Town and community councils in Wales still have ‘systemic weaknesses’ in their financial management despite being warned of problems last year, according to the public sector watchdog.
A report by the auditor general for Wales found ‘significant problems’ with the quality of annual returns with around 60% requiring some kind of amendment. Although there has been an improvement in submitting accounts on time, the number that are not signed off is still too high.
Statutory recommendations were made to three local authorities over poor quality reporting – Banwy and St Florence community councils and Kidwelly Town Council.
There are more than 730 local councils in Wales responsible for a combined budget of around £40m a year.
Auditor general Huw Vaughan Thomas said: ‘While I am heartened to see a degree of improvement on last year, it is disappointing that there is still considerable scope for town and community councils to improve their financial management and governance arrangements.
‘I urge them to read the contents of this report carefully in order to address the systemic weaknesses that are still apparent and which often lead to, avoidable, audit qualifications.’
