Legal basis for Governance is article 60 of EC Regulation 1083/2006, functions of the managing authority

     The managing authority shall be responsible for managing and implementing the operational programme in accordance with the principle of sound financial management and in particular for :

• 60c) Ensuring that there is a system for recording and storing in computerised form accounting records for each operation under the operational programme and that the data on implementation necessary for financial management, monitoring, verifications, audits and evaluation are collected.
  
• 60d) Ensuring that beneficiaries and other bodies involved in the implementation of operations maintain either a separate accounting system or an adequate accounting code for all transactions relating to the operation without prejudice to national accounting rules.