EXTERNAL auditors have identified historic weaknesses in Northumberland County Council’s financial management – and warned councillors not to take their “eye off the ball” given recent progress. 

In recent years, Northumberland County Council’s financial management has come under scrutiny and criticism. In July last year, the local authority’s finance boss Jan Wallis deemed six payouts to former council officers, totalling over £1m, unlawful. 

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In 2022, the same finance chief also found that the Northumbria International Alliance, a venture between the council and Northumbria Healthcare NHS Foundation Trust operating commercially from at least 2018 to 2021, did not record “all related income and expenditure in the council’s accounts”. This was deemed to be in breach of council rules. 

However, representatives from external auditing firm Forvis Mazars have said that while it had identified historic weaknesses around governance and effectiveness in its audit reports from the financial years 2020-21 and 2021-22, progress had been made, and these reports do not reflect the current state of the council. 

As for the latest audit, in 2022-23, while some improvements remain, there is confidence that the situation will further improve for 2023-2024 but councillors were warned “don’t take your eye off the ball”, by auditor Cameron Waddell. 

Cameron Waddell, a key audit partner from Forvis Mazars said: “It will say some of the weaknesses have been addressed but not fully addressed by 31st of March 2023 because they weren’t. But we anticipate based on the evidence we have gathered to date for 23/24, which we have done as part of 2022/23 to a large extent, that we will not have a significant weakness and or recommendation that year. 

“I’m touching wood as I say that, but I am not aware of anything that would cause that to be reconsidered.”

Mr Waddell continued: “It is quite clear, that certain councillors and officers were absolutely clear about what was required. Councillors and officers will recall it took a little bit of intervention externally to get that past the post and started but from that point, it is quite clear the council has taken that very seriously and put in compressive plans and has made significant progress. 

“I don’t think you’d have got an outstanding OFSTED inspection if that hadn’t been the case. These events relate to the past, not the current situation at the council.”