Report says council finances "uncertain" (From Barry And District News)

Report says council finances "uncertain"

THE Audit Commission in Wales has published a critical report on the financial affairs of Barry Town council.

The commission said there was a "fundamental uncertainty" in its accounts because of confusion over the ownership of the memorial hall.

The report stated: "The fixed asset register has not been updated for several years due to the ongoing legal debate regarding ownership of the council buildings. However, while this situation is in being, the audit certificate will note there is a fundamental uncertainty in respect of the council's accounts."

The commission also recommended the council reviews and updates its financial regulations as a "matter of urgency".

It said there had been a considerable increase in sickness among staff and disciplinary action and that "considerable financial resources have been needed to fund this unexpected expenditure".

The council was also told to review the arrangements for security of documents and records. Important documents relating to the council were stored in an open tin trunk in general office space.

Cllr Nic Hodges, Plaid Cymru's leader on the Labour-run council, said: "The New Labour councillors failed to ensure that the financial regulations of the council were carried out. It could mean that council tax payers' money was not being safeguarded."

Council leader Margaret Wilkinson said: "It needs to be borne in mind that the document recently quoted to the press is a draft report and is yet to be concluded pending clarification in discussions with council officers.

"The Audit Commission's (draft) main conclusion is that it will be able to issue an unqualified audit opinion (i.e. there are no financial irregularities).

"It is accepted that what has caused a problem to the auditor is the uncertainty as to the ownership of the memorial hall and associated council offices. That is not a problem of the council's making. There is no question the council is the legal owner of the property."