Nottingham City Council’s finance controls are ‘not fit for purpose,’ an external review has found.
The review uncovered a ‘weak control environment,’ ‘ineffective systems’ and a ‘culture which is not focused upon compliance,’ according to a report to Nottingham’s audit committee tomorrow.
Auditor EY was brought in by the council following the revelation that £50m of funds in its housing revenue account had been unlawfully moved to general funds, resulting in a section 114 notice being issued.
EY, which was tasked with looking at ‘policies, procedures, financial records and data’ from 2019 to 2022, concluded: ‘[The council] is operating with a considerably weakened control environment, which is not fit for purpose in allowing a local authority to enact effective financial stewardship.’
To continue reading visit The MJ (£).
