At Grant Thornton our biggest client when I joined was Eastern Counties Farmers. It was a farming collective that existed to serve farmers in the region. It traded in agri-products and equipment as well as providing services to the farming community. It turned over close to £100 million. We all hated it as the staff were unhelpful and unfriendly, partly because we were always the bearers of bad tidings. It got worse when they moved from Ipswich 30 miles to the outskirts of Bury St Edmunds adding journey time. ECF was losing huge amounts of money each year and was trying to sort itself out.

Sorry just have to explain something. Financial Accounts are what is produced at the end of the year for auditing and legal purposes. Management Accounts are what a business produces for its internal use, ideally monthly. Doing these properly takes a lot of work as costs occurred have to be assigned to months and either provided for or deferred. Some businesses do not do proper accounts monthly, they may do them quarterly and have other systems to monitor the business – Russell Davies had designed a weekly report based on mileage and contract values.
In late 1989 we got the kind of commission audit firms love – an investigation, a licence to print money and show the client how we could add value to their business. ECF bought grain from farmers at a set rate and collected it, using economies of scale to minimise the numbers of lorries needed, then selling it on for a tiny amount more – effectively acting as a collection agent, but it helped with VAT to buy and sell. It also gave farmers certainty on price.
ECF’s grain trading division’s management information for grain trading were based on a system that had been incredibly close to the management and financial accounts for years, but now they were showing profits but for the last two quarters the management accounts were showing massive losses. We were to find out what was wrong with the management accounts as they assumed the management information was right..
I got the short straw and drove the sixty or so miles to Bury every day. Even though it was such an important job I got a revolving group of helpers based on who had been booked on our regular jobs. Effectively we recreated the financial statements for two years for that division – going through every sales and purchase invoice making our own records, at the same time as checking the postings to their finance system. All done on paper as both our office laptops had been assigned elsewhere (to show we were using the firm’s audit software CBEAM and hit a target even though everyone agreed CBEAM was a dog). This meant that each page had to be checked (cast) multiple times – especially as some of the juniors were very inaccurate.
A couple of weeks into the job I sprained my ankle playing football after midnight down at the bus shelter in Brightlingsea. I had tried to cross from the right on the run and my foot went into a pothole. By the time I got hoe my foot was pointing at right angles out to the side. Monday morning I told work and saw the Doctor who told me to stay off my feet for a fortnight. Tuesday the manager called me to say that my training contract was in danger if I did not get back on the ECF job as they had no one else to do it (we were desperately short staffed at that point due to the events I described in https://fivemilesout.home.blog/2020/08/20/the-world-turns-around/). They said it carefully, but this was the meaning I inferred. So I was doing that drive with a heavily strapped foot for several more weeks in constant pain. At ECF I could only manage the stairs once a day to get to the office we were working in (well cupboard – they wanted us out of sight, so we did not spook people). The ankle gives me problems to this day.
The reconstruction showed that the division was loss making, just like the management accounts reported. We reconciled the amount of grain bought and sold to see if it was being stolen. That was fine too, the difference in bought and sold amounts was minimal and definitely not enough to count for the huge loss.
Then I went off brief and asked how they made their estimates for their reports that showed a profit. The woman in charge, I forget her name, so I’ll call her Stacy, told me that they had a margin per ton of grain and then deducted an amount for haulage based on the mileage. She showed me the calculations which were very precise.
Then the wheels came off. I asked her how she calculated the margin. She did not know – her old boss had one that had done this, but he had been made redundant in cost cutting measures nine months before. Rather than replace him they had promoted Stacy, who had been his administrator for six months (I say promote – they gave her £1,000 a year more even though the departing man had been earning over £30,000 to her £14,000).
Obviously grain prices were dynamic and one of her jobs was to set the purchase price they paid to the farmers. She had not moved the price since she started – she did not know that she had to. The sale price ECF could get had fallen by about £1 a ton, the problem was that the margin they had was around 2p a ton – so every ton of grain they sold they were now losing 98p. Literally just losing money on every deal every day. Stacy had also not factored in increased costs of haulage, so it was even worse than that.
Stacy was fired immediately. Unfairly, as ECF had made the mistakes that led to this by not appointing someone who knew the job or even arranging a proper handover. She had not been trained to do the job. Grant Thornton got fired too, very soon after reporting this. No one likes the bearer of bad tidings and even though the assignment as briefed was impossible, telling ECF that the bad loss was right meant that it was safer for them to get rid of us so no one was around who had seen the errors that management had made.
This was a time in my life when I was getting familiar with classic artists like the Beatles, the Rolling Stones and Bob Dylan. Dylan is obviously a legend, but I find most of his material hard work. It was hard between Stuck Inside of Mobile with the Memphis Blues Again and this –
Like A Rolling Stone





















