05 April 2002
The financial watchdog's annual review of local authority spending unearthed 'weaknesses in fundamental financial controls in some councils' during 2000/01, which included breaches of accounting rules.
Audit controller Ronnie Hinds said he 'continues to be concerned' by the level of council tax fraud in Scotland, although new audit guidelines should ease the problem.
Two of the worst offending authorities had their accounts qualified. Inverclyde was criticised for borrowing £13.5m outside of its statutory powers and Shetland for breaching rules on property transactions.
Shadow local government minister Tricia Marwick said the report was a 'slap down to Labour's cavalier approach to taxpayers' money'.
But a Scottish Executive spokesman responded: 'Issues of stewardship, probity and financial management feature in the forthcoming Local Government Bill. While we are pleased progress has been made, we are concerned that there is a need to strengthen fundamental accountancy procedures.'
PFapr2002
