Auditors Unable to Complete Eden District Council Audits with Queries Raised Over Council's Pension Funds.
As part of the Cumbria local government reorganisation in April 2023, the Eden District Council was disbanded, marking a significant change in the local governance structure. However, the disbandment of the council has left a trail of unresolved financial issues, as its accounts remain unsigned since 2020. This failure to complete the necessary audits has raised concerns about the council's financial transparency and accountability, further compounded by auditors' inability to finalise audits for subsequent years. Additionally, queries have been raised regarding the management of the council's pension funds.
The failure to sign off on the Eden District Council's accounts for multiple years has created uncertainty and eroded public trust in the council's financial management. The absence of a finalised audit hinders the the new Westmorland and Furness council's ability to effectively plan and allocate resources for vital community projects and services. The situation has also raised questions about the former Eden council's adherence to financial regulations and the accuracy of their reported financial statements.
Auditors responsible for ensuring compliance and conducting independent assessments have encountered difficulties in completing audits for multiple years. The reasons behind the delays and the obstacles faced by auditors in obtaining necessary information and documentation remain unclear. The prolonged delays have sparked concerns with some local political parties, who questioned the failures of Eden Council to have up to date audits over the last few years and the questions this raises over the former Eden District Councils commitment to transparency and financial responsibility during the councils final four year administration.
The audit process has also uncovered queries regarding the council's pension funds, A spokesperson for political party Putting Cumbria First has said, “The nature of these queries requires a comprehensive investigation to ensure the protection of the pension funds and the interests of stakeholders.”
In light of the mounting concerns, the disbandment of the Eden District Council and the subsequent establishment of the Westmorland and Furness Council as the new unitary council adds an additional layer of complexity to the situation. The responsibility for completing the audit sign-off now falls on the Westmorland and Furness Council,
Westmorland and Furness council are also working on the completion of the final years audits of South Lakeland Council, Barrow Council, and Cumbria County Council as well as the legacy audits for Eden Council spanning back to 2020.
The spokesperson for Putting Cumbria First said “Addressing the unresolved audit issues and restoring public confidence in the council's financial management practices should be a priority for the new unitary council. Transparent communication, cooperation with auditors, and the implementation of robust financial controls will be essential in rebuilding trust among the local community.
It is imperative that the Westmorland and Furness Council, address the outstanding audit issues promptly and transparently. Only through effective resolution and enhanced financial oversight can the new unitary council establish a foundation of trust, accountability, and responsible financial management for the benefit of the community they now serve.”
The auditors have indicated that significant risk will be identified in the audit report. The auditors will also provide as part of the audit details on value for money for each financial year covered by the Eden Council audits.
Value for money covers areas including governance, how the council makes decisions and properly manages risks. Financial stability how the council plans and manages its resources to ensure it can deliver services.
It’s expected the final audits of Eden District council will not be completed until late 2023 early 2024.
Then select "Add to Home Screen"
