A former council manager has avoided jail after fraudulently approving invoices and receiving kickbacks such as an oven, refrigerator and coffee machine.

Lisa Diane Scully, 45, was Newcastle Council's manager of city presentation, and supervised 140 employees before pleading guilty to several fraud offences.

She was in charge of overhauling the local government area's garbage system when she corruptly awarded a tender to a software company, Australian Software Professionals.

The tender was for a new garbage truck GPS tracking system.

Newcastle Local Court heard the company had offered her "anything she wanted".

Over an 11-month period, Scully approved $36,000 worth of fake invoices from the company, buying herself a new oven, refrigerator, cook top and coffee machine, as well as electronic devices.

She pleaded guilty to being an agent corruptly receiving benefit, dishonestly obtaining financial advantage by deception, and being an agent giving false document to a principal with intent.

Magistrate Robert Stone said Scully's offences "involved a deliberate and considered course of conduct".

"In part, the dishonesty was motivated by a desire to obtain goods and other items for personal benefit," he said.

Mr Stone on Friday sentenced Scully to a 20-month intensive correction order (ICO), meaning she has to do 32 hours of community service, be of good behaviour, have regular drug and alcohol tests, and undergo home visits, as well as surveillance and monitoring.

"An ICO is a sentence of imprisonment served by the offender within the community, but with a range of restrictive and treatment conditions," Mr Stone said.

"Here the sum involved is moderate and has been repaid.

"Those factors, in my opinion, combined with her age and antecedents, allow for an ICO."

Magistrate Robert Stone says Lisa Scully must be held accountable for her offences. ( ABC News: Dan Cox )

Ratepayers would be resentful, magistrate says

"In the position she held, the offences represented a significant breach of trust," Mr Stone said.

"She was not subject to any supervision, and was thus able to take advantage of her trusted and senior position.

"Members of the community, particularly the ratepayers of this council, would be resentful and concerned that the tender process was corruptly manipulated, particularly where public funds have been expended."

Mr Stone said there "has to be a denunciation of the offender's conduct and she has to be made accountable".

"It is a dishonest act, committed by this offender in part for greed," he said.

Newcastle Council interim chief executive Frank Cordingley said he was aware of the sentencing decision.

"Council is satisfied with the magistrate's decision, and will not be commenting any further," a statement read.

The ABC has previously been told council had overhauled its systems and processes to stop a similar fraud in the future.