After the Katherine Times revealed in June that the club had inexplicably burned through almost $500,000 in cash reserves over four years, board president Stuart Duncan announced on Saturday that “poor governance” and a decline in patronage had sounded the death knell for the Giles Street venue.

When quizzed about whether financial impropriety had been identified in relation to the missing cash reserves, Mr Duncan said that, while there were “indicators” of mismanagement, a forensic audit – which would cost up to $60,000 – would not be undertaken.

“The indicators are everywhere, however, the external auditor also supported our views that a forensic audit was pointless and probably a waste of money,” he explained.

“There’s just nothing in the old files that would lead to an investigation or more likely a conviction.”

Mr Duncan said the board had worked tirelessly to ensure debts worth about $300,000 had been paid and that closing the club immediately would allow it to do so on its own terms.

He added that the club would have remained open in the short term if it had $200,000 in cash reserves.

“The indicators weren’t sufficient that we had enough confidence to trade through until things picked up in April or May, and we were dead scared we weren’t going to being able to pay creditors,” he said.

“The least we can do is close the club with a high degree of dignity and not a train crash.”

Several sporting clubs call the venue home and it is not yet known where their competitions will be relocated to.

With no immediate plans in place to reopen the club, Mr Duncan said he believed its operating model needed to go under the microscope before it could be given a new lease on life.