Financial compliance audit of a local council highways maintenance contract

Maidstone, Kent, United Kingdom

Partners

Kent County Council
EC Harris (acquired by Arcadis)
Ringway Infrastructure Services

Services

Due diligence
Contract compliance

Challenge

Kent County Council needed assurance that its highways maintenance contract was delivering value for money and that the contractor was complying with the terms of the agreement. Concerns had been raised about the accuracy of financial reporting and whether costs were being correctly allocated against the contract schedules.

Solution

Floreer conducted a comprehensive financial compliance audit, reviewing contract documentation, financial records, and cost allocation methodologies. The team analysed a sample of transactions to verify accuracy and compliance, interviewed key stakeholders, and benchmarked costs against comparable contracts. Floreer also reviewed the contract governance arrangements and identified areas where processes could be strengthened.

Outcome

The audit identified several areas where financial reporting and cost allocation could be improved, along with specific recommendations for strengthening contract governance. The council used the findings to engage constructively with the contractor, resulting in improved financial transparency and compliance. The audit process also established a framework for ongoing financial assurance.

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