PART 2 Financial management and internal control

4 Responsibility for financial management and internal control
1 A local government body is responsible for ensuring that—
(a) the financial management of the local government body is adequate and effective; and
(b) the local government body has a sound system of internal control which facilitates the effective exercise of its functions and which includes arrangements for the management of risk.
2 A local government body must conduct a review at least once in each financial year of the effectiveness of its system of internal control.
3 The findings of the review referred to in paragraph (2) must be considered at a meeting either of the local government body as a whole or a committee of the local government body whose remit includes audit of governance functions.
4 Following consideration of the findings of the review referred to in paragraph (3) that local government body as a whole or committee must approve an annual governance statement prepared in accordance with proper practices on internal control.