LOBO complaint holds up Wirral accounts sign-off
0Wirral Council’s accounts for 2017/18 have yet to be signed off as auditors continue to investigate whether its Lender Option Borrower Option loans were taken out unlawfully.
A letter from audit firm Grant Thornton said it was investigating whether to issue a public interest report, make written recommendations and apply to a court for a declaration that an item of account is contrary to law.
It is responding to a complaint by an objector about the rationality of the decision to borrow on LOBOs, the adequacy of the information on which the council based its decision, the scale of borrowing, and alleged improper speculation on future interest rate changes by the lender.
Grant Thornton said: “Our work in relation to the objection is on-going and we have received prompt and full co-operation from the council in both provision of relevant information and responses to our queries.”
It is understood that up to five councils in England are in the same position as Wirral regarding investigations into their LOBOs.
Last month, the majority of councils with LOBOs had their accounts signed off after auditors decided that their accounting treatment was in conformity with accounting rules.
