Mistakes have been made, but changes are being made

The Audit Commission says financial management at the authority has been inadequate and points the finger of blame at a number of key figures.

Despite making substantial cutbacks, the council has had to borrow more than £12m to pay for day-to-day services.

In its response, the council admits that mistakes have been made but says changes are already being made.

New head

Earlier this month, the council's chief executive, Jim Leivers, took early retirement.

The chief executive of the East Riding of Yorkshire Council is currently in charge until a new head can be found.

In an earlier report in January, the Audit Commission described the performance of North East Lincolnshire Council as "weak".

Commenting on the latest report, the leader of the Grimsby-based council, Keith Brookes, said: "The report formally states what was already known about the council's finances.

"We cannot dwell on mistakes made in the past.

"We have to ensure firstly that they can never happen again and then concentrate on making this council one that the people of North East Lincolnshire can be proud of."