Funding for Flood and Coastal Erosion Risk Management (FCERM) March 2023 - updated 13102023
Updated 13 October 2023
Applies to England
© Crown copyright 2023
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1. Introduction
This document sets out historic central government funding for Flood and Coastal Erosion Risk Management (FCERM) in England for the year 2021/22, and the allocation for 2022/23. The figures are taken from Defra and Environment Agency (EA) accounting systems and historical management information. Total annual figures are shown with and without the effects of inflation.
Funding for FCERM is administered through Defra, the EA and the Department for Levelling Up, Housing and Communities (DLUHC) (formerly Ministry of Housing, Communities and Local Government - MHCLG). Other sources of funding are excluded from the main figures because they are raised locally, but some details can be found in the section ‘Other funding for flood and coastal erosion risk management’.
2. Explanation of funding sources
Figure 1 – Diagram of Flood and Coastal Erosion Risk Management funding
The figures included in this diagram are the 2022/23 budget allocations, as per Table 1.
2.1 1.Central Government Funding
Defra provides the majority of its funding for FCERM to the EA as Grant-in-Aid (GiA), which is the mechanism for financing Non-Departmental Public Bodies (NDPB), such as the EA. The EA spends this funding directly on manging flood risk, but it also passes some of this funding on as capital grants for flood or coastal erosion defence improvements to local authorities or Internal Drainage Boards – local public authorities established in areas of special drainage need which manage water levels within their respective drainage districts.
Since 2011/12 Lead Local Flood Authorities receive funding to support their new roles under the Flood and Water Management Act 2010. The Flood and Water Management Act 2010 defined LLFAs for specific areas and gave those authorities the role of managing local flood risk. The Funding made available by the Act enabled LLFAs to carry out their new duties (introduced by the Act), but it is not ring-fenced. Such duties include the duty to develop and apply a local flood risk strategy. In 2013, Defra transferred budget cover for a proportion of this funding to DLUHC; the remaining budget was transferred to DLUHC in 2016. Between 2013 and 2016, LLFAs therefore received part of their funding from Defra and part of their funding from DLUHC. The Defra component was paid via DLUHC’s Local Services Support Grant (LSSG), which is one of the mechanisms for central government to give funding to local authorities. The DLUHC component is now provided to LLFAs through the overall Settlement Funding Assessment (SFA) for local authorities. Until 2020/21 the Government published notional allocations, including for FCERM, in the Visible Lines of Funding publication. Following consultation in December 2020, the Government announced that it would no longer produce Visible Lines for grants rolled in pre-2016-17. These allocations were entirely notional as the core settlement is not ringfenced. The ‘Visible Lines’ did not impact on the settlement distribution or represent an expectation from central government of local expenditure levels.
Finally, Defra retains a small proportion of its funding for FCERM, for example for Property Flood Resilience (PFR) repair grants and the national evaluation of the Flood and Coastal Resilience Innovation Programme (FCRIP). This is referred to in this document as Core Defra Retained.
2.2 2. Other Sources of Funding
As well as the central government funding there are a number of other funding sources for FCERM. These include a levy on local authorities (local levy) raised by the EA. EA levies are subject to approval of the relevant Regional Flood and Coastal Committee (RFCC). RFCCs are composed of a chair appointed by the Secretary of State, a majority of members appointed by LLFAs and independent members with relevant experience appointed by the EA. Their roles are to ensure that there are coherent plans for managing flood and coastal erosion risks across catchments and shorelines; encourage efficient, targeted and risk-based investment; and to provide a link between the EA, LLFAs, and other relevant bodies to build understanding of flood and coastal erosion risks in their regions.
Funding is also sourced through the partnership funding approach. Under this mechanism, local communities raise funding towards a scheme and either channel it through the EA or use it directly on FCERM projects, with central government also contributing. This allows central government to contribute to a range of flood schemes rather than meeting the full costs of a limited number of schemes and ensures total investment in defence improvements is not restricted to what central government alone can afford over any period.
As well as receiving funding from the EA, internal drainage boards raise funds from Drainage Charges and Special Levies on properties in their areas. The EA also raises other income from outside of central government including through internal drainage board precepts; General Drainage Charges; and the sale of assets.
Finally, local authorities (district authorities in county council areas and unitary authorities) retain powers to carry out flood risk management works on ordinary watercourses under the Land Drainage Act 1991 as amended by the Flood and Water Management Act 2010. They can also use their general funding provided by DLUHC through the Settlement Funding Assessment for flood management. This is in addition to the element of the Settlement Funding Assessment which is provided to LLFAs specifically to meet their roles and responsibilities required under the Flood and Water Management Act 2010.
3. Financial Terminology
Total central government spending is split between Departmental Expenditure Limits (DEL) and Annually Managed Expenditure (AME). DEL is the amount that HM Treasury has allocated to departments to spend within a specified period i.e. within a financial year. AME covers unforeseen or uncontrollable expenditure that fall outside the ambit of the normal budgetary control, such as a government department exercise e.g. welfare, pensions and the cost of responding to disasters etc. All figures in this publication relate to DEL and exclude AME.
Funding within DEL is further split into Resource funding and Capital funding.
Resource funding is money that is spent on day-to-day resources and administration costs. Amongst other things, it covers spending on routine maintenance of defences; evidence (information used to support sound decisions in developing, implementing, and evaluating policy); and depreciation (the current cost associated with the ownership and use of assets).
Capital funding is money that is spent on investment and things that will create growth in the future.
The figures in this document exclude Core Defra Retained Administration costs; spend on evidence; and depreciation.
The totals in Tables 2 and 3 of this document are shown with and without the effects of inflation based on 2021/22 prices where applicable. Inflation rates are taken from HM Treasury’s June 2023 Gross Domestic Product (GDP) Deflator, which is a measure of general inflation in the domestic economy. This provides an indication of the “real terms” value of the funding in 2021/22 prices for the purpose of comparison.
4. Budget Allocations
Table 1 – Budgets for Flood and Coastal Erosion Risk Management 2022/23 (£m)
| Financial Year | Core Defra Retained Resource | Core Defra Retained Capital | DLUHC | EA Resource | EA Capital | Total |
|---|---|---|---|---|---|---|
| 2022/23 | 3.6 | 0.5 | n/a1 | 300.3 | 727.5 | 1031.9 |
Table notes
(1) Figures for “Resource – Paid to LLFAs” by DLUHC to support their new roles under the Flood and Water Management Act 2010 are no longer available. This follows the discontinuation of DLUHC’s Visible Lines for grants publication. Please see below for further information.
Table 1 details the resource and capital budgets that have been allocated for the 22/23 financial year. These figures are the allocations only; actual expenditure for 22/23 will be detailed in the subsequent floods funding publication. The definitions of “Resource” and “Capital” are explained in the section on Financial Terminology.
In March 2020 the government announced it would double its previous investment in FCERM to £5.2bn for the next 6 year programme which will run from April 2021 to March 2027. In addition, £200 million is being invested in the Flood and Coastal Resilience Innovation Programme (FCRIP). The year 21/22 was the first year of the £5.2bn FCERM capital programme and the £200m FCRIP.
Initial allocations and final expenditure can differ for various reasons, for example government’s response to a flood incident or other in-year funding allocations due to a change in resource need.
EA Resource budget allocations do not include an amount for Defra Corporate Services, which is normally recharged to the EA at year end, resulting in higher actual expenditure when the full range of items (incl. Defra Corporate Services) is included.
5. Historical Expenditure
Table 2 – Expenditure on Flood and Coastal Erosion Risk Management, 2005/06 to 2021/22 (£m)
| Financial Year | Defra Retained Resource | Defra Resource Paid to LLFAs | Defra Capital | DLUHC Resource Paid to LLFAs | EA Resource | EA Capital | Total | Total Real Terms |
|---|---|---|---|---|---|---|---|---|
| 2005/06 | 0.1 | 63.5 | 228.3 | 216.8 | 508.7 | 705.1 | ||
| 2006/07 | - | 67.2 | 232.63 | 207.02 | 506.9 | 682.1 | ||
| 2007/08 | 1.1 | 39.3 | 240.2 | 219.2 | 499.8 | 657.1 | ||
| 2008/09 | 0.9 | 1.1 | 249.6 | 316 | 567.6 | 720.2 | ||
| 2009/10 | 11.2 | 1.8 | 260 | 360.1 | 633.1 | 792.8 | ||
| 2010/11 | 13.6 | 4.9 | 291.6 | 360 | 670.1 | 825.3 | ||
| 2011/12 | 3.4 | 21 | - | 287.81 | 260.7 | 572.9 | 693.3 | |
| 2012/13 | 3.2 | 36 | - | 268.02 | 269.1 | 576.3 | 685.5 | |
| 2013/14 | 4.3 | 15 | - | 21 | 250.6 | 315.3 | 606.2 | 706.4 |
| 2014/15 | 6.0 | 15 | 11.6 | 20.7 | 282.6 | 466.7 | 802.6 | 925.1 |
| 2015/16 | 2.6 | 10 | 12.4 | 20.6 | 274.5 | 390.7 | 710.8 | 812.8 |
| 2016/17 | 2.4 | 0.1 | 31.1 | 314.6 | 446.9 | 794.9 | 890.7 | |
| 2017/18 | 2.5 | 0.8 | 32.4 | 338.2 | 403.1 | 777.0 | 856.3 | |
| 2018/19 | 2.3 | - | 32.3 | 304.8 | 453 | 792.4 | 857.9 | |
| 2019/20 | 2.5 | 0.5 | 33.0 | 329.5 | 501.3 | 866.7 | 914.7 | |
| 2020/21 | 3.4 | 2.5 | 33.52 | 413.4 | 610.4 | 1,063.23 | 1,055.9 | |
| 2021/22 | 4.0 | 4.8 | n/a4 | 349.45 6 | 742.1 | 1,100.2 | 1,100.2 |
Table notes
(2) ‘DLUHC – Resource paid to LLFAs’ figures for 2020/2021 have been updated from £33.1m to reflect figures published in Visible Lines of Funding 2020 to 2021, which is £33.5m.
(3) The March 2020 Budget provided the Environment Agency with £120m additional funding for 2020-21 to repair assets damaged during the 2019-20 winter floods.
(4) Figures for “Resource – Paid to LLFAs” by DLUHC to support their new roles under the Flood and Water Management Act 2010 are no longer available. This follows the discontinuation of DLUHC’s Visible Lines for grants publication. Please see below for further information.
(5) The Spending Review 2020 allocated an additional £34m Resource funding in total for maintenance and building of flood defences for 2021/22.
(6) In recognition of the impacts from the changing climate on flood defences, the Autumn Budget and Spending Review 2021 announced an additional £22 million each year from 2022 to 2025 for the maintenance of flood defences.
Note: Real terms figures are shown in 21/22 prices, using HM Treasury’s GDP Deflator (June 2023 publication).
Table 2 provides a summary of Defra spending on FCERM from 2005/6 until 2021/22. The totals are shown with and without the effects of inflation to give an indication of the “real term” value of funding in today’s prices.
Points to note:
-
As identified in the footnote above, figures for resource paid by DLUHC to LLFAs to support their new roles under the Flood and Water Management Act 2010 are no longer available, following the discontinuation of DLUHC’s Visible Lines for grants publication. The Government announced in February 2021 that it would no longer produce Visible Lines for grants rolled in pre-2016-17. Figures for the column ‘Resource – Paid to LLFAs’ can therefore no longer be provided. Instead, the box is noted as ‘n/a’ for 21/22 in order to reflect the absence of a notional figure from DLUHC. Local councils will still be spending revenue on floods from within their settlement allocations. The figure cannot be listed as funding provided through the annual Local Government Finance Settlement is majority un-ringfenced. Funding for flood risk management is not ring-fenced.
-
The £0.5m Capital for Core Defra retained in 2022/23 is for the national evaluation of the Flood and Coastal Resilience Innovation Programme (FCRIP).
-
The Capital for Core Defra retained in 2020/21 and 2021/22 was for Property Flood Resilience (PFR) repair grants.
-
The £0.5m Capital for Core Defra retained in 2019/20 was for the Defra PFR repair scheme launched following the November 2019 flooding.
-
Core Defra Retained capital figures to 2010/11 related to expenditure through local authorities to support a limited number of coastal change pathfinder projects. These projects finished in 2010/11.
-
The -£0.1m capital figure in 2016/17 relates to refunds from local authorities under the Repair and Renew Grant Scheme following receipt of their audit reports. The £0.8m capital figure in 2017/18, relates to a Flood Asset Register (FAR) grants scheme.
-
The capital figures in 2014/15 and 2015/16 relate to the Repair and Renew Grant scheme, set up following the winter 2013/14 flooding.
-
The Local Government Finance Settlement for 2022/23 made available an additional £3.7 billion for councils, an increase in funding for councils of over 4.5% in real terms. The Settlement included a one-off 2022/23 Services Grant to support all services delivered by councils, worth £822 million.
-
The Local Government Finance Settlement for 2023/24 makes available up to £59.7 billion for local government in England, an increase in Core Spending Power of up to £5.1 billion or 9.4% in cash terms on 2022/23. The majority of the funding is un-ringfenced in recognition of local authorities being best placed to spend according to local priorities. In 2021/22, the most recent year for which final revenue outturn is available, Local Authorities spent circa £96 million on flood and coastal erosion risk management.
6. Funding Trends
Table 3 –Total Flood and Coastal Erosion Risk Management Expenditure, 2005/06 to 2021/22 (£m)
| Financial Year | Total | Total - Real Terms | Rolling 5 year Average Real terms |
|---|---|---|---|
| 2005/06 | 508.7 | 705.1 | n/a |
| 2006/07 | 506.9 | 682.1 | n/a |
| 2007/08 | 499.8 | 657.1 | n/a |
| 2008/09 | 567.6 | 720.2 | n/a |
| 2009/10 | 633.1 | 792.8 | 711.4 |
| 2010/11 | 670.1 | 825.3 | 735.5 |
| 2011/12 | 572.9 | 693.3 | 737.7 |
| 2012/13 | 576.3 | 685.5 | 743.4 |
| 2013/14 | 606.2 | 706.4 | 740.6 |
| 2014/15 | 802.6 | 925.1 | 767.1 |
| 2015/16 | 710.8 | 812.8 | 764.6 |
| 2016/17 | 794.9 | 890.7 | 804.1 |
| 2017/18 | 777.0 | 856.3 | 838.2 |
| 2018/19 | 792.4 | 857.9 | 868.5 |
| 2019/20 | 866.7 | 914.7 | 866.5 |
| 2020/21 | 1,063.2 | 1,055.9 | 915.1 |
| 2021/22 | 1,100.2 | 1,100.2 | 957.0 |
Note: Real terms figures are shown in 21/22 prices, using HM Treasury’s GDP Deflator (June 2023 publication).
Government funding varies from year to year. This is partly because the need for work varies including responding to significant flood events. This means that comparing any 2 years in isolation does not give a good indication of trends in spending.
The total funding for 2021/22 in real terms shows funding has increased in the last year, with the last six 5-year averages being consistently over £800m. A 5-year rolling figure is calculated by using the figures for the five years ending on the financial year on which the average is given.
7. Other Funding for Flood and Coastal Erosion Risk Management
Table 4 – Total Expenditure through central government, 2005/06 to 2021/22 (£m)
| Financial Year | Total Central Government | EA Local Levy | EA Funding from other sources | Total | Total Real Terms |
|---|---|---|---|---|---|
| 2005/06 | 508.7 | 19.7 | 41.6 | 570.00 | 790.4 |
| 2006/07 | 506.9 | 26.1 | 34.5 | 567.35 | 763.51 |
| 2007/08 | 499.8 | 17 | 25.8 | 542.60 | 713.35 |
| 2008/09 | 567.6 | 33.2 | 22.1 | 622.87 | 790.33 |
| 2009/10 | 633.1 | 38 | 18.5 | 689.64 | 863.49 |
| 2010/11 | 670.1 | 30.9 | 17.1 | 718.10 | 884.38 |
| 2011/12 | 572.9 | 33.7 | 16.9 | 623.51 | 754.51 |
| 2012/13 | 576.3 | 20.2 | 27.2 | 623.72 | 741.91 |
| 2013/14 | 606.2 | 29.1 | 39.4 | 674.70 | 786.21 |
| 2014/15 | 802.6 | 24.1 | 42.9 | 869.60 | 1,002.28 |
| 2015/16 | 710.8 | 18.2 | 55.8 | 784.80 | 897.40 |
| 2016/17 | 794.9 | 27.1 | 55 | 877.00 | 982.65 |
| 2017/18 | 777.0 | 29.3 | 49.8 | 856.10 | 943.50 |
| 2018/19 | 792.4 | 35.5 | 42.8 | 870.65 | 942.70 |
| 2019/20 | 866.7 | 38.9 | 38 | 943.64 | 995.82 |
| 2020/21 | 1,063.2 | 26.6 | 71 | 1,160.8 | 1,152.80 |
| 2021/22 | 1,100.2 | 30 | 51.7 | 1,181.93 | 1,181.93 |
Note: Real terms figures are shown in 21/22 prices, using HM Treasury’s GDP Deflator (June 2023 publication).
In addition to the funding provided by central government, the EA’s Regional Flood and Coastal Committees raise funding through a local levy for flood management schemes. This is spent through the EA but is not included in Tables 1, 2, and 3, as it is raised locally rather than provided through central government.
The EA also raises other funding for flood and coastal erosion risk management from outside of central government. This includes a proportion of income raised through the partnership funding scheme which comes through the EA; Internal Drainage Board precepts; General Drainage Charges; and the sale of assets.
Table 4 shows all the expenditure by central government, as per Table 3, together with other expenditure by the EA funded from the local levy and the other sources including partnership funding –contributions to EA schemes that are partially funded by Defra.
The table does not include partnership funding raised by other risk management authorities, Internal Drainage Board funding raised from drainage charges and special levies, or local authority funding from their Settlement Funding Assessment (SFA) spent on flood or coastal erosion risk management (except the element of SFA given to LLFAs detailed in Tables 1 and 2 above). This funding is not reported here because it is a matter for local authorities who are free to set their own priorities and are accountable to local communities for the effectiveness of their spending decisions.
8. Regional breakdown
Table 5 – Total expenditure through central government by Regional Flood and Coastal Committee (RFCC) 2021/2022 (£m)
| RFCC | All EA FCERM funding (excl. local levy) - Resource | All EA FCERM funding (excl. local levy) - Capital | EA Local Levy | Total |
|---|---|---|---|---|
| RFCC Ang Great Ouse | 13.7 | 13.2 | 0.4 | 27.3 |
| RFCC Ang Eastern | 15.3 | 53.3 | 2.7 | 71.3 |
| RFCC Ang Northern | 22.1 | 65.3 | 0.2 | 87.6 |
| RFCC Trent | 23.0 | 45.9 | 2.2 | 71.1 |
| RFCC Severn and Wye | 9.6 | 17.7 | 1.3 | 28.6 |
| RFCC Northumbria | 6.4 | 16.7 | 0.8 | 23.9 |
| RFCC Yorkshire | 30.2 | 120.5 | 1.7 | 152.4 |
| RFCC North West | 20.5 | 109.4 | 3.6 | 133.5 |
| RFCC Southern | 21.8 | 94.7 | 2.5 | 119 |
| RFCC Thames | 38.1 | 67.8 | 10.8 | 116.7 |
| RFCC South West | 10.0 | 41.9 | 0.7 | 52.6 |
| RFCC Wessex | 16.2 | 56.2 | 3.1 | 75.5 |
| Total EA RFCC Spend | 226.9 | 702.6 | 30.0 | 959.5 |
Table 5 shows central government expenditure through the EA in RFCC areas, together with expenditure by the EA funded from the local levy. The Capital figures in this table include expenditure funded from partnership funding contributions to EA-led schemes.
The table does not include expenditure funded from partnership funding raised by other risk management authorities, Internal Drainage Board funding raised from drainage charges and special levies, or local authority funding from their Settlement Funding Assessment (SFA) spent on flood or coastal erosion risk management (except the element of SFA given to LLFAs detailed in Tables 1 and 2 above), for the reasons set out above.
There are currently 12 RFCCs across England, each covering a distinct regional area. These areas are different from the 9 English regions as used by the Office for National Statistics (ONS) for statistical purposes.
The amounts of Local Levy raised by the EA vary between areas because levies are dependent on geographic area, the number of Band D properties, the RFCC local choices to deliver area based flood protection and the history and choice RFCCs exercise in agreeing to annual levy increases. Amounts of Levies raised in areas can also vary from year to year because RFCCs agree on annual levy increases, which considers balance of funds held, the local choices to fund local flood protection initiatives and the committed funding of Flood Schemes. This means that comparing levies raised in any given year in isolation does not give a good indication of trends in spending.
Total EA RFCC Resource expenditure is incurred to princiaplly deliver an asset maintenance programme to ensure operational assets provide agreed standards of protection to the environment, people and properties and the provision of resource to support delivery of the FCRM capital programme. This figure does not include wider Resource funding as shown in Table 2, which also includes Resource spend on nationally led projects, EA national services and the EA’s contribution to Defra’s Corporate Services.
Table 6 – Total EA FCERM expenditure 2021/2022 (£m)
| Resource | Capital | |
|---|---|---|
| Total EA RFCC Spend | 226.9 | 702.6 |
| EA National Spend | 151.5 | 62.2 |
| FCERM Income | -29.0 | -22.7 |
| Total EA Expenditure | 349.4 | 742.1 |
Table 6 shows total expenditure by the EA for both Resource and Capital, split by spend on regional and national level.
EA national spend includes Capital expenditure for national-led projects such as the Asset Information Management Systems (AIMS), Flood Warning Systems and other IT based solutions that help manage and drive efficiencies in ways of working that support the capital and maintenance programmes. National Resource expenditure covers the EA National Teams including the FCERM Directorate, the Incident Management and Resilience Directorate, Major Projects and Programme Delivery and the Chief Operating Officer Directorate as well as contributions to Defra Corporate Services.
FCERM Income includes contributions received for EA-led projects, such as Partnership Funding contributions.
9. Updates to this publication
This document will typically be updated annually following the publication of Defra’s Annual Report and Accounts. The prior financial year’s actual spend will be added, together with the current and future years’ budget figures (where available). March 2023: Annual update, including replacing 2021/22 budget figures with actual expenditure and adding agreed budget figures for 2022/23.
These statistics have been produced to the high professional standards set out in the Code of Practice for Statistics. In addition to staff in Defra and the Environment Agency who are responsible for the production and quality assurance of the statistics, a limited number of people were granted 24 hours pre-release access to this release. You can find a list of the job titles and organisations of these people here.
The responsible statistician is Stuart Homann - stuart.homann@environment-agency.gov.uk
More information on the Code of Practice for Statistics can be found at Code of Practice for Statistics (statisticsauthority.gov.uk)
10. Sources and other relevant publications
The figures in this document have been taken from Defra and EA accounting systems and historical management information.
Other relevant publications:
Defra Annual Report and Accounts 2021/22 Figures in the Consolidated ARA include Local Levy, Depreciation, AME, Evidence and Core Floods Admin. They exclude the Settlement Funding Assessment element of expenditure by LLFAs and Capital Assets.
EA Annual Report and Accounts 2021/22 Figures in EA’s ARA include local levy and Evidence.
Introductory Guide to Partnership Funding Separate Defra guidance on the Partnership Funding scheme.
Local authority revenue expenditure and financing Showing local authority budgets in 2022/23 relating to their Settlement Funding Assessment.
Local authority capital expenditure, receipts and financing Showing local authority capital expenditure and financing in England: 2022 to 2023 individual local authority data forecast.
Main Estimates and Supplementary Estimates The Main Estimates show the budgets approved by Parliament for a given financial year. The Supplementary Estimates update these amounts in-year. The Estimates have a discreet heading for the EA element of FCERM spend: ‘Prepare for and Manage Risk from Environmental Emergencies (NDPB)’, whereas Core Defra FCERM spend is wrapped up in the heading ‘Prepare for and Manage Risk from Environmental Emergencies’. The Estimates include Local Levy, Depreciation, Evidence and Core Floods Admin. They exclude the Settlement Funding Assessment element of funding to LLFAs and any agreed over/underspends against budget. The Supplementary Estimate differs from the Main Estimate as it includes any agreed in-year budget movements.
Public Expenditure Statistical Analyses (PESA) and Country and Regional Analysis 2022 The figures used in these statistical publications cover the EA element of FCERM spend only. These figures are not discreet in the publications, but are wrapped up in the heading ‘Environment Protection’. They include Local Levy, Depreciation and Evidence and make additional adjustments, including for grants to and from local government, impairments/revaluation of assets, and profit on disposal of assets. EA spending data is separately identifiable in the Transparency publications of the OSCAR database which underlies the PESA and CRA publications.
GDP Deflator June 2023 Produced by HM Treasury as a measure of general inflation in the domestic economy.
Managing Public Money and Consolidated Budgeting Guidance – HMT guidance on managing and accounting for public funds.