13 May 2005
North East Lincolnshire Council's accounts have been qualified by the district auditor.
It is the second year running that the authority has failed to produce accounts that the auditor can be certain are 'materially accurate'. The accounts, for 2003/04, were also filed five months late, in January this year.
District auditor Sue Sunderland was reporting her findings to the authority's accounts committee on May 13 in the latest twist in a long-running financial drama.
The Audit Commission published a Public Interest Report last year that criticised North East Lincolnshire for inadequate financial support services, weak management systems and ineffective budgetary control and reporting.
Sunderland said there was no option but to qualify the council's accounts. 'Unfortunately, the accounts which were finally produced were not supported by adequate working papers in some key areas and, with the breakdown in financial management and the significant changes in staff, it has not proved possible for the council to fully explain or resolve all our outstanding queries,' she said.
She wants the council to ensure a 'robust review process' is up and running for this year so that accounts are 'supported by working papers and agree to the financial records'.
John Harrison, the council's executive director of corporate services, said the decision to qualify the accounts was 'disappointing but not surprising'.
He said the council had brought in a new financial management team and trained existing staff to ensure that the problems outlined in the PIR last year were addressed. 'I am confident that by the end of the year we will have a good set of accounts and the commission will give this council a clean bill of health,' he added.
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