Dorset Council takes firm action to strengthen governance and financial controls 

Dorset Council has taken significant steps to address serious governance and financial control issues identified earlier this year through an independent audit and an investigation by the South West Audit Partnership (SWAP).  

A progress report will be presented to the Audit and Governance Committee on 24 November, detailing the comprehensive programme of improvements underway to ensure these issues cannot happen again. 

Council Leader Cllr Nick Ireland said: 

“This has been a wake-up call for Dorset Council as an organisation. Historic problems were identified, and I tasked the council’s leadership team to act swiftly and thoroughly to address them. We are determined to ensure the organisation operates with the highest standards of transparency, accountability, and financial discipline. Our residents deserve nothing less.” 

Earlier this year, the SWAP audit and investigation revealed significant weaknesses in contract management, procurement practices, financial oversight, and internal controls across the council. SWAP was commissioned to conduct this work by the council’s Monitoring Officer, after concerns were raised internally by officers and Cabinet members about non-compliance with financial controls and escalating overspend on health and safety works in council-owned buildings.  

Chief Executive Catherine Howe said: 

“We recognise the seriousness of what was uncovered and the impact it has had on trust. We’ve already introduced new controls, clarified responsibilities, and embedded stronger governance across the council. Our focus now is on learning, improving, and ensuring that the systems and culture within the council support better decision-making and accountability. This is about restoring trust and ensuring we are fit for the future.” 

Since the publication of the investigation summary in July, Dorset Council has: 

• Strengthened financial controls: Revised the Scheme of Delegation which sets out who can approve spending and at what thresholds, aligned authorisation levels in the council’s finance system, and introduced compliance checkpoints for all projects involving procurement. 

• Improved procurement practices: Tightened user permissions in procurement systems, introduced monthly monitoring reports, and strengthened arrangements for recruitment of temporary and interim staff. 

• Enhanced governance and oversight: Established a cross-functional audit response taskforce and ensured regular reporting to senior leadership and elected members. 

• Developed plans for organisational learning: This involves rolling out new training for all staff involved in commissioning and financial decision-making. 

• Addressed cultural and behavioural issues: Initiated work with the Centre for Governance and Scrutiny to embed values-based decision-making and improve transparency. This work will be delivered over coming months. 

• Arranged a follow-up audit to assess progress in improving our building management services. 

 

The full report for Audit and Governance committee on 24 November is available here.

 

The summary report of the SWAP investigation is available here.