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

Social Care Assessor – Hospital Discharge Team

London Borough of Richmond upon Thames and London Borough of Wandsworth
£32,841 - £45,564
Social Care Assessor – Hospital Disch... Teddington, Greater London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Residential Worker

Essex County Council
£25395.00 - £32131.00 per annum + pension
Residential WorkerPermanent, Full Time£25,395 to £32,131 per annumLocation
Recuriter: Essex County Council

Deputy Chief Accountant

Oxfordshire County Council
50269 - 53460
As Deputy Chief Accountant, you will support the Chief Accountant in maintaining and improving the council’s financial accounting systems and ensuring accurate, timely statutory reporting. You will coordinate the preparation of the annual Statement of A Oxford
Recuriter: Oxfordshire County Council

Sector Growth & Skills Lead

Essex County Council
£44434.0000 - £52275.0000 per annum
Sector Growth & Skills LeadFixed Term, Full Time£44,434 to £52,275 per annumLocation
Recuriter: Essex County Council

Head of Housing Enabling and Development

Sutton London Borough Council
£77,550 - £97,103
We are proud of our strong local identity, vibrant neighbourhoods and commitment to delivering services that make a real difference. Sutton, London (Greater)
Recuriter: Sutton London Borough Council
Linkedin Banner