Weaknesses in council's financial records - report

Spelthorne Borough Council is facing "significant weaknesses" in its financial records, a report has found

A Surrey council's financial records suffer from "significant weaknesses", a report says.

Auditors for Spelthorne Borough Council said they could not fully assess its financial statements, finding record keeping to be "inadequate".

In its report for the year ending 31 March 2024, the auditors, Grant Thornton, also said it understood "extremely poor" relationships between some opposing councillors impacted decision making and scrutiny.

A council spokesperson said it would create an action plan to tackle the report's recommendations and had introduced a "robust training programme" since the election of 22 new councillors in 2023.

The auditors expressed concerns about accounts around the purchase of three properties – Charter Building, Thames Tower and the Porter Building – worth £351 million.

They said Spelthorne Council only paid £297.9 million and "grossed up" the value of the properties for the remaining £53.7 million, with the debt added to its balance sheet.

The auditor's report says the council "is having to live with the fact that its current investment portfolio is in a net debt position" of £300 million.

The council's external borrowing hit £1.1 billion in March 2024.

'Toxic' culture

The report also noted a peer review undertaken by the Local Government Association in 2022 which said "poor behaviour" by some councillors towards each other and staff was "widely recognised as damaging the council's reputation".

Multiple recommendations were made to improve Spelthorne Council's financial stability and governance, including better record keeping and workshops to address the "apparent 'toxic' culture across the member group".

A council spokesperson said officers had agreed draft responses to the report and would create an action plan.

A "comprehensive review" will also be undertaken into the work of its finance team, they said.

Spelthorne Borough Council's audit committee meets to discuss the report at 19:00 GMT on Tuesday.

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