Decision details

The Director of Policy and Governance submitted a report to update Members on the outcome of the Homes England audit of the Cotswold House project and on the expected audit of Primrose Gardens Retirement Village project.

As expected when the Governance Committee was briefed about the audit in January 2018, the outcome of the Homes England Audit indicated that the council had received a red grade; it was deemed that the council received the final tranche of funding in advance of the project completion. When the grant was agreed, it was understood that the grant would be paid to the Council 75% when there was a start on site and 25% on practical completion.

Officers reported that it was on the advice of the Homes England Grant Manager who strongly encouraged the council’s grant manager to log into the grant management system and enter the project as complete. This was advised via a phone call on 21 March 2016; the final tranche of funding was released and received on 31 March 2017. As such, the council feels that the fault for this red grade lies with the practices of the Homes England Grant Manager pressurising the council to request the funding so as to release the money before the end of the financial year. The council had made this opinion clear to Homes England in the draft letter attached to the report for approval by the committee. It was highlighted to members that the issue lay with the timing of receipt; there had been no indication of misused funds.

It was advised that there was no clear indication from Homes England what the consequences of this red grade would be, for example, it was not suggested that the council would have to return any funding. As expected, one of the outcomes would be that the council’s other Homes England project, Primrose Gardens, would be audited. The audit must be completed by the end of August (last year the deadline was October) and Grant Thornton had agreed to complete the audit.

Members were advised that the outcome of the audit could be similar to the Cotswold House audit in that the Homes England auditors not agreeing that the trigger to the funding had been met, despite advice from the grant managers. Reassurances were made that officers would be collating the necessary evidence to respond to the audit and put together the best possible arguments to confirm that the start on site had begun by the end of March 2017.

RESOLVED 1) to acknowledge the findings of the Homes England audit

2) to approve the letter to be sent to Homes England  outlining the council’s concerns regarding the processes and actions of officers at Home England.

3) to note that the audit for the Primrose Gardens project will begin in August 2018.