AN external audit report on Dorset Council finances will be delayed by the police investigation into allegations of financial mis-management by interim staff.

A senior councillor has been critical of the speed of the police investigation which he said is now delaying council business.

Councillors were told on Monday (13 October) that there could be 'other matters' yet to be uncovered by the police investigation – with the council's legal officer stressing that the police investigation is not into fraud within Dorset Council.

Eleven interim staff were dismissed by the council after an investigation by internal auditors into works to correct health and safety concerns at council-owned sites which took place last year. It involved a multi-million pound budget, the full extent of which has never been disclosed, but is likely to be around £25million.

Councillors heard this week that the annual examination of the council's finances by external auditors, Grant Thornton, will be delayed by the ongoing police investigation, with the auditors unable to issue their opinion on the council's financial position until the police investigation is concluded.

Dorset Council said recently that it is hoping to be able to recover at least £1million, linked to the investigations.

At the moment the council is unable to prove whether or not it achieved value for money from the work which was carried out in its name to make buildings and other council sites safe.

Cllr Gary Suttle (Swanage) who chairs the council's audit and governance committee told Monday evening's meeting that everyone was "extremely disappointed" at the speed of the police investigation.

"I gather our legal services have been in contact with them (the Police) recently to try and ensure it its sped up because it's now been a year we have been sat here, waiting for it, and told we can't progress this and that while we wait for the outcome," he said.

The council's legal officer, Jonathan Meyer, told Monday's audit and governance committee : "The police investigation is not a referral that Dorset Council made to the police and the investigation is not an investigation of fraud within the council… they came to us because they were already investigating a supplier and a former temporary member of our staff who were both involved in the health and safety compliance work. That is not an investigation of Dorset Council itself and fraud within the council, it's a separate investigation being undertaken by the police which could have relevance to us, but it's most definitely not an investigation of Dorset Council and fraud within this council," he said.