A town council has been forced to withdraw most the money from its reserves to cover an overspend of £100,000, auditors have revealed.
A report from the Auditor General found Penmaenmawr Town Council spent more on the local community than it received in income for three years due to its ‘poor financial management’.
As a result, it was forced to make up the money from its reserves, leaving its deposit bank account almost empty.
The report said the council had insufficient scrutiny of the accounts, ineffective budget setting, and lack of proper understanding of the make-up of its reserves.
Auditor General, Adrian Crompton said: ‘Penmaenmawr Town Council’s overspending is rightly a matter of public concern, and I am encouraged that the council has since put in changes to address the weaknesses identified in my reports. It is important that all four councils learn from the findings in my reports and address the deficiencies I have identified.
‘Council members have a responsibility to local residents to ensure the proper stewardship of public funds and that councils live within their financial means.’
