THE 2017/18 internal audit report for Keighley Town Council has not approved two of the 10 areas assessed.

Auditors said they could not sign off the council’s handling of its petty cash or its processes for monitoring its budget and ensuring appropriate reserves.

However, the council’s locum clerk said steps are being taken to address these issues. Anne Wilson, whose tenure coincides with only the last three weeks of the period covered by the audit, said overall it was not a bad report.

“A fresh pair of eyes for any council is always a good place to start,” she said. “I’m putting procedures in place to make sure the town council is financially sound, and its management works more effectively than perhaps it has done in the past.”

The audit, completed by financial services firm Veritau, approves the council’s handling of procedures such as bank reconciliations, the town mayor’s trust and risk management.

But it concludes “no” to the statement: “The annual precept requirement resulted from an adequate budgetary process; process against the budget was regularly monitored and reserves were appropriate”.

And the audit does not sign off the statement: “Petty cash payments were supported by receipts, all petty cash expenditure was approved and VAT appropriately accounted for.”

The report points out that while the town council’s £489,378 precept for 2017/18 is collected by Bradford Council and paid to the town council in two instalments, the second payment has not been received. The auditors recommend the payment is urgently chased up.

Commenting on the town council’s budget and reserves management, the auditors said weaknesses identified last year still remain, and warn: “Budgets need to be based on realistic assessments on the actual cost of proposed plans and levels of expected income.”

Summarising issues with the council’s handling of petty cash, their report states: “The records summarising payments were not complete. Some receipts had not been provided.

“The value of receipts showed £145.93 of expenditure. The float should be £250. This level of float would leave an expected balance of £104.07, however the cash remaining was £44.02.

“There was also a blank signed cheque stored in the petty cash tin.”

Mrs Wilson responded: “We’re advertising for new staff and once they’re appointed the council has said new policies and procedures can be implemented.”

She said the audit had not identified any misdemeanours, and those matters it had raised would be simple to rectify.

“The council has allowed me to buy software which will enable automated cheques, bookings and more efficient sending out of invoices,” she added.