Former Exmouth shire officers are facing court accused of falsifying records.

Former Shire of Exmouth CEO Arthur William ‘Bill’ Price and the shire-appointed Ningaloo Centre building superintendent Andrew Jeffrey Forte are on trial in the District Court in Carnarvon.

They are accused of falsifying a July 2016 council agenda item proposing the council contract building company Ocean Reef Productions (ORP) to construct a $1 million aquarium as part of its $30 million Ningaloo Centre project.

It is alleged the former CEO approved the contract without putting it out to tender

Both men have pleaded not guilty.

On the first day of hearings, former shire executive manager of corporate services Suzanne O'Toole told the court that Mr Price informed her he had already signed the contract on May 30, 2016.

“Bill came into my office and sat down and said that he thought twice about telling me something,” she said.

“Then he told me that he had already signed a contract for the acrylic panels for the aquarium.”

Mr Price allegedly deemed ORP a ‘unique provider’ which allows the council to sign a contract without putting it to open tender.

“I asked whether I could talk to some CEOs that I'd worked with or speak to the Local Government Department,” she said.

“He said I was not to contact them. He said he's already taken chances with an audit.”

During cross-examination, Ms O'Toole acknowledged that Mr Price was allowed to issue the ‘unique provider’ determinations, and that it was not her role to consult outside parties.

State prosecutor Nick Cogan alleged the men knowingly wrote a council agenda item proposing the contract, despite already having signed it a month prior.

The pair were accused of having drafted the agenda item to avoid reputational damage for acting without council authorisation.

The prosecutor alleged that both men ignored aquarium costings from building company AAT and concerns about ORP’s finances.

Mr Forte's defence counsel Mara Barone SC said the prosecution misconstrued subcontracting negotiations for concerns about ORP's finances.

She also alleged that AAT was not placed to carry out the contract.

The trial should continue for another week.