Cosla disputes the report's findings

The study by charity Age Concern Scotland said there was still confusion about what personal care actually means.

And some councils were unsure if they had enough cash to meet demands, it also stated.

But the Convention of Scottish Local Authorities (Cosla), said the report did not accurately reflect how community care was working.

This has been a complex and ambitious policy to deliver Maureen O'Neill, Age Concern Scotland

The charity's report suggested waiting times were problematic and some people found it difficult to choose between different care home providers.

Researchers recommended a revised strategy to provide information on all aspects of community care.

Free personal and nursing care was first recommended in a report by Sir Stewart Sutherland in March 1999 but the Scottish Executive refused to adopt the entire proposals.

In January 2001, the executive performed a U-turn minutes before it looked like losing a crucial parliamentary vote.

'Areas for action'

Maureen O'Neil, Age Concern Scotland director, said the report was a "snapshot" of issues that indicated potential problems.

She said: "This has been a complex and ambitious policy to deliver, and we acknowledge how successful it has been.

"However there are still areas for action. Our survey showed that there is a need for a continuing information strategy, to ensure that older people can find out about what is available when they need it.

"We want to be sure that the money intended for community care services is spent appropriately, and we therefore want to see clear and transparent accounting of the specifically allocated resources."

It is absolutely ludicrous of them to suggest that this policy is breaking down Cosla president Pat Watters

Cosla, however, said the charity was wrong to suggest councils were worried about funding the new care demands.

President Pat Watters said only four of Scotland's 32 local authorities had raised concerns over funding and only one of those was predicting that it would run over budget.

He said: "It is absolutely ludicrous of them to suggest that this policy is breaking down - indeed the implementation of free personal care is a tremendous success.

"This is a new and extremely complex policy from which there was always going to be minor issues that needed picked up along the way - and we are doing this in partnership with the executive."

'Resources adequate'

Deputy Health Minister Frank McAveety insisted the executive and Cosla had been rigorously assessing the progress of free personal care and were satisfied with its implementation.

Mr McAveety also claimed that some of the information in the report was anecdotal and out of date.

"We simply do not recognise the very negative picture painted by this report," he added.

"Resources are more than adequate. We have committed �250m over two years.

"There should be no waiting lists and those assessed should receive free personal care."