A public interest report, issued today (Monday 1 August) by the external auditor, highlights significant shortcomings in how Dawlish Town Council acted to replace its existing Town Hall (the Manor House) by purchasing temporary offices.
The Council did this to enable it to sell its grade II listed Town Hall and then build new purpose-built offices. The District Auditor’s report looks into objections into the proposed closure of the Manor House and the purchase of 34 Park Road, Dawlish, as temporary office accommodation for the Council.
The report finds that the Council:
- did not have an acceptable financial plan to show that its intentions to move to new purpose-built offices were affordable;
- purchased 34 Park Road without getting an up-to-date structural survey, valuation or planning permission;
- made no assessment of the works or costs needed to use Park Road as temporary offices; and
- had not widely consulted on its proposals for moving from the Manor House and it experienced significant public opposition when it became public knowledge.
The report goes on to say that, because of these actions, the Council has taken out loans totalling £165,000. It also incurred extra one-off costs associated with the purchase of Park Road and consequential costs of ownership including repairs, insurance and utility costs. Park Road remains empty and the Town Council is continuing to fund these extra costs from its annual budget.
District Auditor and report author Wayne Rickard says:
‘The Council acted imprudently in the purchase of 34 Park Road and failed to follow the standards expected. This has been a difficult and expensive venture for the Council and led to adverse publicity, reputational damage and added expense.
‘I have also considered whether the Council’s actions in relation to the purchase of 34 Park Road were so unreasonable as to be unlawful. While I have identified shortcomings in the Council’s decision-making process, as outlined in my report, there is some evidence that the Council’s decision to purchase was influenced by a desire to make efficiency savings and improve access for all users of the Council building. I also note that 34 Park Road has some development potential if sold on by the Council.
‘Consequently, I do not consider the Council’s actions to be so unreasonable that they could be considered unlawful and therefore I have decided not to exercise my discretion to apply to the court.’
The report sets out a number of recommendations to be considered by the Council. It is to be discussed at a public meeting on Thursday 4 August. After that meeting the Council has to notify the external auditor of the decisions made.
Notes to editors
- No further public statement will be made by the external auditor before the Council has had an opportunity to discuss the report at the public meeting.
- 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 auditors are required to consider whether to issue a report in the public interest, on any significant matter coming to their notice in the course of an audit, to bring it to the notice of the audited body and the public.
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- Further details about the role of the Audit Commission can be obtained from www.audit-commission.gov.uk
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