BRENTWOOD Borough Council is struggling to account for more than £750,000 in cash contributions – half of which was meant for people on low incomes to find a home.
A confidential council document, seen by the Gazette, sets out details of nine Section 106 payments from developers to mitigate the environmental and social impact of building projects, but which the authority said it could not account for.
Among them is a £350,000 contribution paid to the council by Brentwood-based Countryside Properties in November 2000, which should have helped provide affordable housing for people on low incomes in the borough.
Although the borough council is now claiming that the document drawn up by head of planning Jennifer Candler in May 2012 is incorrect and cannot be relied upon, it has failed to provide a detailed expenditure breakdown on how the Countryside contribution has been spent.
Neither has it confirmed whether the council has been able to account for all the money, amounting to £755,000, that it could not trace in May last year.
A council spokesman said a subsequent document has been compiled clarifying the earlier position, but those details have not been forthcoming either.
"The May 2012 document is part of an ongoing process," a council spokesman said, "and the information in it is incorrect."
The confidential report warned against pursuing the Section 106 cash in case developers ask for their contribution back if it had not been used in accordance with the planning agreement.
An estimated four council flats could have been built with the contribution that was paid in return for planning permission to develop the land at the corner of Hart Street and Kings Road.
The council housing waiting list last week was shown to have increased by 223 per cent between 2004 and 2011 compared to a 26 per cent national increase.
The other eight payments were for open spaces, including in St James Road, where residents have been asking for a play area for children.
The report states: "Brentwood Borough Council has received £2,411,963 to date (May 15, 2012).
"However, there are not comprehensive transaction receipts for all the money received.
"Receipts and transactions account for £1,001,508 of the £2,441,963 owed to Brentwood Borough Council.
"Through an assessment of each agreement and development with the relevant officers it is estimated that implementation of works equates to a further £630,400.
"A residual of £755,325 currently cannot be accounted for and it is not possible to confirm whether payment has been received.
"The risk of pursuing payment is that if a contribution has been made and not spent in accordance with the legal tests it may need to be repaid."
The borough finance officer concluded that "the report highlights a number of concerns regarding lack of proper records and financial control."
The poor quality of Brentwood Borough Council's accounting system has already drawn criticism from the national auditors – it was unable to sign off its statement of accounts for 2010/11 and had to pay a £77,450 fee.
A spokesman added: "The level of contributions received is £868,000, of which £808,000 is for affordable housing provision.
"In addition, the council has secured financial contributions of £347,322 for education and highway works in the borough which is managed through Essex County Council.
"Further contributions of £259,481 to Brentwood Borough Council and £146,981 for education and highways have been agreed and payment will be made at the appropriate stage for each individual scheme.
"Contributions of approximately £150,000 to Brentwood Borough Council and £165,342 for education and highways are currently being progressed through the planning/legal process."
Independent councillor Russell Quirk said: "'In 2010 the council couldn't get its accounts signed off due to inaccuracies and concerns by the auditor.
"The haemorrhaging of our money and the seeming unaccountability of the hierarchy is astounding."
