Auditor General criticises Town Council for decade-long financial mismanagement
In a damning new report, Adrian Crompton, the Auditor General for Wales says “the Council has not maintained proper and complete accounting records” and has been “unable to provide contractual documentation or supporting documentation to evidence that it has followed its standing orders and financial regulations.”
Mr Crompton adds that “adequate information has not been provided to Councillors regarding the approval of payments made” and he has been “unable to confirm whether the payments were made were done so under proper authority.”
“In addition to presenting the accounts for a given year, the Annual Return requires the Council to make a formal declaration in relation to the arrangements it has in place for its governance and financial management. This is referred to as the Annual Governance Statement.
“I consider it important to note that the standards required to be disclosed by the Annual Governance Statement are the minimum standards that the electors of Ammanford Town Council should expect to be upheld.
“I draw attention to the fact that the Council has, by its own admission, failed to meet these standards and has provided negative responses to many of the aspects of proper governance covered by the Annual Governance Statement.
“What is clear to me is that since 2016, even though its failings and deficiencies have been brought to its attention by both internal and external audit, the Council’s past officers and its members have failed to ensure that it has established proper standards of financial management and governance.
“In failing to properly address the issues raised in the Public Interest Report and internal audit reports, Council members have not sufficiently recognised or acted upon issues in relation to the adequacy of their governance arrangements.”
Mr Crompton says that “although it has failed to meet the statutory timetable for each year, the Council has now prepared accounts up to and including the 2023-24 financial year but needs to publish the accounts online.
“Although the 2021-22 accounts do not appear to have been approved and 2022-23 and 2023-24 accounts were late, all outstanding accounts have now been submitted for audit.”
He added that “a lack of clarity of the terms of engagement for [a firm of accountants] may have led to a significant increase in the cost of services provided to the Council”.
He went on to say that “significant deficiencies in the Council’s accounting records mean that I am unable to conclude on whether or not the accounts for 2018-19 to 2021-22 properly present the Council’s income and expenditure” and that “the Council has significantly changed its accounting system twice since 2018-19.”
Mr Crompton says that his audit has “identified several significant weaknesses and omissions in the Council’s records” and that “the Council has insufficient records to support expenditure and is unable to demonstrate that payments have been approved.
“Contract record keeping and thus contract management is poor.”
He added that “the lack of available records and the uncertainties around the expenditure incurred by the Council means I am unable to conclude on whether or not the accounts for 2018-19 to 2021-22 properly present the Council’s income and expenditure.”
In his report, Mr Crompton has made three recommendations to Ammanford Town Council to improve its financial management and governance arrangements.
That the Council should review and maintain a contract register for all contractual obligations and communicate this to the Council members.
The Council should ensure all contracts are awarded in line with its Standing Orders and Financial Regulations and maintain adequate accounting records demonstrating compliance
The Council should ensure it uses official communication channels for Council business.
Swansea Bay News has contacted Ammanford Town Council for comment on the Auditor General’s report.
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