Local Government Act 2009

This section applies if the department’s chief executive believes—

a local government is not performing its responsibilities properly; or

a local government is not complying with laws applying to the local government, including the Local Government Acts; or

it is otherwise in the public interest for the department’s chief executive to appoint a financial controller for a local government.

The department’s chief executive may, by gazette notice, appoint a financial controller for the local government.

A financial controller is responsible for—

implementing financial controls as directed by the department’s chief executive; and

performing other related duties as directed by the department’s chief executive.

The local government must cooperate fully with the financial controller.

If a financial controller is appointed, a payment from an account kept by the local government with a financial institution may be made only by—

a cheque countersigned by the financial controller; or

an electronic funds transfer authorised by the financial controller.

If the financial controller reasonably believes a decision, resolution or order to make a payment is financially unsound, the financial controller must—

refuse to make a payment; and

advise the department’s chief executive about why the decision, resolution or order is financially unsound.

A decision, resolution or order is financially unsound if the decision, resolution or order—

may cause the local government to become insolvent; or

will result in unlawful expenditure by the local government; or

will result in a disbursement from a fund that is not provided for in the local government’s budget; or

will result in expenditure from grant moneys for a purpose other than the purpose for which the grant was given.