Yesterday, Councillor Steve Munby cited the work of the Beautiful Ideas North company, claiming it was “innovative” in how it brought in “£500,000 of inward investment for the city.”
Half a million pounds. That is a big claim., especially from one of three city councillors who barely broke cover to face scrutiny in the history of Beautiful Ideas (BICo).
Innovative is defined as: “introducing new ideas; original and creative in thinking.”
Maybe Councillor Munby is referring to the innovative collection of takings at north Liverpool car parks without numbered tickets, proper accounting and governance and reconciled accounts.
Not my words. This verdict comes from three Liverpool City Council internal Audit reports.
Here are some of the relevant comments:
“However, some weaknesses have been noted with regards to the administration of the collection of income.”
Love the understatement.
“There are no reconciliations performed or recorded by the Flanagan Group, therefore a recommendation has been made, in addition to the reconciliations related to income noted above, that reconciliations are regularly performed that trace the funds held from the financial system to the bank account.”
Oops.
“In addition, it was noted that income received via BACS from Liverpool Football Club for the guaranteed use of 137 spaces within the car park could not be found on the financial system print outs provided.”
Oh.
“However approval or reference to approval, for expenditure totalling £7,488 could not be found.”
Oh…dear.
“There is a lack of an audit trail to enable the identification of recipients of “free” spaces which reduces transparency with regards to obtaining value for money from the operation of the car park.”
Can this be right?
“There is a lack of transparency and accountability regarding the use of car park generated funds”
Oh, that kind of innovation.
That’s just 2015. Well, surely things improved by 2017. Not quite.
“During the review it was identified that the PAMS team does not routinely receive information from BIC to confirm that it is maintaining proper records of accounts.”
So where’s the innovation?
“At the time of audit no business rates have been paid.”
Oh, there it is!
“BIC have stated that none of the £32,521 net income from this car park has been distributed for re-investment in the local community.”
Collecting the money then not distributing it. Ah, now that’s innovation for you.
“The review identified that the BIC collected £96,085 of car park takings from the site (for the period 17/10/16 to 3/9/17). This was exclusively in cash. From these takings the staffing and expenses payments (of £20, 725) were made leaving net income of £75,360. HMRC VAT threshold for 2017/18 is an annual turnover of £85,000. The gross income for BIC is in excess of the threshold and it should be registered for VAT.”
What, not registered for VAT? Is that even legal?
“However, there was no evidence to confirm that the takings had been independently verified and reconciled to the number of vehicles parked on each match day.”
So how do we know how much was collected and where it went? We know at least some of it didn’t go to the good causes promised.
Yes, but an innovative company would surely have got its act together by 2019. I mean, come on.
“Specifically, the record keeping of the car park income was very poor and in need of improvement.”
Dear me.
Oh, hang on, I’ve found the innovation.
“One of the companies analysed: Kazimier Productions CIC went into insolvency on 21st September 2018. In addition to this, Mayfair home furnishing and PAO Collaborative Kitchen are also no longer trading. The total investments for these three companies is £77,000.”
There’s more of this innovation stuff here:
“The total income available to the BICo from the collection of car park use totalled £653,915. No information has been provided that specifically monitors the funds raised from car park activity and how they have been utilised. However, records provided by the BICo indicate investments from funds generated by the car park and match funding totalling £403,300.”
Still no half a million figure though. I’m confused.
“One of the companies analysed: Kazimier Productions CIC went into insolvency on 21st September 2018. In addition to this, Mayfair home furnishing and PAO Collaborative Kitchen are also no longer trading. The total investments for these three companies is £77,000.”
So is insolvency the innovation?
“These payments (Stanley Park) contravene the statement made by the BICo Board that their directors are ‘ineligible to apply for investment for the fund.”
Maybe contravention of rules is the innovation?
Or is it lack of transparency: “there is no paper audit trail that all of the investments were made in a transparent manner.”
At least the reports highlighted all the worrying innovations.
What’s that?
Some of the money went to the north Liverpool suburb of….Salford….and Oldham.
What? There was a third car park.
Blimey. This innovation lark is something else.