Training FD struck off over £4m hole

Stephen Donnelly was the finance director of ASSA Training and Learning
Limited between 2001 and 2003, and had prepared management accounts of the ASSA
group, which reported earnings before interest and tax of £2.76m.

The management accounts were being relied on as part of a management buyout,
but a subsequent audit found that the company’s asset position and profit and
loss health had been misrepresented.

CIPFA said that the
accounts were inaccurate to the extent that the books then showed a loss for the
year of almost £1.4m.

The body found Donnelly guilty of ‘professional misconduct; breaching various
provisions of CIPFA’s standards of professional practice in relation to
financial reporting and ethics; and conduct prejudicially affecting the status,
reputation and welfare of the institute.’

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