In a close scrutiny of its inner workings, Audit Scotland also noted the council had significant concerns about its funding position.

The council’s audit and risk management sub-committee heard today Audit Scotland’s analysis had raised a number of points of concern.

But later, the chairman, Fraser Macpherson, said the administration did not necessarily accept all of the criticism.

The council’s response to claims of a lack of transparency is to review its political decision-making.

But Councillor Macpherson said there was long-standing support among all parties and elected members for the current committee structure.

However, he said other authorities did operate different structures — some of which were based on open “cabinet” style committees — and these would be examined.

“Our elected members appear to like the way we work and all members are members of the major committees. We would argue this results in openness and transparency and any member of the public on a Monday night can come along and see the decision-making process,” he said.

He said the administration was not wholly rebutting the report but felt the structure worked well. “We would defend our committee structure and argue that it works. To that extent, we would not agree with Audit Scotland.”

He said any significant changes needed to come from the electorate —meaning any changes might not appear prior to the May local elections next year — although none of the parties in 2003 featured changes to council structures in their manifestos.

Councillor Macpherson also defended the council’s staffing levels, saying that criticism often painted an unfair picture.

Audit Scotland noted the council had high staffing and absence levels and warned it could not demonstrate its workforce reflected the needs of the city or represented good value for money.

Councillor Macpherson added, “Large urban centres have high levels of deprivation, and this city requires staffing to produce services.

“There is a pattern with certain local authorities under pressure in relation to services, with Dundee and Glasgow clearly similar, and we are very much trying to tackle the issues of deprivation and social inclusion.”

As far as sickness absence levels were concerned, the council had taken a pro-active approach.

Councillor Macpherson agreed there were concerns over council funding, and this had prompted meetings with ministers in the past. They had raised concerns about aggregate external funding and revenue support grant.

“There is a population decline in Dundee which is slowing but nevertheless that impacts on revenue support grant. We have argued for an increase in this grant but we still have to be efficient in the way we provide services,” he said.