WORK on a showpiece community went over budget because the correct management procedures were not followed, an inquiry has found.

Easington District Council won the contract to turn a former miners hall, at Murton, into the Glebe Centre, a venue run by the village's community association. But building costs spiralled and the project was completed at nearly £368,000 over the tender price of £1.25m.

Earlier this year an inquiry into the overspend was launched by the council and yesterday its findings were accepted by the audit overview committee.

A council spokesman said: "The council was providing the design services to the community association as well as doing the actual construction work. It is now apparent that proper procedures were not followed to keep the project on course and within budget and expenditure rose well above the tender price.''

The committee recommended that the council does not undertake "contracts of this specialist nature'' in future.

An investigation was launched into the project management to look at concerns raised by the committee and possible action to address them.

"This could involve disciplinary action if employees are found to have been at fault. However, it is not possible to confirm at this stage whether this is the case," the spokesman said.

The overspend will be met from an insurance fund and will not come from the council tax.

The District Auditor has been informed of the inquiry's findings.

The spokesman said: "We accept that mistakes have been made with serious consequences and we will take any measures necessary."