“Grant Thornton, who were appointed by the Audit Commission as auditor of the council, found that there have been a number of serious failings in governance and procedures at Honiton Town Council.
The internal audit report revealed that financial systems had not been updated between November 2016 and March 2017, no financial information had been provide to the council for scrutiny since September 2016 and that reserve levels were not being reported to the council.
The report of Mr Morris says that the internal audit report noted that:
The financial systems had not been updated between November 2016 and March 2017 and that only the clerk had the login details of the new finance system
The council did not have adequate contingency plans for key staff being absent, result in the council failing to maintain proper records
At the point of the internal audit review in March 2017 it was noted that due to the financial system not being kept up to date, there had not been any bank reconcillliations completed since September 2016
No financial information had been provided to the council for scrutiny since the October 2016 finance committee meeting
Insufficient information was provided on the assets and liabilities of the council
No amount had been input for the budgeted precept, resulting in the accounts showing the council was budgeting for a £236,000 deficit
Reserve levels were not being report to the council
There was little detail of how the council set its budget and that progress against the budget was not regularly monitored. …”