Exclusive: Hull under attack over £184m error in accounts

The findings of the Audit Commission's Interim Governance Report into Hull Council reveal a catalogue of errors including an unnamed asset that was listed in the 2010 accounts despite being disposed of in 2009, a potential undervaluation of assets of 21m and a valuation error of 4.4m on school buildings and land.

It shows 184m of assets have not been valued for five years and no account was set up for a 9m Government grant.

Auditors warn they may reach a "qualified conclusion" for the accounts – meaning there are doubts about the information provided or disagreement with the council's management – and criticise the "long delays" encountered when asking for information.

Council leader Carl Minns said it was a "technical accounting error" and no assets had been sold below value. He said: "Part of the problem is that during the time the accounts were being provided we didn't have a chief finance officer.

"This was a technical accounting error that has been put right.

"Most importantly, at no stage has there been a loss of money to the taxpayer."

Coun Minns also denied there had been any deliberate delay responding to queries which will mean the cost of the audit – currently standing at more than 400,000 – will increase.

"If the Audit Commission think that the value of assets has risen in the last five years they are not living in the real world," he said.

He added: "There was no conspiracy of silence against the Audit Commission."

The Yorkshire Post has also learned a number of council departments are facing an overspend – with Children's Safeguarding 3.6m over budget.

The authority has to save more than 21m this year and, subject to the results of the Government's Comprehensive Spending Review next week, a further 79.5m over the next three years.

Coun Minns was adamant Hull will meet savings targets.

He said: "Children's Safeguarding has gone over because there was massive pressure on child protection services after the Baby P case caused a huge number of referrals."