The public spending watchdog, the Audit Commission, has praised Bradford Council's use of resources.
The results from the latest assessment have resulted in Bradford Council improving its rating from an overall score of two to three.
It means that the Council's use of resources has improved from performing adequately to performing well and consistently above minimum requirements.
The Council was scored on five themes: financial management (three), financial standing (three), internal control (three), financial reporting (two) and value for money (two) with its overall score being three out of four.
Councillor Mohammad Masood, executive member for corporate affairs, said: "We are delighted our score for our use of resources has gone up. It is a good sign that we are heading in the right direction and bodes well for when the local authority is inspected during January next year on its comprehensive performance."
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