Watchdog criticises city finances

The District Auditor said the city council faced big challenges

A government watchdog has criticised Norwich City Council's management of its finances in an annual audit report.

The Audit Commission said the council had failed to prepare its accounts in good time.

Auditors also found "significant weaknesses in systems of accounting and financial control" at the council, the report said.

Norwich City Council said the report had also praised it for improving the take-up of benefits by residents.

'Urgent action'

The report said problems highlighted in previous audits had not been addressed.

It added: "Urgent action is required to ensure that the key financial controls are operating properly."

A spokeswoman for Norwich City Council said the district auditor also said the authority had reduced the number of families in bed and breakfast accommodation and had improved its worst performing services.

She said the report had also praised the new chief executive of the council, Laura McGillivray, for making progress in addressing financial problems at the authority.