Finance

Statutory Definition

One of the main reasons the Council provides a Finance Service is legislation. The authority is bound by the following regulations and codes of practice:

1. Section 151 Local Government Act 1972 states that:

"Every Local Authority shall make arrangements for the proper administration of their financial affairs and shall ensure that one of their officers has responsibility for the administration of those affairs."

1. Local Government Finance Act 1988. Section 113 of this Act requires the Section 151 Officer to be a qualified accountant i.e. a member of one of the CCAB Accounting Bodies.
2. Accounts and Audit Regulations. These requirements are set by Statutory Instrument. They impose responsibilities on the Chief Finance Officer relating to accountancy control, the form of the accounts, balance sheets and internal audit.
3. Local Government and Housing Act 1989. Section 66(4) of this Act defines proper practices as "references to those accounting practices:

• Which the authority are required to follow by virtue of any enactment ; or

• Which, whether by reference to any generally recognised published code or otherwise, are regarded as proper accounting practices to be following in the keeping of the accounts of local authorities, either generally or of the description concerned."

1. CIPFA statements. In accordance with the above, importance is also placed on the various CIPFA published codes of practice. In particular the following are relevant:

• Code of Practice on Local Authority Accounting in Great Britain : A Statement of Recommended Practice.

• Best Value Accounting Code of Practice.

• Accounting for Overheads in Local Authorities in Great Britain.

• Standard Classification of Income and Expenditure.

1. Local Government Act 1972 Section 135. This Section requires Councils to have Standing Orders setting out the internal rules relating to procedures and contracts.

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