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Crown Entities Act 2004

Crown entity reporting and financial obligations - Other provisions for financial accountability - Miscellaneous

168: Accounting records to be kept

You could also call this:

"Crown entities must keep accurate and easy-to-access accounting records."

Illustration for Crown Entities Act 2004

You need to keep accounting records for a Crown entity. These records must show all transactions correctly and explain them. They must also show the financial position of the Crown entity. You must keep these records in a written form or in a way that they can be easily accessed and turned into written form. The records must be kept so that the financial statements can comply with section 154. They must also be kept so that the financial statements can be easily audited. If the board of a Crown entity does not keep these records, each member of the board can be charged with an offence. They can be fined up to $5,000 if they are found guilty. But you can defend yourself if you can prove that you or the board took all reasonable steps to keep the records, or if you could not have done anything to keep the records.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330574.

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Part 4Crown entity reporting and financial obligations
Other provisions for financial accountability: Miscellaneous

168Accounting records to be kept

  1. The board of a Crown entity must cause accounting records to be kept that—

  2. correctly record and explain the transactions of the Crown entity; and
    1. will at any time enable the financial position of the Crown entity to be determined with reasonable accuracy; and
      1. will enable the members of the Crown entity to ensure that the financial statements of the Crown entity comply with section 154; and
        1. will enable the financial statements of the Crown entity to be readily and properly audited.

          1. The accounting records must be in written form or in a manner in which they are easily accessible and convertible into written form.

          2. If the board of a Crown entity fails to comply with the requirements of this section, every member of the Crown entity commits an offence and is liable on conviction to a penalty not exceeding $5,000.

          3. It is a defence to a member charged with an offence under this section if the member proves that—

          4. the board took all reasonable and proper steps to ensure that the requirements of this section would be complied with; or
            1. he or she took all reasonable and proper steps to ensure that the board complied with the requirements of this section; or
              1. in the circumstances he or she could not reasonably have been expected to take steps to ensure that the board complied with the requirements of this section.

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