Frodsham Town Council have taken actions to address the findings of an internal audit which found it to be in breach of financial regulations over the ordering of last year's Christmas tree.

In the report, the auditor noted that the "Council purchased a Christmas tree at a cost of £2,145 (excl VAT) and whilst we have seen evidence that the payment was approved retrospectively by Council, we have not seen evidence that the awarding of the contract in the first place was approved by the Events Committee as required by the Financial Regulations (FRs).

The financial regulations state that expenditure on any items costing over £500 must be approved by "a duly delegated committee of the council," which was in this case the Events Committee, and that "an officer issuing an official order shall ensure as far as reasonable and practicable that the best available terms are obtained in respect of each transaction, usually by obtaining three or more quotations or estimates from appropriate suppliers."

"We were informed that the contract was awarded by the Christmas Festival Working Group (CFWG)," the audit continues. "The order was placed by a councillor, and there are no terms of reference in place for the CFWG."

It therefore recommended that all council working groups that are not sub-committees "should be provided with formal terms of reference that makes it clear they cannot make any decisions or commit the council to a liability.

"The terms of reference should include a remit to provide a report with recommendations for approval to a council committee or sub-committee."

Speaking at Monday's Frodsham Town Council meeting, Cllr Judith Critchley reported that the Christmas Festival Working Group now has its own constitution and bank account.

However, "the Christmas Working Group is not a council working group," as referenced by the audit recommendation, she added. "It is a community working group that is partly funded by the Council."

"Can I just point out," she continued, "that while it says that the order was placed by 'a councillor', it was [actually] placed by a member of the working group.

"But because the Events Committee asked for the invoice to be reissued in the name of the Council, it was changed and my name was put on the new invoice.

"But although I was aware of the tree being ordered, it was not ordered by me."

This correction was supported by Chair of the Events Committee, Cllr Ryan McKeown, who also said: "There is now a formal terms of reference [for the Working Group] that has been agreed and reported back to the Events Committee.

"[The Group] now have ways of working for this year and we've agreed what will be funded by Frodsham Town Council and what will be funded by their own fundraising.

"I think we need to put it to bed now. We all know how much hard work the members of the Christmas Working Group put into [the Festival].

"Perhaps we can work on a letter on [Council] headed paper signed by [the Town Clerk] and me as Chair of Events, which absolves the group from everything, because some people just can't differentiate between what is Frodsham Town Council and what is the Christmas Working Group.

"I think we should do it for their peace of mind; I feel so sorry for those involved in that group.

"Going forward, I'm happy with the ways of working and financial processes proposed for the Christmas Working Group this year.

"We've all agreed to start with a fresh slate and some workable budgets this year."