Chapter 29:15 URBAN COUNCILS ACT 285 Financial year The financial year of a council shall be the period of twelve months ending on the 30th June in each year: Provided that on the establishment of a council its first financial year shall be the period ending on the 30th June in the calendar year next after the date of its establishment. 286 Books and accounts (1) A council shall cause to be kept such books of account as may be necessary to maintain a true and proper record of all matters relating to the financial transactions of the council, including, without prejudice to the generality of the foregoing, all moneys received and paid, income earned or accrued but not received, and expenditure incurred but not paid, clearly showing the assets and liabilities of the council. (2) The books referred to in subsection (1) shall be kept on the basis of double entry accounting principles in such a manner as to facilitate the preparation of— (a) such balance sheets as may be required by or under this Act or any other law, which shall clearly distinguish between assets and liabilities; and (b) income and expenditure accounts; and (c) such other accounts as the council is required to keep in terms of this section. (3) The books referred to in subsection (1) shall be kept by the treasurer in the office of the council and shall not be removed except by leave of the council or by order of a competent court. (4) The council shall— (a) prepare a balance sheet which reflects a true and fair view of the state of affairs of the council; (b) ensure that the balance sheets and income and expenditure accounts referred to in subsection (2) show a summary of the transactions, under separate headings, of funds and reserves unless such a summary is shown separately as an annexure thereto. (5) The council shall prepare— (a) such separate balance sheets and income and expenditure accounts as may be necessary to reflect a true and fair view of the financial position and transactions of— (i) the parking account referred to in section one hundred and ninety-one; and (ii) the housing account referred to in section three hundred and one; and (iii) the consolidated loans fund referred to in section two hundred and ninety-seven; and (iv) the estates account referred to in section three hundred; and (b) such separate income and expenditure accounts as may be necessary and, if it considers it desirable or if the Minister so directs, balance sheets which reflect a true and fair view of the transactions of— (i) the rates account; and (ii) the electricity account; and (iii) the water account; and (iv) such other accounts as the Minister may direct. (6) When used in any books referred to in subsection (1), the following terms shall have the meanings assigned thereto as follows— “fund” means any amount set aside, either for a specific purpose or for general purposes, and invested solely— (a) in interest-bearing advances to one or more funds or accounts of the council concerned; or (b) in accordance with section three hundred and two; or (c) partly as mentioned in paragraph (a) and partly as mentioned in paragraph (b); “provision” means any amount set aside for the purpose of meeting, either in whole or in part, a known liability the amount of which cannot be calculated with substantial accuracy; “reserve” does not include any amount retained by way of providing for any known liability. 114