Problems with Craven’s pay-and-display car park machines may mean a financial loss to the council, it is feared.

An external contractor was taken on to collect cash from Craven District Council’s car park machines in December.

But since the start of this year, the council has not paid the contractors because it has been unhappy with the service, councillors were told last week.

The report to last week’s audit and governance committee mentioned “significant deficiencies in internal control” and said a weakness had been identified in relation to the control of cash collected from car-parking machines. The contract included procedures to provide the council with assurances the full amount of cash collected was being banked by the contractor on the council’s behalf.

“Officers have confirmed the contractor has not been paid following these procedures in full, and as such the council’s controls to ensure the completeness of car parking cash have not been operating as intended for the final quarter of the financial year,” said the report.

Nicola Chick, interim finance manager, told councillors issues included not getting back all the tickets issued from the contractors, while others are believed to have originated from an entirely different authority.