Ellie Ames 25 July 2024

Council may have broken law over £4m contracts

Council may have broken law over £4m contracts image
Image: Middlesbrough Council

Middlesbrough Council may have broken procurement law when it awarded four contracts worth more than £4m, an external audit has found.

More broadly, the report by Ernst and Young on the financial years 2021-22 and 2022-23 found the authority had a ‘well-established informal and undocumented practice’ when it came to applying exceptions to procurement rules.

Between 2020 and 2022, Middlesbrough directly awarded four social work contracts, which were later extended, for a total of £4.3m.

Auditors said the sum ‘significantly’ exceeded the thresholds under which direct awards are permitted and concluded that in their view, the council had failed to comply with procurement law.

The report adds that the authority's failure to properly record the contracts meant it could not show that the issue was an isolated occurrence.

Auditors said that in their view, Middlesbrough's non-adherence to its own procedure rules was ‘pervasive’ over the two years, describing the issue as a ‘significant weakness’ in the council’s arrangements to secure value for money.

A council spokesperson said the timescale of the report meant it did not ‘reflect the impact of significant work undertaken to improve Middlesbrough Council’s governance, culture and financial sustainability since March last year’.

Check out: Weakening financial sustainability arrangements.

SIGN UP
For your free daily news bulletin
Highways jobs

Executive Director of Transport

Cambridgeshire & Peterborough Combined Authority
£128,216 – £156,241
Getting Cambridgeshire and Peterborough Moving Cambridgeshire
Recuriter: Cambridgeshire & Peterborough Combined Authority

Assistant Director – Children and Families

Sheffield City Council
£80,995 - £86,757
Our promise to Sheffield’s children and young people is that Sheffield will be a place where they belong, Sheffield, South Yorkshire
Recuriter: Sheffield City Council

Assistant Director of City Transport

Sheffield City Council
£ to match our ambition
You’ll keep abreast of emerging approaches and best practice Sheffield, South Yorkshire
Recuriter: Sheffield City Council

Director Of Growth

Royal Borough of Greenwich
up to £185,000
The Royal Borough of Greenwich is synonymous with iconic London landmarks, culture and outstanding service delivery. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Strategic Director of Resources

London Borough of Waltham Forest
CIRCA £180,000
We are now in a strong position to move forward with confidence. Waltham Forest, London (Greater)
Recuriter: London Borough of Waltham Forest
Linkedin Banner