Morecambe Town Council taken to court over unpaid bill

A judge at Skipton County Court ordered the council to pay £1,538.18 to Internal Audit Yorkshire for their work. The council has until April 25 to make the payment.

A counterclaim by the council was ordered to be withdrawn and it can’t bring any claims against Internal Audit Yorkshire (IAY) in any court.

Each year the council has an internal audit review before submitting legal returns to the government-appointed external auditor. IAY was asked to do this work but the council was dissatisfied with the result so challenged invoices and commissioned another auditor.

IAY argued that the clerk didn’t have delegated authority to engage a second internal auditor and withhold the original audit report from town councillors, one of whom (now former) Coun Roger Cleet, was present in court, along with council chair, Cary Matthews and responsible financial officer, Luke Trevaskis.

Last July, IAY issued a claim for outstanding payment to the small claims court which led to the council’s counterclaim of a badly provided service.

An evidence bundle of 312 pages and witness statements by IAY and former Coun Cleet were served to the council and court.

In February, the council offered £375 as a full and final settlement and last month asked for an adjournment and offered an out of court settlement of £1,538.18. It also offered to withdraw its counterclaim if IAY withdrew the claim.

After the hearing, a council spokesperson said: “The council made several attempts to resolve this matter prior to court and to save any further costs to the public purse or a second hearing, the council consented to a settlement order to conclude the matter.”

Mr Trevaskis added: "Whilst many of the issues in Internal Audit Yorkshire's reports predate my tenure, all members have been committed to delivering positives outcomes for the community which have recently resulted in the council receiving a full bill of health last year from both its internal and external auditors.

"Morecambe Town Council has also been recognised nationally for its high standards in transparency, responsible governance and exceptional community impact – becoming the first council in Lancashire to receive a Quality Gold Award for its achievements in the last two years."