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

Grounds Maintenance & Street Cleansing Manager

Essex County Council
Up to £20.60 per hour
Grounds Maintenance & Street Cleansing Operative Manager Full-Time, Temporary*37 Hours per Week£20.60 per hour* Closing Date
Recuriter: Essex County Council

Director of People

Bolton Cares
£80,287
Bolton Cares is on an exciting journey of transformation and growth and we’re looking for a dynamic, people-focused leader to help shape our future. Bolton, Greater Manchester
Recuriter: Bolton Cares

Director of Care

Bolton Cares
£81,974
Bolton Cares is entering an exciting new chapter and we’re looking for a visionary leader to help shape it. Bolton, Greater Manchester
Recuriter: Bolton Cares

Director of Asset Investment & Growth

Bournville Village Trust
£115,000
A new chapter in a legacy that’s over 125 years in the making. Bournville, Birmingham
Recuriter: Bournville Village Trust

Assistant Director – Integrated Commissioning and Contracts

Suffolk County Council
£85,289 - £102,448 per annum
We are seeking a dynamic and strategic Assistant Director Suffolk
Recuriter: Suffolk County Council
Linkedin Banner