Details of challenge holding up accounts revealed

EXTERNAL AUDITORS for a North Yorkshire council have revealed more details of the longrunning legal challenge that has led to its accounts not being signed off for the last five years.

Scarborough Borough Council’s 2017/18, 2016/17 and 2015/16 accounts were held up as the authority is locked in a legal battle with a group of residents over how it classifies income and expenditure from Whitby harbour.

Last year, it was confirmed that the 2018/19 accounts had also been caught up in the row.

The chairman of the council’s audit committee, Coun Andrew Backhouse, last month called the situation “unacceptable” and challenged the authority’s auditors Mazars to explain the repeated delays to councillors.

In a report to go to the audit committee next week, Mazars has said that it has been required to examine financial statements of the council from every year since its formation in 1974.

The report adds: “To comply with the requirements of the Local Audit and Accountability Act 2014 we are required to carefully and thoroughly consider challenges made by local government electors.

“In the matter of the multiple challenges raised in connection with Whitby Harbour, this has been a time-consuming process, requiring analysis of a significant number of archived council records and involves legal interpretation of a number of statutes.

“A second provisional view was sent to the objector and council on October 29, 2019. We received a response from the objector’s QC and legal adviser which we are still considering.

“We have carried out additional procedures on the council’s accounts for Whitby Harbour and considered our own detailed legal advice.”