An astonishing catalogue of staffing problems and a complex budget "conspired" to leave the first phase of the redevelopment of Avenham and Miller Parks more than half a million pounds over budget, Preston Council bosses say.

But a report to councillors, to be debated at a council meeting this week, admits more people should have known about how the scheme was supposed to be managed.

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The report comes less than a month after city bosses admitted a miracle was needed to save the second phase of the scheme, with the council needing to find £1.4m by Christmas.

Problems began in 2006 when senior officers asked for fees to be capped at 12% and any remaining costs to be taken from the council's revenue account.

But that did not happen, resulting in an overspend of £515,000 because fees continued to be charged to the capital account.

And to compound the mistake, when an accountant assigned to the project team, which was monitoring funding, left the council, a new accountant was told there were "no issues arising".

That new accountant then suffered a sporting injury and was off for three months.

The only other officer who knew the capital scheme had reached its limit died before the accountant returned to work. So no-one picked up on the mistake until January this year.

The council's director of finance and business services Bernard Hayes said: "No individual is being blamed in their absence for this problem occurring.

"It is clear that a complex financing package, together with a series of personnel changes, conspired against the council and a relatively simple instruction was not complied with."

Ex-mayor and Riversway Coun Bhikhu Patel today said officers had been "open and honest" about the mistakes.

He said: "The council officers did not manage the project very well and the contractors worked at a great speed at the end instead of programming the work. Overall there is work which needs a lot of remedy, but it is time to move on."

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