Yorkshire Post

Hospitalit­y bills of crisis-hit council

- SARAH WARD LOCAL DEMOCRACY REPORTER ■ Email: yp.newsdesk@ypn.co.uk ■ Twitter: @yorkshirep­ost

POLITICS: Northampto­nshire County Council spent huge sums on corporate hospitalit­y, string quartets and lavish events in 2015, including £2,700 on a heritage dinner, as it was heading towards its financial crisis, it has been revealed.

NORTHAMPTO­NSHIRE COUNTY Council spent huge sums on corporate hospitalit­y, string quartets and lavish events as it was heading towards its financial crisis, it has been revealed.

During 2015 when the state of the finances was becoming serious, the authority paid for a number of luxuries including £2,700 on a heritage dinner at Rushton Hall, £3,624 on a flypast at a memorial event and £4,500 on a marquee for an event at Boughton House in Kettering.

It also spent £80,000 with Northampto­n Saints rugby union club, which included the cost of a stadium hospitalit­y box. The payments were made through the council-owned company NEA Properties, which an internal council investigat­ion has found had ‘minimal’ governance and documentat­ion.

The extravagan­ces were funded from the proceeds of a sale in September 2014 of a number of units in Northampto­n to tenants, The University of Northampto­n.

The sale had been approved that same month by the authority’s cabinet, however £700,000 of the £820,000 sale value went back into county council funds and the remainder stayed with NEA properties, some of which was spent on luxury hospitalit­y.

The limited company, which was first incorporat­ed in 1983 under the name Northampto­nshire Enterprise Agency, came under scrutiny in January 2017 after UKIP County Councillor Michael Brown blew the whistle over concerns about the expenditur­e of the company.

The councillor who lost his seat in May last year, and who is an independen­t financial advisor, said: “At the outset as a public organisati­on they were keeping secret the accounts of a limited company it owns under the small companies exception. This should not happen as it leaves itself open to abuse of public funds.”

A resulting internal audit gave a limited assurance rating. The report was marked as confidenti­al and circulated to the council’s interim finance director Damon Lawrenson and monitoring officer Susan Zeiss as well as the then chair of the audit committee David Watson.

The report found: “There is no evidence of improper spend or improper management of the company but in the absence of various records only Limited Assurance can be provided.”

Labour Councillor Gareth Eales, who represents the Dallington Spencer Ward, said: “There needs to be a full and thorough investigat­ion to get to the bottom of this.

A spokesman for the council said: “An Audit Committee report in November 16, 2017, reviewed concerns about NEA Properties Ltd, a wholly owned county council company.

“The governance of the company was reviewed including its finances. The conclusion was that while only limited assurance could be provided over the governance of the company, the organisati­onal impact was minor.

“The report also found that expenditur­e and financial transactio­ns were transparen­t. However the committee did draw up a number of recommenda­tions and work on addressing these will be done as soon as possible.

“A resolution to dissolve NEA Properties Ltd was signed by the company directors on September 12, 2017.”

It follows news that local authoritie­s in Northampto­nshire have set out plans for a re-structurin­g after the county council was left facing a £70m budget shortfall. The move comes after a Government inspector warned earlier this year that the problems facing the county council were “deep and ingrained”.

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