A £10,000 grant from Kirklees Council disappeared when it was handed to a drugs forum, it has been revealed.
And council officials have admitted they have given up trying to reclaim the cash.
The council has not revealed any details about the group.
Audits have revealed between £5,000 and £10,000 went missing by the group, which has now ceased.
The missing cash was highlighted in an audit of the council’s financial dealings which in the vast majority of cases were all good.
A spokeswoman for Kirklees Council said of the drug-users forum: “The council, alongside the NHS , had given grant funding to the group.
“The council acknowledged some responsibility to oversee the group, but responsibility in the end was with the management committee of the user forum.
“The amount stolen is uncertain, and the council never gained access to the bank account information, but the amount lost by the user forum was probably in the region £5,000-£10,000. It subsequently ceased to exist.”
But the majority of auditing has revealed examples of good practice in Kirklees – with tens of thousands of financial transactions annually just 11 rated unsatisfactory, they were:
Payments to homecare providers, where it appeared the council were being overcharged.
Client data protection – information left in public view.
Network security – a manager had given another manager log-in and password details.
A grant-funded drug user forum where monies appeared to have been misappropriated by one trustee.
Transactions relating to a resident’s monies were not supported by receipts – a residential home care worker was dismissed and the case it expected to go to court.
Vehicle and fuel thefts from council depots including Reins, Honley .
Missing monies at a cemetery but that was subsequently found.
Two petty cash deficits in Place and Children and Young People’s Service directorate totalling £210.
A Resources (council directorate) whistleblowing allegation.
The spokeswoman added: “The report shows that the council’s Internal Audit team carried out a range of more than 150 assignments, and found that all the council’s core financial processes were sound.
“Audit work did find that things were unsatisfactory in some areas, particularly where we investigated alleged issues and errors in the councils business operations.
“We also found that some private day nurseries do not meet the financial and administrative standards required by grant rules.”
The nursery concerns relate to a lack of documentary evidence to support those claiming free early education and care. It relates to hours of attendance being less than that claimed and follow-up audits are expected.
Another major investigation took place after complaints from the public about Dewsbury Cemetery and the Muslim Mosque Burial Committee (MMBC).
The Examiner reported last year that the council entered into a lease agreement with the MMBC which “in hindsight had commercial flaws”. But it ruled out allegations of personal gain.
Kirklees councillors on the Corporate Governance and Audit Committee considered reports on the council’s auditing practices on Friday.
In Calderdale 26 cases referred to Internal Audit during 2012-13 which required investigation.
It added to a further 11 cases already under investigation from 2011-12.
Of the 37 cases, 30 cases related to staff employed by the council and seven related to non-council staff.