THE financial muddles surrounding the early retirement of a former Lydney Town Council clerk have been revealed in a Public Interest report released this week by auditors appointed by the Audit Commission.

Members of the public will now have an opportunity to consider the report in detail at a meeting to be held at The Town Hall on Friday evening, March 9 (7pm).

The report highlights failures in the council's procedures for authorising the salaries and wages of its employees up to December 2010, and the council's decision to accept the clerk's early retirement on the grounds of ill heath.

The report finds that the council:

• failed to authorise its wages and salary payments for many years;

• failed to properly consider and approve increases in wages and salaries; and

• issued cheques with one signature, in breach of its own regulations.

External auditor Andrew Vince of Moore Stephens said: "The council's governance procedures were weak in certain areas, and this has created problems. But I'm pleased it has now strengthened these procedures. For example, all cheques are now signed by two people and the council authorises all salary and wage payments."

The row rumbled on behind the scenes following a payment of £150,000 by the council to the retirement pot of a former clerk who was allowed to quit early on grounds of ill health.

The matter came to light following a Freedom of Information request by former district and town councillor Alan Preest who eventually took advice from the Audit Commission.

He told the Review: "The refusal of Lydney Town Council to be open and transparent bearing in mind the severity of the situation and the impact on the precept was unbelievable. While 'Rome burned' individuals chose to bury their heads in the sand, even deflecting blame rather than taking responsibility. Any costs incurred by the Audit Commission can only be the responsibility of the decision-makers concerned who so obviously would have preferred a corporate cover-up."

A spokesman for the council said the findings of the report had been accepted in full by the council. Procedures were now in place to strengthen governance so there could be no reoccurrence in the future.

In his report Mr Vince said it was reasonable for local taxpayers to expect the council to formally explore all avenues for recovery of any losses as a result of past governance failure. However, this had to be weighed against potential benefits and the likelihood of success.

He said the council had acknowledged it did not comply with its own and legislative requirements and had already implemented the necessary changes.