Something at County Hall does not add up – the council’s own accounts. Auditors found accounting errors worth £21 million in last year's finances.

The accounts for 2009/10 were presented to the Audit Commission for inspection in June this year.

However, this came with the admission from County Hall chiefs that there was £21 million unaccounted for.

There was further confusion surrounding the cost of the new Watford fire station, in Lower High Street, the value of which was said to be £2.4million before it was increased to £5.8million. Queries from the auditor, however, found it was later listed as £9.2million.

In the Interim Annual Governance Report presented to the council today (Thursday), the auditor said he had encountered “significant problems” due to “incomplete and inadequate working papers and responses to audit queries”.

The accounts showed the council's general fund was £16.2 million in surplus. However, officers had expected a deficit of £4.5 million, leading to an excess of £20.7 million.

Though council officers failed to identify the mistake, earlier this month the auditor discovered it stemmed from double counting a fixed asset, such as a building.

In his report, the auditor also criticised the council's high turnover of accounting staff, which led to “errors within the accounts and delays in responding to audit queries.

County Councillor Paul Goggins, the Liberal Democrat's Audit representative, said: “This is a shambles. One would expect this kind of mess from poorly run councils - this council is supposed to be a well run council.

“A good example is the concerns raised by the auditor about Watford Fire Station. The auditor can’t even identify whether the finances have been reported correctly.”

Councillor Allan Siao Ming Witherick, a Liberal Democrat member of the Audit Committee, added: “This report makes uncomfortable reading for the Tory administration. For members of the public it is horrifying.

“They pay their council tax in good faith. They trust the Administration to look after it. But this is no longer happening at County Hall.”

The Review has contacted Hertfordshire County Council and is awaiting a response.