ONE person was behind a report that suggested “fudging” the finances as a £13.4 million care home project ran into difficulties, the chief executive of City of York Council has said.

A council document was drawn up with options including whether to give bidders “a fudged affordability model” or to “come clean” as potential operators of new care homes expressed concerns over their affordability, The Press revealed earlier this week.

Secret council memo talked of "fudging" the finances>>

While the council initially said the document, entitled Elderly People’s Homes [EPH] project board – Key Risks, would have been seen only by senior officers, the chief executive of the council, Kersten England, has since said there is nothing to suggest the document was actually ever circulated.

Mrs England has commissioned a review of the governance and management of the EPH project.

She said: “There is no evidence that this document was ever circulated to the EPH project board.

“ It was never tabled or discussed at the project board. It was authored by an individual and it appears to have been his own personal note with regard to project risks.

“It was never seen by myself or indeed any cabinet member.”

Mrs England made the comments in response to an email from Cllr Paul Doughty, chair of the health overview and scrutiny committee, who wrote to express his frustration that despite his role he had been kept in the dark about the existence of the EPH Board.

Cllr Doughty said: “I find it simply astonishing that somebody would go to the trouble of preparing such a detailed paper and then fail to report such serious risks to either the wider board or senior staff at the council.”

“I also find it impossible to understand how the former member for health, who still remains on the cabinet, Acomb Labour Councillor Tracey Simpson- Laing, could have had proper oversight of her portfolio without being made aware of the significant risks involved?

“I have asked Kersten England further questions on this matter and will do all that I can to ensure the full weight of public scrutiny is used to hold those responsible for this damaging, costly and embarrassing fiasco to account.”

York Press: Coun Tracey Simpson-Laing said Labour was serious about delivering new homes

Cllr Simpson-Laing said: “Once again I confirm that I have never seen this document.

“Not seeing this specific document does not mean I did not have ing proper oversight of my portfolio.”As early as 2013, potential operators of the homes had “grave concerns” over the affordability of the project, the leaked document showed.

On Monday, the plans to build care homes on the former Burnholme and Lowfield sites were abandoned following four years of planning and negotiations costing £350,000. The council said it and the potential operators deemed the project unaffordable.