sec.118Financial controllers

### sec.118 Financial controllers 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. s 118 amd 2010 No. 23 s 299 ; 2019 No. 30 s 66 (sec.118-ssec.1) 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. (sec.118-ssec.2) The department’s chief executive may, by gazette notice, appoint a financial controller for the local government. (sec.118-ssec.3) 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. (sec.118-ssec.4) The local government must cooperate fully with the financial controller. (sec.118-ssec.5) 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. (sec.118-ssec.6) 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. (sec.118-ssec.7) 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. - (a) a local government is not performing its responsibilities properly; or - (b) a local government is not complying with laws applying to the local government, including the Local Government Acts; or - (c) it is otherwise in the public interest for the department’s chief executive to appoint a financial controller for a local government. - (a) implementing financial controls as directed by the department’s chief executive; and - (b) performing other related duties as directed by the department’s chief executive. - (a) a cheque countersigned by the financial controller; or - (b) an electronic funds transfer authorised by the financial controller. - (a) refuse to make a payment; and - (b) advise the department’s chief executive about why the decision, resolution or order is financially unsound. - (a) may cause the local government to become insolvent; or - (b) will result in unlawful expenditure by the local government; or - (c) will result in a disbursement from a fund that is not provided for in the local government’s budget; or - (d) will result in expenditure from grant moneys for a purpose other than the purpose for which the grant was given.