E&Y ‘uncertainty’ over Jarvis accounts

The E&Y audit report on the 2000 accounts raised doubts over the £15m figure the group has claimed on its PFI contracts accounted under turnover and debtors.

The auditors’ opinion will come as a further blow to Jarvis, which was last month ordered by Justice Lightman to pay PwC undisclosed indemnity costs. ‘There is uncertainty as to the amounts at which these claims will be settled,’ E&Y’s audit report states.

‘Depending upon the outcome of negotiations with the customers, there could be a material effect on the results and financial position disclosed in the accounts.’ Jarvis FD Henry Lafferty pointed out the audit opinion was not qualified.

E&Y took up the Jarvis audit in March after PwC walked out after a long-running dispute over the cost of auditing PFI schemes.

Jarvis brought the case against PwC after taking issue with a section 394 Companies House notice that explained its resignation over audit costs that were £449,000 above its £698,000 fee. PwC and E&Y declined to comment

Jarvis fights PwC

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