External auditors have declined to sign off the 2024/25 accounts of Westmorland and Furness Council, issuing a full disclaimer of opinion after concluding they could not obtain sufficient and appropriate audit evidence in several material areas.
The decision, set out in the Final Auditor’s Annual Report presented to the Audit Committee meeting in Kendal this morning (Friday 20th February), means auditors are unable to confirm whether the council’s accounts give a “true and fair view” of its financial position.
While the council did publish draft accounts by the 30th June 2025 statutory deadline — a significant improvement on the previous year — Grant Thornton state that serious problems remained during the audit process. By February 2026, auditors reported that although many areas were well advanced, there were still outstanding enquiries and evidence requests affecting material parts of the accounts.
The report states that substantial work was still required in certain areas because of delays in receiving necessary information and unresolved issues. Some of those matters relied on input from another authority. However, auditors are clear that ultimate responsibility rests with Westmorland and Furness Council to provide the evidence needed to satisfy audit requirements.
Because of the Government’s national “backstop” deadline — introduced to clear a backlog of local authority audits — the audit cannot continue beyond a fixed date. Auditors say the resulting limitation of scope is “pervasive”, leaving them no option but to issue a disclaimer.
In blunt terms, they cannot say whether the figures are reliable.
The report retains and strengthens a key recommendation that the council must ensure it has sufficient capacity and effective procedures in place to respond to external audit in a timely way. Auditors call for:
Proper quality assurance of working papers and audit evidence before submission
Faster and more robust responses to audit queries
Stronger arrangements where the council depends on third parties or external specialists for financial evidence
This is the second consecutive year the authority’s accounts have received a disclaimer under backstop legislation. Auditors state that because of the previous year’s position, it will not be possible to fully regain assurance and return to an unqualified — or “clean” — opinion until 2027/28 at the earliest.
The findings sit alongside other significant weaknesses identified in the wider audit report, including concerns over procurement and contract management arrangements and the development of a comprehensive corporate IT disaster recovery plan.
The Audit Committee has been told that recovery of assurance now depends on demonstrable improvements during the 2025/26 financial year. Until then, the council remains in the position of having accounts that external auditors are unable to sign off.
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