Urgent action is needed at Nottingham City Council to "avoid the risk of inappropriate financial activity" according to a new report which highlights issues including missing records. The authority says more may need to be spent on improving its finance systems in the wake of the report, which says the council's ability to provide "proper financial stewardship" is being held back.
The report was drawn up by the accounting firm Ernst & Young (EY) and was commissioned by the council amid concerns about some of its financial controls. Concerns arose after it was revealed in 2021 that money which should have been spent on the council's housing stock was illegally being spent in other areas.
More than £40 million was misspent, with all that money now being paid back into the Housing Revenue Account (HRA). Due to inflation, it was said earlier this year that the cost of these errors could eventually reach up to £51 million.
