Haringey Council errors result in higher audit bill

Sloppy accounting at Haringey Council has meant local taxpayers are paying an extra £45,000 to cover Grant Thornton’s audit fees.

As a result of the errors, the firm refused to sign off the accounts and was required to carry out so much additional work to rectify the situation that the local authority was charged extra.

In a report, authorised by Haringey Council’s assistant director, finance Kevin Bartle, and discussed at a Corporate Committee meeting on 27 September, the council admitted to ‘an unusually high number of errors in the draft accounts’ and that ‘assurances were given to senior management regarding quality that did not reflect the actual position’.

Grant Thornton has since signed off the accounts before the 30 September deadline but would not confirm details of the fee, only admitting that it was discussing the fee implications of the additional work, with the council.

A Haringey Council spokesperson acknowledged that some errors were spotted and corrected before the 2011/12 accounts went to Corporate Committee, adding: 'Critically, there was no change to the bottom line and no impact on the council’s financial standing. We are now investigating how the initial errors occurred.'

Haringey councillor Richard Wilson said: ‘All the extra audit work needed is costing taxpayers up to £45,000 more in audit fees.

Article (excluding picture) reproduced in full from AcountancyLive.com