One of the auditors for Nottingham City Council has explained why a series of payments totalling up to £40m may have been missed despite extensive historical reviews. Some of the payments have already been deemed 'unlawful' after cash was spent on general services and not council tenants as intended.
Towards the end of 2021 the Labour-run authority announced a series of payments totalling £15.8m had been uncovered in the form of 'management fee rebate' payments dating back to 2014/15. This money had been 'unlawfully' transferred from its ring-fenced Housing Revenue Account (HRA) to its general fund.
While this total was later amended to just under £15m, two council-commissioned reviews uncovered more misspends. The total is now estimated to be in the region of £40m and some of the city's most vulnerable residents were said to have been 'disadvantaged' as a result.
