Responsibility for financial management and internal control
4.—(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.