Over-running Ormskirk town centre developments show 'serious issues' with financial management
The external auditing of councils by accountancy firms is a costly and ‘rigged system’ placing a heavy, repeated burden on councils, a leading West Lancashire councillor has claimed.
The PSAA is responsible for appointing auditors to local councils. It sets scales of fees and manages the effectiveness of contracts. However, West Lancashire Council’s finance and estates teams are working with Grant Thornton to finalise this work, the report added. In the report’s value-for-money section, Grant Thornton listed four ‘significant risk areas’ of audit work linked to financial resilience, the council-owned Tawd Valley Developments Ltd, which is developing homes; the ‘late production and poor quality’ of financial statements and procurement.
“One of the weaknesses is about procurement. I’m sure many people have had comments about Moor Street [on Ormskirk], which was supposed to be done by the autumn. It is still ongoing and looks a mess at the moment. That’s procurement. We don’t know why there were not severe penalties on the people involved in that. Maybe there are? We all need to take procurement and financial things seriously.”
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