Scarborough to investigate links with Welcome to Yorkshire
Links between a council and a troubled regional tourism organisation are to be investigated.
Scarborough Borough Council said its inquiry would look at its relationship with Welcome to Yorkshire and whether it got "value for money".
The organisation has been hit by a series of problems since the resignation of chief executive Sir Gary Verity in March.
He had "made errors of judgement regarding his expenses," it emerged.
The organisation's chairman also resigned. Two independent investigations have been commissioned.
Sheffield City Council and Hull City Council have both suspended financial support for the organisation pending the outcome of those investigations.
According to the Local Democracy Reporting Service, the Scarborough council's legal director, Lisa Dixon, said an initial piece of work had been carried out when the allegations surfaced, but more work was needed.
Scarborough has hosted the Tour de Yorkshire cycle race for five years.
Last year the council paid £100,000 to the joint organisers, Welcome to Yorkshire and Amaury Sports Organisation (ASO), for the privilege. This year the cost has risen to £125,000 because the resort is also hosting the women's race.
The council pays an annual membership fee of £20,000 to Welcome to Yorkshire and permits its tourism manager to act as a Welcome to Yorkshire area director.