Mark Whitehead 05 October 2018

MP accuses Reading council of 'financial mismanagement’

MP accuses Reading council of financial mismanagement’ image

The cost of sorting out Reading Borough Council's 2016/17 annual accounts is likely to reach at least £400,000, it has been revealed.

A report to the council's audit and governance committee says the accounts should have been signed off by the end of September last year.

But over the past year, auditors EY have been 'unable to find evidence to substantiate some of the balances in the accounts' due partly to 'the passing of time and the turnover of officers'.

The report says problems over 'fixed asset and capital accounting issues' still need to be resolved with the auditors which will impact on 'the value of property plant and equipment and two of the unusable reserves'.

It says consultants have 'recommended further changes to the accounts for the council’s two Public Finance Initiative (PFI) Schemes and provided EY with details of the changes.'

A review will take place of all year-end balances on creditor and debtor ledger codes in 2017/18 to 'ensure that they are fully evidenced and correctly calculated.'

The initial £100,000 fee agreed with EY is now likely to have increased by £300,000, the report concludes.

Reading West Conservative MP Alok Sharma has accused the Labour-run council of 'financial mismanagement’ and called for resignations from councillors.

In a statement the council said it was working with the auditors to finalise a number of areas of the 2016/17 audit and 'good progress is being made'.

It said: 'It is hoped EY will be in a position to issue an opinion during November 2018. The 2017/18 accounts cannot be finalised until the 2016/17 accounts have been signed off. It is anticipated the 2017/2018 accounts will be ready for issue to EY in early December 2018.'

For your free daily news bulletin
Highways jobs

Chief Executive

South Kesteven District Council
Up to £127k
South Kesteven is a district with plenty going for it. Grantham, Lincolnshire
Recuriter: South Kesteven District Council

ASC Occupational Therapist - Early Intervention Team

Essex County Council
£30300 - £41425 per annum
We are looking to recruit 2 Occupational Therapists to work within Clacton or Colchester. Essex County Council (ECC) is one of the largest and most dy England, Essex, Clacton-On-Sea
Recuriter: Essex County Council

Youth Support Worker DofE

Essex County Council
£995 - £1049 per annum
Our Youth Support Workers work with young people completing their Duke of Edinburgh's Award, supporting them to complete all sections, including their expeditions. England, Essex, Colchester
Recuriter: Essex County Council

Duke of Edinburgh Team Leader

Essex County Council
£19260 - £21682 per annum
We are currently seeking a Youth Work Team Leader to supervise the development of the Duke of Edinburgh program and delivery of youth work projects, as well as work directly with young people in informal settings and maintain professional and purposeful r England, Essex, Colchester
Recuriter: Essex County Council

Head of Programme Management Office

Manchester City Council
£60,857 to £65,865
As the Head of PMO, you will define and maintain standards for project management within the Highways Service. Manchester, Greater Manchester
Recuriter: Manchester City Council

Local Government News

Latest issue - Local Goverrnemnt News

This issue of Local Government News explores how councils can tackle modern slavery and trafficking in their supply chains, finds out more about Cambridge's first cohousing scheme and the launch of a new project to build a shared service pattern library for local government.

This issue also contains a special focus on children's services and how councils are protecting children following local safeguarding children boards being abolished.

Register for your free magazine