A community council has been criticised for not maintaining proper accounting records and failing to demonstrate proper management of public funds.
Problems at Cynwyd Community Council near Corwen emerged after its former clerk left.
A report by the Auditor General for Wales highlights failings in its financial management and governance.
It says for 2015-16 and 2016-17, the council didn't maintain proper accounting records or maintain a website, therefore failing to electronically publish information that is required by law.
The council receives £3,000 in income each year from taxpayers but has been operating without a clerk since 2016.
They are legally obliged to have their accounts available for auditing.
But annual returns from 2015-17 were delayed and the auditor faced "repeated difficulties" in making contact with and obtaining information from the former clerk.
The auditor, assistant auditor general, Anthony Barrett said: "I expanded the scope of my work due to the increased risk associated with late completion and submission of accounts and failures to comply with requests for information for the purpose of the audit."
He found records were incomplete, there were no supporting invoices or receipts in the manuscript cashbook and the council were unable to provide original bank statements.
The council completed the 2016-17 cashbook from duplicate bank statements, the auditor also discovered.
He found that the council didn't have a website to allow it to publish notices and other documents electronically either.
Mr Barrett said he was unable to conclude whether or not annual returns "properly present the council's income and expenditure for the year and its financial position as at March 31, 2016 and 2017."
He also couldn't say whether there was compliance with all statutory provisions related to the accounts and if they were compiled in accordance with proper practices.
In his recommendations, the auditor states: "The council has already taken some important steps to address the weaknesses identified during the audit.
"In response to my initial findings, the council noted that the membership of the council has changed since the 2016-17 financial year.
"The council states that since 2016-17, all payment records, receipts and documentation are all accounted for.
"Nevertheless, further improvements are required to ensure the council meets the standards that are expected of community councils in Wales."
He made three recommendations which include:
* The council must ensure that it establishes and maintains proper accounting records and internal financial control systems in accordance with the Accounts and Audit (Wales) Regulations 2014.
* The council must ensure that it sets up a website as soon as possible to enable it to comply with the requirements of the Local Government (Democracy) (Wales) Act.
* The Council must ensure that it identifies which documents it is required to publish electronically and makes appropriate arrangements to post these on its website promptly.
The council is now required to consider the report at a full meeting within one month and decide what actions to take, whether the recommendations are accepted and it must also make a response in writing.
