Middlesbrough Council staff given mandatory finance training

Middlesbrough Council has warned of a £11.5m hole in its budget

Staff at a council criticised over its governance are being given training in how to follow financial rules.

In January, ministers threatened to inspect or intervene if Middlesbrough Borough Council failed to improve.

Auditors found rules had been broken, undermining the council's reputation and financial standing.

The council said its finance procedures were being updated and staff would face disciplinary action if they did not follow the rules after training.

A council report concluded compulsory training was needed to "drive a culture of robust governance".

Finance director Debbie Middleton told the corporate affairs and audit committee that necessary improvements to the rules had been identified, the Local Democracy Reporting Service said.

Procedures were being updated in a 115-page manual, after which there would be a "comprehensive suite of training", she said.

"Breaching these regulations is actually a disciplinary matter," she said.

"Following that training, there will be really quite pro-active action taken in the event we identify non-compliant staff."

'Mandatory compliance'

Head of finance Justin Weston said the rules spelled out roles, responsibilities, systems and procedures in areas like financial planning and management, setting the budget, spending, funding, fees and charges.

They will also include expanded details on fraud, anti-bribery and anti-money laundering.

These were "key areas where things go wrong for a council", he said.

Mr Weston told councillors: "What we're looking for here is mandatory compliance.

"These rules are here for a particular reason - they are to protect people, to ensure good value for money."

Head of commissioning and procurement Louise Grabham said "not all staff are following the rules at times".

On Tuesday, the council predicted a £11.5m hole in its budget could lead to it halting all spending except for critical front-line services if "robust and timely" action was not taken.