New South Wales Consolidated Acts

LOCAL GOVERNMENT ACT 1993 - SECT 438HC

438HC Operations of financial controller

(1) If a financial controller is appointed to a council, a payment may not be made from any funds of the council unless payment is authorised by the financial controller.

(2) A financial controller may refuse to authorise a payment from the funds of the council if the financial controller reasonably believes that the payment--

(a) may cause the council to become insolvent, or

(b) is unlawful, or

(c) is related to activities not identified in the council's integrated planning and reporting framework, or

(d) is from grant moneys and is not for a purpose for which the grant was given.

(3) If a financial controller is appointed to a council, the council, councillors and members of the staff of the council are required to co-operate with the financial controller and to provide any information or assistance the financial controller reasonably requires to exercise his or her functions.

(4) In particular, the council is to give the financial controller an opportunity to review any proposed compliance report at least 14 days before it is given to the Minister and is to give the Minister a copy of the financial controller's comments (if any) on the compliance report.

(5) A contravention of this section by a council is a failure to comply with a performance improvement order.

(6) A financial controller is to report to the Minister on a council's compliance with a performance improvement order if the council fails to give the financial controller an opportunity to review a proposed compliance report in accordance with this section.