Hi LocumClerk, without knowing why it was suspected to be illegal, we can't really comment, unless someone is complaining that distributing funds from the County Council is a act / action that hasn't been agreed by the Council?
Our Parish Council provided a grant (£4,000) to social services early intervention team to support families in the village, this was a grant to them and not the individuals, to provide up to £200 per struggling family with resources (e.g. new cot, baby grow, taxi fares to parent and baby class), providing that a) we were given a description of what was provided b) they lived in the parish c) to report at the end of the year whether it had made a difference d) to never disclose to us who received it.
Audit were happy, the district were happy.