A parish council could be plunged into financial crisis because it has been ordered to repay grant money it was not entitled to.

Manorbier Community Council owes the Welsh Development Agency £1,045, money paid in error for a project which assessed the future needs of the community.

The WDA says it was a clerical error but concern has been expressed within the council that the money was not immediately repaid.

"Our accounts should have identified that fact that we were overpaid but our internal audit didn't pick this up," said retired tax inspector Councillor David Meads.

He has been advised by the local government ombudsman to bring the matter to the attention of the Audit Commission.

It was suggested that the shortfall would have to be met out of the precept, the money residents contribute towards the running of the council.

The issue is just one of a number at the centre of a row over a community appraisal which has led to an on-going fraud squad investigation and a marketing company bill for £4,600.

The row spilled over into a heated debate last week when one of the councillors, Martin Davies, was ordered to leave the council meeting for disorderly behaviour.

The fraud investigation was prompted by an allegation that individuals may have completed multiple appraisal questionnaires.

At the time it was thought that there had to be a 65% response rate for the council to qualify for grant funding but at last week's meeting it was revealed that even a 1% return would have been adequate.

Haverfordwest-based ICT Marketing, which asked that it be made clear that it did not call in police, has issued a county court summons demanding that the bill is paid in full.

The community council is awaiting written advice from its solicitor before it makes a decision.