Local Authority Accounting
Sections 96 to 106 of the Local Government (Scotland) Act 1973 (the 1973 Act) sets out the statutory requirements for local authorities for accounts and audit. Section 105 provides the Scottish Ministers with powers to issue regulations as necessary to give full effect to sections 96 to 103J of the Act. The Local Authority Accounts (Scotland) Regulations 1985 have been made under section 105 powers.
The Local Government in Scotland Act 2003, makes it the duty of a local authority to observe proper accounting practices. Section 99 of the 1973 Act (as amended) places a duty on auditors, in auditing the accounts of any local authority, to satisfy themselves that proper accounting practices have been observed in the preparation of those accounts.
Within the Act, references to proper accounting practices are deemed to be:
a) those which the local authority is required to observe by virtue of any enactment;
b) those which have been specified in guidance issued by the Scottish Ministers; and
c) those which, whether by reference to any generally recognised, published code or otherwise, are regarded as proper accounting practices to be observed in the preparation and publication of accounts of local authorities.
In the event of a conflict in any respect between the above practices, a) has precedence over b) which has precedence over c). Where no enactments or guidance have been issued on a topic, the Code of Practice on Local Authority Accounting in the United Kingdom (the Code) is accepted as proper accounting practice.
Statutory Accounting Guidance issued by Scottish Ministers
Non-Statutory Accounting Guidance issued by Scottish Ministers
Whole of Government Accounts