1st May 2009
By David Scott
Auditors have raised serious concerns about a Scottish council’s financial sustainability because of its lack of planning and other management weaknesses.
In a damning report published on April 22, the Accounts Commission for Scotland said South Ayrshire Council did not have the tools required to provide Best Value or manage its resources, risks and performance effectively.
According to the commission, it lacks a culture of continuous improvement, there is little scrutiny of performance by councillors and there is a lack of consistent, good quality customer care.
The report follows the commission’s consideration of a Best Value and community planning audit report compiled by Audit Scotland.
It acknowledged improvements in leadership as a result of recent senior appointments, more effective cross-party working among councillors and a ‘greater self-awareness’ of the council’s weaknesses.
But commission chair John Baillie said: ‘We are concerned to note South Ayrshire Council’s position. It has made limited progress towards delivering best value and faces severe financial pressures.
‘These are significant risks and will make it challenging for the council to make the improvements needed.’
The report said the council had a vulnerable financial position that resulted from past political decisions, including a policy of not building up reserves and not setting aside adequate funding for equal pay and single status over a number of years.
It added: ‘As a result, over the past three years external audit has raised concerns about the council’s financial sustainability, which poses risks to its ability to invest in future improvements and to prevent services from deteriorating.’
The council has had three changes in political control in the past five years and there have been many staff changes at senior management level.
