Councillor Tim Walker will move a motion at Thursday's council meeting calling for the audit in response to a range of community concerns about oversight of $550,000 in grants, delivered as part of a response to the coronavirus pandemic.

Related: 'First in, best dressed' grant scheme prompts call for audit

Concern included the speed at which the grants were approved and whether appropriate oversight could have been applied, and that a marketing company quickly signed businesses up to the program to help increase its client base, among other issues.

Chief executive officer Michael Stretton recommended that an independent audit be carried out, including assessing whether "genuine need" and "innovative solutions" criteria had been met, the administration of the entry and awarding process, and if due diligence had been applied to costings and co-contributions.

In his report, Mr Stretton said it was common for people to "take exception" when they miss out on a grant which could "manifest in complaints about the process".

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"Of course, in most cases such complaints are more conjecture than fact, which is why an independent audit process is important to provide confidence to the community that their rates have been effectively spent," he wrote.

"In recognising the need for an audit of the grants program, it does not in any way lessen the fact that the City of Launceston should be proud of the work undertaken by its officers to assist its community, not only through the grants programme, but the entire $8.9 million Community Care and Recovery Package."

The council reiterated its commitment to releasing a full list of successful grant applicants "once the process is finalised".

It was suspended last week and the council held a closed meeting to discuss the matter, with multiple councillors raising concerns.

Cr Walker's motion will be discussed at this week's council meeting.