AMMANFORD Town Council has failed to properly account for and report on almost £800,000 in taxpayer money, an Audit Wales report has found.

The report, published today (September 7), outlines the “serious failures in governance and financial management” at the council since 2016.

Audit Wales found the council had reported its accounts late, had failed to provide records for its use of cash, and did not publish required documents on its website.

The report also states that the accounts for 2017-18 were amended before being submitted, making it unclear whether these changes were done before or after the chairperson signed the accounts off.

Councils must submit their accounts up to March 31 each year.

The council’s responsible financial officer must certify the accounts properly present its receipts and payments and the council’s financial position. These then have to be approved by the council at a meeting.

This process must be completed by June 30 of that year.

The Audit Wales report states the council only approved the accounts for 2016-17 and 2017-18 in September 2018.

The council also did not provide its accounts for audit in the correct form for 2018-19, 2019-20 and 2020-21 until April last year.

During this period (2016-21), the council had raised a total of £799,949 from local taxpayers.

The report stated that – for 2016-17 and 2017-18 – the council “has not maintained proper and complete accounting records” and that the auditor had not been provided with “key records” of the council’s use of cash – so was unable to conclude with the accounts were complete.

The auditor added that work on the accounts between 2018-19 and 2020-21 was still “ongoing due to staff absences at the council”.

For the 2017-18 financial year, changes were made prior to the accounts being sent off, making it unclear whether these had been made before or after the chairperson had signed them off.

The council’s staff costs were changed from £36,373 to £42,502, other payments were changed from £105,085 to £97,970, and the balances carried forward was changed from £149,095 to £150,031.

The report also states that the Auditor General’s audit certificate had been improperly completed on the 2018-19, 2019-20 and 2020-21 annual returns. The certificate is for the Auditor General to show that he has completed the audit, however it had been completed by a third party.

“What is clear to me is that since 2016, even though its failings and deficiencies have been brought to its attention by both internal and external audit, the council’s past and present officers and its members have failed to ensure that it has established proper standards of financial management and governance,” said the report’s author.

“In failing to properly address the issues raised in the internal audit reports, council members have not sufficiently recognised or acted upon issues in relation to the adequacy of their governance arrangements.

“In the case of my external audit findings, the council initially disregarded correspondence drawing my audit findings to its attention in September 2021.”

Ammanford Town Council responded to the auditor’s findings and conclusions on March 4, 2022.

“The council has stated that it has improved its processes and will continue with the practice of continued development and improvement,” the author of the report said.

“The council set out in its response details of the actions it has taken.”

Councillors must now consider the content of the report at a full council meeting within the next month, and the town council must then publish a written response to it.

The South Wales Guardian has contacted Ammanford Town Council for comment. The report can be read in full on the Audit Wales website.