Audit flags 'significant' risks in city council's accounts

FIRM IDENTIFIES CONCERNS

- By JOE LOCKER Local democracy reporter

AUDITORS have flagged up significant financial risks over Nottingham’s council-owned bus firm and a council-run charity that maintains Trent Bridge.

Grant Thornton has been reviewing the council’s accounts, alongside accounts of the companies and charities it runs, as part of a wider group audit.

Councils’ accounts are reviewed by private audit firms - a legal requirement.

Grant Thornton says it has identified “significant risks” that will require further investigation including “management override of controls” at the Bridge Estate charity - of which the council is sole trustee - and Nottingham City Transport (NCT).

The term relates to when management and those in charge of governance manipulate accounting records.

A further significant risk was found in the “valuation of net pension fund liability” in NCT’s accounts.