Local Government, Planning and Land Act 1980

Accounting Provisions

10 Accounts relating to construction or maintenance work

(1) Every local authority who undertake construction or maintenance work—

(a) under works contracts, or

(b) by way of functional work,

and every development body who undertake construction or maintenance work by way of functional work shall keep, in respect of each of the descriptions of such work specified in subsection (2) below—

(i) a revenue account (in this Act referred to as a " DLO revenue account"); and

(ii) such other accounts as may be directed by the Secretary of State.

(2) The descriptions of construction or maintenance work mentioned in subsection (1) above are—

(a) general highway works:

(b) works of new construction, other than general highway works,, the cost of which in the estimation of the authority or development body will exceed £50,000;

(c) works of new construction, other than general highway works, the cost of which in the estimation of the authority or development body will not exceed £50,000; and

(d) works of maintenance within the meaning of the 1970 -Act, other than such works of maintenance in connection with highways.

(3) In subsection (2) above "general highway works" means—

(a) construction and maintenance work for the purpose of the laying out, construction, improvement, maintenance or repair of highways, other than work for the purpose of the construction of highways which is connected with the carrying out of other works of new construction ; and

(b) the gritting of or clearing of snow from highways.

(4) The Secretary of State may by regulations—

(a) amend subsection (2) above ;

(b) specify descriptions of construction or maintenance work, in addition to the descriptions of such work specified in that subsection, as being descriptions of such work in respect of which a local authority or development body are to be under a duty to keep the accounts mentioned in subsection (1) above.

(5) A statutory instrument containing regulations under subsection (4) above shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(6) In this section " works of new construction " means building or civil engineering works of any description which are not works of maintenance within the meaning of the 1970 Act.

11 Exemption from requirement to keep separate accounts under section 10

(1) Subsection (1) of section 10 above does not require a local authority or development body to keep—

(a) in respect of any description of construction or maintenance work specified in subsection (2) of that section ; or

(b) in respect of any description of such work specified in regulations under subsection (4) of that section,

accounts for any financial year separate from accounts kept for that year in respect of any other description of construction or maintenance work, if the local authority or development body did not at any one time in the previous financial year employ more than thirty persons, other than persons excluded by subsection (2) below, who were engaged (whether wholly or partly) in carrying out construction or maintenance work of that description.

(2) The persons excluded by this subsection are persons engaged wholly or mainly upon the design, development or control of construction or maintenance work.

(3) The Secretary of State may by order specify for the purposes of subsection (1) above a number of persons less than thirty.

(4) The power to make an order conferred by subsection (3) above shall be exercisable by statutory instrument.

(5) A statutory instrument containing any such order shall be subject to annulment in pursuance of a resolution of either House of Parliament.

12 Contents of accounts relating to construction or maintenance work

(1) Subject to subsection (4) below, a local authority or development body may not credit any DLO revenue account in respect of the cost of carrying out any functional work with a sum in excess of the appropriate amount.

(2) Where they have prepared a written statement in accordance with section 9(2)(a) above, the appropriate amount is the amount specified in that statement.

(3) Where they have prepared a written statement in accordance with section 9(2)(b) above, the appropriate amount is an amount calculated in accordance with the method in that statement.

(4) Where the statement allowed for a variation in the appropriate amount in the event of changed circumstances, then if the circumstances arise (but not otherwise) the local authority or development body may credit the account with such sum as the statement allowed for in those circumstances.

(5) Subject to subsections (1) and (4) above, the Secretary of State may give directions—

(a) as to items which are to be included in accounts kept under section 10 above;

(b) as to the method of determining the amount of any item to be included in such accounts;

(c) as to the method of determining the cost of undertaking any construction or maintenance work ; and

(d) as to the extent to which the cost of providing professional, technical and administrative services for the purposes of or in connection with construction or maintenance work of any description is to be treated as part of the cost of undertaking such work of that description.

13 Annual balance sheet etc.

(1) Every local authority who in any financial year undertake construction or maintenance work, whether under works contracts or by way of functional work or both, and every development body who in any financial year undertake construction or maintenance work by way of functional work, shall prepare the documents mentioned in subsection (2) below not later than 30th September in the financial year following that year.

(2) The documents are—

(a) a balance sheet;

(b) a revenue account;

(c) a statement of rate of return.

(3) The balance sheet must show a true and fair view of the state of affairs of the local authority or development body, at the end of the financial year to which it relates, in respect of construction or maintenance work undertaken by them in that year.

(4) Subject to subsection (5) below, a revenue account must show a true and fair view of the financial result of the local authority or development body having undertaken, in the financial year to which it relates, each description of construction or maintenance work to which it relates.

(5) Where by virtue of setion 11 above a revenue account relates to more than one description of construction or maintenance work, subsection (4) above shall have effect as if it required the account to show a true and fair view of the combined financial result of the local authority or development body having undertaken, in the financial year to which the account relates, all the descriptions of construction or maintenance work to which it relates.

(6) A statement of rate of return must give such information as is necessary to show whether, in respect of the financial year to which it relates, the local authority or development body have complied with section 16(1) below.

14 Accounts under section 10 and other local authority accounts

(1) Sections 10, 12 and 13 above are without prejudice to the power of the Secretary of State to make regulations under section 166 of the [1972 c. 70.] Local Government Act 1972 or section 105 of the [1973 c. 65.] Local Government (Scotland) Act 1973 (regulations relating to publication of information and the form, preparation, keeping and certification of accounts, etc.) relating to DLO revenue accounts and accounts required by directions under section 10(1)(ii) above.

(2) Notwithstanding anything in subsection (2) of section 2 of the 1970 Act (local authorities, within the meaning of that Act, to keep a separate account in respect of agreements under section 1), a local authority shall not be required by that subsection to keep a separate account in respect of any agreement under section 1 of that Act which provides for the carrying out of such works of maintenance as are referred to in subsection (1)(d) of that section.