A public interest report, issued today (Thursday 9 February) by the external auditor, investigates Somerton Town Council's sale of land at Etsome Terrace, its purchase of 8 Cary Court, and its conversion of 8 Cary Court to a community hall, during the financial year ended 31 March 2009.
The report finds that the Council:
- made decisions that were unlawful and may have resulted in unlawful expenditure;
- failed to take into consideration relevant information;
- made decisions at confidential meetings that had not been properly convened, and also at informal meetings that had no official status;
- failed to ensure that proper declarations of interest were made;
- allowed an individual councillor to act on its behalf without proper delegated authority or control; and
- failed to adequately budget for, or to monitor, expenditure on the conversion of 8 Cary Court to a community hall.
The report says there were significant failings during 2008/09 in the Council's governance arrangements and internal controls. These failings demonstrate an abuse of the public funds held in the Council's care.
External auditor and report author Andrew Vince, of Moore Stephens, said:
'In my opinion the Council sold Etsome Terrace without taking the proper steps to ensure that the sale price was the best available. It purchased 8 Cary Court and converted it to a community hall without first determining that it would meet the needs of the community.
'The Council failed to properly budget and monitor the cost of converting the building to a community hall. When the eventual cost was more than twice that originally expected, the Council was unable to demonstrate why the overspend had been necessary.
'The practice of holding informal, unofficial and unminuted meetings of some councillors meant the Council was unable to subsequently demonstrate that it considered all relevant information when making decisions.
'The Council has taken significant action since 2008/09 to improve its governance arrangements to ensure that failings like this will not occur again.'
The report sets out a number of recommendations to be considered by the Council. It is to be discussed at a public meeting arranged by the Council for Wednesday 29 February 2012 at 7.30pm. 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.
- The Audit Commission is a public corporation set up in 1983 to protect the public purse. The Commission appoints auditors to councils, NHS bodies (excluding NHS Foundation trusts), police authorities and other local public services in England, and oversees their work.
- In August 2010, the government announced plans to disband the Audit Commission and put in place new arrangements for auditing England's local public bodies.
- The Commission is undertaking a procurement exercise to outsource the work of its in-house Audit Practice. Beginning in 2012/13, the Commission will award contracts of three to five years to private audit firms.
- Further details about the role of the Audit Commission can be obtained from www.audit-commission.gov.uk
For further information please contact:
Callum Collins
Corporate Communications Manager
Tel: 0844 798 8844
24hr press line: 0844 798 2128
email: ca-collins@audit-commission.gov.uk