A NEW report produced by Westmorland and Furness Council has identified key issues relating to the funding, acquisition, the lack of a business case, and risk assessment in the commissioning and refurbishment of Voreda House.

The report, titled 'Voreda House - Lessons Learned', reflects on what the council has learned about the development of the building pre-April 2023, following an internal audit review, and how this would inform similar projects going forward.

Voreda House, which opened in June, is used by council staff and acts as an 'accessible focal point' for people in Penrith looking to access council services.

The former Eden District Council authority had wanted to move staff onto a single site for more than a decade. Council members agreed to an extension to the town hall and redevelopment of Mansion House in 2018.

A budget of £2.3million was approved for single site accommodation in April 2018, and Voreda House was purchased in summer 2020 with the intention for it to be occupied by March 31 2021.

This budget steadily crept up over the course of six years, with the final budget anticipated to have reached £8.3million.

The move-in date was also pushed back by three years from 2021 to this year. 

Cllr Andrew Jarvis, deputy leader of the council and cabinet member for finance, said: “This council rightly recognises that it has a duty to ensure public money is invested wisely and as costs rose on this inherited project we undertook a lessons learnt review to inform future projects.

"This report has helped us to challenge our current processes and we are confident that they are robust and we will continue to regularly review these as outlined in the management response."

The report found that Eden District Council did not produce a full business case for single site accommodation which would have documented the reason for the project, and included consideration of all alternative options, timescales, and resources required for the project.

It also adds that although the individual elements of a business case were presented, this wasn't brought together into one document.

It wasn't clear whether all options for the single site accommodation were considered.

Westmorland and Furness Council notes in the report that "a business case should be produced prior to the start of a large capital project" and that "ALL potential options are considered in the business case."

A report considered by members of Eden District Council in February 2020 failed to inform the members of key points which should have been important factors in the decision to purchase Voreda House for £900,000, the report said.

Voreda House was independently valued and the current market value with vacant possession was found to be £785,000, however, Eden District Council agreed to pay £900,000 for it.

Specialist surveys were not undertaken prior to the property purchase which could have identified any potential additional construction costs.

On this, Westmorland and Furness Council says that going forward "members should be provided with ALL relevant information on which to make a decision."

Other issues raised include high-risk funding sources being used, steering group meetings not being minuted, lack of documentary evidence to support the assertion of ongoing risk assessment prior to March 2023, and financial updates being provided verbally and not documented in written reports.

A spokesperson for Westmorland and Furness Council said: “The focus of the lessons learned review was pre-April 1 2023, the date that Westmorland and Furness Council inherited the project, and identifying any additional actions that might be needed on future projects to strengthen our control framework and governance.

“In effect, this meant comparing how the project had been delivered to April 2023 and how it would have been handled had Westmorland and Furness’ policies and procedures been in place at that time.

"Where the internal review found weaknesses in the initial project, we have sought to reassure that Westmorland and Furness Council has robust systems in place.

“The management response to the review, published on August 30, also identifies any current arrangements where further action is required.”