THE District Auditor investigating Watford Council's finances described them as "unknown territory" and said there were "vast" problems with even the most basic financial systems.

Half a million pounds has been written off in the 2000/2001 accounts because of the failings. The amount is similar to next year's tax rises.

Among the most damning indictment of the 2000/2001 accounts was the DA's assertion there was "little evidence that systems are reconciled on a regular basis".

It led to £15 million in council tax payments appearing in an unexplained area, something the DA said "set alarm bells ringing".

The council, with a budget of more than £50 million, has for a second year failed to properly reconcile accounts.

Council leader Vince Muspratt said there was "no question" of him resigning over the matter.

For a full report, see the printed edition of The Watford Observer on Friday, February 22.