A SCHOOL development whose budget spiralled and where work has yet to start has been the subject of a scathing internal audit report.

Old Town First School and Nursery in Green Road is set to double in size but the Borough of Poole audit listed a catalogue of "significant weakness" in the whole process.

Concerned parents have organised a petition calling for work to get under way and Liberal Democrats are calling for the resignation of portfolio holder Cllr Tony Woodcock.

A budget of £1.8m was approved in 2005 but a two-stage contract - where the design is agreed and contract awarded but the build cost not confirmed until stage two - saw costs rocket.

A potential £500,000 overspend was pruned back to £164,000 but the scheme was delayed by a year while a new design was drawn up.

A £560,000 children's centre was added and the second design also exceeded its budget. Additional funding was agreed and by November 2006 the total budget had increased to £2.6 million.

The audit listed a catalogue of "significant weakness" in the process, including the lack of tender records.

The report's 16 recommendations were accepted by the service provision scrutiny and audit committee, which added another five.

"This is the worst audit report I have seen in 22 years as a councillor," said Cllr Brian Clements.

"Cllr Woodcock is not the only cabinet member responsible for these matters, he is also a governor of the very school that is now suffering. We are also deeply unhappy about the way the responsibility to improve the eco-standards of its buildings has been avoided," he said.

"How can we have confidence in their ability to deliver the massive £200 million Schools for the Future programme when they have messed up like this?"

Cllr Tony Woodcock, cabinet portfolio holder for children's services, said he had no intention of resigning.

"Having struggled with it for quite a long time I think it's best if I stay and continue to get it right," he said.

"We accept that mistakes were made in the early stages of this project which have subsequently led to the delay we have now."

He said they were close to reaching agreement with the contractors and expected to go ahead with the project in the near future.

"Councillors have decided that from now on we will not embark on this particular form of contract in education capital projects.

"We understand parents' frustrations and will endeavour to ensure that any disruption to their children's education is kept to an absolute minimum," he said.