AN INVESTIGATION into how Government regeneration money is managed is continuing after several problems were uncovered at an east Cleveland centre.

As reported last week in The Northern Echo, Redcar and Cleveland Borough Council has stepped in to supervise operations at the South Bank Community Forum, helping ensure that vital programmes are carried out.

The move was prompted by concerns over the handling of Single Regeneration Budget (SRB) cash and the number of staff leaving.

Martin Jefferson, the Redcar and Cleveland SRB manager, said last night: "I can confirm the SRB unit carried out a standard inspection of the forum, which identified a number of systems and financial problems.

"The unit, with full cooperation from the forum, has requested the council's internal audit section to carry out an examination and report on systems and procedures. The investigation is still ongoing, and no evidence of criminal activity has been found.

"During the past few months, the forum has suffered greatly from the loss of key management staff. As an interim measure, the council has seconded staff to the forum to help manage the organisation and assist forum staff to improve their financial management systems to meet the requirements of all their funders."

Mr Jefferson admitted that this is "a difficult time" for the forum, but said the council was keen to help.

Pearl Hall, a forum director, said she expected to be told more about the problems at a meeting today.

She said: "It seems the application forms for funding haven't been put in on time. We are hoping that everything will be sorted out.