High Risk Issues Found in Eden Council Audit with Final Year Audit Not Anticipated to Commence

Auditors Working to complete the audits for the former councils replaced by Westmorland and Furness Council have said that given that the Eden District Council 2022-23 accounts are yet to be published, they do not anticipate commencing the Eden 2022-23 accounts audit, although discussions remain ongoing on this matter.

The former Eden District Council had multiple years of unsigned off accounts during the final administration of the council that ran between 2019 to 2023 and outstanding audits when the council was replaced on the 1^st of April 2023.

Auditors have this month completed the Eden Council audit for 2021-22 and found a number of failings including issue identified as high risk, found after auditors analysis identified high use of suspense accounts and year-end adjustments and also identified that responsibility for the administration of the finance system was done with the finance team. Auditors said that represents a conflict as users with a financial reporting or business process role should not be responsible for maintaining and administering the system.

Auditors also identified errors in the valuation calculations of council owned assets including in the calculation linked to Penrith Leisure Centre.

Other issues included instance where income received had not been allocated against the correct invoice by Eden District Council.

Auditors testing of the councils grants system also identified instances where sufficient and appropriate evidence was not maintained including grant documentation.

There was also no audit of part of the council’s flagship Green Homes Grant scheme. It was not clear to auditors how the Council obtained assurance over the grant expenditure on installations and part of the Green Home Grant scheme that was later audited the reports were never shown to any Eden Council Committee the auditors have said.

All other former councils replaced by Westmorland and Furness Council have had final accounts published and final audits completed with the final year of Barrow Borough Council due for completion in March. Eden Council may not have a full audit completed for its final year and no final report examining if best value was delivered by the council delivered.