Barham Park Trust accounts withdrawn for second year. Cllr Lorber claims 'accounts wrong and misleading'.

Speakers were not allowed at the Barham Park Trust meeting yesterday, once again limiting the scrutiny of Trustees who are all Brent Cabinet members. Yesterday the accounts had to be withdrawn. Cllr Paul Lorber today write to Brent Council's Chief Executive:

 

Last year I challenged the accuracy of the 2022-23 Barham Park Trust Accounts (the Charity)

I pointed out that they were wrong because:

1.  They were wrong on the basis they were prepared and presented. They did not show correct information in a clear and transparent way.
2. They were wrong because they did not reflect the correct rent due to the Charity.
3. They were wrong because they did not show the Service Charges due to the Charity.
4. They were wrong because they did not show the correct service charges due to the Charity.
5. They were wrong because around £20,000 of architects charges that were authorised to be paid by the Council were charged to the Charity without authority.
6. They are wrong because insufficient interest was paid to the Charity by Brent Council for use of the Charity’s Cash balance.
7. They were wrong because expenditures incurred on behalf of the Charity by the Council were not shown in the Accounts.
8. They were wrong in many other aspects too many to list here.

My concerns were discussed at a meeting with you and the Director of Finance.

I did not accept the explanations and justifications given as I consider them to be wrong and flawed.

The 2022-23 Accounts were withdrawn from the Barham Trust Meeting in September 2023 and only represented in January 2024. In my view they were still wrong.

You asked for a “top level review” of those accounts without ever being willing to confirm who undertook the review or whether they were qualified in the field of Charity accounts to undertake it. 

The conclusion you reported to the Trust was that there was nothing wrong with the accounts but that the presentation of the Accounts could be “more clear and transparent”.

Just over a week ago the 2023-24 Accounts were published as part of the papers for the Barham Park Trust meeting on 10 September 2024.

I challenged those accounts because they were neither “clear or transparent” and because as in the previous year they were wrong. I advised the Director of Finance and other officers of my concerns and pointed out many errors and discrepancies, requesting replies before the meeting.

I did not receive any substantive replies. 

The Accounts are once again wrong and misleading.

You are not an accountant and rely on advice of others who are. I did however point out to you the importance of accurate and clear accounts. Without accuracy and clarity decision makers cannot make the right decisions. Wrong decisions have major consequences as they have for the Barham Park Trust for many years - money is wasted and wrong decisions are made.

Without any explanations from the Director of Finance or any questions from the Trustees the 2023-24 Accounts for the Charity were once again pulled from the Agenda at the last minute.

That is the 2nd time in 2 years. Why - because they are wrong and misleading. I am right and your finance officers are wrong.

This has now turned into a major credibility issue for:

You

Director of Finance and his Team

Leader of Brent Council and all the other Trustees

The Independent Examiner 

Brent Council

If something as simple as the Accounts for a small Barham Park  Trust Charity are wrong and have to be withdrawn two years running how can anyone have confidence in Brent Council’s own accounts. How much in failed income collections or inappropriate expenditure do those accounts hide?

I, Scrutiny Committee and the whole Council were fobbed off last year by the so called ‘Top Level Review’.

That cannot happen again.

The Barham Park Trust accounts must be produced and presented on the accruals basis (the same as is done for Brent Council’s accounts) so that they show clearly and in sufficient detail and clarity the Income and Expenditure of the Charity and  its Assets and Liabilities. The accounts should show clearly the income from rents due (receivable) by the Charity in any one year in its Income and Expenditure Account and any amounts due to its debtors within the balance sheet. They should also show clearly the cost of services incurred and donated by the Council to support the Charity. Only then will a reader of those accounts see the true picture.

It is clear to me that the Brent Finance Department  do not understand and lack the experience of producing Charity Accounts. The task should be handed over to a competent person with the necessary skills and knowledge to do so.

Many wrong decisions were made at the meeting on 10 September 2024 partly as a result of the failure to fully understand the financial position of the Charity. This is partly due to the wrong accounts and lack of understanding of the true position of the Charity. Those decisions will be challenged and they should be reviewed.

As I care about Barham Park and believe that its affairs need to be managed properly I am happy to provide my services and accounting experience and advice free of charge.

I look forward to your early reply as to how this mess will be sorted.

Regards

Paul

PS. For the avoidance of doubt Friends of Braham Library pay their rent and are not one of the current tenants who owe any rent to the Charity.