CIPFA has rejected a proposal that could have allowed members to review in full the independent report into the failure of its London Counter Fraud Hub (LCFH).
The LCFH collapsed in 2019 with an impairment cost of £3.7m. An independent report from former deputy auditor general Martin Sinclair has only been published in summary, and there have been calls for members to be given access to the full text.
However, the CIPFA Council meeting on 4 May rejected a proposal – from Roman Haluszczak – that would have allowed a vote at the institute’s July agm on publishing the full report for members to review.
CIPFA confirmed the decision in a statement: “Council rejected the member motion on the basis that CIPFA has shown transparency over the last two years with the report, including publishing the report recommendations as committed to at the 2019 AGM. The Sinclair report was not commissioned for an external audience and there is insufficient reason to overturn the original decisions taken by both the Board and Council.”
It pointed out that CIPFA’s Council is its “sovereign body”, with the majority elected from the membership. The request, it said, had therefore been considered by “members at the highest levels of the organisation”.
In response, Haluszczak told Room151: “I think this is a very sad day for CIPFA corporate governance and democracy. A dark cloud now hangs over the institute and further questions must be answered.”
He added: “CIPFA cannot expect openness, transparency and inclusivity from the public sector bodies it advises if it is not prepared to adhere to these same principles itself.”
————
Take the Room151 IFRS9/MRP survey today
Make sure your views are heard on these important subjects
FREE weekly newsletters
Subscribe to Room151 Newsletters
Room151 LinkedIn Community
Join here
Monthly Online Treasury Briefing
Sign up here with a .gov.uk email address
Room151 Webinars
Visit the Room151 channel
