Oakham Town Council Audit Reports, VAT, Reserves

The Council is failing to handle its audit reports correctly, although I was persistently told I am wrong by the former Chairman Mr Michael Haley.

The current Chairman Cllr Adam Lowe when he was the chairman previously said I was wrong
and even said in a meeting the external report was not a report.

The Internal Audit should not just be distributed to members and dumped on website

NALC state say audit report are required to be presented to council.

The council must respond to any matters reported to them, with actions
recorded in the minutes. 

The council has not done this for many years and I only get a copy posted to me after making
a number of requests.

It surprises me the internal auditor does not pick up on this significant failure.
And another reason why Mrs Clifton was correct to say the Town Council needs a competent
Clerk it is not the members responsibility to look up all the laws the council is required to follow.

I can remember a time when the former Clerk was happy to bring reports to council for its
consideration and it is minuted.

Things started to go seriously wrong at the council once Alf Dewis, Adam Lowe and Michael
Haley decided to make their own mark upon the council.

As I am now part of the financial working group, I am hoping with the assistance of the
other member Dave Romney the council will start following correct procedure once again.


When Mr Michael Haley was also Chairman he persuaded the council to set up reserves
which is also unlawful.
It has already been mentioned at a recent meeting that the Council needs to address this and
it is likely that next years precept demand will be significantly reduced.

NALC says:

Local councils have no legal powers to hold revenue
reserves other than for reasonable working capital or for
specifically earmarked purposes, therefore the year-end
general reserve should not be significantly higher than
the annual precept.

The council may have ‘earmarked reserves’ for specific
projects, where money is allocated for a specific purpose
but may not be spent in that financial year. 


(so when the former Chairman Michael Haley
said we need money put aside just in  case we need to repair play equipment.
etc.  he was wrong and we cant even spend it this year as we have no projects planned 
we should not be holding such high reserves.

Reserves NALC say:

This may include reserves to purchase or renovate a building,
develop a sports facility or community centre.



VAT is also a concern I have raised more than once. We claim for everything.
The Clerk and Michael Haley always said we can.


NALC say VAT is complex.

Detailed guidance on VAT is published by HMRC,
but it is sensible to seek written professional advice
in respect of the VAT implications before any major
project is commenced. The council should not assume
that it will simply be able to claim back any VAT paid.