Community Services (Island Council) Accounting Standard 2002
Community Services (Island Council) Accounting Standard
2002
QueenslandCommunity Services
(Torres Strait) Act 1984CommunityServices(IslandCouncil)
Accounting Standard2002Reprinted as in force on 7 June
2002Reprint No. 1*This
reprint is prepared bythe Office of the Queensland
Parliamentary CounselWarning—This reprint is not an
authorised copyNOT FURTHER AMENDEDLAST REPRINT
BEFORE REPEALSee 2007 Act No. 59 s 150*Minor differences in presentation
between this reprint and another reprint with the same number are
dueto the conversion to new styles. The content
has not changed.
Information about this reprintThis
standard is reprinted as at 7 June 2002.The reprint shows
the law as amended by allamendments that commenced on or before
that day (Reprints Act 1992 s 5(c)).Minor editorial
changes allowed under the provisions of the Reprints Act 1992 have
alsobeen made to use aspects of format and
printing style consistent with current draftingpractice (s
35).See endnotes for information about when
provisions commenced.Dates shown on reprintsReprints dated at last amendmentAll
reprints produced on or after 1 July 2002, hardcopy and
electronic, are dated as at the last date of amendment. Previously
reprints weredated as at the date of publication. If a
hard copy reprint is dated earlier than an electronicversion published before 1 July 2002, it
means the legislation was not further amendedand the reprint
date is the commencement of the last amendment.If the date of a
hard copy reprint is the same as the date shown for an electronic
versionpreviously published, it merely means that
the electronic version was published before thehard copy version.
Also, any revised edition of the previously published electronic
versionwill have the same date as that
version.Replacement reprint dateIf the date of a
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s13Community
Services (Island Council) AccountingStandard
2002Community Services (Island Council)Accounting Standard 2002[reprinted as in
force on 7 June 2002]s3Part 1Preliminary1Short
titleThis Standard may be cited as theCommunity Services (IslandCouncil) Accounting Standard 2002.2DictionaryThe
dictionary in schedule 2 defines particular words used inthis
standard.Part 2AdministrationDivision 1Financial information management,control environment and internalcontrols3Financial information management(1)An Island council must develop and
implement a system formanaging its financial
information.(2)The system must provide for the
following—(a)ensuringfinancialtransactionsinwhichthecouncilisinvolvedarerecordedaccurately,completelyandpromptly;
s44s4Community Services (Island Council)
AccountingStandard 2002(b)respondingtoreasonablerequestsforinformationwithin a
reasonable time;(c)providing information on a
cost-effective basis;(d)providing
relevant and reliable information;(e)providing safe custody for its financial
information;(f)ensuring the privacy of personal
information.(3)Beforeintroducingacomputerisedfinancialinformationsystem,orsignificantlychangingacomputerisedfinancialinformationsystem,thecouncil’saccountableofficermustconsult with—(a)thepersonimmediatelyresponsibleforthecouncil’sinternal audit
function, if relevant; and(b)the
auditor-general.4Control environment(1)AnIslandcouncil’saccountableofficermustdevelopandimplementacontrolenvironmentwithinthecouncil,including each of
the following—(a)astrongemphasisonaccountability,bestpracticemanagementofthecouncil’sresourcesandinternalcontrol;(b)an organisational structure, and
delegations, supportiveof the council’s goals and
operations;(c)employmentofqualifiedandcompetentofficers,trainingoftheofficersandassessmentoftheirperformance;(d)ifthecouncilcontrolsanotherentity—theefficient,effective and economic operation of the
entity and themaintenance of accountability for it.(2)In this section—resources, of
an Island council, means the council’s revenue,expenses, assets,
liabilities and information.
s55s6Community Services (Island Council)
AccountingStandard 20025Internal control(1)AnIslandcouncil’saccountableofficermustdevelopandimplement internal controls for any
computerised system formanaging the council’s financial
information.(2)The internal controls must provide for
the following—(a)controlling access to the
system;(b)maintaining an adequate audit trail
for the system;(c)controllingthedevelopmentof,orchangesto,thecouncil’s software applications for
the system;(d)recovering the information if there is
a breakdown of thesystem.Division 2Financial management policies6Policies to be developed by an Island
councilAnIslandcouncilmustdevelopfinancialmanagementpolicies about
the following—(a)contracts for the performance of work,
or provision ofgoods or services, having a cost of less
than $5000;(b)debtors,includingprocedurestobefollowedbythecouncil in—(i)dealing with trade debtors; and(ii)collecting rent;(c)lending amounts to adult residents of its
council area;(d)asset management;(e)internal audit;(f)delegations within the council;(g)the payment of allowances to the
council’s members;(h)conflictsofinterestofthecouncil’smembersandofficers;
s76s8Community Services (Island Council)
AccountingStandard 2002(i)thedisposalofanassethavingamarketvalueofnotmore than
$5000.7Policy for lending to adult resident
of a council areaA policy adopted by an Island council, under
section 25AA ofthe Act, for the lending of amounts to an
adult resident of itscouncil area must state the
following—(a)themaximumamountthatmaybeborrowedbytheresident;(b)howtheloanmustberecordedinthecouncil’sinformation
system;(c)that a loan agreement for the loan
must be entered intoby the council and resident;(d)thetermstobeincorporatedintheloanagreement,including, for example, the interest rate
for the loan;(e)the maximum repayment period for the
loan;(f)the source of funding for the
loan;(g)the procedures to be followed by the
council if there is adefault by the borrower under the loan
agreement.8Policy for conflicts of
interest(1)AnIslandcouncil’spolicyaboutconflictsofinterestofthecouncil’smembersandofficersmustprovideforthefollowing—(a)theprinciplesthataretoguide,andprocedurestobefollowed by, the members and officers
in dealing withsituations that may give rise to a conflict
of interest or aperception of a conflict of interest;(b)howtheprinciplesandproceduresaretobemadeknown
to the members and officers;(c)the
declaration by a council member of a gift receivedbythememberrelatingtotheperformanceofthemember’s duties under the
Act;
s97s9Community Services (Island Council)
AccountingStandard 2002(d)the
declaration by a council officer of a gift received bythe
officer relating to the officer’s employment;(e)recording details of a gift declared under
paragraph (c)or(d),andhowthegiftistobedealtwith,bythecouncil;(f)thedisclosuretothecouncilofadirectorindirectfinancialinterestacouncilofficerhasinanissueconsidered,orabouttobeconsidered,atacouncilmeeting.(2)In this section—giftincludes—(a)agiftofentertainment,hospitality,travelorotherbenefit;
and(b)a gift of a valuable item of
property.Part 3AccountingDivision 1Revenue9Revenue management system(1)An Island council must develop and
implement a system formanaging its revenue.(2)The system must provide for the
following—(a)promptlyidentifyingandcalculating,andaccuratelyrecording,
revenue;(b)promptly collecting
revenue;
s
108s 12Community
Services (Island Council) AccountingStandard
2002(c)ensuring that the protection,
recording and banking ofrevenue comply with sections 24 and
26;1(d)promptly
identifying cash surpluses and deficiencies.Division 2Expenses10Expense identification and control
system(1)An Island council must develop and
implement a system foridentifying and controlling its
expenses.(2)The system must provide for the
following—(a)promptlyidentifyingandcalculating,andaccuratelyrecording,
expenses;(b)requiringappropriateapprovalbeforeincurringanexpense;(c)ensuringanexpenseisonlyincurredforauthorisedpurposes.11Expenditure in emergent or
extraordinary circumstances(1)Before, or as
soon as practicable after, incurring an expense toaddressemergentorextraordinarycircumstances,anIslandcouncilmustmakearesolutionatacouncilmeetingauthorising the expenditure.(2)The resolution must state how the
expenditure is to be funded.Division 3Contracts12Entering into, amending or terminating
contracts(1)Before entering into a contract, an
Island council must haveregard to the following principles
(thecontract principles)—1Sections 24 (Protection of assets) and
26 (Action to be taken when loss of assetidentified)
s
139s 14Community
Services (Island Council) AccountingStandard
2002(a)open and effective competition;(b)value for money;(c)enhancementofthecapabilitiesoflocalbusinessandindustry;(d)environmental protection;(e)ethical behaviour and fair
dealing;(f)enhancementofemploymentopportunitiesforIslanders.(2)An
Island council may only enter into, amend or terminate acontract under its seal.13Contract performance guarantees(1)AnIslandcouncilmustdevelopandimplementasystemfor—(a)decidingwhetheracontract,to be entered
into by thecouncil, must provide for the contractor to
give securityfor the performance of the contract;
and(b)managingthecouncil’scontractperformanceguarantees.(2)In
this section—contract performance guarantee, of
an Island council, meansa security given by or for a
contractor for the performance of 1or more of the
contractor’s obligations under a contract withthe
council.14When quotations are required(1)This section applies if an Island
council requires work to beperformed, or goods or services to be
supplied, having a costof at least $5000 but less than
$30000.(2)Beforeenteringintoacontractfortheperformanceofthework,orsupplyofthegoodsorservices,thecouncilmustinvite at least 3 appropriate persons to
give quotations for theperformance or supply.
s
1510s 15Community
Services (Island Council) AccountingStandard
2002(3)However, if the council is reasonably
satisfied there are only 2appropriatepersonswhocangivethequotations,theinvitation need only be extended to the 2
persons.(4)This section is subject to section
16.(5)In this section—appropriatepersonsmeanspersonswhothecouncilreasonably considers will be able to meet
its requirements forthe performance or supply at a competitive
price.15When tenders are required(1)This section applies if an Island
council requires work to beperformed, or goods or services to be
supplied, having a costof $30000or more.(2)Beforeenteringintoacontractfortheperformanceofthework,orsupplyofthegoodsorservices,thecouncilmustinvite tenders for the performance or
supply.(3)The invitation must—(a)bemadebyadvertisementpublishedinanewspapercirculating in the council’s council area;
and(b)allowatleast21daysafterthepublicationoftheadvertisement for the submission of
tenders.(4)Subsection (5) applies if the
invitation states the council mayinvitepersonswhosubmittenderstoamendthetenderstotake
account of a change in the tender specifications advisedby
the council.(5)The council may invite the persons to
amend their tenders totake account of the change.(6)However, an Island council may enter
into a contract for thepurchaseofamotorvehicleorself-propelledmachineryhavingacostof$30000ormore,withoutcomplyingwithsubsection (2), if before entering into the
contract—(a)the council invited at least 3
appropriate persons to givequotationsforthesupplyofthemotorvehicleormachinery; or
s
1611s 16Community
Services (Island Council) AccountingStandard
2002(b)ifthecouncilisreasonablysatisfiedthereareonly2appropriatepersonswhocangivequotationsforthesupply of the motor vehicle or
machinery—the councilinvited the 2 persons to give the
quotations.(7)This section is subject to sections 16
and 18.(8)In this section—appropriatepersonsmeanspersonswhothecouncilreasonably considers will be able to meet
its requirements forthe supply of the motor vehicle or machinery
at a competitiveprice.16Exceptions to requirement to seek quotations
or tenders(1)AnIslandcouncilmayenterintoacontract,fortheperformanceofworkorsupplyofgoodsorservices,mentionedinsection14or15withoutcomplyingwiththesection if—(a)itissatisfiedthereisonly1supplierreasonablyavailable to it
for the performance or supply; or(b)it is
satisfied an emergency exists for entering into thecontract; or(c)thecontractisenteredintounderapurchasingarrangement, for
the council, established under section17; or(d)the contract is entered into
with—(i)the State or an entity of the State;
or(ii)anotherlocalgovernmentoranentityofanotherlocal government;
or(iii)theCommonwealthoranentityoftheCommonwealth; or(iv)alocalgovernment,oranentityofalocalgovernment, in
another State; or(e)the contract is entered into under an
LGA arrangementwithinthemeaningoftheLocalGovernmentFinanceStandard 1994, section
2.
s
1712s 18Community
Services (Island Council) AccountingStandard
2002(2)Also, an Island council may enter into
a contract mentioned insection 14 or 15 for the supply of
goods, without complyingwiththesection,ifitsuccessfullybidsforthegoodsatanauction.17Establishing purchasing arrangement
for an Islandcouncil(1)IfanIslandcouncilproposestoestablishapurchasingarrangement for
the council, it must invite persons to tenderfor the
arrangement.(2)The invitation must—(a)bemadebyadvertisementpublishedinanewspapercirculating in the council’s council area;
and(b)allowatleast21daysafterthepublicationoftheadvertisement for the submission of
tenders.(3)In considering a tender, the council
must have regard to thecontract principles.(4)An Island council must ensure a
purchasing arrangement forthe council enables the council
to—(a)regularly review the arrangement;
and(b)cancel the arrangement because of the
poor performanceof the provider or supplier under the
arrangement.(5)AnIslandcouncilmustnotestablishapurchasingarrangement for
the council for a period of more than 2 years,unlessitisreasonablysatisfieditismoreeconomicaltoestablish the arrangement for the
period.18Calling for expressions of
interest(1)Subsection(2)appliesifanIslandcouncilresolves,atacouncilmeeting,thatitwouldbeinthepublicinteresttoinvite expressions of interest for the
performance of work, orsupply of goods or services, having a
cost of $30000or more.(2)Thecouncilmayinviteexpressionsofinterestfortheperformance or supply.
s
1913s 20Community
Services (Island Council) AccountingStandard
2002(3)Theresolutionmuststatethereasonsformakingtheresolution.(4)The
invitation for expressions of interest must—(a)bemadebyadvertisementpublishedinanewspapercirculating in the council’s council area;
and(b)allowatleast21daysafterthepublicationoftheadvertisementforthesubmissionofexpressionsofinterest.(5)Thecouncilmayshortlistthepersonswhorespondtotheinvitation and invite the persons on
the short list to tender forthe performance
or supply.19Acceptance of quotation or
tender(1)In deciding which quotation or tender
for the performance ofwork,orsupplyofgoodsorservices,toaccept,anIslandcouncilmustacceptthequotationortendermostadvantageous to it.(2)In
deciding the quotation or tender most advantageous to it,the
council must have regard to the contract principles.(3)However,anIslandcouncilmaydecidenottoacceptanyquotation or tender available to it.20Safekeeping, and register, of
contracts(1)An Island council must—(a)keep the council’s contracts in its
possession in a secureplace; and(b)keeparegisterofthecouncil’scontractsinitspossession or control.(2)In this section—contracts, of
an Island council, means contracts entered intoby the
council.
s
2114s 22Community
Services (Island Council) AccountingStandard
2002Division 4Assets21Asset identification and control
system(1)An Island council must develop and
implement a system forthe identification and control of its
assets.(2)The system must provide for the
following—(a)promptly identifying and recording
assets;(b)using assets appropriately and
efficiently;(c)using assets for authorised purposes
only;(d)protecting assets from loss;(e)acquiring and disposing of
assets;(f)writing off assets.(3)Also, the system must include adequate
internal controls.22Non-current physical assets(1)An Island council must, by resolution
made at a meeting ofthecouncil,setanamount(thethresholdamount)belowwhich the value
of a non-current physical asset owned by itmust be treated
as an expense in the council’s records.(2)The
threshold amount must not be more than $1000.(3)The
threshold amount may be a different amount for differentclasses of non-current physical
assets.(4)Thethresholdamountforaclassofnon-currentphysicalassets must be—(a)recordedinthecouncil’sadministrationandfinancialproceduresmanualpreparedundertheCommunityServices (Torres
Strait) Regulation 1998, section 47; and(b)stated in the council’s annual financial
statements.(5)The council must keep a register
containing details of each ofits non-current
physical assets whose value is equal to or morethanthethresholdamountfortheclassofnon-currentphysical assets
to which the asset belongs.
s
2315s 24Community
Services (Island Council) AccountingStandard
2002(6)Ifanon-currentphysicalassethas,onacquisitionbythecouncil,avaluethatisequaltoormorethanthethresholdamount for the
class of non-current physical assets to whichthe asset
belongs, the acquisition must be treated as a capitalacquisition in the council’s records.(7)Ifanon-currentphysicalassethas,onacquisitionbythecouncil, a value that is less than the
threshold amount for theclassofnon-currentphysicalassetstowhichtheassetbelongs, the
acquisition must be treated as an expense in thecouncil’s records.(8)For
each asset whose details are recorded in the register, thecouncil must keep the documents, that were
the basis for therecording, in a secure place.(9)Atleastonceafinancialyear,thecouncilmustconductastocktake to verify the existence of the
assets whose detailsare recorded in the register.(10)The stocktake’s outcome must be
reconciled with the detailsin the register and any discrepancy
must be investigated by thecouncil.(11)If,
because of the stocktake, a loss of an asset is identified,
theloss must be dealt with by the council under
section 26.23Maintenance of assets(1)AnIslandcouncil’saccountableofficermustdevelopandimplementasystemforthemaintenanceofthecouncil’sassets.(2)The system must provide for the assets
remaining appropriate,and productive, at the lowest possible
long-term cost.24Protection of assets(1)AnIslandcouncil’saccountableofficermustdevelopandimplement a system for the protection of its
assets.(2)The system must provide for the
following—
s
2516s 26Community
Services (Island Council) AccountingStandard
2002(a)cash,notrequiredforthecouncil’sday-to-dayrequirements,beingdepositedwithafinancialinstitution;(b)accesstotheassetsbeingrestrictedtoauthorisedpersons;(c)the assets not being used for private
purposes, or beingkept with private property, without the
council’s writtenapproval;(d)receipt forms, cheque forms, purchase order
forms andother accounting forms being securely stored
and accessto the forms being restricted to authorised
persons;(e)a register of accounting forms being
kept up-to-date.(3)An Island council must ensure any
property held in trust bythecouncilisrecordedseparatelytoitsrecordingofotherassets.25Asset insuranceAn Island council
must—(a)maintain insurance cover for its
assets; and(b)ensure the adequacy of the cover is
reviewed annually;and(c)keep a register
of the details of the cover.26Action to be taken when loss of asset
identified(1)If an Island council’s accountable
officer becomes aware of alossofacouncilasset,theofficermustassoonaspracticable—(a)investigate the circumstances of the loss;
and(b)prepareawrittenreportabouttheloss,includingarecommendation about what action needs
to be taken toprevent the loss recurring.(2)Theaccountableofficermusttablethereportatthefirstmeeting of the
council after the report is prepared.
s
2717s 29Community
Services (Island Council) AccountingStandard
2002(3)Iftheaccountableofficerreasonablysuspectsthelossisaresult of an offence under the
Criminal Code or another Act,the accountable
officer must also give written notice about theloss to—(a)a police officer; and(b)the auditor-general.27Register of losses of assets(1)An Island council’s accountable
officer must keep a register oflosses of its
assets, including money.(2)Theregistermustincludethefollowingdetailsabouteachloss—(a)a
description of the asset, including its value;(b)the
reason for the loss;(c)actiontakenabouttheloss,including,forexample,action taken to
obtain reimbursement;(d)details about any
approval, under section 28, for writingoff the
loss.28Writing off loss of assetAlossofanIslandcouncil’sassetmayonlybewrittenoffwith the approval of the council,
given by resolution made at acouncil
meeting.29Revaluation of non-current physical
assets(1)The following non-current physical
assets of an Island councilmust be revalued by a registered
valuer at least once every 5years—(a)buildings;(b)freehold land.(2)The
revaluation of an asset, under this section, must at leastestablish—
s
3018s 30Community
Services (Island Council) AccountingStandard
2002(a)the asset’s fair value; and(b)the asset’s estimated residual value;
and(c)the asset’s insurable value.(3)In this section—fair
value, of an asset, means the amount that may
reasonablybeexpectedtobeexchangedfortheassetbetweenknowledgeableandwillingpartiesinanarm’s-lengthtransaction.registered
valuermeans a valuer registered under theValuersRegistration Act
1992.30Disposal of
assets(1)AnIslandcouncilmayonlydisposeofanassethavingamarket value of more than $5000by
auction or tender.(2)If an Island council intends to
dispose of an asset by tender,the invitation to
tender must—(a)bemadebyadvertisementpublishedinanewspapercirculating in the council’s council area;
and(b)allowatleast21daysafterthepublicationoftheadvertisement for the submission of
tenders.(3)The council must accept the tender,
received in response to theinvitation, most advantageous to
it.(4)However, subsection (1) does not apply
if—(a)the disposal is to—(i)the State or an entity of the State;
or(ii)anotherlocalgovernmentoranentityofanotherlocal government;
or(iii)theCommonwealthoranentityoftheCommonwealth; or(iv)alocalgovernment,oranentityofalocalgovernment, in
another State; or
s
3119s 32Community
Services (Island Council) AccountingStandard
2002(b)the asset had been offered for sale
under subsection (1),but was not sold; or(c)the asset is being traded-in, for a
fair price, on an item ofplant and equipment.(5)If subsection (4)(b) applies, the
council must ensure the priceobtained on the
disposal must not be less than the highest bidor tender made
for the asset when it was offered for sale undersubsection (1).(6)In
this section—disposal, of an asset,
includes its sale.Division 5Liabilities31Liability identification and control(1)An Island council must develop and
implement a system forthe identification and control of its
liabilities.(2)The system must provide for the
following—(a)only incurring liabilities with
appropriate authority;(b)promptlyidentifying,calculatingandrecordingliabilities;(c)establishing and maintaining adequate
internal controlsover liabilities;(d)satisfying liabilities.32Public liability insuranceAn
Island council must—(a)maintain public liability insurance
cover for the counciland its members and officers;
and(b)ensure the adequacy of the cover is
reviewed annually;and(c)keep a register
of the details of the cover.
s
3320s 33Community
Services (Island Council) AccountingStandard
2002Division 6Enterprise
management33Island council’s enterprise(1)This section applies to a function, or
an operation, of an Islandcouncil that the council has resolved,
at a council meeting, toperform with the intention of making a
profit (anenterprise).(2)The council’s accountable officer
must—(a)prepareatradingstatementfortheenterpriseeachmonth; and(b)tablethestatementatthefirstmeetingofthecouncilafter
the statement is prepared.(3)A trading
statement for the enterprise must include a report ondetails of inventory movements of the
enterprise as providedin AAS 2—Inventories.(4)The council’s accountable officer must
ensure that—(a)subject to subsections (5) and (6), at
least 1 stocktake ofthe enterprise’s inventory is carried out
each month; and(b)details of discrepancies identified by
the stocktake areincludedinareportondetailsoftheenterprise’sinventorymovementsforthemonthinwhichthediscrepancy was identified; and(c)discrepanciesidentifiedbythestocktakeareinvestigated by the officer.(5)If the council resolves at a council
meeting that, because ofthe nature of the enterprise’s
inventory, it is impracticable tocarry out at
least 1 stocktake of the inventory each month, thestocktake may be carried out less
frequently.(6)However, if subsection (5) applies, at
least 1 stocktake of theinventory must be carried out each
financial year.
s
3421s 35Community
Services (Island Council) AccountingStandard
2002Part 4Internal control
and internalaudit34Review of internal controlsAn
Island council’s accountable officer must—(a)at
least once a financial year, conduct a review of, andprepare a written report about, the internal
controls forthe council’s accounting, information and
administrativesystems; and(b)table
the report at the first meeting of the council afterthe
report is prepared.35Internal audit(1)AnIslandcouncilmusthaveaninternalauditpolicyconsistent with
the auditing standards of CPA Australia, theInstitute of
Internal Auditors and The Institute of CharteredAccountants in Australia.(2)Without limiting subsection (1), the
policy must deal with thefollowing—(a)the
scope of the council’s audit function;(b)the
independence of the function;(c)competence and standards;(d)the conduct of audit work;(e)audit planning;(f)confidentiality.(3)The
person who is responsible for conducting internal auditsfor
an Island council must—(a)conduct at least
1 internal audit each financial year andprepare a written
report on the audit; and(b)table the report
at the first meeting of the council afterthe report is
prepared.
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3622s 36Community
Services (Island Council) AccountingStandard
2002Part 5Other
matters36Keeping financial information(1)An Island council must keep its
financial information, in itsoriginal form,
for—(a)iftheinformationrelatesto1financialyear—1yearafterthedaytheauditor-generalhascertifiedthecouncil’sannualfinancialstatementsforthefinancialyear;
or(b)iftheinformationrelatestomorethan1financialyear—1yearafterthedaytheauditor-generalhascertified the council’s annual financial
statements for thelastofthefinancialyearstowhichtheinformationrelates.(2)After the period for which financial
information must be keptunder subsection (1) has ended, the
information may be keptin another form.(3)Despitesubsection(1),anIslandcouncilmustkeepthefinancialinformationmentionedinschedule1fornotlessthan
the period mentioned in the schedule for the information.(4)An Island council must ensure
financial information that mayberequiredinevidenceinaproceeding,orforauditing,iskept
until no longer required even if—(a)for
financial information mentioned in schedule 1—theperiodmentionedintheschedulefortheinformationhas ended;
or(b)forotherfinancialinformation—theperiodmentionedin subsection (1)
for the information has ended.(5)This
section applies even if the State archivist has authorisedthe
disposal of the financial information.(6)In
this section—anotherform,forkeepingfinancialinformation,meanskeeping the information in a form
that—
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3723s 37Community
Services (Island Council) AccountingStandard
2002(a)ensures the integrity and reliability
of data; and(b)enables it to be reproduced with or
without the aid ofanother article or device.State archivistmeans the person
appointed as State archivistunder theLibraries and Archives Act 1988,
section 57.237Legal
documents(1)An Island council must—(a)keep legal documents in its possession
in a secure place;and(b)keep a register
of legal documents in its possession orcontrol.(2)In this section—legaldocumentsincludescertificatesoftitle,contractors’securitybonddocuments,insurancepolicies,investmentcertificates and leases, but does not
include contracts enteredinto by the council.2Now see thePublic Records
Act 2002, sections 21 and 59.
24Community Services (Island Council)
AccountingStandard 2002Schedule 1Minimum periods for keepingfinancial informationsection
36120 years after the financial year to
which the followingfinancial information relates—•thecentralaccountingrecord,including,forexample, the general ledger or, if cash
accountingonlyisused,thesummarycashbookorsimilardocument.210
years after the financial year to which the followingfinancial information relates—•main transaction summary records,
including, forexample,generaljournalsandtransactionsummaries•internal audit reports•system appraisals.35
years after the financial year to which the followingfinancial information relates—•primaryevidentiaryrecords,including,forexample,copiesofformsissuedforvalue,vouchers to
support payments made including paysheetsandacquittancesforcashpaymentsandcheques(ifreturned),chequejournals,invoice(sales)journals,abstractsandsimilarrecordsassociated with the receipt or payment of
money•subsidiaryledgers,including,forexample,inventorycards,accountspayable,accountsreceivable and records relating to assets no
longerheld or liabilities that have been
discharged•supplementary or partial type
accounting records,including,forexample,cashregisterstrips,bankstatements and time
sheets.
25Community Services (Island Council)
AccountingStandard 2002Schedule 1
(continued)42 years after the financial year to
which the followingfinancial information relates—•generalandincidentalsourcedocumentsnotincludedinitems1to3,including,forexample,stock issue and
receivable notes, copies of officialorders,otherthancopiesusedtosubstantiatepaymentsorforunperformedcontracts,bankdepositbooks,bankstatementsandcashbypostbooks.
26Community Services (Island Council)
AccountingStandard 2002Schedule 2Dictionarysection 2AASmeanstheAustralianAccountingStandardsissuedjointly by or for the National Councils of
CPA Australia andThe Institute of Chartered Accountants in
Australia.3accountable officer, of
an Island council, means the council’sclerk.annual financial statements, of
an Island council, means thefinancial
statements mentioned in section 30A of the Act.clerk, of
an Island council, means—(a)thepersonappointedasthecouncil’sclerkundertheCommunityServices(TorresStrait)Regulation1998,section 51; or(b)the
person appointed to act as the council’s clerk undertheCommunityServices(TorresStrait)Regulation1998,
section 53.contract principlessee section
12(1).CPA Australiameans CPA
Australia ACN 008 392 452.financialinformation,ofanIslandcouncil,meansadocument that is part of, or used for,
the council’s financialrecords.goodsincludes products and items.information system, of an Island
council, means the methods,mechanismsandrecordsestablishedwithinthecounciltoidentify,assemble,analyse,classify,recordandreporttransactions and
other events affecting the council.internalcontrol,ofanIslandcouncil,meansthemethodsadopted within
the council—3AAS may appear with a number and a
title, for example, AAS 2—Inventories.
27Community Services (Island Council)
AccountingStandard 2002Schedule 2
(continued)(a)to safeguard its assets; and(b)tochecktheaccuracyandreliabilityofitsaccountinginformation.loss,ofanIslandcouncil’sasset,meansadecreaseineconomicbenefittothecouncil because
of an unauthorisedact or omission in relation to the
asset.non-current physical assets, of
an Island council, means theassets the
council may reasonably expect will provide it witheconomicbenefitsformorethan1year,including,forexample, buildings, land and plant and
equipment.purchasingarrangement,foranIslandcouncil,meansanarrangementfortheperformanceofworkfor,orsupplyofgoodsorservicesto,thecouncilunderagreedpricingconditions or at an agreed price for a
stated period.servicesincludes
professional services.system,ofanIslandcouncil,meansasetofassociatedpolicies,procedures,controlsandinformationsystemsthatcombinetorecordandmanagecertainfinancialtasksandtransactions of the
council.
28Community Services (Island Council)
AccountingStandard 2002Endnotes1Index to endnotesPage2Date to which amendments incorporated
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.283Key . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . .284Table of reprints
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . .295List
of legislation . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .292Date to which amendments
incorporatedThis is the reprint date mentioned in the
Reprints Act 1992, section 5(c). However, noamendments have
commenced operation on or before that day. Future amendments of
theCommunityServices(IslandCouncil)AccountingStandard2002maybemadeinaccordance with
this reprint under the Reprints Act 1992, section 49.3KeyKey to
abbreviations in list of legislation and annotationsKeyAIAamdamdtchdefdivexpgazhdginslapnotfdo in comorigpparaprecpresprevExplanation=Acts
Interpretation Act 1954=amended=amendment=chapter=definition=division=expires/expired=gazette=heading=inserted=lapsed=notified=order
in council=omitted=original=page=paragraph=preceding=present=previousKey(prev)procprovptpubdR[X]RArelocrenumrep(retro)rvsschsdivSIASIRSLsubunnumExplanation=previously=proclamation=provision=part=published=Reprint No.[X]=Reprints Act 1992=relocated=renumbered=repealed=retrospectively=revised edition=section=schedule=subdivision=Statutory Instruments Act 1992=Statutory Instruments Regulation
2002=subordinate legislation=substituted=unnumbered
