Town council failed to authorise wages and salary payments for many years, report finds

A town council failed to authorise its wages and salary payments for many years, a public interest report issued by the Audit Commission has found.

External auditor Andrew Vince of Moore Stephens was called in to examine Lydney Town Council’s procedures up to December 2010 and its decision to accept the clerk’s early retirement on the grounds of ill health.

Vince concluded that Lydney had also:

• failed to properly consider and approve increases in wages and salaries; and
• issued cheques with one signature, in breach of its own regulations and section 150 (5) of the Local Government Act 1972.

But the external auditor also found that Lydney had properly considered, and taken into account, external advice received from appropriate bodies when it made its decision to accept the clerk's early retirement.

Vince said: “The Council's governance procedures were weak in certain areas, and this has created problems. But I'm pleased it has now strengthened these procedures. For example, all cheques are now signed by two people and the Council authorises all salary and wage payments.”

The public interest report includes a number of recommendations for the council to consider, including further strengthening of internal audit and training for councillors and officers.

The report will be discussed at a public meeting, within one month of its publication date.