A SENIOR county councillor who over-claimed her travel expenses by £257 has blamed the council for her mistake because it failed to pick up her errors in its checking system.

Executive member Terry Lello was investigated after a complaint was made against her and her husband, former county councillor Rob Lello, by three members of the public alleging that they had claimed payment for mileage for which they were not entitled.

While no evidence of fraud was found the internal audit discovered that, between March 2000 and July 2004, Mrs Lello had been claiming over the odds for her journeys from Hayle to County Hall in Truro. The council was originally querying journeys equating to about £800. But after agreed explanations this was reduced to £257.

The confidential report, which the Packet has seen, states that over a six-year period the distance claimed by Mrs Lello changed from 42 miles to 40 miles and then to 38 miles. Auditors used 36.7 miles as a comparison, calculated by the AA's AutoRoute computerised mapping system as the quickest route between their home and County Hall.

But while the report finds that Mrs Lello had overclaimed her mileage and was overpaid by £257 there was no suggestion of fraud or that she had done it intentionally. Anomalies were found with Mr Lello's claims but the council concluded there may have been an acceptable explanation for this and, as it was so long ago, it was decided not to ask him for any repayment.

"The details of the findings have been discussed with Mrs Lello," says the report. "She has found the whole process very distressing because of the implications of her wrongdoing set out in the report. She strongly refutes any implication of deliberate overclaiming, and calls the council's system of checking members' claims to account for not picking up mistakes and anomalies when being processed.

"She rightly points out the difficulties of recalling detailed information for often many years ago."

The council admits that its own guidance had stated at the time of Mrs Lello's claim that the distance for the return journey from Hayle to Truro was 42 miles but had later been removed. Councillors are currently paid 50p a mile for using their own cars to attend meetings.

In its overall conclusion the report said the detailed examination of six years of Mrs Lello's travel claims had revealed a series of anomalies and raised a number of questions.

"First and foremost, I do not believe that there is an underlying culture of overclaiming, or intent to defraud the council," says the report. "It is clear that while Mrs Lello's entries lack sufficient detail to reconstruct destinations and routes followed, particularly after so much time has elapsed, our internal checking systems were inadequate. Basically, we should have challenged any anomalies as they occurred and cleared up the matter with Mrs Lello there and then. This would have been the fairest way to treat her."

But the report's findings cut no ice with one of the original complainants, former Penwith district councillor Owen Philp.

"I am not happy," he said. "I think it is important to point out that in the council's constitution it says quite clearly that the individual is responsible for their claims. She's blaming officers for not checking properly but she is responsible for what she claims. It is no good pleading ignorance and blame other people for what she has done.

"I feel completely vindicated by raising it by the fact that she did overclaim and that they are going to claim money back from her. I think that at least some disciplinary action should be taken. She's still on the executive.

"I wasn't happy with this report. We worked out the mileage ourselves and it works out at 34 miles. We feel 34 miles should be the right route. If she goes the long way she shouldn't claim for it."

Following an investigation of county councillor mileage claims in the Packet last year the council investigated all the members home to County Hall claims against computerised mileage aids.

It found that members regularly do not follow the shortest route, but have their favourite routes to avoid congestion. To accommodate this the council has amended the wording of its guidance note to allow members to use the most convenient route.

In response to Packet inquiries, Mrs Lello yesterday issued the following statement: "As a councillor I have always welcomed the fact that all politicians are open to public scrutiny. I, like nearly all those involved in public life, do so because we want to improve our communities. I try to work to the best of my ability to make sure that residents of Cornwall, and especially those in the Hayle area, receive high quality public services. This is a demanding role, but one I am honoured to take up on behalf of my community.

"This internal audit was instigated following a complaint from a member of the public. Members of the public have the right to question the actions of any elected representative.

"I am extremely pleased that the Internal Audit report has found no evidence to support an allegation of fraudulent intent. It has been a stressful time for me personally, because I believe that I have never knowingly made any inaccurate claims. The report concludes that the problems were caused by inadequacies in the county council's claim checking process.

"I have never deliberately over claimed for travel and subsistence expenses and have co-operated fully with the county council during this deeply distressing process. The report shows, for example, one month where my claims form was not processed, and has been lost in the system. I was paid no travelling expenses for that month. I have now repaid the amount identified by the report.

"I welcome the changes to the county council's claim checking process, which are now much more rigorous than previously. The new process will ensure that any inaccuracies are identified at the time they are submitted for payment."