House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

41

House of Commons

Tuesday 5 November 2013

Public Bill Committee

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Local Audit and Accountability Bill [Lords]

Note

The Amendments have been arranged in accordance with the Resolution of the

Programming Sub-Committee [4 November 2013].

Resolution of the Programming Sub-Committee

The Programming Sub-Committee appointed by the Speaker in respect of the Bill

agreed the following Resolution at its meeting on Monday 4 November (Standing Order

No. 83C):

That—

(1)
the Committee shall (in addition to its first meeting at 8.55 am on Tuesday 5

November) meet—

(a)
at 2.00 pm on Tuesday 5 November;

(b)
at 11.30 am and 2.00 pm on Thursday 7 November;

(c)
at 8.55 am and 2.00 pm on Tuesday 12 November;

(d)
at 8.55 am and 2.00 pm on Tuesday 19 November;

(e)
at 11.30 am and 2.00 pm on Thursday 21 November;

(2)
the proceedings shall be taken in the following order: Clause 1; Schedule 1;

Clause 2; Schedule 2; Clauses 3 to 7; Schedule 3; Clauses 8 and 9; Schedule

4; Clauses 10 to 17; Schedule 5; Clause 18; Schedule 6; Clauses 19 to 23;

Schedule 7; Clauses 24 to 28; Schedule 8; Clauses 29 to 32; Schedule 9;

Clause 33; Schedule 10; Clauses 34 and 35; Schedule 11; Clauses 36 to 42;

Schedule 12; Clauses 43 and 44; Schedule 13; Clauses 45 to 47; new Clauses;

new Schedules; remaining proceedings on the Bill;

(3)
the proceedings shall (so far as not previously concluded) be brought to a

conclusion at 5.00 pm on Thursday 21 November.

Public Bill Committee: 5 November 2013
42

Local Audit and Accountability Bill-[Lords], continued

Brandon Lewis has given notice of his intention to move a motion in the terms of the

Resolution of the Programming Sub-Committee (Standing Order No. 83C).

Brandon Lewis

That, subject to the discretion of the Chair, any written evidence received by the

Committee shall be reported to the House for publication.

Andy Sawford

Roberta Blackman-Woods

72

Clause  1,  page  2,  line  2,  at end insert—

‘(6)
Before this section is commenced, the Secretary of State shall, by regulations, put

into effect arrangements for relevant authorities to opt into arrangements for

national procurement of external audit.’.

Andy Sawford

Roberta Blackman-Woods

73

Clause  1,  page  2,  line  2,  at end insert—

‘(6)
Before this section is commenced, the Secretary of State shall, by regulations, put

into effect arrangements for integrated audit which enables auditors to work

across authorities and with the National Audit Office, where national and local

funding is being used jointly.’.

Andy Sawford

Roberta Blackman-Woods

74

Schedule  1,  page  32,  line  14,  at end insert—

‘(2A)
The scheme would ensure that the benefit of any local government retained

earning existing immediately prior to the abolition date accrue to the local

government sector.’.

Andy Sawford

Roberta Blackman-Woods

75

Schedule  1,  page  32,  line  14,  at end insert—

‘(2A)
Contracts currently held by the Audit Commission that last until 2017 will be

transferred to a sector-led joint procurement body.

(2B)
Audit Commission tools for the purposes of making value for money

comparisons will be transferred to the National Audit Office.’.

Public Bill Committee: 5 November 2013
43

Local Audit and Accountability Bill-[Lords], continued

Andy Sawford

Roberta Blackman-Woods

76

Clause  2,  page  2,  line  9,  after ‘regulations’, insert ‘, but only after consultation with

such persons as may be affected by any changes,’.

Brandon Lewis

1

Schedule  2,  page  37,  line  16,  leave out from ‘meeting’ to end of line.

Andy Sawford

Roberta Blackman-Woods

77

Schedule  2,  page  38,  line  8,  at end insert—

‘30
A Local Enterprise Partnership.’.

Andy Sawford

Roberta Blackman-Woods

79

Clause  3,  page  2,  line  39,  leave out paragraph (a).

Andy Sawford

Roberta Blackman-Woods

78

Clause  3,  page  3,  line  13,  after ‘accounts’, insert ‘, but only after consultation with

relevant persons as may be affected by any changes’.

Brandon Lewis

2

Clause  4,  page  3,  line  22,  after ‘Act’ insert ‘and provision made under it’.

Brandon Lewis

3

Clause  4,  page  3,  line  23,  leave out paragraph (b) and insert—

‘(b)
by an auditor (a “local auditor”) appointed in accordance with this Act or

provision made under it.’.

Andy Sawford

Roberta Blackman-Woods

80

Clause  4,  page  3,  line  23,  at end insert ‘or by a procurement body of which an

authority may be a member’.

Public Bill Committee: 5 November 2013
44

Local Audit and Accountability Bill-[Lords], continued

Brandon Lewis

4

Clause  4,  page  3,  line  24,  leave out subsection (2).

Andy Sawford

Roberta Blackman-Woods

86

Clause  5,  page  4,  line  2,  at end insert—

‘(1A)
Before this section is commenced, the Secretary of State shall, by regulations, put

into effect arrangements for smaller authorities to opt into the national

procurement of external audit.’.

Brandon Lewis

5

Clause  5,  page  4,  line  6,  at end insert—

‘(2A)
Subsection (2) applies to a provision of or made under this Act even if it makes

specific provision about a smaller authority to which the regulations apply.’.

Brandon Lewis

6

Clause  5,  page  4,  line  9,  leave out ‘an’ and insert ‘a local’.

Brandon Lewis

7

Clause  5,  page  4,  line  10,  at end insert—

‘(aa)
make provision about the persons that may be specified by the Secretary

of State;’.

Brandon Lewis

8

Clause  5,  page  4,  line  18,  leave out paragraph (d) and insert—

‘(d)
confer functions on a specified person, including in relation to—

(i)
the appointment of local auditors under the regulations,

(ii)
the activities of such auditors, and

(iii)
the resignation or removal from office of such auditors;’.

Brandon Lewis

9

Clause  5,  page  4,  line  21,  leave out from ‘consult’ to end of line 23 and insert ‘such

persons as are specified in the regulations before exercising specified functions.’.

Brandon Lewis

10

Clause  5,  page  4,  line  23,  at end insert—

‘(f)
make provision for the appointment of a local auditor in relation to the

accounts of a smaller authority to which arrangements within paragraph

(a) apply where the specified person does not make an appointment under

the regulations (and in particular for such an appointment to be made by

the authority or the Secretary of State).’.

Public Bill Committee: 5 November 2013
45

Local Audit and Accountability Bill-[Lords], continued

Brandon Lewis

11

Clause  5,  page  4,  line  28,  leave out paragraphs (b) and (c) and insert—

‘(b)
make provision about the procedures to be followed in relation to opting

into or out of those arrangements;

(c)
impose duties on smaller authorities to which those arrangements apply,

including duties as to—

(i)
the payment of fees to a specified person, and

(ii)
the provision of information to a specified person;

(d)
make provision for the making of payments, in specified circumstances

and by the smaller authorities to which those arrangements apply, to a

fund of specified kind for the purposes of meeting local auditors’ costs of

a specified kind.

(4A)
Provision made by regulations under subsection (1) by virtue of subsection

(4)(c)(i) may, in particular—

(a)
provide for fees to be paid in accordance with a scale or scales of fees

determined by a specified person, and

(b)
provide for the payment in specified circumstances of a larger or smaller

fee than is set out in the appropriate scale.’.

Andy Sawford

Roberta Blackman-Woods

87

Clause  5,  page  4,  line  30,  leave out paragraph (c).

Brandon Lewis

12

Clause  5,  page  4,  line  35,  leave out ‘an’ and insert ‘a local’.

Brandon Lewis

13

Clause  5,  page  4,  line  37,  leave out ‘audit of such accounts’ and insert ‘functions of

a local auditor in relation to the accounts of a smaller authority’.

Andy Sawford

Roberta Blackman-Woods

88

Clause  6,  page  5,  line  13,  leave out ‘year’ and insert ‘previous three years’.

Andy Sawford

Roberta Blackman-Woods

89

Clause  6,  page  5,  line  14,  leave out ‘year’ and insert ‘previous three years’.

Public Bill Committee: 5 November 2013
46

Local Audit and Accountability Bill-[Lords], continued

Andy Sawford

Roberta Blackman-Woods

90

Clause  6,  page  5,  line  25,  at end add—

‘(6)
The value for which an authority is categorised shall be reviewed three years after

this Bill receives Royal Assent and every five years following.

(7)
The Secretary of State shall publish the conclusions of reviews undertaken in

accordance with subsection (6).’.

Andy Sawford

Roberta Blackman-Woods

91

Clause  6,  page  5,  line  25,  at end add—

‘(6)
The Secretary of State will give one year’s notice to authorities before changes to

provision made by regulations under subsection (4).’.

Brandon Lewis

14

Clause  7,  page  5,  line  29,  leave out ‘an auditor (a “local auditor”)’ and insert ‘a

local auditor’.

Andy Sawford

Roberta Blackman-Woods

92

Clause  7,  page  5,  line  39,  after ‘auditor’, insert ‘except where the auditor has been

appointed for two terms served consecutively.’.

Andy Sawford

Roberta Blackman-Woods

94

Clause  7,  page  6,  line  18,  at end add—

‘(9)
Where two or more relevant authorities have substantial integrated or shared

services or expenditure, auditors for each relevant authority may be instructed

under their contract to produce a joint audit or appoint one auditor as a lead

auditor.’.

Andy Sawford

Roberta Blackman-Woods

95

Clause  7,  page  6,  line  18,  at end add—

‘(9)
Where two or more relevant authorities have substantial integrated or shared

services or expenditure with a body audited by the National Audit Office,

arrangements may be made to produce joint audits between the relevant

authorities and the National Audit Office.’.

Andy Sawford

Roberta Blackman-Woods

93

Clause  7,  page  6,  line  19,  at end add—

‘(9)
The Secretary of State may by regulations—

Public Bill Committee: 5 November 2013
47

Local Audit and Accountability Bill-[Lords], continued

(a)
provide for the appointment, by a person specified by the Secretary of

State, of an auditor in relation to the audit of the accounts of a relevant

authority;

(b)
make provision about the procedure for specifying a person and for a

person’s specification to come to an end in specified circumstances;

(c)
make provision about the consequences of a person’s specification

coming to an end, including for the exercise of functions by the Secretary

of State and the transfer of the person’s rights and liabilities arising by

virtue of the regulations to the Secretary of State or another specified

person;

(d)
confer functions on a specified person, including power to specify a scale

or scales of fees to be payable by relevant authorities to which

arrangements within paragraph (a) apply;

(e)
require a specified person to consult relevant authorities, relevant

authorities of a specified description or representatives of relevant

authorities before specifying a scale or scales of fees.

(10)
Regulations under subsection (9) may, in particular—

(a)
make provision about the relevant authorities to which arrangements

within subsection (9)(a) apply, including provision for them to apply to

an authority that has opted into them or has not opted out of them;

(b)
make provision about the procedure by which an authority may opt into

or out of those arrangements;

(c)
make provision about the administration of those arrangements,

including for the making of payments in specified circumstances by the

relevant authorities to which they apply to a fund of a specified kind for

the purposes of meeting auditors’ costs of a specified kind.’.

Brandon Lewis

15

Schedule  3,  page  38,  line  21,  at end insert—

‘(4)
A local auditor appointed to audit the accounts of a parish meeting must be

appointed by the parish meeting itself (and not by its chairman on behalf of the

parish meeting).’.

Andy Sawford

Roberta Blackman-Woods

96

Clause  8,  page  6,  line  20,  at end insert—

‘(1A)
A relevant authority must have an audit committee, which may be instructed by

the relevant authority to appoint the auditor panel to advise on the selection of the

local auditor in accordance with section (7).’.

Andy Sawford

Roberta Blackman-Woods

97

Clause  8,  page  6,  line  26,  at end insert ‘and the term of appointment’.



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