Audit flags conflict-of-interest risks in Queensland council grants

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Posted on 24 Mar 2026

By Matthew Schulz, journalist, Institute of Grants Management

Weak conflict-of-interest controls in council grant allocations are exposing public funding decisions to governance risks, an audit of Queensland local governments has found.

The Queensland Audit Office’s (QAO’s) Local Government 2025 report found “significant deficiencies in some council processes for managing conflicts of interest”, with risks extending to “key decision making, procurement activity, [and] grant allocations”.

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The QAO tabled the report in state parliament in March as part of its annual financial audit across the local government sector.

Auditors warned that conflicts of interest – including financial relationships and personal connections – can “impact, or appear to impact, judgments while performing council work”.

The report says councils must have “appropriate processes to ensure that conflicts of interest are declared and managed” for the sake of transparency and accountability.

Deficiencies in these processes increase the risk that councils cannot demonstrate that funding decisions are free from undue influence.

The audit also identifies broader governance gaps including “missing, incomplete and untimely declarations related to conflicts of interest” and a “lack of compliance with laws and regulations”.

It says properly managing conflicts of interest “builds trust and manages the risk of any perceived wrongdoing”.

The report outlines measures to strengthen conflict-of-interest controls, centred on clearer policies, training and oversight.

It recommends councils maintain tailored policies, codes of conduct and regular training, alongside “registers of interests and conflict of interest declarations” that are kept up to date, particularly in high-risk areas.

Auditors also call for “appropriate risk treatment plans and ongoing monitoring”, and procedures to manage conflicts when they arise, including restricting participation in decision-making.