Auditing non-specified investments, L&G new towns, Warrington regeneration, KPMG/Co-op audit investigation, Liverpool ad space
0Higher risk investments ‘will see greater scrutiny’
Councils should not be discouraged from increasing their investment risk profiles, even though auditors are more likely to examine such moves, a Room 151 seminar heard this week. Greg McIntosh, director at KPMG, told the conference that a move into non-specified investments would be more likely to attract the attention of auditors. He said: “It is something we should be asking questions about. That is not to say you can’t do it but your auditor would be taking a bigger interest if they felt you were increasing your risk.”
Advisers appointed for London pension pot proposal
London Councils has appointed legal and financial services advisers to help guide its proposed collective investment vehicle to jointly manage the pension pots of councils in the capital. Eversheds has been appointed as legal adviser, with Deloitte winning the role of financial adviser, under urgent procurement powers. Before Christmas, London Councils voted to press ahead with preparations for the vehicle, including taking steps to engage a project manager and legal and financial advisers. The decision to appoint the two firms is expected to be ratified on Monday.
Legal & General signals shift to new towns
Insurance and investment group Legal & General has confirmed to Room151 that it is seeking to make a strategic shift into delivering large scale housing developments either as new towns or as urban extensions. A spokesman said that the firm wanted to develop several opportunities of 5,000 homes or more, into which it would inject between £500 million and £1 billion each. The company, which is currently focused on urban brownfield sites, said no specific sites had been identified as yet.
Council loan to kickstart regeneration project
Warrington Borough Council has agreed a loan of £7.5 million to developers working on a large scale regeneration project. The loan from the council’s capital budget will be made on commercial terms, it said, with any surplus set to be reinvested in services. The cash will pay for a road to connect the Omega regeneration site to the nearby M62 motorway, as well as infrastructure works. The developer, Omega Warrington Ltd is a joint venture partnership between Miller Developments and The Royal Bank of Scotland.
KPMG under investigation for Cooperative auditing
A corporate governance watchdog has launched an investigation into KPMG’s auditing of the financial statements of the Cooperative Bank up to the end of 2012. The Financial Reporting Council said that it would look into the preparation, approval and audit of the financial statements of the bank, which last year announced a capital shortfall of £1.5 billion. In the wake of the announcement, the Co-op said it would be withdrawing from the local authority banking sector.
Liverpool set to raise cash by selling ad space
Liverpool Council is today set to adopt a new outdoor advertising framework which could see the council raise money from posters on council-owned land and assets. The council says the move would plough income generated from the venture back into service provision. The council’s member for transport, Tim Moore, said: “This is another great example of how we are seeking to make the most of our assets to generate valuable revenue.”
Inquiry launched into utility firms and development
A coalition of local government interests is calling for evidence for an inquiry it is conducting into whether utilities related problems are holding up development. Think tank Localis has joined forces with Kent County Council and the South East Local Enterprise Partnership to investigate the issue. The inquiry comes as a result of feedback indicating that the connection of services such as water, gas, electricity and telecommunications – can impede developments, delaying economic growth.
