Three Years Without a Clean Audit Opinion — Why It Matters
Newcastle City Council is about to approve its latest annual accounts.
But for the third year in a row the auditors cannot say whether the accounts are reliable. They did not receive enough clear and complete evidence to be sure that the figures are right.
That should matter to all of us.
Yes, There’s a National Backlog — But That’s Not the Whole Story
There is a national backlog affecting council audits across the country. There is also now a legal deadline that councils must meet when publishing their accounts.
But the audit report also highlights local issues.
The draft accounts were described as “ineffective.”
Key evidence was late or missing.
There were major errors in lease figures worth tens of millions of pounds.
There was a £9 million mistake in a business rates provision.
Problems with property valuations from the previous year were still not fully resolved.
And a fraud investigation into overtime claims was not included in the first version of the Council’s governance statement.
These are not minor technical points. They go to the heart of how well the Council keeps track of public money.
Conflicting Messages
At the same time, senior management have signed a formal letter stating that the accounts give a “true and fair view” and that internal controls are adequate.
So residents are left with two very different messages:
Management say the accounts are sound.
Auditors say they cannot confirm that.
That gap is uncomfortable — and it should be.
Why This Matters
Most people don’t spend their evenings reading audit reports. And they shouldn’t have to.
But they do expect a simple standard:
When public money is involved, the numbers should add up and independent auditors should be able to sign them off.
It should concern anyone who cares about transparency, accountability and trust in local government, especailly given this is the third year in a row where concerns have been raised.
Meeting the legal deadline to publish the accounts is important.
Establishing confidence in how Newcastle City Council manages taxpayers’ money is even more important.