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Budget Responsibility and National Audit BillPage 30

Section 26

SCHEDULE 4 Transitional provision relating to Part 2

Transfer of property etc

1 (1) Before the appointed day the Comptroller and Auditor General must—

(a) 5determine the property, rights and liabilities of the Comptroller and

Auditor General that are to be transferred to NAO in consequence of

the provision made by this Part, and

(b) prepare a scheme describing, in the way the Comptroller and

Auditor General considers appropriate, that property and those

10rights and liabilities.

(2) The scheme must be approved by the Public Accounts Commission.

(3) On the appointed day the property, rights and liabilities described in the

scheme are transferred to NAO.

(4) Sub-paragraph (3) operates in relation to property, rights and liabilities—

(a) 15whether or not they would otherwise be capable of being

transferred,

(b) without any instrument or other formality being required, and

(c) irrespective of any kind of requirement for consent that would

otherwise apply.

(5) 20In sub-paragraph (1) the references to rights and liabilities include

references to rights and liabilities under or in connection with contracts of

employment with staff that were appointed under section 3(2) of the

National Audit Act 1983.

(6) For any purpose relating to a person who becomes an employee of NAO by

25virtue of sub-paragraph (3)—

(a) a period of employment under section 3(2) of the National Audit Act

1983 (including a period that was counted as such a period by virtue

of paragraph 2(3) of Schedule 2 to that Act) is to be treated as a period

of employment with NAO, and

(b) 30the transfer to NAO is not to be treated as a break in service.

(7) Anything done by, on behalf of or in relation to the Comptroller and Auditor

General in relation to anything transferred by sub-paragraph (3) has effect

as if done by, on behalf of or in relation to NAO, so far as necessary or

appropriate for continuing its effect on and after the appointed day.

(8) 35Anything (including legal proceedings) which, immediately before the

appointed day, is in the process of being done by, on behalf of or in relation

to the Comptroller and Auditor General in relation to anything transferred

by sub-paragraph (3) may be continued by, on behalf of or in relation to

NAO.

(9) 40So far as necessary or appropriate in consequence of sub-paragraphs (3) to

(8), a reference to the Comptroller and Auditor General in any agreement

(whether written or not) or instrument or other document is to be treated as

a reference to, or as including a reference to, NAO.

Budget Responsibility and National Audit BillPage 31

(10) Before the appointed day a person’s employment under section 3(2) of the

National Audit Act 1983 is to be treated for the purposes of paragraph 1(2)(c)

and Part 4 of Schedule 2 as if it were employment with NAO.

(11) In this paragraph “the appointed day” means the day appointed for the

5purposes of this paragraph by an order made by the Treasury by statutory

instrument.

Tax consequences of transfers by virtue of paragraph 1(3)

2 (1) For the purposes of the application of Part 5 of the Corporation Tax Act 2009

(loan relationships) in relation to a transfer by virtue of paragraph 1(3), the

10Comptroller and Auditor General and NAO are to be treated as if, at the time

of the transfer, they were members of the same group.

(2) In sub-paragraph (1) the reference to being members of the same group is to

be read in accordance with section 335(6) of that Act.

3 (1) For the purposes of Part 8 of the Corporation Tax Act 2009 (intangible fixed

15assets) a transfer by virtue of paragraph 1(3) of a chargeable intangible asset

of the Comptroller and Auditor General is to be treated as a tax-neutral

transfer.

(2) Part 4 of the Taxation (International and Other Provisions) Act 2010 (transfer

pricing) does not apply in relation to a transfer to which sub-paragraph (1)

20applies.

(3) For the purposes of section 882 of the Corporation Tax Act 2009 (application

of Part 8 to assets created or acquired on or after 1 April 2002) assets acquired

by NAO on a transfer by virtue of paragraph 1(3) are to be treated as if they

were acquired from a person who at the time of the acquisition was a related

25party in relation to NAO.

(4) Expressions used in this paragraph and in Part 8 of the Corporation Tax Act

2009 have the same meaning in this paragraph as they have in that Part.

4 For the purposes of the Taxation of Chargeable Gains Act 1992 a disposal

constituted by virtue of a transfer by paragraph 1(3) is to be taken (in relation

30to both the Comptroller and Auditor General and NAO) to be for a

consideration such that no gain or loss accrues to the Comptroller and

Auditor General.

Old Comptroller and Auditor General to continue to be Comptroller and Auditor General

5 (1) This paragraph applies to the person who is the Comptroller and Auditor

35General immediately before the appointed day.

(2) On and after the appointed day the person—

(a) continues to be the Comptroller and Auditor General and is treated

as having been appointed to that office under this Part, and

(b) holds the office for 10 years less a period equal to that during which

40the person was the Comptroller and Auditor General before the

appointed day.

(3) The person’s remuneration arrangements under section 13 are to be

determined jointly by the Prime Minister and the person who chairs the

Committee of Public Accounts before the appointed day (but are not to cover

45any period before the appointed day).

Budget Responsibility and National Audit BillPage 32

(4) In this paragraph “the appointed day” means the day appointed for the

purposes of this paragraph by an order made by the Treasury by statutory

instrument.

Provision of services

6 (1) 5This paragraph applies in relation to anything done by or on behalf of the

Comptroller and Auditor General under a power that ceases to be

exercisable upon the coming into force of section 16 of this Act.

(2) So far as necessary or appropriate for continuing its effect after the coming

into force of section 16, the thing is treated as having been done by or on

10behalf of the Comptroller and Auditor General under that section.

7 (1) Paragraph 3 of Schedule 3 does not apply in relation to the provision of any

services which, at the time that paragraph comes into force, the Comptroller

and Auditor General has a contractual duty to provide.

(2) But paragraph 8 of that Schedule applies in relation to any such services as

15if they were NAO-approved services.

Indemnification

8 (1) The liabilities covered by section 24 of this Act include liabilities that—

(a) arise before the coming into force of that section, or

(b) arise in relation to any act or omission occurring before the coming

20into force of that section.

(2) For this purpose section 24(3)(d) covers former members of the staff of the

National Audit Office established by section 3 of the National Audit Act

1983.

NAO’s procedural rules before rules made under paragraph 18 of Schedule 2

9 (1) 25This paragraph applies until the first rules under paragraph 18 of Schedule

2 are made.

(2) It applies in relation to any matter to be decided by NAO for the purpose of

preparing or making those rules or for the purposes of paragraph 10 of

Schedule 3.

(3) 30The matter is to be decided—

(a) at a meeting of NAO at which the person who chairs NAO and at

least six other members are present, and

(b) by the majority of votes of the members present and voting on the

matter.

(4) 35But the matter may not be decided unless a majority of the members voting

on the matter are non-executive members.

(5) If the votes are tied, the person who chairs NAO is to have the casting vote,

whether or not that person has already voted on the matter.

Budget Responsibility and National Audit BillPage 33

(6) It is for the person who chairs NAO to call a meeting of NAO by giving

written notice to the other members of the date, time and venue of the

meeting.

Section 26

SCHEDULE 5 5Consequential amendments relating to Part 2

Part 1 Meaning of “old NAO”

1 In this Schedule “old NAO” means the National Audit Office established by

section 3 of the National Audit Act 1983.

10Part 2 Amendments

Exchequer and Audit Departments Act 1866

2 In the Exchequer and Audit Departments Act 1866, omit sections 3 and 6

(which relate to the tenure of, and vacancies in, the office of Comptroller and

15Auditor General).

Exchequer and Audit Departments Act 1957

3 (1) The Exchequer and Audit Departments Act 1957 is repealed.

(2) Sub-paragraph (1) does not affect the position of any person by virtue of

section 1(3A) of that Act (computation of salary of former Comptroller and

20Auditor General for purposes of pension).

Public Records Act 1958

4 In Schedule 1 to the Public Records Act 1958 (definition of public records),

in Part 2 of the Table at the end of paragraph 3 the reference to old NAO is

to be read as a reference to NAO.

25Superannuation Act 1972

5 The Superannuation Act 1972 is amended as follows.

6 (1) In section 13 (the Comptroller and Auditor General), before subsection (1)

insert—

(A1) This section does not apply to a person appointed as Comptroller

30and Auditor General under Part 2 of the Budget Responsibility and

National Audit Act 2011.

(2) Sub-paragraph (1) does not affect the position of the person mentioned in

paragraph 5(1) of Schedule 4 to this Act so far as section 13 of the 1972 Act

applies in relation to that person’s service as Comptroller and Auditor

Budget Responsibility and National Audit BillPage 34

General before the appointed day (within the meaning of paragraph 5(4) of

that Schedule).

7 (1) In Schedule 1 (kinds of employment to which the Act applies), in the list of

“Other Bodies”—

(a) 5omit “National Audit Office.”, and

(b) insert at the appropriate place—

(2) Sub-paragraph (1) does not affect the position of any person who was a

member of the staff of old NAO but who ceased to be a member before the

10appointed day (within the meaning of paragraph 1(11) of Schedule 4).

House of Commons Disqualification Act 1975

8 (1) Schedule 1 to the House of Commons Disqualification Act 1975 (offices

disqualifying for membership) is amended as follows.

(2) In Part 2, insert at the appropriate place—

(3) In Part 3—

(a) omit “Comptroller and Auditor General.” and “Member of the staff

of the National Audit Office.”, and

(b) insert at the appropriate place—

Northern Ireland Assembly Disqualification Act 1975

9 (1) Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975

(offices disqualifying for membership) is amended as follows.

(2) In Part 2, insert at the appropriate place—

(3) In Part 3—

(a) omit “Comptroller and Auditor General.” and “Member of the staff

of the National Audit Office.”, and

(b) insert at the appropriate place—

Parliamentary and other Pensions and Salaries Act 1976

10 (1) In section 6 of the Parliamentary and other Pensions and Salaries Act 1976,

omit subsection (3).

(2) Sub-paragraph (1) does not affect the position of any person by virtue of

35section 1(3A) of the Exchequer and Audit Departments Act 1957.

Race Relations Act 1976

11 (1) In Part 2 of Schedule 1A to the Race Relations Act 1976 (bodies and persons

subject to general statutory duty), under the heading “Regulatory, audit and

inspection
”—

Budget Responsibility and National Audit BillPage 35

(a) insert at the appropriate place—

(b) the reference to old NAO is to be read as a reference to NAO.

(2) Sub-paragraphs (3) and (4) apply in relation to any function that was a

5function of old NAO by virtue of Part 2 of that Schedule.

(3) Anything done by, on behalf of or in relation to old NAO has effect as if done

by, on behalf of or in relation to the relevant person, so far as necessary or

appropriate for continuing its effect after the coming into force of sub-

paragraph (1).

(4) 10Anything (including legal proceedings) which, immediately before the

coming into force of sub-paragraph (1), is in the process of being done by, on

behalf of or in relation to old NAO may be continued by, on behalf of or in

relation to the relevant person.

(5) “The relevant person” means—

(a) 15in relation to matters within NAO’s functions, NAO;

(b) in relation to matters within the Comptroller and Auditor General’s

functions, the Comptroller and Auditor General.

(6) The amendments made by sub-paragraph (1) cease to have effect when the

repeal of the Race Relations Act 1976 by Schedule 27 to the Equality Act 2010

20has effect for all purposes.

Interpretation Act 1978

12 In Schedule 1 to the Interpretation Act 1978, in the definition of “Comptroller

and Auditor General”, omit “appointed in pursuance of the Exchequer and

Audit Departments Act 1866”.

25National Audit Act 1983

13 (1) In the National Audit Act 1983, omit the following provisions—

(a) sections 1, 3(1) to (6), 4 and 5;

(b) paragraphs 1 to 3 of Schedule 2;

(c) Schedule 3.

(2) 30Sub-paragraph (1) does not affect the position of any person by virtue of

paragraph 2(3) or (4) of Schedule 2 to that Act (transfers of staff).

(3) The repeal of section 3(4) of that Act does not affect the position under the

Superannuation Act 1972 of any person who was a member of the staff of old

NAO but who ceased to be a member before the appointed day (within the

35meaning of paragraph 1(11) of Schedule 4).

Finance Act 1989

14 (1) Section 182 of the Finance Act 1989 (disclosure of information) is amended

as follows.

(2) In subsection (4)(a)—

(a) 40in sub-paragraph (i), for “and any member of the staff of the National

Audit Office” substitute “, of the National Audit Office and any

member or employee of that Office or of any member of the staff of

Budget Responsibility and National Audit BillPage 36

the National Audit Office that was established by section 3 of the

National Audit Act 1983”, and

(b) after that sub-paragraph insert—

(ia) of the Comptroller and Auditor General for

5Northern Ireland and any member of the staff

of the Northern Ireland Audit Office,.

(3) In subsection (6), after “Comptroller” insert “and Auditor General, the

Comptroller and Auditor General for Northern Ireland”.

(4) In subsection (11), omit paragraphs (a) and (b).

10Social Security Administration Act 1992

15 (1) In section 123 of the Social Security Administration Act 1992 (unauthorised

disclosure of information relating to particular persons), subsection (8) is

amended as follows.

(2) After paragraph (a) insert—

(aa) 15any member or employee of the National Audit Office;

(ab) any other person who carries out the administrative work of

the National Audit Office or who provides, or is employed in

the provision of, services to that Office;.

(3) In paragraph (i), omit “the National Audit Office or”.

(4) 20In paragraph (j)—

(a) for “either of those Offices” substitute “the Northern Ireland Audit

Office”, and

(b) for “either of them” substitute “that Office”.

(5) After paragraph (j) insert—

(jza) 25the following persons—

(i) any member of the staff of the National Audit Office

that was established by section 3 of the National

Audit Act 1983, or

(ii) any other person who carried out the administrative

30work of that Office, or who provided, or who was

employed in the provision of, services to that Office;.

Taxation of Chargeable Gains Act 1992

16 In section 288 of the Taxation of Chargeable Gains Act 1992 (interpretation),

in subsection (3A), at the end insert—

(k) 35paragraph 4 of Schedule 4 to the Budget Responsibility and

National Audit Act 2011.

National Lottery etc. Act 1993

17 In section 4B of the National Lottery etc. Act 1993 (disclosure of

information), in subsection (4)(f), for “the National Audit Office” substitute

40“the Comptroller and Auditor General”.

Budget Responsibility and National Audit BillPage 37

Employment Rights Act 1996

18 In Schedule 1 to the Employment Rights Act 1996, omit paragraph 22.

Government of Wales Act 1998

19 In Schedule 12 to the Government of Wales Act 1998, omit paragraph 1.

5Government Resources and Accounts Act 2000

20 In Schedule 1 to the Government Resources and Accounts Act 2000, omit

paragraph 18(2), (4) and (5).

Freedom of Information Act 2000

21 The Freedom of Information Act 2000 is amended as follows.

22 (1) 10In section 36 (exempt information: prejudice to effective conduct of public

affairs), in paragraph (i) of subsection (5), after “the National Audit Office”

insert “or the Comptroller and Auditor General”.

(2) The reference in that paragraph to old NAO is to be read as a reference to

NAO.

23 (1) 15In Part 6 of Schedule 1 (public authorities to which Act applies)—

(a) insert at the appropriate place—

(b) the reference to old NAO is to be read as a reference to NAO.

(2) Sub-paragraphs (3) and (4) apply in relation to any function that was a

20function of old NAO by virtue of Part 6 of that Schedule.

(3) Anything done by, on behalf of or in relation to old NAO has effect as if done

by, on behalf of or in relation to the relevant person, so far as necessary or

appropriate for continuing its effect after the coming into force of sub-

paragraph (1).

(4) 25Anything (including legal proceedings) which, immediately before the

coming into force of sub-paragraph (1), is in the process of being done by, on

behalf of or in relation to old NAO may be continued by, on behalf of or in

relation to the relevant person.

(5) “The relevant person” means—

(a) 30in relation to matters within NAO’s functions, NAO;

(b) in relation to matters within the Comptroller and Auditor General’s

functions, the Comptroller and Auditor General.

Public Finance and Accountability (Scotland) Act 2000

24 In section 26D of the Public Finance and Accountability (Scotland) Act 2000

35(asp 1) (disclosure of results of data matching), in subsection (4), for

paragraph (a) substitute—

(a) the Comptroller and Auditor General,.

Budget Responsibility and National Audit BillPage 38

Constitutional Reform Act 2005

25 In Schedule 6 to the Constitutional Reform Act 2005, omit paragraph 7.

Government of Wales Act 2006

26 The Government of Wales Act 2006 is amended as follows.

27 (1) 5In Schedule 5 (provision which may, or may not, be made by Assembly

Measures), in paragraphs 5 and 8, after “Comptroller and Auditor General”

insert “or the National Audit Office”.

(2) Accordingly, the heading to paragraph 8 of that Schedule becomes

Comptroller and Auditor General and National Audit Office”.

28 (1) 10In Schedule 7 (provision which may, or may not, be made by Acts of the

Assembly), in paragraphs 4 and 7, after “Comptroller and Auditor General”

insert “or the National Audit Office”.

(2) Accordingly, the heading of paragraph 7 of that Schedule becomes

Comptroller and Auditor General and National Audit Office”.

15Companies Act 2006

29 The Companies Act 2006 is amended as follows.

30 In section 1230, omit subsection (3)(a).

31 In paragraph A32 of Part 2 of Schedule 2 and paragraph 47 of Schedule 11A

(which provide exceptions to certain restrictions on disclosure of

20information), for “the National Audit Office” substitute “the Comptroller

and Auditor General”.

Corporate Manslaughter and Corporate Homicide Act 2007

32 (1) In Schedule 1 to the Corporate Manslaughter and Corporate Homicide Act

2007 (list of government departments etc to which Act applies), omit the

25reference to old NAO.

(2) In relation to any offence alleged to have been committed by old NAO before

the coming into force of sub-paragraph (1), proceedings may be brought or

continued against NAO as if anything done by, on behalf of or in relation to

old NAO had been done by, on behalf of or in relation to NAO.

30Parliamentary Standards Act 2009

33 In paragraph 1 of Schedule 1 to the Parliamentary Standards Act 2009

(membership of Independent Parliamentary Standards Authority), for sub-

paragraph (3) substitute—

(3) At least one of the members of the IPSA must be a person who is

35eligible for appointment as a statutory auditor by virtue of

Chapter 2 of Part 42 of the Companies Act 2006.

Equality Act 2010

34 In Part 1 of Schedule 19 to the Equality Act 2010 (public authorities: general),

Budget Responsibility and National Audit BillPage 39

before the reference to the Office for Budget Responsibility insert—

Section 27

SCHEDULE 6 Powers of National Assembly for Wales: Auditor General for Wales

5Introductory

1 In this Schedule “GOWA 2006” means the Government of Wales Act 2006.

Assembly Measures

2 Schedule 5 to GOWA 2006 (Assembly Measures) is amended as follows.

3 In Part 1 (matters), under Field 14 (public administration) insert—

(none0) 10Matter 14.1

(none0) The following provision relating to the Auditor General—

(a) the following aspects of the Auditor General’s

terms of appointment—

(i) the period of the appointment;

(ii) 15salary, allowances and superannuation

benefits;

(iii) pensions and gratuities payable after a

person has ceased to be Auditor General;

(b) the number of times a person may be appointed as

20Auditor General;

(c) restrictions on the other offices and positions which

may be held by the Auditor General;

(d) activities of a person who has been (but no longer

is) Auditor General;

(e) 25provision requiring the Auditor General—

(i) to aim to do things efficiently and cost-

effectively;

(ii) to have regard, as the Auditor General

considers appropriate, to the standards and

30principles that an expert professional

provider of accounting or auditing services

would be expected to follow;

(f) the authorisation of persons to exercise functions of

the Auditor General on the Auditor General’s

35behalf (including during a vacancy in the office);

(g) the oversight or supervision of the Auditor General

or of the exercise of the Auditor General’s

functions;

(h) the provision or use of resources for the purposes

40of the Auditor General’s functions including (in

particular)—

(i) the employment and use of staff;

(ii) the procurement and use of services;

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