Uncertainty of Derry to London route funding a concern, reports Local Government Auditor, Pamela McCreedy

That warning is among the main conclusions in a report published by the Local Government Auditor, Pamela McCreedy.

Ms McCreedy’s report found that the shortfall between councils’ income and expenditure reached £106 million in 2018-19, with expenditure having exceeded income in each of the previous five years and increasing notably since 2017-18.

There were a number of common significant issues disclosed within governance statements, as well as a number of common issues arising from Ms McCreedy’s audits. In her report on Derry City and Strabane District Council she included an emphasis of matter paragraph, drawing attention to disclosures included in the Council’s financial statements of the potential impact on the carrying value of assets connected with City of Derry Airport.
The report said; ‘The key concern is the uncertainty in respect of sufficient funding for the London airport route. Should these going concern issues crystallise, then there may be a significant impairment on the carrying value of airport assets (£45 million as at 31 March 2019). The Council told me that it completed a tender exercise in 2019, appointing an operator for the London route from September 2019 to March 2021. Council officers are now completing a funding proposition for 2021 to 2026.”