THE accounts of Penmaenmawr town council may be investigated by the Wales Audit Office.

A member of the public has drawn the attention of the financial watchdog to the authority’s funding problems following a story in the Pioneer, which stated community initiatives face cuts to funding as the town council has exhausted its financial reserves.

A spokesperson for the Wales Audit Office said: “I can confirm we have received correspondence from a member of the public concerning Penmaenmawr Town Council.

“We are considering the issues raised as part of the Auditor General’s annual audit, but it is too early to comment any further at present.”

The council has decided grants to the Pen food bank, the museum and the library will be cut in half next year and the three community centres will not receive automatic grants but will have to make individual applications.

Additionally there will be very little or no money to support organisations which apply for ad hoc grants, such as Big Rock event, children’s play groups, sporting and cultural societies such as the Conwy sea rowing club, and the new majorettes troupe. Provision of community skips will also be cut in half next year.

A report to the council said: “Over the past four years, Penmaenmawr’s income has remained relatively static at approximately £135,000. During the same period expenditure has increased by almost £100,000. To fund the extra expenditure, monies have been withdrawn from the reserve account.”

It added the current reserve stands at £3,700. In October 2015 it was £108,000. But the report also said: “There is no evidence to suggest that any form of malpractice has occurred.”

Several cllrs have expressed concerns about the run down of reserves.

Mayor of Penmaenmawr, Cllr Dafydd Lloyd-Borland, said: “The Audit Office has said this would be a routine check and I welcome any audit. We have nothing to hide, I think we have transparency. I think they will be very pleased. I welcome them coming in. I think we have some very robust governance in place and I welcome them coming in and seeing what we have done.”