Luton Council lodges complaint over financial report
Luton Council has submitted a formal complaint to the Institute of Chartered Accountants in England and Wales (ICAEW) in response to a Public Interest Report concerning unresolved financial accounts from 2018/19
Luton Council has submitted a formal complaint to the Institute of Chartered Accountants in England and Wales (ICAEW) in response to a Public Interest Report published by its auditors, Ernst & Young (EY), concerning unresolved financial accounts from 2018/19.
The council disputes the fairness and accuracy of the report, stating it contains factual errors and fails to consider evidence the council has provided. According to the council, the report focuses on two key issues: historical procurement practices and difficulties in recruiting finance staff, both of which it argues have been resolved.
One of the issues highlighted in the report concerns the way Luton Council used to procure social care services. The council acknowledged that it identified internal challenges in June 2020, which were fully resolved by 2021 in collaboration with EY. The council has expressed confusion as to why this matter is still being raised in the report.
The second issue relates to challenges in hiring specialised finance staff. The council noted that two roles out of a team of 94 were affected. These positions have since been filled, and the council claims that EY's report does not fairly represent the situation.
Councillor Rob Roche, Portfolio Holder for Finance, said: "We strongly believe that the decision of EY to publish a Public Interest Report is deeply flawed. The report is damaging to our reputation and contradicts a recent government-commissioned independent assessment into our finances that concluded that the local authority is financially well-run."
Roche added that the council has worked hard to stabilise its financial position, delivering a balanced budget each year despite the challenges of recent years. "The report is not a fair or accurate reflection of the current position, and we are hugely disappointed given how hard we have worked to stabilise our financial position," he said.
The council's formal complaint to ICAEW argues that EY's report is based on information that has been discussed extensively at audit committees over the past three years. The council contends that it has provided evidence to counter many of the points raised in the report, but this evidence has been ignored.
The Public Interest Report and the council's response will be discussed at a full council meeting on 15 October 2024.
We have contacted Ernst & Young for a comment.