Accounts for massive project yet to signed off
ACCOUNTS for a vast regeneration project dating back to April 2020 have still not been signed off yet.
The huge South Tees Development Corporation (STDC) - now known as Teesworks - sits on 4,500 acres of industrial land, with ambitions to create thousands of jobs from overhauling the site and attracting investors.
But accounts for the 2020/21 financial year at the South Tees Developments Ltd, the company overseen by the STDC, still haven’t been finalised by auditors.
The Companies House website shows 2020/21 accounts for South Tees Developments Ltd are now overdue by almost six months. However, chiefs at the Tees Valley Combined Authority and the STDC say “significant issues in the audit market” are behind the delays - and that they are still working with external auditors to finalise their 2020/21 accounts.
A TVCA spokesman added: “Various reports have concluded that audit firms are struggling with a net loss of qualified staff. The TVCA and its subsidiaries are not in the minority of audits not yet signed, with only 45% of 2019/20 audits completed by the extended deadline of November 30, 2020 and, most recently, only 9% of 2020/21 audits completed by the extended deadline of September 30, 2021.”
Responding to concerns about the accounts, Tees Valley Mayor Ben Houchen said they had done all they could, and were waiting for the auditors “to do their bit”.
The vast Teesworks project has seen a number of structural changes in the past 12 months. Freeport status was officially granted to the STDC site in November last year.
Joint venture private firms JC Musgrave Capital, Northern Land Management Ltd and DCS Industrial Ltd hold 90% of the shares in Teesworks with the STDC retaining 10% in a deal signed off late last year.
External auditors have aims written down in law to offer an objective and independent look at the financial statements of a body. They ensure they provide a true and fair reflection of where the company stands, and make sure the statements have been put together in line with accounting standards.
Audit waits to sign off 2020/21 accounts aren’t unique to the TVCA. Middlesbrough Council chief executive Tony Parkinson told a meeting last week how they were waiting for the sign-off.
He added: “The external auditor’s closure of accounts exercise for the 20/21 financial year is ongoing. It’s some way overdue for a number of issues not associated with the council with some technical issues about accounts that apply nationally, and covid, which has had an impact.”
A Mazars audit completion report tabled at March’s STDC audit and risk committee stated: “We are yet to complete our work in respect of the corporation’s arrangements for the year ending March 31, 2021. At the time of preparing this report, we have not identified any significant weaknesses in arrangements that require us to make a recommendation, however we continue to undertake work on the corporation’s arrangements.”