Local Government (Accounts and Audit) Regulations (Northern Ireland) 2006

Accounting records and control systems

3.—(1) Subject to paragraphs (3) and (4), and in so far as they are not in conflict with this paragraph or with any instructions given by a local government body to its chief financial officer, that officer shall determine on behalf of the body, its—

(a) accounting records; and

(b) accounting control systems,

and ensure that the body’s accounting control systems determined by him are observed and that the accounting records of the body are maintained in accordance with proper practices and kept up to date.

(2) The accounting records determined by the chief financial officer on behalf of a local government body in accordance with paragraph (1)(a) shall be sufficient to show the body’s transactions and to enable the chief financial officer to prepare a statement of accounts in accordance with these Regulations.

(3) The accounting records determined by the chief financial officer on behalf of a local government body in accordance with paragraph (1)(a) shall in particular contain—

(a) entries from day to day of all sums of money received and expended by the body and the matters to which the income and expenditure account relate;

(b) a record of the assets and liabilities of the body; and

(c) a record of income and expenditure of the body in relation to the claims made, or to be made, by it for contribution, grant or subsidy from any Northern Ireland department or public authority.

(4) The accounting control systems determined by the chief financial officer on behalf of a local government body in accordance with paragraph (1)(b) shall include—

(a) measures to ensure that the financial transactions of the body are recorded as soon as reasonably practicable and as accurately as reasonably possible, measures to enable the prevention and detection of inaccuracies and fraud, and the ability to reconstitute any lost records;

(b) identification of the duties of officers dealing with financial transactions and division of responsibilities of those officers in relation to significant transactions;

(c) procedures to ensure that uncollectible amounts, including bad debts, are not written off except with the approval of the chief financial officer, or such member of his staff as is nominated by him for this purpose, and that such approval is reported to the body and is shown in the accounting records; and

(d) measures to ensure that risk is appropriately managed.