Official watchdogs have given Hambleton District Council a clean bill of health.
The authority has been praised for its progress in developing a community strategy and encouraged to share its good practice with other North Yorkshire councils.
The annual inspection by district auditors looks not only at the financial and operational risks the council faces but also checks how well it is performing and delivering services.
It can identify failing services, suggest remedial action and see how well government policies are working.
This year the team has made no statutory recommendations for action by the authority.
Chief executive Peter Simpson said the opinion of the district auditors was an endorsement of the way in which the council was operating.
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