Accounting records and control systems
5.—(1) Subject to paragraphs (2) and (4), and, in so far as they are not in conflict with this paragraph, to any instructions given by a relevant body to its responsible financial officer, that officer must determine, on behalf of the body, its—
(a)accounting records, including the form of accounts and supporting accounting records; and
(b)accounting control systems,
and such an officer must ensure that the accounting control systems determined by that officer are observed and that the accounting records of the body are kept up to date.
(2) The accounting records determined in accordance with paragraph (1)(a) must be sufficient to show and explain a relevant body’s transactions and to enable the responsible financial officer to ensure that any statement of accounts or accounting statement which are prepared under these Regulations, comply with these Regulations.
(3) The accounting records determined in accordance with paragraph (1)(a) must 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 or receipts and payments account relate;
(b)a record of the assets and liabilities of the body;
(c)a record of income and expenditure of the body in relation to claims made, or to be made, by them for contribution, grant or subsidy from any Minister of the Crown, a body to whom such a Minister may pay sums out of moneys provided by Parliament or an EU institution; and
(d)a record of any approval given for the purposes of paragraph (4)(c).
(4) The accounting control systems determined in accordance with paragraph (1)(b) must include—
(a)measures—
(i)to ensure that the financial transactions of the body are recorded as soon as, and as accurately as, reasonably practicable;
(ii)to enable the prevention and detection of inaccuracies and fraud, and the reconstitution of any lost records; and
(iii)to ensure that risk is appropriately managed;
(b)identification of the duties of officers dealing with financial transactions and division of responsibilities of those officers in relation to significant transactions; and
(c)procedures to ensure that uncollectable amounts, including bad debts, are not written off except with the approval of the responsible financial officer, or such member of that officer’s staff as is nominated by that officer for this purpose.