MONMOUTHSHIRE council is changing rapidly but needs to be more consistent and balanced in how it accounts for its own performance.

That was the view of the Wales Audit Office (WAO) which released its annual improvement report for the council on Friday.

"The council's clear strategic direction is being driven at a significant pace of change, but due to weaknesses in the way it challenges and evaluates itself, it is not always delivering better performance in services and improved outcomes for citizens," said the report by WAO regional manager Non Jenkins and performance audit lead Nick Selwyn.

The report found the time it takes the authority to process new housing benefit claims is the worst in Wales and progress on improving performance in 2011-12 was mixed.

The council's annual self-evaluation report is well structured but assessing actions in some services is limited, which "weakens accountability", it said.

Estyn has judged the council's performance in education as unsatisfactory, but a new education achievement service created in South Wales means the council is likely to achieve continuous improvement throughout 2012-13.

The number of new private businesses in Monmouthshire has fallen despite the council's new approaches to creating jobs and encouraging growth, and a small number of initiatives in waste management and recycling have been delayed, said the report.

However, the council has a good track record of "managing with less money" and there has been a rise in the number of residents in employment since 2009, from 40,100 to 42,000 in 2011-12.

"It cannot be underestimated how much and how fast the council has changed in the last three years," the report said, praising the council for making new arrangements to monitor and evaluate performance.

The leader of Monmouthshire council, Cllr Peter Fox said the report is clear the council is moving quickly to transform services in order to deliver better outcomes for Monmouthshire citizens.

"We continue to get better at measuring the difference we are making to the lives of Monmouthshire citizens but there is more to do to ensure that we are operating as effectively as possible," he said.