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

Customer Service Assistant

Essex County Council
Up to £25081.00 per annum
Customer Service AssistantPermanent, Part Time - 18.5 hours£25,081 per annum, pro rataLocation
Recuriter: Essex County Council

Director of Place

West Oxfordshire District Council
£95,202-£104,722 per annum
West Oxfordshire District Council is seeking an exceptional and forward-thinking Director of Place Witney, Oxfordshire
Recuriter: West Oxfordshire District Council

Business Engagement Coordinator

Middlesbrough Council
£39,152 - £40,777
We have an exciting role on offer within our Community Learning Service as a Business Engagement Coordinator. Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council

Audit & Risk Apprentice

Kirklees Metropolitan Council
£12.42 per hour
As an Internal Audit & Risk Apprentice, no two days are the same. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Housing Officer (Employment & Wellbeing)

Kirklees Metropolitan Council
£17,217 to £18,640
Kirklees Homes & Neighbourhoods is responsible for almost 23,000 homes across Kirklees. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner