COUNCIL cash bosses in York have been praised for keeping their eye on the public's pounds and pennies in the latest financial audit.

Each year councils across the UK have their books scoured by the district auditor who reviews the authority's financial standing and management.

This year, the annual audit report praises the efforts of City of York Council in providing effective services despite what the council has described as "continued financial pressures and resource constraints."

The council's performance was described as "satisfactory" across all the main audit areas, which include the arrangements for delivering value for money services and the adequacy of internal systems and controls to prevent fraud, error and corruption.

Council achievements highlighted in the review included the securing of additional funding for the local transport plan and the establishment of the Museums' Trust.

The auditor said improvements could be made in relation to environmental services and some internal support functions, such as business planning and performance management.

Council leader Dave Merrett said: "This independent review by the district auditor confirms the sound financial health and good

management of the council. It is pleasing to see their endorsement of the council's achievements.

"It's vital, however, that we continue to work hard to

improve those areas where we would like to do better.

"By taking early positive

action when it's needed we will ensure the council continues to receive this positive independent endorsement by the District Auditor." Opposition leader Steve Galloway echoed the auditor's praise for council staff.

"We are fortunate in having a workforce that is very resourceful in overcoming the pressures caused by central government expenditure limits," he said.

But at yesterday's shadow executive meeting the Liberal Democrat group pointed to a series of auditor's criticisms members felt were not properly acknowledged by council leaders.

They included the "very high" level of rent arrears,

a multi-million pound repairs backlog and delays in the introduction of the new housing benefits computer systems.

Coun Galloway said the Lib Dems would be asking for answers on why a paragraph in the draft auditors report - which was highly critical of the council's human resources polices - has been omitted from the final document circulated to the Shadow Executive this week.

"We will want to know more about the background to this highly irregular volte-face," he added.

The audit will be discussed by senior councillors at Friday's executive meeting, which starts at 4pm.

Updated: 08:22 Wednesday, March 05, 2003