AUDITORS have warned that further damning reports into a council’s financial accounts will be forthcoming as they consider issuing statutory recommendations.
Slough Borough Council’s 2019/20 and 2020/21 accounts are facing the worst possible rating from external auditors Grant Thornton as huge accounting errors in the 2018/19 books carry over.
Grant Thornton issued an unprecedented disclaimer of opinion to the 2018/19 accounts, which were rewritten five times.
This means they could not obtain sufficient or appropriate financial statements to draw their conclusions or support their opinions on the accounts due to inadequate record keeping and missing information.
It uncovered that the council had at that point in time a £79m deficit in its general fund. The local authority plans to raise council tax by 9.99 per cent and sell up to £600m of assets to help plug its financial hole.
READ MORE: Serious errors in Slough Council's 2018/19 accounts unprecedented
Speaking at an extraordinary audit and corporate governance committee, Conservative leader Dexter Smith (Colnbrook with Poyle) asked if the following two accounts will be issued a disclaimer of opinion.
Paul Dossett from Grant Thornton said on Wednesday, February 22: “It is fair to say that unless there was a metamorphism of some sort in 19/20 and beyond from the existing financial team, which seems very unlikely, then that is likely to be the outcome, yes.”
Mr Dossett also said they are considering issuing statutory recommendations for the council to follow to make improvements to its record keeping.
He said: “Circumstances at Slough have been very difficult and quite extreme in terms of the spectrum that we are dealing with. So, that’s why we are considering the use of statutory powers.”
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This won’t be the first time Grant Thornton issued statutory recommendations to the council. When 2018/19 accounts were initially brought to councillors in 2021, four Section 24 statutory recommendations were issued concerning the local authority’s arrangements for financial reporting and management of its reserves.
According to Steven Mair, the council’s most senior finance officer, said it will take five years for the local authority to rectify the issues found in the audit report. He also said it could take two years to completely cleanse its data system to make it fit for purpose.
Councillors were also told the 2018/19 accounts will cost in excess of £695,000 but a figure will be finalised once processes are concluded.
Local councils are subjected to annual external financial audits to keep a track record of how much the authority is spending.
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