Canberra's community councils would need to repay unspent government grant money each year, if a new draft deed is agreed upon.
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The proposed deed of grant terms, sent to all community councils in March, proposes greater accountability measures for the annual government funding package provided to the seven councils.
A breakdown of expenditure on all categories of $1000 or more would need to be provided, including the details of the supplier, product and purpose of the expense.
The councils would need to "promptly" repay any money left unspent at the end of the 12-month grant period, provided it was not contractually bound to future expenditure.
Such repayment would apply only to the grant money provided by the government and would not come from the membership fees charged by some of the councils.
The government also encouraged the councils to use "a range of communications channels" such as social media, broader community consultation and direct communication to help engage the residents of their respective districts.
Details of that additional engagement, including the promotion of events or activities and the number of attendees, would form part of the end-of-year report provided to the government.
Community councils have since provided responses to the government and held meetings informing attendees about some of the most significant changes.
Calculations announced at Tuggeranong Community Council's May meeting projected the organisation would need to repay about $7400 if the deed had been introduced.
According to the minutes of the meeting, "some members queried and opposed the requirement to return funds to the government saying these funds could be used for future projects".
In its submission to the government, Weston Creek Community Council was broadly supportive but requested clarification on several of the changes, including providing stipulations on the government's expectations for engagement.
The council's chairman, Tom Anderson, said the unspent funding clause was "fraught with danger", given the official lifespan of the grants did not align with their delivery.
He said the grants were officially provided during a financial year, but reporting and submission requirements meant the money was usually received in January.
"Every year councils carry funds forward past 30 June to enable each council to operate until the next grant is made," he said.
"In most cases this will be 50 per cent or more of funds as expenditures seem to increase in spring."
Mr Anderson suggested the deed be adjusted to reflect the "actual practice" of grant spending.
A revised deed of grant is expected to be provided to the councils this year.