A financial health check carried out by the Chartered Institute of Public Finance and Accountancy (CIPFA) has recommended that London Borough of Newham addresses weaknesses in its financial control.
CIPFA was appointed by the borough’s mayor Rokhsana Fiaz to examine the council’s finances after she was elected earlier this year.
According to a council report this week, the initial findings of the review recommend that the council carries out a fundamental budget review with external challenge and new corporate standards.
It also says the council needs, as a matter of urgency, to assess the extent to which reserves might be needed to support this year’s revenue budget.
In addition, it recommends the adoption of outcomes-based budgeting, the consideration of council tax increases, and that the council “review the use of its assets, dispose of assets no longer required and how it finances investment in those assets”.
The final report is set to be presented to the council in the next three months.
