Following receipt of the positive ‘unqualified’ audit report, the 2020/21 Statement of Accounts were today.
Following receipt of the positive ‘unqualified’ audit report, the 2020/21 Statement of Accounts were today (12 October 2021) signed off by the Chair of the Audit Committee and by the external auditors EY.
Newham is amongst the first of the London Boroughs, and in the top 10% nationally, to get their accounts signed off for 2020/21, and has done so a full 2 months earlier than last year. Despite the severe challenges that the pandemic posed to the Council, and a shortfall in government funding, this is the earliest the accounts have been signed off for 6 years.
The shortfall in funding would have been even greater if the Council had not lobbied successfully for a Covid-19 deprivation premium to be added to the emergency government funding. In March 2021 the Council then passed a recovery budget which balances the budget and replenishes reserves over the medium term.
The report from external auditors EY, gave praise for the improved quality of the accounts remarking that the Council “has built and improved on the high standard set last year and this is evidenced through a reduction in errors reported”.
Councillor Terence Paul, Cabinet Member for Finance and Corporate Services, said: “Audit Committee signing off the statement of accounts is an important moment. In meeting the financial challenges of the pandemic, we set a responsible budget to recover last year’s £9m shortfall from 2021/22 to 2023/24. That requires tight financial control throughout the current financial year. But spending within budgets and achieving good value for money is vital and there are still financial challenges remaining, and uncertainty over the national finances and the economy. But the council is grasping the challenges and restoring good finance for the residents of Newham.”