Surrey County Council is providing value for money, according to an independent auditor.

The Audit Commission said the council was effectively managing its finances to deliver value for money. District auditor Paul Grady praised the council in his annual audit letter for "identifying and realising savings and maintaining financial balance".

He said the council's Public Value Reviews of all services and functions recognised the need "to consider new ways of working" to reduce costs and provide better services. In addition he highlighted the council’s commitment to being open and transparent.

Surrey County Council leader Dr Andrew Povey said: "It is very reassuring to receive independent confirmation that we are delivering value for money for our residents and our finances are well managed.

"The recognition for our programme of Public Value Reviews is proof that we're continuing to deliver on our commitment to provide residents with the best and most efficient services possible with less public money.

"This report also provides real evidence that we have been ahead of the game in seeking to do things in new, better or different ways in the current climate to make sure any changes have as little adverse impact on residents as possible.

"However, we will never rest on our laurels and as we push on with our aim of becoming a world class organisation our determination to bring further improvements remains as great as ever."

Surrey is planning to pool resources through the Surrey First and regional SE7 public sector initiatives to save millions of pounds. Surrey First is made up of the county council, borough and district authorities and Surrey Police Authority.

SE7 is a group of seven major councils in the South East, including Surrey, Kent, Hampshire and West Sussex, that are working to use their collective purchasing power to drive down costs.

Other notable areas of progress highlighted in the audit for 2009/10 financial year include:

• The council's financial statements for 2009/10 being given an unqualified opinion, in essence a clean bill of health
• The council’s leadership team's "vision and purpose"
• Focusing capital investment in priority areas, such as children’s services and roads
• A "robust and timely" response to the economic downturn
• Quarterly performance scorecards being introduced and monthly budget reports being drawn up for senior politicians
• Good quality Surrey local government pension fund statements.