A WYE Valley parish council had to spend over £12,000 – almost half of its annual income - on investigating the financial issues of the authority, after the accounts relating to its Kerne Bridge River Wye canoe launch were challenged.
Walford Council received a report from chairman Councillor Joanne Akers on last year’s financial matters, who said all finances were managed in a transparent, impartial way, while seeking value for money at every opportunity.
Cllr Akers said: “However, due to the challenges made to previous year’s accounts by a single parishioner, the external auditor was obligated to investigate, and an unforeseen additional charge was levied by the auditor of £12,500, which had to be funded from general reserves.
“This is a huge sum, equivalent to almost half the precept. The council is extremely disappointed that despite the majority of the challenges being dismissed by the auditor together with council’s formal objection to the level of the auditor’s fees, such expense was incurred as a consequence of a complaint from a single parishioner.”
The council, in realising that its expenditure would exceed income, decided to balance it books by allocating funds for the shortfall from its reserves.
Cllr Dave Berry explained after the meeting that parishioners have a legal right to challenge the accounts and the external auditor is obligated to investigate any challenges.
“Whilst this aspect is a safeguard against misappropriation of public funds, it can be abused, and several such cases have been reported in the national press over the years,” said Cllr Berry.
“Walford Parish Council has been subject to external audit fees of £12,700, as declared in the 2023-24 accounts. These fees were in addition to the normal audit fee and arose due to challenges made by a single parishioner against the accounts for the preceding three years.”
These challenges relate to the operation of the canoe launch beside Kerne Bridge which is now owned by Walford Parish Council, which entered into a management agreement with Riversea Holdings Ltd to manage the site in 2018, including its use by commercial canoe hire companies, collecting launch fees and car-parking charges during the open season.
A percentage of these fees is returned to the council.