Slough Borough Council financial audit unprecedented - report

Slough Borough Council previously discovered it had a £760m debt

Accountants analysing errors which led to a council's financial crisis have said their audit is unprecedented.

Slough Borough Council, which effectively declared bankruptcy in 2021, previously refiled its 2018/19 accounts after auditors Grant Thornton refused to sign them off.

In its latest report, the firm said it would have to attach an "unprecedented" disclaimer of opinion to the accounts.

The council said it had made good progress towards financial recovery.

The Berkshire authority previously issued a section 114 notice - the local authority equivalent of bankruptcy - after it discovered it was £760m in borrowing debt.

It plans to raise its council tax by 9.99% and sell up to £600m of assets to help plug the financial hole.

The government appointed commissioners to help run the authority in December 2021.

The authority has restricted its spending after effectively declaring bankruptcy

In an updated report, Grant Thornton said the "pervasive" errors included inadequate records, poor audit trails and missing information.

The auditors said: "The scale and size of the issues identified consequently mean we are unable to assure ourselves that the financial statements are free from material errors and are fairly stated for us to provide an unqualified opinion.

"In our experience, a disclaimer of opinion is unprecedented."

Responding to the report, the government-appointed commissioners said: "As far as [we] are aware, this rating has never been given to a local authority accounts before.

"The extent of the errors and the magnitude of them is unprecedented."

The auditors' changes to the accounts have reduced the council's net worth in 2019 by 43%, the Local Democracy Reporting Service said.

The council said it fully accepted the Grant Thornton study.

Councillor Rob Anderson, in charge of financial oversight, said: "We now need to continue to work towards financial recovery, furthering the significant progress which has already been made."