PART 2ACCOUNTING
Proper practices
2. For the purposes of section 2(3) (accounting practices) the accounting practices contained in the following codes of practice are proper practices—
(a)“Code of Practice on Local Authority Accounting in the United Kingdom” published by CIPFA in 2009(1);
(b)“Best Value Accounting Code of Practice” published by CIPFA in 2009(2).
Annual budget
3. For the purposes of section 3 (annual budget) the prescribed date for a financial year beginning on or after 1st April 2012 shall be 15th February.
Accounting for capital expenditure
4. Where expenditure of a council—
(a)is expenditure which falls to be capitalised in accordance with proper practices (“capital expenditure”); or
(b)is treated as being capital expenditure by virtue of regulations made, or a direction given, under section 19(2) or (3),
that expenditure need not be charged to the general fund of the council.
Retirement benefits: accounting treatment
5. For a financial year beginning on or after 1st April 2012, a council shall charge to the general fund an amount equal to the retirement benefits payments and contributions to pension funds which are payable for that financial year.
Duty to make revenue provision in respect of capital expenditure
6. During the financial year beginning on 1st April 2012 and every subsequent financial year, a council shall determine for the current financial year an amount of minimum revenue provision which it considers to be prudent and—
(a)shall charge to the general fund that minimum revenue provision for that financial year; and
(b)may charge to the general fund any amount in addition to that minimum revenue provision,
in respect of the financing of capital expenditure incurred by the council in that year or in any financial year prior to that year.
ISBN 978 1 84508 217 8
ISBN 978 1 84508 211 6