The district auditor criticised the closure decision as " poor value for money . " The district auditor Anne Shore felt that " reasons given for immediate closure were less than comprehensive . . . insufficient attention was given to the financial consequences of either the recommended or alternative options . " The Evening Standard reported that
42.
The second order, covering the remaining 13 rate-making authorities, was set down for debate on 20 February, but on the previous day Jenkin had to agree to reconsider the limit for Haringey after receiving a letter from its district auditor saying it would have a deficit if the original limit had been imposed.
43.
While leader of Westminster City Council she oversaw the " Building Stable Communities " policy, later described as the " homes for votes " scandal and was consequently accused of gerrymandering . | group = nb } } The policy was judged illegal by the district auditor, and a surcharge of ?7m levied on her in 1996.
44.
Although the district auditor for Sheffield prepared two papers in March 1987, one justifying the issue of a certificate of wilful misconduct and the other not, and obtained a legal opinion advising him to submit the first, he decided to take no action; no other auditor sought to pursue losses due to late setting of rates.
45.
Checking council activities was the responsibility of the district auditor who was appointed by the Audit Commission; if the auditor found that financial loss to the authority had been caused by the wilful misconduct of councillors, then they were under a duty to issue a certificate to the councillors responsible ordering them to repay the money in a surcharge.
46.
When the council met again on 23 April, the members had been warned by District Auditor Brian Skinner of " serious consequences " including surcharge should they decide not to set a rate; Margaret Hodge ignored the advice and commented as she moved the motion that she would not " abandon the collective unity that is so important in the struggle against the Government ".
47.
The Chief executive reportedly then stated : " I really wouldn't worry about this . . . everybody knows that interest rates are going to fall . " Upon hearing this, which the Audit Commission took for confirmation that Hammersmith's exposure was in fact entirely unhedged, teams from both the Audit Commission and the district auditor were sent in to investigate.
48.
As had happened on other councils, the district auditor wrote to all councillors on 9 May telling them that an extraordinary audit would follow if no rate had been set by the end of the month; council leader Ted Knight insisted that the council would not set a rate at its meeting on 15 May " or any time after until the Government returns the money it has taken from us ".
49.
With no alteration in the Government's stance, there was already talk of the council adopting illegal tactics in its 1984 budgeting, and on 19 March the District Auditor Les Stanford wrote to every councillor warning that the consequences of not setting a legal rate was a budget crisis, with John Hamilton and chair of Finance Tony Byrne form an emergency committee to control finances in the interim was accepted but the delaying amendment fell : it had the support of the Conservatives and six councillors in Roderick's group but the Liberal councillors opposed it and supporters of the council leadership abstained.
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