LIVERPOOL council has wasted and misspent taxpayers' money from a £46m grant, the ECHO can reveal.
A damning report by government watchdogs says that council leaders have failed the most vulnerable people, and says some of the city's homeless accommodation is as bad as Edwardian workhouses.
The £46,124,127 of government cash was given to Liverpool to help the needy.
Homeless people, refugees, asylum seekers, young people leaving care, the elderly and women fleeing domestic violence should benefit from the the council's Supporting People 2003/04 programme, for housing and social care.
But the Audit Commission Inspection Report levels heavy criticism at elected councillors and officers, and gives their handling of the fund a "poor" no-star rating with "uncertain" prospects for improvement.
The Audit Commision's 34-page report criticises the Supporting People team for failing to administer the fund properly, leading to a lack of adequate monitoring.
It says the lack of a joint approach between frontline health and social care staff poses high risks to some vulnerable people, and highlights the lack of support for elderly people.
"Only a small proportion - £2,952,000 - of the grant is spent on older people, despite Liverpool having a higher than average number of people over the age of 75 and a high level of emergency admissions of older people to hospital," the report says.