"An Inspector Calls" is a play written by J.B. Priestley; set in 1912, the play follows the wealthy Birling family and their dinner guests, who are interrogated by an enigmatic Inspector Goole after the suicide of a young lower-class woman named Eva Smith. As the inspector delves deeper into their lives, dark secrets are unveiled, revealing their interconnected roles in Eva's tragic demise.
Perhaps a bit of a push, but can we draw some parallels between this story and the findings of local government inspectors, brought in following the tragic demise of financial sustainability at a handful of local authorities? Now, there is no denying that much of the current squeeze being felt by local authorities is not of their own doing; there is only so long councils can be asked to deliver more with less. But the higher profile failures have been marked by errors in judgement by those in control.
Inspector Goole arrives unexpectedly at the Birling family residence and one by one, he interrogates each family member, skilfully uncovering the truth and forcing them to confront their past actions.
Best Value Inspectors are usually CIPFA officials and industry experts, appointed by MHCLG to uncover why local authorities are failing, how to return them to health and prevent a repeat occurrence. Like our story, reasons for failure are complex and interwoven, but lack of financial restraint, unrealistic ambitions, failure to address historic issues and a lack of basic financial control and governance often feature.
“An Inspector Calls” delivers a powerful exploration of social responsibility and the consequences of individuals' actions. The inspector acts as a moral compass, challenging the Birlings to acknowledge their failures. As the play concludes, the Birlings are left to grapple with their guilt and the unsettling realisation that their actions have both immediate and long-lasting consequences.
So, if an inspector ever called at your local authority what would they find? Regarding treasury management, updating Treasury Management Procedures and Practices has often slipped down the list of priorities. Continued evolution in financial markets, refreshed guidance, and regulations, combined with higher levels of council staff turnover, could mean it’s time for a refresh.
While this may not be enough to stave off the need for government support, at least an authority can demonstrate good corporate governance and help avoid costly lapses in financial control.
A thorough review would typically cover:
Treasury Management Practices (TMP), including the principles and schedules as identified in the CIPFA 2021 Treasury Management Code (including treasury management approvals and segregation of duties):
TMP1 Risk management
TMP2 Performance measurement
TMP3 Decision making and analysis
TMP4 Approved instruments, methods and techniques
TMP5 Organisation, clarity and segregation of responsibilities, and dealing arrangements
TMP6 Reporting requirements and management information arrangements
TMP7 Budgeting, accounting and audit arrangements
TMP8 Cash and cash flow management
TMP9 Anti Money laundering
TMP10 Training and qualifications
TMP11 Use of external service providers
TMP12 Corporate governance
Without additional government support many authorities will struggle to make ends meet over the next few years, but those that can demonstrate good governance may have a more sympathetic response from stakeholders if an inspector ever calls.
Related Insights
Have you refreshed your TMPs recently?