Council facing £319,370 bill for report

Cheshire East Council has received notification of the external auditor’s proposed fee for the public interest report, on the impact of the council’s culture and governance arrangements during 2014-2018, published in January 2023.

The report concerns the conduct of former leader, Michael Jones, and the events surrounding the awarding of a contract to Core Fit, run by Michael Jones’ physiotherapist Amanda Morris, to deliver fitness classes in schools.

The council’s audit and governance committee will be formally notified of the proposed fee at their meeting on 8 June 2023. The proposed fee is £319,370.

This fee will now be independently assessed by Public Sector Audit Appointments (PSAA).

Councillor Sam Corcoran, leader of the council, said: “This proposed fee is a significant amount of public money that I would much rather see spent in directly supporting sustainable council services.  

“The public interest report is about events in 2014-18. It does not call into question current affairs at the council. The series of events considered in the report have undoubtedly had  impacts on the Council and local residents, not least of which is this additional cost.

“It is the decision of the external auditor as to whether a matter is in the public interest and should be subject to such a report. The council is then legally required to pay the fee once it is confirmed. The legislation states that the external auditor ‘can recover the reasonable costs of making a public interest report’ from the council.”

Councillor Craig Browne, deputy leader of the council, said: “It is unfortunate that this ‘bill’, ultimately resulting from past failings when the council was a very different organisation, is being proposed and will be invoiced at a time of such financial pressure for council services, and so long after the events themselves.  

“While we await the PSAA’s determination about the final fee, it is important to note that funds from reserves in the completed 2022/23 accounts have been allocated to cover the fee, so there will be no immediate impact on the 2023/24 budget.

“Audit and governance committee will consider the proposed fee and the process to review the fee. However, we do not at this time know how long the review will take and are not yet certain of the final cost.”