Has there been Unauthorised and Fraudulent Expenditure at Shepway District Council?
Each quarter Shepway District Council (SDC) must publish purchase orders above £5000. SDC as we have informed you say they will not release the PO’s for inspection, while the accounts are open. What are SDC hiding when they MUST publish the purchase orders above £5000?
The Annual Fraud Indicator 2016 at page 21 states:
Local and regional government expenditure in 2013/14 was £160 billion (HM Treasury, 2014). Total estimated fraud losses amounted to £7.3 billion.
The s151 officer, who is also the Corporate Director for Organisational Change, Tim Madden has softened his stance with regards to Purchase Orders. He has written to our public face and we quote Mr Madden verbatim:
“However, I have had the opportunity to consider the matter further and the issues raised. Whilst my view has not changed, I do recognise that there is a certain grey area which creates uncertainty over the status of the purchase orders in relation to this process. In light of the intent of the legislation to provide transparency in a local authorities financial accounts, I am prepared to release purchase orders as part of this inspection process. I will re-emphasise that this is in the context of the National Audit Office guidance which requires all requests to be reasonable and proportionate. To be clear on the practicalities of this, any request to view a small number of purchase orders relating to a specific issue (up to 5) would be met (subject to commercial confidentiality and personal information not being disclosed). Any requests in excess of 5 and which were not relating to a specific item I will judge as unreasonable and will not be met. For clarity, if you still wish to pursue these documents then could you reconfirm your requests so we can properly assess them against this approach.”
Mr Madden is gracious, by offering our public face ‘up to five Purchase Orders’. However, Mr Madden and the legal team at SDC have got it wrong, utterly wrong, we believe in our honest opinion.
We have said that there is plausible suspicion of wrongdoing regarding unauthorised and fraudulent expenditure. SDC must, publish PO’s over £5000. Or are SDC saying there has not been a single purchase order over £5000 during 2015/16?
The Local Government Transparency Code 2015 part two, page 11 states:
Information which must be published , every quarter, it goes on to say at page 13
Procurement information Para 32 states:
Local authorities must also publish details of any contract,
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commissioned activity,
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purchase order,
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framework agreement
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and any other legally enforceable agreement with a value that exceeds £5,000.
http://www.shepway.gov.uk/moderngov/documents/s1499/rcabt20110720%20Anti%20Fraud%20and%20Corruption%20Framework.pdf
4.15 External audit is an essential safeguard of the stewardship of public
money. It is not the external auditor’s function to prevent fraud and irregularities, but the integrity of public funds is at all times a matter of
general concern. External auditors are always alert to the possibility of
fraud and irregularity and will act without undue delay if grounds for
suspicion come to their notice. The external auditor has a responsibility
to review the Council’s arrangements for preventing and detecting
fraud and irregularities, and arrangements designed to limit the
opportunity for corruption.
5.2 The responsibility for the prevention of fraud and corruption lies with
management, who must ensure that adequate controls, including
policies and procedures, are in place to prevent and detect fraud and
corruption. The Council has developed systems and procedures that
incorporate effective and efficient internal controls, and management
should ensure that controls minimise risk to an appropriate level.
Controls should be regularly reviewed to ensure they remain
appropriate and effective. The internal and external auditors
independently monitor the existence, effectiveness and
appropriateness of these controls.
https://www.nao.org.uk/code-audit-practice/wp-content/uploads/sites/29/2015/03/Council-accounts-a-guide-to-your-rights.pdf
Oh Shepway, you poor dears. Why not just tell the truth for a change and just let the rest of us just get on with it?
Could be their strict adherence to the “Peter Principle”?