Auditors are warning they can give Somerset County Council’s arrangements for achieving value for money only qualified approval, because its contract with procurement provider South West One is falling so badly behind expectations.
And they warn that the problem could undermine the council’s hopes of avoiding cuts to front line services.
The sum the link-up with computer giant IBM had saved the council by the end of June, five years into the ten-year deal, can be revealed as £13.03million. The council had predicted a saving of £100.63 million by October 31 2012.
The figures are given in the external auditor’s report to the council’s Audit Committee which meets on Thursday.
The council is in a legal dispute with South West One over the level of savings and has remained tight-lipped over the actual sum involved.