Pembrokeshire County Council has been given a clean bill of health in its annual end-of-year report. The 'annual letter', drafted by an independent external auditor, says the county council is performing very well.

It concludes that in 2006/7, the council had proper arrangements to help it achieve economy, efficiency and effectiveness in the use of its resources.

The report, which was presented to the council's 'corporate governance committee' on Monday afternoon, includes a summary of audit, performance and inspection work and reports the council's progress against improvement actions. It was drafted by the appointed auditor and relationship manager on behalf of the auditor general for Wales.

Leader of the council, Clr. John Davies, told the meeting that it was a very reassuring report. "It reflects on the commitment and professionalism of those involved in managing our resources," he said.

"They are the electorate's resources that we look after on their behalf.We must be grateful to have such a positive report," he added.

The report concludes that the council's resources were properly used and accounted for in 2006/7; that its financial statements represented fairly its financial position and that reserves were at an appropriate level with no significant financial health issues.

It adds that the council has appropriate financial management arrangements in place, while a review of significant financial systems found no material weaknesses.