Uttoxeter Town Council's financial management and compliance with its legal obligations have been criticised in a report published today. The public interest report, prepared by the appointed auditor for the Audit Commission, looks in detail at the Council's accounts and financial transactions.
The report shows that the Council:
- has not met its legal requirement to appoint a Responsible Finance Officer following the Town Clerk's resignation
- failed in its legal duty to set a balanced budget for 2009/10 that recovers past deficits
- for the past two years failed to provide its accounts within statutory deadlines
- ran up a deficit of more than £50,000 that may leave it unable to pay staff or suppliers
- planned a retail development in the town hall without ensuring that it has the legal power to do so
Appointed auditor Jackie Bellard said:
'Uttoxeter Town Council's finances are in a poor state. The Council has failed to meet statutory deadlines and has yet to set a balanced budget for 2010/11. Its reliance on redeveloping the Town Hall to provide new shops is of dubious legality and it has failed to make allowance for any of the shops remaining unlet. It is essential that the Council gets a firm grip on its finances by implementing the recommendations in my report.'
The report recommends that the Council:
- appoints a Responsible Finance Officer
- sets a soundly-based and legal budget for 2010/11
- introduces a robust medium-term financial planning process
- undertakes a thorough review of its financial administration
- submits its accounts for 2008/09 and outstanding information relating to the 2007/08 accounts
- develops and monitors a plan for submitting its accounts by 30 June each year (the statutory deadline)
- gets and acts upon legal advice about any powers it may have for retail development within the Town Hall
- ensures that the business plan for the Town Hall redevelopment is challenged and analysed so that the impact on its budget is understood and any risks are acceptable
- obtains documentation supporting the sale of land to the rear of the Town Hall
The report will be considered at a future meeting of the Council, to be held in public, when the Council will provide a response to the points raised.
Notes to editors
The duties and powers of auditors appointed by the Audit Commission are set out in the Audit Commission Act 1998 and the Local Government Act 1999 and the Commission's statutory Code of Audit Practice. Appointed auditors act quite separately from the Commission and are required to exercise their professional judgement independently of both the Commission and the audited body
Under Section 8 of the Audit Commission Act 1998, the appointed auditor is required to consider whether to issue a report in the public interest, on any significant matter coming to his or her notice in the course of an audit, to bring it to the notice of the audited body and the public.
The Audit Commission is an independent watchdog, driving economy, efficiency and effectiveness in local public services to deliver better outcomes for everyone.
Our work across local government, health, housing, community safety and fire and rescue services means that we have a unique perspective. We promote value for money for taxpayers, auditing the £200 billion spent by 11,000 local public bodies.
As a force for improvement, we work in partnership to assess local public services and make practical recommendations for promoting a better quality of life for local people.
Further information
Please contact Eric Ludlow on 844 798 4183