Pervasive weakness at Cambridgeshire mayoral authority - auditors

The role of mayor of Cambridgeshire and Peterborough was created in 2017

An authority has "significant weaknesses" in governance arrangements, its external auditor has said.

The auditors of Cambridgeshire and Peterborough Combined Authority (CPCA) has concerns including an increase in "employment-related claims" and the number of senior management vacancies.

It said without "appropriate leadership capacity... there is significant doubt" the authority can carry out its duties.

CPCA said it was working to "address the issues the letter raises".

The authority has an elected mayor, Labour's Nik Johnson, who has devolved powers to spend money on local housing, infrastructure and jobs.

He told a meeting on Wednesday he had no intention of resigning.

In a letter seen by the BBC, sent on 1 June, associate partner at Ernst and Young (EY) Mark Hodgson told independent chair of CPCA's audit and governance committee, John Pye: "We have commenced our audit work for the financial year ended 31 March 2022 and have identified a significant weakness in CPCA's governance arrangements.

"We believe this weakness is pervasive as it could lead to a significant impact on the quality or effectiveness of services or on its reputation and could expose the authority to financial risk or loss."

Mr Hodgson said there were concerns CPCA "has insufficient capacity, capability and an inappropriate culture to support the effective governance and operation of the organisation and how it discharges its statutory services".

The Labour mayor Nik Johnson was elected in May 2021

The auditor's concerns included: "Current vacancies in the authority's senior management team, particularly at chief executive level."

Mr Hodgson's letter said the authority's senior leadership capacity was "already undermined by previous resignations and unfilled vacancies at management team level".

Chief executive Eileen Milner announced her intention to resign last month.

"Without appropriate leadership capacity with the requisite skills, knowledge and experience, there is significant doubt as to the authority's ability to discharge its statutory obligations," the letter added.

A CPCA spokesman said: "We will work with EY, external bodies and local partners to address the issues the letter raises.

"The authority remains focussed on its delivery programme in order to improve the prosperity and quality of life of residents and business across Cambridgeshire and Peterborough."

Mr Johnson is facing a separate investigation following a whistleblowing report.

At the CPCA annual meeting on Wednesday he said: "When the going gets tough I'm not the sort of person to walk away from a challenge.

"Trying to diagnose the problems at the centre of this wonderful organisation has been and continues to be one of the most difficult challenges I've ever faced.

"At times it has felt that the combined authority has needed serious resuscitation to keep its beating heart going. But I have never given up and I absolutely will not give up."