Investigation into tram accounts

“NOTTINGHAM’S tram system – which lost £18m in its first three years – faces an investigation into its accounts by the Financial Reporting Council.

Colin Raynor, a former Government Treasury accountancy adviser and associate member of the Chartered Institute of Management Accountants, said he fears taxpayers may be forced to subsidise the system in the long term.

He has reported Arrow Light Rail Ltd – the concession behind the tram – to the Financial Reporting Council. He claims its accounts are presented in a way that makes it look more successful than it is.

Arrow chairman Mark Fowles said the losses had always been expected because of depreciation and loan and interest repayments involved in the £200m project, and were actually lower than predicted. He also strongly denied Mr Raynor’s claim about the way the accounts were presented.

Mr Raynor said the company was misleading the public by placing a Government payment of more £20m in the wrong section of its accounts.

This means they show an operating profit of £10.9m, when Mr Raynor argues it is actually making an operating loss of £9.7m.”

Follow the link below to read more.

Mr Raynor said the company was misleading the public by placing a Government payment of more £20m in the wrong section of its accounts.

This means they show an operating profit of £10.9m, when Mr Raynor argues it is actually making an operating loss of £9.7m.

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