Fears have been raised over a problem with a sharing agreement between South Ribble and Chorley councils.
At a full council meeting Coun Paul Wharton asked whether South Ribble’s statutory financial officer, shared with Chorley Council, had been recalled.
Coun Wharton said: “In the light of strong rumours, both at South Ribble Council and Chorley Council, could the leader please explain the situation regarding the council’s section 151 statutory financial officer.
“And could the leader confirm that the 151 officer, appointed by this council, has been recalled by Chorley Council and if so, is the sharing agreement still in place?”
Legal and monitoring officer David Whelan said: “Yes we are statutory compliant.”