On January 24, a Best Value Notice was issued to Middlesbrough Council and a letter was published on the Department for Levelling Up, Housing and Communities (DLUHC) website.
In a joint statement, Middlesbrough Mayor Andy Preston and Council Chief Executive Tony Parkinson, said: "We remain committed to our Governance Improvement programme and are fully engaged with the Chartered Institute of Public Finance and Accountancy (CIPFA) on this work.
"We’ve already taken steps to address these issues and put in place an action plan, and we’re pleased that DLUHC has acknowledged the progress we’ve made so far.
"We fully acknowledge the seriousness of the Best Value Notice and are committed to demonstrating the progress the DLUHC rightly expect.
"Middlesbrough Council delivers hundreds of services that residents, business and visitors to the town rely on. Our staff do a brilliant job and they have our wholehearted backing and support.
"Alongside our everyday activities, our dedication to ensuring positive cultural and governance changes will continue."
The letter from DLUHC can be read in full on GOV.UK.