WATFORD COUNCIL'S disastrous accounts are back on track, say senior officials.

A report due to go before the council's policy and resources committee last night (Thursday), by the corporate director of finances and resources Mrs Sharon Burd, concludes that problems with the 1999/01 accounts had been "firmly put in the past".

Councillors were expected to agree the 2000/01 accounts which were salvaged by a team of specialist accountants called in as a result of the previous year's accounting disaster, which was blamed on the introduction of a new computer system and the loss of key staff members.

District auditor Mick West, who was forced to "disclaim" the 1999/00 accounts will begin his assessment of the 2000/01 accounts on Monday and officers expect to have his decision early next year.

Mrs Burd said the best Watford can hope for is he will "qualify" the accounts due to the shaky foundation laid by the disclaimed accounts.

She admitted some systems problems had yet to be ironed out but added these were "small" compared to the muddled state of the borough's financial records going into the new millennium.

Her report showed a net saving on the year of £210,000 and that the general fund balance had reached £969,000, approaching the "prudent balance" of £1million.