRP Consultation

In 2018 the government introduced a statutory override for gains and losses on pooled investment funds held outside of a pension fund, following a change to IFRS. At the time, the government said it felt it was inappropriate for revaluations to “impact on the balanced budget requirement or on the quantum of funds available to support delivery of services.” But this particular override is time-limited and is due to expire in April 2023.  What is your view of the override?

Proposed changes to the Minimum Revenue Provision (MRP) have prompted questions about its potential impact on council finances. How do you think it will impact your council?

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* 1. Please provide your full details. Your participation in the survey is completely anonymous and your details will not be shared with any other party. The email address you provide is the one we shall send the full results to. It must be a .gov.uk email address (or other recognised local authority domain name). We will discount surveys with partial or incorrect email addresses. Thank you for taking part.

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* 2. Which type of local authority do you work for?

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* 3. Which of the following best describes your role in your local authority. Tick up to two boxes. We recommend that this survey is completed by either your treasury manager, your s151 or deputy s151 but we welcome all inputs from senior finance officers.

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* 4. Does your authority invest in pooled funds through its treasury function? If you don't know the answer to this question we recommend you check with a colleague in the treasury function before completing the survey. 

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* 5. How much does your authority have invested in pooled funds, subject to the statutory override for fair value gains and losses?

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* 6. What was the approximate balance in your Pooled Investment Fund Adjustment Account (i.e. the accumulated gain or loss) as a proportion of your investment in pooled funds on the dates below?

  More than 20% loss 10-20% loss 5-10% loss 0-5% loss 0-5% gain 5-10% gain 10-20% gain More than 20% gain Data not available
On 31st March 2020
On 31st March 2021
On 31st March 2022

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* 7. The statutory override for pooled funds is due to expire in 2023/24. Do you think this should be:

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* 8. There is a separate, permanent, statutory override for pension fund investments including pooled funds, so that changes in their fair values do not immediately impact on the revenue account. In your view, should this override be:

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* 9. There is a separate, permanent, statutory override for directly held investment property, so that changes in their fair values do not impact on the revenue account. In your view, should this override be:

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* 10. If you think pooled funds held for treasury management should be treated differently to pension fund investments and/or directly held investment property, please explain why. Or type N/A to skip. 

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* 11. If the pooled fund override is not extended or made permanent, are you likely to:

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* 12. Turning now to the Minimum Revenue Provision consultation and proposed changes. How would the changes, if implemented as currently proposed, impact the following at your authority?

  1 - Very negatively  2 - Somewhat negatively  3 - Neutrally  4 - Somewhat positively  5 - Very positively
The budget
The capital programme 
Service delivery
Prudent financial management 

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* 13. When does your MRP policy allow you to make zero or reduced MRP compared to the standard examples in government guidance. Tick all that apply

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* 14. What would the additional annual revenue cost be if you made full MRP in line with the standard examples in government guidance?

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