Accounting records and control systems
4.—(1) Subject to paragraphs (3) and (4), and, in so far as they are not in conflict with those paragraphs, to any instructions given by a relevant authority to its responsible financial officer, that officer must determine, on behalf of the authority—
(a)the form of its accounting records and supporting records; and
(b)its financial control systems.
(2) The responsible financial officer for a relevant authority must ensure on behalf of that authority that the financial control systems determined by that officer in accordance with sub-paragraph (1)(b) are observed and that the accounting records of the authority are kept up to date.
(3) The accounting records must, in particular, contain—
(a)entries from day to day of all sums of money received and expended by the authority and the matters to which its income and expenditure or receipts and payments relate; and
(b)a record of the assets and liabilities of the authority.
(4) The financial control systems determined in accordance with paragraph (1)(b) must include–
(a)measures—
(i)to ensure that the financial transactions of the authority are recorded as soon as, and as accurately as, reasonably practicable;
(ii)to enable the prevention and the 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.