Guildford Borough Council (GBC) has revealed that it has made a £10 million accounting error, which has been kept hidden from the public for several months.
This error, which is thought to have been made in 2021 during the Lib Dem and R4GV coalition period, led Councillors to believe the general reserve funds were higher than they actually were. This general fund is used for the running costs of GBC's day-to-day services and to offset any deficit. This £10 million over inflation therefore greatly distorted the accounts and likely influenced spending decisions.
Whilst the error was first spotted in March this year, a lack of transparency at GBC has kept this hidden away. The £10 million formed part of a large amount transferred to the local authority by the Government during the pandemic, in order to provide individuals and organisation pandemic-related grants. Given how any residual balance had to be repaid to the Government, the £10 million left unused was incorrectly allocated as available reserves.
The money was part of a larger amount transferred by the government to the council during the pandemic. It was to be used to pay individuals and organizations pandemic-related grants. There were thousands of separate payments made under the qualifying criteria operating at the time.
Any residual balance had to be repaid to the government. The £10 million is the sum that was left unused at Guildford but was incorrectly allocated as available reserves.
Former coalition partner of the Lib Dems, Cllr Joss Bigmore, and leader of the R4GV group stated, there is no “individual officer, councillor, administration or party to blame” for the £10 million accounting error at GBC.
