Potential conflicts of interest between sponsors and Goulburn Mulwaree Council have prompted the decision.

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Quarry company, Holcim, has sponsored the day for several years but other local businesses have also supported the annual fixture. Since 2009 it has raised thousands of dollars for local charities such as CanAssist, Riding for Disabled, Peanuts Wellbeing Sanctuary and Goulburn Palliative Care and Oncology Support Group.

Holcim's naming rights ended in 2022, prompting council staff to review its overall sponsorship policy. Corporate services director Brendan Hollands said the policy was based on Independent Commission Against Corruption guidelines.

"The review identified the potential conflicts of interest that could be created when sponsorship is accepted from suppliers/contractors and any organisations involved in land development of any form," he reported to Tuesday night's council meeting.

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It also showed the council was required to review all sponsorship arrangements annually. In this case, it meant the council couldn't seek multi-year support of the golf day from Holcim. Further, annual expressions of interest would have to be called.

Councillors decided to cancel the event for this year and seek an annual organisation to run an annual charity golf day.

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Cr Michael Prevedello said it was shame "it had come to this."

"It seems the only thing the council wanted to do was have a fun event and raise money for charity," he said.

"You (Mayor Peter Walker) must be personally disappointed by the way things are going with all the rules and regulations, but I see no other way."

Cr Walker said the event was "probably running the gauntlet" when it started 15 years ago but today, there was greater scrutiny.

"After discussions with our CEO, it has left us a bit vulnerable. I personally don't think there's been anything over that time that's put us under pressure but it doesn't mean someone won't call it out tomorrow," he said.

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The mayor said at one stage, it was staff's role to secure sponsors for the day.

Other factors also influenced the decision to drop the event from council control.

Mr Hollands said the Goulburn Golf Club had changed the sponsorship arrangements from a flat rate to a fee plus a per golfer charge where players numbered more than fifty.

Cr Walker said the council would now work hard to find a community organisation to run the event. If the 'mayoral' tag had to be dropped, then "so be it."

Cr Carol James thanked staff, including Mr Hollands, who had helped make the day a success over the 15 years.

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