Responsibility for financial management
5.—(1) A local authority is responsible for ensuring that the financial management of the authority is adequate and effective and that the authority has a sound system of internal control which—
(a)facilitates the effective exercise of the authority’s functions; and
(b)includes arrangements for the management of risk.
(2) The local authority 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 authority or of a committee of the local authority whose remit includes audit or governance functions.
(4) Following consideration of the findings of the review referred to in paragraph (3) that authority or committee must approve an annual governance statement, prepared in accordance with proper practices in relation to internal control.
(5) The annual governance statement must be signed by the Chief Executive and the Leader of the Council.