Auditor slams management of finances by parish council
BAILIFFS turned up demanding money for overdue water charges from a village parish council where financial transactions were being recorded on the back of event flyers.
A remarkable audit report into the dealings of Hale Parish Council paints a picture of an organisation in complete chaos.
The shocking report – carried out by independent auditors JDH Business Services Ltd – is scathing about the parish council’s financial management across the 2018-19 financial year.
The council, covering the affluent village of Hale, was found to have produced ‘no evidence of any accounting records or even a cash book’ that were in use over the year.
The report found that there were ‘no adopted financial regulations in place nor any other document evidencing any adopted internal control proceedures.’
The disastrous situation came to a bizarre climax at one point when a failure to pay creditors on time resulted in bailiffs attending the council premises because of ‘long overdue water charges.’
The auditors said that vouchers were regularly being used instead of invoices or receipts for purchases made by the parish council.
They found that ‘one transaction for £1,075 for the purchase of a notice board was supported by a hand written note on the back of an event flyer.’
The report explains how ‘ standard financial regulation require a council to obtain a borrowing approval when obtaining a loan’ but how in Hale Parish Council’s case, there was ‘no information in the books and records presented for audit whether a borrowing approval had been considered for the £20,000 loan with the council.’
Another amateurish situation occurred when the auditors wanted to look at a spreadsheet of the council’s assets and investments – but couldn’t because they had been listed on a Word document with limited information.
Concluding the damning report, the auditors said: “On the basis of internal audit work, in our view the council’s system of internal controls is NOT in place, adequate for the purpose intended or effective.”
Luke Trevaskis is now the chair of Hale Parish Council
Mr Trevaskis took over as the chair of the parish council part way through the financial year. Below is his response in full. “The financial year this report relates to began in April 2018, prior to myself being elected to the seat of chairperson. Most issues highlighted in this report therefore existed before I accepted the position of office.
“Since the beginning of last year the council has seen a 60% change in membership and a high turnover of staff.
“Upon becoming chairperson, I raised a number of issues that I reported to council.
“I have worked hard to guide the council during the course of my tenure ● as chairperson, encouraging training for all members, and recommending a more substantial internal audit than the council had previously undertaken.
“Understanding the necessity for proper governance, I endorsed a NALC (National Association Of Local Councils) approved Responsible Financial Officer and an experienced auditor to highlight all the failures that I have previously raised with the council.
“In relation to the current banking arrangements, the last Responsible Financial Officer resigned from his post at a time were a number of online payments were linked to a debit card from suppliers of the council that no longer accepted cheques.
“Upon the recommendation of the outgoing Responsible Financial Officer, the accounts were placed in my name to allow business to carry on as usual in his absence.
“Any payments that subsequently left the accounts whilst in my name had all been approved by a resolution of the council. The auditor has also confirmed that there have been no findings of corruption and/or fraud.
“I am one member of this council and hold my position of public office with the upmost respect. Being the chairperson however, does not afford me the same role as a leader of a principal authority, and the role of a parish council’s chairperson only extends to managing each meeting.
“Historic minutes are available for members of the public to read and my voting pattern is very clear on a number of issues that have been highlighted in this report.
“The council will now need to consider all the finding in the report and the correct procedures that have not been followed historically will need to be actioned moving forward. This report will strengthen the future position of the council and ensure the rest of my tenure as chairperson is as effective as it possibly can be for the benefit of Hale and its electors.
“What must not be forgotten is all the good work the council has achieved in the past 12 months – there has been a dementia group set up in the Village Hall, the introduction of adult learning classes, improvement of open spaces, and monthly wellbeing activities held for residents.” Number 1 Installer Of Replacement Conservatory Roofs in Widnes • 10 Years Insurance
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