Police authority chiefs have pledged action after auditors revealed "significant weaknesses" in their financial management and accounting procedures.

The promise to address areas of concern was made yesterday as North Yorkshire Police Authority members agreed a modest rise in the council tax bill of 2.62 per cent.

The increase to the authority's precept - the amount added to everyone's tax bill for the cost of policing - will increase their share of bills for Band D properties to £176.

The rise is a far cry from the 76 per cent hike in 2003 - which was the highest in the country - and last year's ten per cent increase.

In their report, auditors said that insufficient information had been supplied to confirm that the significant increase in funds made through the 2003 council tax increase had been properly applied.

They also revealed that the authority's reserves had grown to £25m.

Harrogate and Knaresborough MP Phil Willis earlier accused the authority of using the hike to build up massive balances rather than improve front-line policing.

The authority defended its actions, stating that it needed to meet a pension's liability deficit of £14m over the period 2007/09 and that it was building a reserve to pay for it, rather than having to meet the cost by raising the council tax enormously in those years.

The authority also stated that it was building up its contingency reserve, and holding a reducing reserve being used to cover the rest of the massive re-investment programme which was the main reason for the 2003 council tax rise.

Chief constable Della Cannings told members yesterday that she was "saddened" by the auditors' report.

She explained that the authority and police force had developed rapidly over the last two years. This may have led to "a lack of absolute clarity" about the roles and responsibilities of the authority, force and officers and how the authority's decision-making process should be used to meet its financial oversight responsibilities.

But she stressed: "This is a time for a considerable amount of consolidation. That is not about slowing down and going backwards, but to maintain that level of doing things."

She said the authority should work to ensure there was support whenever a department was not achieving, and stressed the importance of openness and good communication to ensure issues were tackled early.

She said senior members had "a major role" to play in the authority progressing the action plan and ensuring targets were achieved on time.

Authority treasurer John Kirman said that he, alongside the chief constable, director of finance and clerk, had been instrumental in compiling a charter of financial requirements to address all the auditors' concerns and were all "fully committed" to it.

The charter sets out issues such as steps being taken and the timetable agreed to ensure that final accounts statements meet the Audit and Accounts Regulations.

Yesterday, the Evening Press revealed how council bosses looked set to agree a rise of 4.87 per cent rise this year - a £52.12 increase for Band D properties. North Yorkshire Fire Authority will meet on Monday to make a decision on its proposed increase.

Updated: 10:17 Tuesday, February 08, 2005