Publication of Government accounts ‘delayed’

Tuesday 27 April 2021

The publication of the Government’s annual report and accounts for 2020 is behind schedule.

The document, which lays out all spending and income, ranging from how much income tax and duty has been collected to director-level remuneration and pension data, now isn’t expected to be published until May – despite initial plans to close the accounts by the first quarter of this year.

The anticipated earlier closing was part of a ‘faster close’ project initiated by previous CEO Charlie Parker. Last year, it resulted in the publication of the accounts in the first week of April.

Mazars, who were last year awarded a five-year contract to audit Government spending, had initially anticipated being able to give their audit opinion in April 2021. 

Questioned over the delay this year by Public Accounts Committee Chair Inna Gardiner, the Chief Minister said last week that the current target date was in May, with a “drop-dead deadline” of 31 May.

He did not respond to a question about what had caused the delay, which Express understands to be linked to additional queries over some areas of spending raised by auditors.

When asked whether this was the cause of delay, a spokesperson replied: “The finalisation of the audit has taken longer than last year, although the majority of the accounts’ preparation and audit work has been completed, and this is good progress as we are working with new auditors for the 2020 accounts. As the Chief Minister said in the States Assembly… the 2020 Annual Report and Accounts are expected to be presented to the next sitting of the Assembly in May.”

Mazars were appointed after a process initiated by Comptroller and Auditor General Lynn Pamment – the Government’s spending watchdog – last year. 

In August, she became “aware of a procurement process that gave rise to a potential threat to the independence of the [then] auditor of the financial statements of the States of Jersey, Deloitte” and therefore asked to accelerate the process for appointing new auditors with the agreement of Government.

Mazars is responsible for auditing the accounts of a number of local councils across the UK. 

Just last week, it released a ‘Public Interest Report’ – something it is bound to do under UK Law when “a significant matter comes to their notice, and to bring it to the attention of the audited body, and the public” - about the exit package awarded to the former City of York Chief Executive Mary Weastell.

In it, Mazars argued that a redundancy payment – part of a total of £117,000 they said was paid unnecessarily – was not properly approved and “arguably unlawful”.

The council, however, argued that the payment was contractual. 

"A local authority should not enter a settlement agreement simply to avoid embarrassment to the authority or individual elected members, or the cost of defending proceedings," Mazars said.