A bad/good news story from Tower Hamlets Council
In the 2018/19 financial year at least 21 serious issues were discovered in the Councils financial accounts, meaning we missed signing our accounts last July
Meant 2 years worth of financial accounts were wrong
17/18 & 18/19
1/
In the 2018/19 financial year at least 21 serious issues were discovered in the Councils financial accounts, meaning we missed signing our accounts last July
Meant 2 years worth of financial accounts were wrong
17/18 & 18/19
1/
Some of these issues go back further meaning our financial accounts must have been in error for several years, like the teachers pensions issues
Why missed & why @KPMG as our auditors missed them as well will be followed up on by an independent external report
2/
Why missed & why @KPMG as our auditors missed them as well will be followed up on by an independent external report
2/
You can watch the Audit C'tee online here;
towerhamlets.public-i.tv/core/portal/we…
& read reports here item 4.1;
democracy.towerhamlets.gov.uk/ieListDocument…
The revised 2018/19 financial accounts will need to be audited again, new issues maybe found
Which means 2019/20 accounts also delayed as well
3/
towerhamlets.public-i.tv/core/portal/we…
& read reports here item 4.1;
democracy.towerhamlets.gov.uk/ieListDocument…
The revised 2018/19 financial accounts will need to be audited again, new issues maybe found
Which means 2019/20 accounts also delayed as well
3/
So why are 21 serious issues with accounts good news?
Because we have £45 million more 'money' useable reserves then we thought a year ago due to adjustments
Usable reserves last year increased to £566.7 million
Which is good given COVID impact on our financial position now
4/
Because we have £45 million more 'money' useable reserves then we thought a year ago due to adjustments
Usable reserves last year increased to £566.7 million
Which is good given COVID impact on our financial position now
4/
The reasons for finding problems are;
a. Good decision to change auditor to @DeloitteUK means fresh pair of eyes found issues, which is why you should change auditors regularly
b. Excellent work by current snr finance team (3 temps though)
c. Centralisation of finance teams
5/
a. Good decision to change auditor to @DeloitteUK means fresh pair of eyes found issues, which is why you should change auditors regularly
b. Excellent work by current snr finance team (3 temps though)
c. Centralisation of finance teams
5/
Previously finance was decentralised to departments, easier to hide/miss problem (although centralisation of finance brings different issues)
Despite good news these are serious issues, why did this happen for years, why was it missed, can we ever rely on external audit again?
6/
Despite good news these are serious issues, why did this happen for years, why was it missed, can we ever rely on external audit again?
6/
We also have serious problems in Pensions as well, more later
Did not publish issues earlier, needed to give officers space to find & sort out problems first
But also failure of Audit C'tee + Overview & Scrutiny + Pensions C'tee to spot problems (I am a member of all 3)
7/
Did not publish issues earlier, needed to give officers space to find & sort out problems first
But also failure of Audit C'tee + Overview & Scrutiny + Pensions C'tee to spot problems (I am a member of all 3)
7/
This is another example of the fact that Tower Hamlets Council is not as healthy as it likes to portray itself
But does have even more financial reserves than we thought!
End
@EastEndEnquirer @RachaelBurford @ELAdvertiser
But does have even more financial reserves than we thought!
End
@EastEndEnquirer @RachaelBurford @ELAdvertiser
But we cannot was fuff cfc
