A probe into Kirklees Council’s finances has raised concerns about its valuation of the soon-to-be demolished Huddersfield Sports Centre.
Accountancy firm KPMG said the council had “overstated” the value of the 1960s built centre on Southgate.
The valuation was done by an external firm but they were not made aware it was being mothballed just a few months later.
KPMG said the council had decided to ignore the valuation and puts its own value on the site. It said it should have re-engaged with the valuation firm to come up with a more accurate price.
The council is currently seeking a buyer for the large site, which is expected to be knocked down in the coming months.
Speaking at the council’s Corporate Governance and Audit Committee, Alastair Newall, an auditor from accountancy firm KPMG, said: “Clearly there was a value put on that building that wasn’t right.”
But Mr Newall said the council did later get the value right through other means.
At the meeting, Director of Resources, David Smith, said: “Our mistake was we knew it was about to be knocked down so we ignored the value.”
In a statement to the Examiner, Mr Smith confirmed the incorrect valuation was not used in the council’s accounts.
He said: ”KPMG have acknowledged the existing value of the building was not materially incorrect. This action did not impact on our accounts – so the accounts can be replied upon by the public.”
The value of the site has not been made public but the Examiner did reveal in June that the council received £18.79m from Tesco, who in May this year backed out of a deal to buy the site and build a new store.
It is thought only a small proportion of the £18m relates to land value and most is compensation.
The Sports Centre has been closed and boarded up since the new Huddersfield Leisure Centre opened in the Spring.
Demolition work on the centre and on other buildings on the site, including two tower blocks of flats, is expected to start soon.
Take a look at the opening of Huddersfield Leisure Centre below.
