Dudley Council is almost certain to miss the legal deadline to file its 2025/26 accounts with auditors, despite already being two years behind schedule. The admission came at a meeting of the authority's Audit Committee on June 24, where it was revealed that accounts for 2023/24 and 2024/25 have yet to be signed off.
Auditors Highlight Significant Delays
In their draft report for 2024/25, external auditors Grant Thornton identified significant delays in multiple areas, including valuation of land and buildings, as well as a failure to make arrangements for the implementation of new accounting standards. Andrew Smith from Grant Thornton delivered a withering assessment of the council's performance in providing information for the latest accounts.
"It was quite a difficult process compared to what we experienced in previous years," Mr Smith said. "The council did manage to publish draft accounts on time at the end of June 2025, but the quality was not up to the required standard. Early in the audit we identified some quite significant quality issues and had to pause the audit and ask the council to work on issues and issue a revised set of accounts."
Revised Accounts Delayed by Five Months
Mr Smith told councillors that the revised accounts did not arrive until November 2025, five months after the original deadline. He added: "We do need to receive the 2025/26 accounts on time; the deadline is next week, we are aware there may be some issues, hopefully we can achieve it."
The council's latest interim chief finance officer, Audra Statham, who has been in post for only a week and a half, said: "It is almost certain we will not meet the deadline of 30 June with the statement of accounts."
Failed Leisure Centre Sale Adds to Delays
Grant Thornton cannot sign off the 2023/24 accounts due to a delay in finalising a report on a failed sale of the Wellington Road Leisure Centre site, which found 'significant weaknesses'. The report is due to be presented to councillors in July.
Revolving Door of Finance Directors
Tony Beirne, an independent member of the committee, believes there is a problem with the council's failure to recruit a permanent head of finance, known as the Section 151 officer. "The council has struggled, it's been a revolving door of Section 151 officers, these are good people but we need a permanent 151 officer to lead the service," he said.
Ms Statham acknowledged the difficulty: "It's a really difficult market and there is lots of local government reorganisation going on. There is a real shortage of financial skills up and down the country. This month we have had a turnover of interims of three or four of them. We are desperately trying to replace them from an ever reducing pool of skills and capacity, we are doing everything we can."
Recruitment Drive Underway
The council's chief legal officer, Aftab Razzaq, said: "Council is aware and looking to address this, we will be going out for recruitment in terms of a permanent 151, the advert will be out by Friday." According to the council's pay policy statement for 2025/26, the post of director of finance and legal carries a salary of £119,817, though other senior roles have an additional payment of up to £32,000 as a 'market supplement'.
