THE financial struggle facing Slough’s council could see a new audit team brought in to inspect the books – but four years’ worth of accounts need sorting first.

The council could appoint new external auditors for five years from 2023/24 if it decides to accept a request from the public sector audit appointments’ (PSAA), which appoints auditors to local authorities.

The appointment of external finance inspectors and the setting of audit fees were previously under the control of the audit commission but have since disbanded.

Since 2018/19, the council has been with external auditors Grant Thornton who have been appointed to Slough until 2022/23.

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Grant Thornton was the company that released two damning reports earlier this year on Slough Borough Council’s finances and governance after inspecting the 2018/19 accounts, which missed its July 2019 deadline by nearly two years.

In those accounts, which cost the council nearly £500,000, the auditors found:

  • the finance team had insufficient skills or capacity to produce financial statements or working papers of reasonable quality;
  • reserves had fallen to an unsustainably low level; and,
  • the council had inadequate governance arrangements over subsidiary and joint venture companies.

From that, more revelations came out on the council’s financial governance by its new finance team, leading it to issue a section 114, effectively declaring bankruptcy.

 

Steven Mair (right) chief finance officer

Steven Mair (right) chief finance officer

 

Steven Mair, chief finance officer, told councillors on the audit and corporate governance committee another auditor firm might be appointed to the council as it cannot specify which auditors the council wants.

He also said Grant Thornton may not opt in to the programme, but reassured members they remain the external auditors until the 2022/23 accounts are closed.

Speaking at the meeting on Thursday, December 9, the leader of the opposing Conservatives, Cllr Wayne Strutton (Haymill & Lynch Hill), asked if the council could stay with the current auditors given Slough’s “unique circumstances”.

He said: “The level of understanding and getting up to speed is important to me and we could be incurring more costs by getting a new provider in that period of time where we sort this out that the changes are more expensive than it needs.”

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In response, Mr Mair said: “Grant Thornton will be with you until your accounts for 2022/23 are closed.

“We will be closing the council’s accounts from 2018/19 and making prior peer adjustments for two previous years and doing 2021/22 and 22/23.

“So, by the time we get all those accounts through the council’s accounts will be in a very much better and stable place.”

A decision will be made at full council to let the PSAA know if the local authority accepts its invitation by March 11.