Auditor’s recommendations ‘come as no surprise’

An action plan to address recommendations from auditors, following a hat trick of financial challenges faced by Redditch Borough Council, is set to be discussed by Members next week.

Despite being ‘pleased’ that the Council has already taken action earlier this year, auditors Grant Thornton have issued a section 24 notice on the Council because of its failure to deliver the 20/21 statement of accounts on time.

As discussed at previous Council meetings the reasons for the delay include the ramifications of Covid, a higher than usual turnover of staff during the time of the implementation of a new finance system, with the authority being the first into the country to use its module to log income.

The Council’s portfolio-holder for Finance Cllr Karen Ashley said: “On top of the financial challenges which face local authorities each year we were presented with a hat-trick of extra challenges which were beyond our control.

“However, following the recruitment of a new Finance Team to fill the vacancies we made immediate headway, as recognised by the auditors in their report, and are on target to produce our draft statement of accounts at the end of November.”

As per the auditor’s recommendations their report will be discussed at the Audit and Governance Committee meeting next Thursday (Nov 10) and then at full Council on November 14th. Here the decision on whether the recommendations are to be accepted, and agreement that the actions the Council are taking in response to those recommendations, will lead to the 2020/21 Accounts being produced.

Council Leader Matt Dormer said: “This has come as no surprise and we have made no secret about it which is why we are in the strong position that we are now with most of the recommendations already in hand or resolved.

“As we continue to navigate the economic crisis and financial challenges, I am confident our highly skilled team and systems will help us to successfully do this and that this Council will continue to not shy away from making tough and unpopular decisions to ensure a buoyant budget.”