A District Judge has made a ruling in a small claims court case involving Morecambe Town Council.
District Judge Skalskyj-Reynolds has ordered that, by consent, Morecambe Town Council will pay £1,538.18 to its former auditors Internal Audit Yorkshire by April 25 2023.
The town council was the defendant in a county court case where the claimant was Safia Kauser, trading as Internal Audit Yorkshire.
A consent order is a judgment or order made by the court, but where the terms have been agreed in advance by the parties.
The case centred around a dispute over payment for services by Internal Audit Yorkshire to Morecambe Town Council.
By law, parish councils must have an independent audit carried out on their accounts and control systems.
Ms Kauser's company had been the town council's internal auditor, completing an audit for the financial year of 2019/20 and an audit review for 2018/19.
The dispute arose following an audit report produced by Ms Kauser for the town council for 2020/21.
Morecambe Town Council claimed there were "inaccuracies" in the report and contracted another company, JDH Business Services, to provide the final internal audit report for 2020/21.
At a meeting in June 2021, Morecambe town councillors voted via a majority to accept the new internal audit report by JDH Business Services, and pay half the amount invoiced by Internal Audit Yorkshire.
Ms Kauser claimed breach of contract and requested the full amount and other costs. The town council issued a counterclaim.
The case was heard at Skipton County Court on April 4.
After hearing from Ms Kauser in person and town council representatives, Judge Skalskyj-Reynolds, by consent, ordered that there be judgement for the claimant in the sum of £1,538.18 payable by April 25 2023, and the counterclaim was withdrawn.
Luke Trevaskis, responsible financial officer for Morecambe Town Council, said afterwards: "Whilst many of the issues in Internal Audit Yorkshire's reports predate my tenure, all members have been committed to delivering positive outcomes for the community which have recently resulted in the council receiving a full bill of health last year from both its internal and external auditors.
"Following a recent independent review by the National Association of Local Councils, Morecambe Town Council has also been recognised nationally for its high standards in transparency, responsible governance, and exceptional community impact - becoming the first council in Lancashire to receive a Quality Gold Award for its achievements in the last two years.
"The council made several attempts to resolve this matter prior to court and to save any further costs to the public purse or a second hearing, the council consented to a settlement order to conclude the matter."
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