Hugh Henry, education spokesman for Scottish Labour, said the audit had been a "whitewash".

BBC: Scotland

The Audit Commission's report warned the Labour-controlled council it must improve in its compliance with contract procedure rules, demonstrating good value for money, reporting to elected members and dealing with whistleblowers.

BBC: Wirral Council officers suspended over highways contract

The information came to light during an audit of some contracts started before the new Labour administration took control in last May's election.

BBC: Birmingham Council House