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LOCAL GOVERNMENT ACT 2009 - SECT 110 Councillors liable for improper disbursements

LOCAL GOVERNMENT ACT 2009 - SECT 110

Councillors liable for improper disbursements

110 Councillors liable for improper disbursements

(1) This section applies if—
(a) a local government disburses local government funds in a financial year; and
(b) the disbursement—
(i) is not provided for in the local government’s budget for the financial year; and
(ii) is made without the approval of the local government by resolution.
(2) The local government must, within 14 days after the disbursement is made, publish a notice of the disbursement—
(a) on the local government’s website; and
(b) in other ways the local government considers appropriate.
(3) If the disbursement is not made for a genuine emergency or hardship, the councillors who knowingly agree to the disbursement are jointly and severally liable to pay the local government
(a) the amount of the disbursement; and
(b) interest on the amount of the disbursement, at the rate at which interest accrues on overdue rates, calculated from the day of the disbursement to the day of repayment; and
(c) any fees, charges, penalties or other expenses incurred by the local government in relation to the disbursement.
(4) Those amounts may be recovered as a debt payable to the local government.