Today’s post is a lengthy one, please take the time to read it in full.
Unfortunately, Ferret believes this post is required at this time to address a number of issues surrounding the “Forensic Audit”, which we were all led to believe was taking place at Independent Hemsworth Town Council in relation to their activities since taking office back in May 2019.
Readers of Ferret are no doubt well aware, of the concerns being expressed by a large number of our residents over the current audit being undertaken by Hemsworth Town Council.
The Audit that was long called for by this Community, was a Forensic Audit, an audit that should be conducted by fully qualified specialist trained auditors.
These auditors are trained to carry out investigations to a very high standard that normal accountants are not, for later use in a Court of Law if required.
Unfortunately it seems our Chair of Finance, Donna Moran and most of our Councillors do not understand what a Forensic audit is or why it is required.
Furthermore, it appears they have chosen to break a Town Council decision that passed a resolution, in effect it gave an order or instruction, that a Forensic Audit be undertaken.
The Resolution can only be reversed, altered or rescinded by the Town Council, in a formal meeting after it has been clearly agended and advertised to the residents of this Township.
It has now transpired that this decision has been altered and it seems without authorisation, and a normal audit is underway by a none forensically qualified accountant.
What are the Reasons for Conducting a Forensic Audit?
Forensic audit investigations may expose, or confirm, various kinds of illegal activities. Normally, instead of a normal audit, a forensic audit is used if there is a possibility that the evidence gathered would be used in Court.
What is the Meaning of Forensic Audit?
- Forensic auditing is a specialisation within accounting.
- Forensic audits require accounting and auditing procedures and expert knowledge about the legal framework of such an audit.
- A forensic audit is an analysis and review of the financial records of a company or person to extract facts, which can be used in a Court of Law.
- Forensic audits cover a large spectrum of investigative activities.
- A forensic audit is often conducted to prosecute a party for fraud, embezzlement, or other financial crimes.
- The auditor may be called in during the process of a forensic audit to serve as an expert witness during trial proceedings.
Isn’t this exactly the type of audit and investigation that is required?
This Community believes so, apparently so did Hemsworth Town Council in a formally convened meeting.
Yet here we now have an unauthorised “ordinary” audit underway.
Chair of Finance, Donna, has posted on Facebook the reasons for the downgrading of this financial investigation and Ferret finds them factually incorrect, naive and overall very disturbing. Here are the key extracts from the post:
Donna Moran Labour Councillor for Hemsworth West
“I want to clear up any confusion or concerns about the financial audit that is currently underway at HTC.
As many are aware back in 2019 an audit was carried out on HTCs finances, requested by the incoming chair at the time. This was conducted by a London based company who specialise in forensic auditing, however, I have since had it confirmed that this was not in fact a full forensic audit it was a detailed second audit to address certain concerns.
This is important as know this is certainly where formed an idea of what a forensic audit is, now I’ve done plenty of reading up, can see i had misunderstood.”
Ferret’s Response:
This is simply not correct and is confirmed in the report presented to Hemsworth Town Council by Frenkel, the specialist forensic auditors.
Relevant Extract from the report.
Frenkel’s were engaged to carry out 2 investigations
- Point 1.1 and 2.2 A relatively high level investigation into the previous year’s accounts under the last council.
- Point 1.2 A FORENSIC INVESTIGATION into matters predating 2019
Ferret would like to know who “confirmed” this wasn’t a Forensic audit to Donna, when the report clearly states it was and why checks weren’t made to verify the confirmation was actually correct.
Ferret wonders if Draper and Kenyon were the people involved?
Extract two from Donna’s post.
“Earlier this year I requested a ‘forensic audit, like the one in 2019’ to address a number of concerns. Me and ***** spent a very long time compiling a list of things we wanted to be investigated.
The clerk then appointed a chartered accountant to carry out an investigation, this accountant was sent our list.
No, this accountant isn’t a forensic specialist but I can assure constituents that I am more than happy that this professional is investigating the accounts with the level of scrutiny we asked for, in fact when got the latest update from the clerk she is looking into things above and beyond what we asked.
She will be responding in due course.
This investigation is going into much more detail than the one in 2019 did and will address much lower level detail. In short this account is carrying out exactly what we envisaged when we asked for the audit.
Donna Moran Labour Councillor for Hemsworth West”.
Ferret believes this statement is so wrong on many levels as previously outlined in previous posts but they obviously need to be restated for some of our Councillors’ benefit and reconsideration.
As stated above, the 2019 investigation was a two part one:
- The 2018/19 accounts were re-audited at a relatively high level by forensic specialist auditors. (point 2.1 Frenkel report)
- Events prior to 2018/19 were to be “Forensically Audited”.
- Ferret recalls Hemsworth Town Council staff undertaking an internal investigation also, in an effort to unearth any wrong doings by the previous councils.
- The Town Council resolution was for a Forensic audit and a qualified Forensic auditor should have been appointed. No ifs No buts, that was the council Instruction.
- Donna is more than happy with this appointment, well this community is not and Donna Moran shouldn’t be. She obviously doesn’t have the necessary expertise and skill sets to oversee and make such judgements on our behalf. The skill sets asked for were forensically qualified, this accountant is not.
- Ferret is very alarmed that Alan Draper is acting as the go between for the Town Council and Auditor. This is so so wrong. Alan Draper should be a key figure under investigation by the Auditor and should be nowhere near any part of it, let alone appointing the auditor and handling the areas of concern to be passed on to the accountant.
- Draper is also giving updates from the accountant to the councillors and he says she is looking into things above and beyond what was asked. You’ve got to laugh or you could cry. Ferret bets Draper can’t believe his good luck at being in such a central position.
After all, if you suspected your own home or business was being subjected to possible criminal activity, would you ask one of the suspects to play a part in any part of the investigation?
Will the final report go to Alan Draper, Jean Eccles, Jim Kenyon or any cabal member from the Accountant before being circulated in full to the whole Town Council?
Ferret would never, ever suggest some selective editing could take place if it did.
Would you like to answer that question if nothing else Donna?
Oh and how about posting the terms of reference for this investigation?
The So called “Forensic Investigation” – Oh Donna What Have You Done: Handed them the whitewash brush perhaps?
Oh dear god, this just gets worse by the minute
It’s not surprising though is it. Look back over the last 2 to 3 years and you will see consistent filibustering, smoke and mirrors and tactics used to stop meetings whenever the community pushes for transparency.
What is sad here is that Donna Moran has previously criticised the lack of business plans, but now she is effectively joining the same exclusive members club. She is intelligent and articulate, but she really struggled when presenting this information in the meeting last week. People put it down to first show nerves. I don’t buy that, given her previous performances when speaking out about such shambles as the Venga Boys event.
I think she struggled because she knew that she was offering up tissue paper to wipe the noses of those who have made some awful decisions. Whether or not there is any criminality, is a different issue.
She knows a forensic audit is undertaken as part of the vast majority of fraud investigations. It is acceptable evidence in criminal proceedings. The tissue paper exercise of appointing accountants and auditors who are not qualified to be expert witnesses is totally unacceptable.
But, let’s not jump to conclusions. The forensic auditor could in theory put a nice big ribbon around the package of spending, and we could learn that the councillors concerned and the Clerk have only ever acted in our interests and with efficiency.
I have to go, as there’s a Pixie on my Lawn and he’s scattering magic moon dust. Yeah, just as likely as the Forensic Auditor being totally happy….
Oh dear. I seem to have run in for criticism from parties who believe I’m attacking the very councillors who have fought for transparency and stood against anything which has not been for the community.
Let me clarify. Whether you are honest, reliable, community minded or not… as councillors you should bear in mind the responsibility to share information clearly. People have thought that a forensic audit was being commissioned. People have listened for years now to allegations and counter allegations about poor spending practices. Rumours have sprung up. Sometimes these rumours have gathered strength because opponents have fueled them. Not through any malicious intention, but because they have felt passionately about protecting the public purse. Being our precept money.
So, people naturally felt reassured by the notion tgat a forensic audit was on the way. It could well have been the case that nothing untoward was found by the auditor. It could still be that outcome.
But now factions appear to be forming, and this seems to be having repurcussions for councillors even at this very early stage of the current audit. It is not right to attack councillors who really are trying. If I have written anything that falls in to the realms of an attack, then I apologise.
But, please please speak clearly about such matters, and I still believe that at the last meeting we were left confused and somewhat angry because a proper explanation was not given. Look again at the opening address by the Chair of Finance….it felt like a you will not like it but we are not getting a forensic audit statement.
Regards
An important difference between forensic accounting and auditing is how the disciplines are utilised. While auditors are tasked with determining whether a company’s financial statements offer a fair assessment of its current position, forensic accountants are instructed to do the exact opposite.
Forensic accountants are specifically deployed to uncover cases of fraud. Their primary objectives are to find out who committed the fraud, how it took place, how much money was taken, and how to stop it from happening again in the future. While a properly planned and executed financial audit can sometimes uncover evidence of fraud, this is not the main function.
in general i would trust both Donna and Maxine both of who, have asked us to trust them and await the results the remaining usurpers of the septic cabal i wouldn’t trust em as far as i can throw em and ive only got one arm/hand with which to throw em does anyone actually know just what we have supposedly asked for yes a forensic audit overall but any specifics we are worried about what financial misgivings/mis management are we concerned about certainly pursuing fruitless court cases etc venga concerts financing privately owned car parks etc any more please p/s im using my own name on this social media site n im certainly not scum/non descript neither are anyone using this site
David Pearson First of all, i saw this meeting on line, Donna made some really good points at the start of the meeting, she wasn’t as articulate as usual but I think that was because she was reading from her notes as there was a lot of information, she did also mention she’d been in meetings all day so maybe she was just tired. It’s quite a leap to suggest she’s somehow involved with wrong doing. We all have off days and a bit of understanding wouldn’t go amiss, especially when someone is doing their best to try make things better.
Second of all, I would like to add, that I have followed this page regularly as I have found it an interesting read, but it my opinion, people / profiles / pages lashing out at female councillors seriously undermines all the Ferret is trying to achieve. None of us are unaware how dangerous that can be, when the wrong person, ends up working themselves into a frenzy over politics.
As I’ve already stated on Facebook, and you said was a well measured response. I hope you are not inferring I hold sexist views or encourage attacks on female councillors. I hope too that you extend your concern to other female councillors, one in particular who rightly or wrongly has come in for lots of criticism from many observers. You do not need remind me of Jo Cox. We all know the tragedy. There has also be a more recent murder of a male MP, as I am sure you know. I am sad and concerned that you take this line in my criticism which was meant to be constructive. I support Donna Moran’s efforts, but on this particular occasion I see that she didn’t get it quite right. Are now saying that we cannot make any comments in respect of our Councillors as you will say its gender politicising and whipping up frenzy.?
I sincerely hope not. Democracy encourages debate, and that will inevitably sometimes include criticism. I have already apologised if I have unintentionally said or written anything which has hit a nerve. That was not my intention.
I note you take issue with me and not Ferret, who actually wrote the headline article.
In any event, the issue was that the community had been led to believe a forensic audit was being requested. When that is clearly not the case. Hopefully, the audit which is currently being commissioned will be sufficient to provide a clean bill of health, and then we can all move on from this. But, if it doesn’t then a forensic audit will probably be needed. Resulting in additional costs.
I want to draw a line under this now, and I have made my feelings and views known to Ferret. Perhaps you would like to take up your points directly with the author?
And please, remember that all Councillors and Politicians go in to this with their eyes open. That is no justification however for threatening and intimidating behaviour. And actual violence is subject to both legal and social penalties. Freedom of speech is also important, and yet that too is subject to laws. Subtle pressure to keep quiet unfortunately is not. I state again I am not a sexist and I do not encourage or condone extremism that you refer to. Let’s never forget Jo Cox and Sir David Amess.