RULES to prevent fraud are still being ignored by those managing contracts in some council departments, an audit has revealed.

Despite revelations last year of financial chaos at the Town Hall, investigators have uncovered evidence suggesting guidelines to ensure the efficient use of taxpayers' money are not always being followed.

The worst offending department was Children and Young People, where auditors checking a sample of contracts found key documents missing from files.

Auditors discovered three files for work worth more than £75,000 contained no formal, written contract signed by the council and the contractor.

Of the ten contracts for work worth less than £75,000 tested, there were no clear dates for the start and completion of work and it was not clear who had given authorisation.

In four cases contract approval forms had been completed after the contractor had been selected and a purchase order raised.

A response to the findings from the department, which is headed up by executive director Chris Kiernan, says it believes that a written contract for work worth less than £75,000 exists if the purchase order refers to the written tender, which details all contractual elements.

It also says that contracts valued above £75,000 are held by the council’s legal department.

But auditors still described the department’s performance in complying with contract proceedure rules as “poor” and suggested that officers receive additional training.

All other department’s tested were found to be complying with the rules when managing contracts over £75.000, but many were failing to follow guidelines when handling cheaper contracts.

The auditors’ findings will be presented to cabinet tomorrow night (July 20).