The Victorian Local Government Inspectorate is looking into the leak of an internal report at the Moira Shire Council.

Papers from an internal audit report mysteriously made their way to Fairfax Media, which yesterday published claims that the council has repeatedly breached the Local Government Act.

Newspapers alleged that the council had awarded a number of contracts worth over $150,000 each, without conducting a tender process.

The documents were reportedly compiled by an independent accounting firm, which accused the Moira Council of unjustly handing out money to fast-track recovery efforts after floods in 2012.

The contracted accountants reportedly specialise in local government audits and were well-versed in the relevant laws and legislation.

The state’s Local Government Inspectorate will now assess the information and determine whether there is evidence that would necessitate prosecution.