WARRINGTON Conservatives have demanded answers about the historical oversight of the borough council’s finances after learning that work is under way to establish a comprehensive record of its assets.
The questions come against the backdrop of years of financial difficulties at Warrington Borough Council, including significant borrowing, controversial commercial investments and previous audit findings concerning asset valuations.
Conservative councillor John Roddy wrote to Cllr Denis Matthews, the Labour administration’s Cabinet Member for Finance and Assets, seeking answers to ten questions about the completeness, accuracy and reconciliation of the council’s asset register.
Among the questions were whether a dedicated team had recently been established to identify and trace council assets, when any deficiencies were first identified and whether the Cabinet Member had previously been made aware of concerns.
Cllr Matthews referred the questions to senior council officers rather than providing substantive answers himself.
Following that referral, Conservative Group Leader Cllr Rob Tynan, Deputy Leader Cllr John Roddy and former borough councillor and Conservative finance spokesperson Ken Critchley met Chief Executive Sarah Smith to discuss the concerns.
The Conservatives described the meeting as constructive and welcomed the opportunity to discuss the council’s financial and governance challenges.
They understand that work is now under way to establish a comprehensive record of council assets. However, they are seeking clarification about the scope and findings of that work, including whether any material discrepancies have been identified and whether these could affect historical financial statements or future financial planning.
Questions about the council’s asset accounting are not new.
Grant Thornton’s audit findings for 2018/19 identified issues involving asset valuations, including an overvaluation of £12.341 million relating to operational land and buildings. The accounts were subsequently adjusted.
The Government’s subsequent Best Value Inspection also identified serious weaknesses in the council’s wider governance and financial management.
Cllr Roddy said the latest questions were intended to establish whether the council’s asset register was complete and accurate, and whether any deficiencies had previously been brought to the attention of the political leadership.
He said: “I raised ten specific questions with the Cabinet Member responsible for Finance and Assets because I wanted to establish whether the Council’s asset register was complete and accurate, and whether any deficiencies had previously been brought to the attention of the political leadership.”
“Those questions remain important. While Cllr Matthews referred me to senior officers, I believe the political administration also has a responsibility to explain what assurances it has received about the management of Council assets.”
“Long before Government Envoys were appointed, the Labour administration was responsible for overseeing major borrowing decisions, commercial investments, capital programmes and financial planning.”
“Knowing what assets the Council owns, their condition and their value is fundamental to responsible financial management.”
“The 2018/19 audit identified significant asset valuation issues. Although adjustments were made, questions remain about whether the underlying controls were sufficiently robust and whether subsequent improvements were sustained.”
“Given the Council’s financial history, it is reasonable to ask when the political leadership first became aware of any further asset-recording concerns, what action it took and what assurances it received.”
“We welcome the opportunity to engage constructively with Chief Executive Sarah Smith and recognise that she has inherited longstanding challenges. Our purpose is to establish the facts, understand the historical position and ensure appropriate accountability.”
“The Council’s financial recovery depends upon accurate information, transparent reporting and effective scrutiny. Residents are entitled to expect all three.”
The Conservative Group is seeking clarification of the scope and findings of the asset-recording work, including whether any material discrepancies have been identified and whether they affect historical financial statements or future financial planning.
Labour response
Cllr Matthews welcomed Cllr Roddy’s meeting with the Chief Executive and said he hoped the Conservative councillor would continue seeking briefings from council officers.
He said: “This is support that has been available to him since he was elected as a Reform UK councillor more than a year ago, so I am glad he has managed to finally locate it.”
Cllr Matthews added: “I am always happy to meet with our now two Conservative councillors to discuss positive ideas they might have for our town – in the meantime, Labour is getting on with delivering for Warrington.”
The council’s asset-recording work is continuing. The outstanding questions include when any further concerns were first identified, whether discrepancies have been found and what impact, if any, they could have on the council’s financial position.
