Northamptonshire County Council has been pulled up by auditors for spending millions of ring-fenced money on general expenditure.
Audit firm KPMG said that the money included £13m of receipts from section 106 agreements, £7.9m from cash to fund health projects and £2.8m of transport funding.
In addition, £17m has been discovered not to meet the definition of transformational funding, meaning capital receipts had wrongly been allocated.
