Ms Upton said it was "simply not good enough" that Hay Shire Council failed to ensure that all credit card transactions were accounted for with appropriate documentation, including receipts.

She said she had serious concerns following allegations former general manager of Hay Shire Council, Allen Dwyer, spent more than $500,000 on a corporate credit card.

Documents obtained by the ABC under freedom of information laws revealed Mr Dwyer's spending included $73,600 in cash advances, often in $200 amounts.

According to the ABC, documents also showed that personal items were charged to the credit card, including groceries, pharmacy items and antiques.

It also reported that Mr Dwyer had permission from the council to charge the card for personal expenditure like fuel, Wi-Fi and private travel and was repaying the money in monthly deductions.

Ms Upton said she would introduce new measures to ensure local councils properly managing credit cards.

The measures include asking the Office of Local Government to launch a formal investigation into Hay Shire Council’s credit card expenditure and accounting practices and requiring all councils to have an audit, risk and improvement committee.

Ms Upton will also ask the NSW Auditor-General to undertake a statewide performance audit of credit card usage at local councils.

"This package of measures will help ensure council credit cards are not abused and they have the right mechanisms in place to account for all expenditure and identify any irregularities,” Ms Upton said.

“The community rightfully expects their local council to be responsible when it comes to spending their hard-earned ratepayer dollars.

“All councils in NSW must ensure that they have proper financial management systems in place to regulate credit card expenditure by their staff.”

Mr Dwyer is now the general manager of the Cootamundra-Gundagai Shire Council but the ABC reported he was suspended for two weeks on full pay while council reviews its book-keeping processes.

Sydney Morning Herald