Although their report issued yesterday states the timeliness of the accounts was improving, it pointed out that auditors had to make statutory recommendations at three councils in relation to their 2012/13 accounts – Banwy Community Council, St Florence Community Council and Kidwelly Town Council.

Around 60% of  annual returns required some form of amendment.

Huw Vaughan Thomas, auditor general for Wales, said: ‘While I am heartened to see a degree of improvement on last year, it is disappointing that there is still considerable scope for town and community councils to improve their financial management and governance arrangements.‘I urge them to read the contents of this report carefully in order to address the systemic weaknesses that are still apparent and which often lead to avoidable audit qualifications.’

New arrangements, which come into force next year in time for the 2015/16 audits, should help councils further improve their financial management and governance, the WAO said. Auditors will examine how councils set and monitor their budgets and how they use internal audit services.