Whitby Town Council borrowed from charity when funds ran out

Summarised from 2 outlets · Updated 14 Oct, 06:32 · Archive

Whitby Town Council borrowed £70,000 from an art gallery charity's reserves without formal approval after running out of money in 2023 and 2024.

Whitby Town Council 'physically ran out of money' to pay its bills and borrowed £70,000 from the Pannett Art Gallery Charity's reserves without formal approval or public explanation, according to an independent investigation commissioned by the council itself.

The council borrowed £30,000 in 2023 and a further £40,000 in 2024, with the funds repaid following receipt of annual precept payments. The transfers were made 'without public notice, member or trustee approval or public explanation of the true financial situation of the council', the report stated.

The independent auditor's review identified longstanding failings in financial management, governance and budget oversight. The council's reserves had been steadily declining since at least 2018, a situation worsened by the impact of the Covid-19 pandemic and rising costs. The investigation was initiated after concerns were raised by the newly appointed town clerk in January.

Whitby's mayor Sandra Turner said the council had not sought to brush the matters under the carpet and that residents would want answers to the report's findings, which had not yet been formally considered by councillors.

How it is being reported

• Yorkshire seaside town council quietly borrowed £70k from charity after money ran out, report findsWhitby Town Council 'physically ran out of money' to pay its bills and borrowed tens of thousands of pounds from charity reservesHuddersfield Examiner · 14 Oct, 04:00
• Council ‘physically ran out of money’ and borrowed charity cash, report findsWhitby Town Council ‘physically ran out of money’ to pay its bills and borrowed tens of thousands of pounds from charity reserves without formal approval or public explanation, an independent investigation has concluded.Yorkshire Post · 13 Oct, 17:38

In this story: Whitby Town Council · Pannett Art Gallery Charity · Whitby · Sandra Turner

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