Cricket NSW has responded to a recommendation made by former NSW police assistant commissioner Peter Parsons, announcing it has appointed a Hunter-based accounting firm to conduct an audit of the social competition's spending.

The Newcastle Herald revealed last year that Mr Parsons had been appointed by Cricket NSW to head a wide-ranging investigation into the troubled Newcastle City and Suburban Cricket Association (NCSCA).

The former top cop has spent months examining the association's administration and finances, following a bitter internal feud that split the board amid allegations of bullying, financial mismanagement and lack of transparency.

During the dispute, former board members Dan Saunders, Andrew Kelly, Roy Capitao and Grant Hutchings were sacked from the board and given lengthy playing bans. The decisions were overturned on appeal by Newcastle Cricket Zone, but NCSCA refused to acknowledge the rulings.

It's understood zone cricket administrator Alan Nichols wrote to Cricket NSW last year outlining his concerns about how the suspensions were handled.

Cricket NSW announced this week that Mr Parsons recommended a review of "the overall governance system and processes within cricket in NSW" and further investigation into the NCSCA finances.

"CNSW accepts these recommendations and has initiated action to achieve both these recommendations," a Cricket NSW spokesman said.

"This involves the engagement of Bottrell Accounting Group to undertake the financial audit and investigation."

NCSCA president Phil Northey said the association was happy to comply with any investigation, but questioned the process to date.

Mr Northey said he would hand over "anything requested", but was concerned appointing Bottrell's was a conflict of interest because the firm worked as NCSCA's auditor previously.

"We're squeaky clean and we're complying through our lawyer," he said.

"But I think the question also has to be asked why not one person from this association has been spoken to for the investigation to date.

"It's baffling how you can complete an interim report without any contact with us. There is an interim report out there, that we have not seen, and we have not been contacted for any input."

The Herald reported in 2019 that questions had been raised about NCSCA expenditure because there were minimal receipts and records kept for more than a decade and an audit had not been carried out since 2004.

Under the organisation's constitution, a financial audit should be done annually.

Questions were raised throughout 2019 by board members about how the not-for-profit association, that survives mainly off members' fees, was spending its money.

From March 2018 to August 2019, there was more than $3000 spent at Bunnings, almost $500 at Super Cheap Auto and numerous purchases at McDonalds, KFC, 7-Eleven, cafes, Club Macquarie, BWS, Coles, Woolworths and Subway.

In six months there was more than $1700 spent at Ezimetal, Raymond Terrace.

In a letter sent out to clubs and players in December 2019, following the completion of a financial audit by Bottrell's, Mr Northey said the association was considered by NSW Fair Trading as a "Tier 2 association", that does not require financial statements to be audited.

"The constitution of the NCSCA does require an audit to be completed," he wrote.

"Therefore, the lack of an audit being completed for many years while not contravening NSW Fair Trading requirements, has not met the requirements of our constitution... We are pleased to say that, as a Tier 2 Association under reduced disclosure requirements, the association has passed."

He went further to detail a raft of changes to be made to the association's financial accountability as part of recommendations from the auditor.

"While there have been no funds unaccounted for, there are a number of long-standing practices approved by previous boards concerning accounting procedures, reimbursements, honorariums and meal/fuel allowances that need to be change," Mr Northey wrote.

Mr Parsons is expected to deliver his final report in the coming months.

Amid the feud, disaffected NCSCA clubs defected to a new Suburban Districts social cricket competition established by Newcastle District Cricket Association last year.

IN THE NEWS:

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: