THE row between Cleveland Police Authority and the force's chief constable over a £7.3m "black hole" in its budget has taken another twist.

The Northern Echo has discovered that a letter sent to the authority from District Auditor David Parkin on April 16 showed he believed no individual person or group should be held responsible for the crisis.

Yet its director of finance, Stephen Preval, has been suspended from his post since February, when news of the financial problems came to light.

This morning, a meeting of the authority is expected to go into closed session to hear whether Chief Constable Sean Price believes the investigation into Mr Preval's disciplinary procedure has been handled properly.

Earlier this month, authority members said they were unhappy with the suspension of Mr Preval, who was removed from his post by Deputy Chief Constable Ron Hogg pending the investigation. Mr Price declined to comment on the situation until he reports to this morning's meeting.

Mr Preval's Unison union representative, Donald McCrae, also declined to discuss the situation while the investigation is ongoing.

However, an Audit Commission spokesman confirmed the letter was sent by Mr Parkin detailing his preliminary findings.

The commission's final report revealed how Mr Preval warned as long ago as 1999 that 2004/05 would be a difficult year for funding, saying there would be inadequate resources.

It was only when a new chief executive was appointed in May last year, along with the chief constable and deputy chief constable, that the financial problems were recognised.

The Police Authority also declined to comment on Mr Preval's continuing suspension.