The scope of work for an external investigation into Liverpool Council at the behest of its own auditors has been finalised.
Contracts are being completed for an outside body to lead a scope into historic practices at the local authority that led to arrests two years ago and is currently preventing auditors Grant Thornton signing off on the council’s accounts. Grant Thornton said it cannot complete the local authority’s books for 2019/20 until an investigation had taken place around whether issues that have dogged the authority were limited to “a particular area in the council or whether the issues are more pervasive.”
It had been expected that the identity of the external body leading the organisation would be confirmed in March but a Liverpool Council spokesperson said the formal process is to be completed imminently. The spokesperson said: “The contract is being formalised in the next few days.
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“Once that has been finalised we will be informing members of the decision and the scope of the work.” The investigation had come in for criticism from opposition leader, Lib Dem Cllr Richard Kemp, who said the council found itself in this situation “owing to the failure of Grant Thornton to enquire on a range of issues raised in committee, in the press and in general over the last five years.”
According to Grant Thornton partner Mark Stocks earlier this year, the work will assess “matters that happened” – referring to incidents that led to the arrest of council members and officers almost two years ago, as well as “what may have happened in other areas of the council.” The council’s value for money conclusions are also on hold until the review is completed.
Amid criticism from Cllr Kemp, who said both parties needed to “shift themselves” during an audit committee meeting in March, Mr Stocks said that the circumstances were “quite unusual” and work had been completed as quickly as possible amid “allegations of substantial fraud within the council committed by members and officers.” It is not known how long the investigation will take at this stage.
Alongside the review requested by its auditors, Liverpool Council is also seeking to appoint a new chief internal audit officer. A meeting of its appointments and disciplinary panel is scheduled to meet on Monday to consider the new post behind closed doors.
