S.L. 363.1 Art. 4System of accounting.

(1) The Secretary shall -

(a) establish, manage and maintain the system of Council accounting and financial reporting, including timing of reports, according to the chart of accounts and coding structure as specified in these regulations and in the financial procedures;

(b) bring promptly to account, under the proper headings, all moneys and assets received, paid or relinquished by the Council directly or through its bankers;

(c) maintain a positive balance, as determined by the financial situation indicator referred to in sub-regulation (2), between income and expenditure and accrued income and accrued expenditure, ensuring that such positive balance is, unless the Minister approves otherwise in terms of the financial procedures, not less than ten per cent of the allocation approved in terms of article 55 of the Act for that same Local Council financial year, while respecting all obligations for income and expenditure and the execution of Council functions as specified in the Act: Provided that as from 1 October, 2003, to 31 March, 2004, there shall apply a rate of not less than five per cent of the allocation approved in terms of the Act instead of the aforementioned rate of ten per cent applicable for other periods.

(d) immediately inform the Director, as soon as the positive balance is below that expected in terms of paragraph (c), explaining the actions that are intended to be taken by the Council to remedy the situation;

(e) ensure that all financial transactions and accounting procedures are properly recorded and documented in accordance with the Act, these regulations and the financial procedures;

(f) prepare the year end financial statements, submit same to the Council for approval after which they are to be signed by the Mayor and himself. It will be his responsibility to ensure that the statements are submitted to the Auditor General by not later than May 10, of each year, or if this happens not to be a working day, the first following working day.

(2) For the purpose of these regulations, the financial situation indicator shall be the measure to be applied for the purpose of determining a positive balance and as resulting from the difference between the total of all current assets and the total of all current and long term liabilities for the current and subsequent financial years, excluding any long-term commitments approved by the Minister in terms of the Act.