Auditor General for Wales: Buckley Town Council found to have ‘unlawfully spent’ nearly £270,000

A Flintshire Town Council has incurred unlawful expenditure of nearly £270,000, according to a report issued by the Auditor General for Wales today.

Buckley Town Council incurred significant deficiencies in its procurement arrangements with no proper arrangements to secure “economy, efficiency nor effectiveness in their use of resources.” The Welsh Audit Offcie (WAO) report states.

The town council raises around £300,000 a year income from council tax payers, was found to have spent £153,898 on two cleaning contracts, and expenditure of £116,064 in the appointment of its Town Centre Manager over the course of several years.

In these instances, the council was found to have failed to comply with its own standing orders. In doing so, the council incurred unlawful expenditure totalling £269,962. 

In the report, Auditor Deryck Evans said,

“In July 2018, I received information that the Council had failed to comply with its own Standing Orders and Financial Regulations when entering into contracts.

To get a full understanding of how the Council procures services, l have reviewed the award of contracts for cleaning and for the services of the town centre manager.

My audit findings show long-standing inadequacies in governance, financial management and internal control at the Council, specifically in relation to procurement.

It is important that the Council learns from these findings and addresses the deficiencies l have identified.”

The council has been issued with a qualified audit opinion and a number of recommendations have been made, including,

• Standing orders to remove any ambiguity
• Procurement process to ensure compliance
• Contract terms of reference

In a written submission to the WAO, the council acknowledges that it has not followed its standing orders in relation to the cleaning contracts and the appointment of the
town centre manager.

It notes that “this was an act of omission/ administrative oversight rather than a deliberate action.” 

It contends that it has “in all probability“ the council achieved and secured value for money over the periods of the contracts.“

Ant the council has informed the auditor that it has already taken some steps to improve its arrangements.

Auditor General, Adrian Crompton said today:

“This year alone I have had to issue twelve reports in the public interest, which highlight serious weaknesses in the financial management and governance and Town and Community Councils in Wales.

This undermines public trust and can lead to a waste of public money.

I call on all Town and Community councils to take heed and learn from the important lessons within these reports so that communities in Wales get the services and the assurance they rightly deserve.”

Buckley Town Council Clerk Martin Wright said, “the council will be making no comment upon the WAO Report until such time as it has had chance to discuss the Report at a Special Council Meeting.”