Further details have revealed an extra £4.42m of council housing money was wrongly spent on top of an original £40m estimate, according to Nottingham City Council. During a Scrutiny Committee meeting at Loxley House on January 4, councillors were told wrongful spending of the Housing Revenue Account (HRA) had cost up to £51m.
The original estimate of the “inappropriate use” of HRA money had been in the region of £40m. On Wednesday the Labour-run authority said most of the added £11m had been the result of inflationary costs on repayments.
On Friday (January 6) the council told the Local Democracy Reporting Service £4.42m of the total was newly-uncovered misspending. This brings the total amount of money misspent to around £44.42m. An independent report released last year said investigators had to rely on an estimation and “experienced view” of what had been inappropriate use of HRA monies because of the “poor quality of record keeping” and “lack of an audit trail”.
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