Members of Cumbria County Council have been given early notice of an emerging issue with a classification error in the authority’s summary income and expenditure account for 2007/8.
An error in classifying types in income has been picked up by the Audit Commission –the organisation which checks local authority accounts.
What has happened in essence is that in preparing the county council's formal accounts for last year, some internal recharges and Government grants have been classified as general income, which is incorrect. It is a technical accounting error in the way things are recorded - there is no suggestion of impropriety or missing money - the council’s overall financial position is unaffected and sound.
This accounting error will have an impact on the council’s Use of Resources score. The score is one element of the Comprehensive Performance Assessment (CPA), which gives the council its overall star rating. The accounting error will mean that the council will be unable to improve its Use of Resources score beyond two points that in turn means that the county council would be unable to move up to three-star status in its overall CPA score.
An internal review is taking place and the council has also invited the Chartered Institute of Public Finance and Accountancy to examine how this accounting error occurred given that the council experienced a similar problem last year.
This news is disappointing, given the improvements that are being made across the board in the council, particularly in areas such as adult social care, children's services and the environment.
ENDS
Please note: Cumbria County Council's media team telephone numbers have now changed.
Media enquiries to Gareth Cosslett, News Manager on 01228 226332