Division 5 Accounting records and accounting practices

206   Accounting records and accounting practices to accord with the Code

(1)  A council’s accounting records must be kept in a form that accords with the Code.

(2)  A council’s accounting practices must accord with the Code.

Note. Section 412 of the Act contains the general requirements for the keeping of a council’s accounting records.

207   Responsibility for accounting records

(1)  The responsible accounting officer of a council is responsible for keeping the council’s accounting records.

(2)  The responsible accounting officer must ensure that the accounting records are kept up-to-date and in an accessible form.

(3)  The responsible accounting officer must take all reasonable measures to ensure that:

(a)  all money payable to the council is collected or recovered promptly, and

(b)  appropriate arrangements are implemented for the security and banking of money received by the council, and

(c)  the assets of or under the control of the council are properly accounted for, and

(d)  liabilities are incurred by the council only with the authority of the council and the council’s funds are properly spent in meeting those liabilities, and

(e)  appropriate budgeting and accounting systems (including internal control systems) are established and maintained for the purposes of the council, and

(f)  adequate measures are taken to protect the council’s valuable securities and accounting records from loss, destruction, damage and theft.

208   Production of accounting records

A member of the staff of a council who has control of any of the council’s accounting records must:

(a)  produce those records for inspection and audit in proper order whenever directed or requested to do so by the council’s mayor, responsible accounting officer, general manager (if not the council’s responsible accounting officer) or auditor or by a Departmental representative, and

(b)  render all practicable assistance to the mayor, responsible accounting officer, general manager, auditor or Departmental representative with respect to those records.

209   Particular responsibilities of the general manager

The general manager of a council must ensure that:

(a)  the provisions of the Act, this Regulation and any other written law relating to councils’ financial obligations or the keeping of accounts by councils are complied with, and

(b)  effective measures are taken to secure the effective, efficient and economical management of financial operations within each division of the council’s administration, and

(c)  authorising and recording procedures are established to provide effective control over the council’s assets, liabilities, revenue and expenditure and secure the accuracy of the accounting records, including a proper division of accounting responsibilities among the council’s staff, and

(d)  lines of authority and the responsibilities of members of the council’s staff for related tasks are clearly defined.

210   Council to rectify defects in internal control systems

On becoming aware:

(a)  that the systems for properly accounting for the receipt, investment, handling or expenditure of money by a council are defective or inadequate, or

(b)  that the existing systems established for those purposes are not being complied with,

the Director-General may, by notice in writing served on the council, direct the council to remedy the defect or inadequacy, or to comply with the existing systems. The council must comply with such a direction.

Note. Failure to comply with a direction under this clause may lead to an investigation being held under Part 5 of Chapter 13 of the Act.

211   Authorisation of expenditure

(1)  A council, or a person purporting to act on behalf of a council, must not incur a liability for the expenditure of money unless the council at the annual meeting held in accordance with subclause (2) or at a later ordinary meeting:

(a)  has approved the expenditure, and

(b)  has voted the money necessary to meet the expenditure.

(2)  A council must each year hold a meeting for the purpose of approving expenditure and voting money.

(3)  All such approvals and votes lapse at the end of a council’s financial year. However, this subclause does not apply to approvals and votes relating to:

(a)  work carried out or started, or contracted to be carried out, for the council, or

(b)  any service provided, or contracted to be provided, for the council, or

(c)  goods or materials provided, or contracted to be provided, for the council, or

(d)  facilities provided or started, or contracted to be provided, for the council,

      before the end of the year concerned, or to the payment of remuneration to members of the council’s staff.

212   Reports on council investments

(1)  The responsible accounting officer of a council:

(a)  must provide the council with a written report (setting out details of all money that the council has invested under section 625 of the Act) to be presented:

(i)  if only one ordinary meeting of the council is held in a month, at that meeting, or

(ii)  if more than one such meeting is held in a month, at whichever of those meetings the council by resolution determines, and

(b)  must include in the report a certificate as to whether or not the investment has been made in accordance with the Act, the regulations and the council’s investment policies.

(2)  The report must be made up to the last day of the month immediately preceding the meeting.

Note. Section 625 of the Act specifies the way in which a council may invest its surplus funds.

213   Restrictions on writing off debts to a council

(1)  This clause does not apply to amounts owed to a council for rates or other charges for which the Act, or any other regulation in force under the Act, makes specific provision for writing off those amounts in specified circumstances.

(2)  A council must from time to time, by resolution, fix an amount above which debts to the council may be written off only by resolution of the council.

(3)  A debt of or below that amount can be written off either by resolution of the council or by order in writing of the council’s general manager. In the absence of a resolution under subclause (2), the council’s debts can be written off only by resolution of the council.

(4)  A resolution or order writing off a debt to a council must:

(a)  specify the name of the person whose debt is being written off, and

(b)  identify the account concerned, and

(c)  specify the amount of the debt,

      or must refer to a record kept by the council in which those particulars are recorded.

(5)  A debt can be written off under this clause only:

(a)  if the debt is not lawfully recoverable, or

(b)  as a result of a decision of a court, or

(c)  if the council or the general manager believes on reasonable grounds that an attempt to recover the debt would not be cost effective.

(6)  The fact that a debt is written off under this clause does not prevent the council concerned from taking legal proceedings to recover the debt.