The council is responsible for managing its money and assets. When doing so, the council must do it right.

The council decides how much council tax to raise. It also decides what charges it makes for the services it provides and how its money is spent. The law makes the council responsible for financial management and the system of financial checks and balances. The council must also make sure that its accounts are prepared and audited each year.

Councils must appoint a Responsible Financial Officer (RFO) to manage its finances. The RFO is usually but not necessarily the clerk. The RFO makes sure the accounts are kept properly.

Checking it’s been done right – internal and external auditors

Internal and external auditors check that the council’s arrangements are right.

The council appoints its own internal auditor who acts as one of the council’s financial checks and balances. The internal auditor must be independent of the council’s management and the other checks and balances. The internal auditor checks that the councils system of checks and balances is working properly. The internal auditor must report their findings to the council at least annually but may report on their work more frequently.

The Auditor General for Wales appoints external auditors for local councils. The external auditor makes sure that the council has effective financial checks and balances and prepared the accounts properly. The external auditor gives an opinion on whether or not the council properly completed its accounts.

Seeing it’s been done right – the public

Members of the public and council tax payers, will want to see that their council has done the right things to manage their community money effectively.

The law allows the public to inspect the council's annual accounts and accounting records before the external audit. The public can also ask questions of the auditor and make an objection to something in the accounts if they wish to.