Equal pay claims against Coventry City Council leave auditors unable to confirm financial accounts
Disclaimer of opinion issued over unresolved claims and audit timing
Auditors have raised concerns about Coventry City Council’s finances due to unresolved equal pay claims.
Grant Thornton, the council’s auditors, issued a ‘disclaimer of opinion’ for the financial statements covering the year ending 31st March 2025.
Andrew Smith, a partner with Grant Thornton, said his team could not confirm the accounts were accurate because they lacked evidence about the equal pay claims and other areas of the audit.
“We have concluded the possible effects on the financial statements of undetected misstatements arising from these matters could be both material and pervasive,” Mr Smith said.
The claims, raised under the Equality Act 2010, were first received around two years ago, according to Barry Hastie, the council’s finance and resources director.
“A lot of work is going into defending the claims,” Mr Hastie said. “Very little increase has been seen since the first batch and the vast majority, if not all, have come through trade unions.”
Over 300 disclaimers of opinion were issued to councils between 2022 and 2024, according to the Local Government Association.