Local Audit and Accountability Bill (HC Bill 101)

17 In section 24(3)(a) (provision of services by principal council for public
airport companies: requirement for separate account)—

(a) for “section 14 of the Audit Commission Act 1998 (rights of
inspection)” substitute “section 24 of the Local Audit and
5Accountability Act 2013 (inspection of statements of accounts etc)”,
and

(b) for “regulations under section 27” substitute “section 3(3)”.

Norfolk and Suffolk Broads Act 1988 (c. 4)Norfolk and Suffolk Broads Act 1988 (c. 4)

18 In section 17 of the Norfolk and Suffolk Broads Act 1988 (accounts and
10auditing), in the second subsection (11), for “section 27 of the Audit
Commission Act 1998” substitute “section 31 of the Local Audit and
Accountability Act 2013”.

Education Reform Act 1988 (c. 40)Education Reform Act 1988 (c. 40)

19 The Education Reform Act 1988 is amended as follows.

20 15In section 124B, omit subsection (5) (duty of certain higher education
corporations to consult Audit Commission before appointing auditor in
respect of first financial year).

21 In paragraph 18 of Schedule 7 (higher education corporations)—

(a) omit sub-paragraph (4) (duty of certain higher education
20corporations to consult Audit Commission before appointing
auditor in respect of first financial year),

(b) in sub-paragraph (5) for “that sub-paragraph” substitute “sub-
paragraph (3) above”, and

(c) in sub-paragraph (6) omit the definition of “the first financial year”
25and the “and” which follows it.

Local Government and Housing Act 1989 (c. 42)Local Government and Housing Act 1989 (c. 42)

22 (1) Section 11 of the Local Government and Housing Act 1989 is amended as
follows.

(2) In subsection (1)—

(a) 30omit “section 79 of the Local Government Act 1985 (public inspection
of accounts etc) or in”, and

(b) for “(which makes corresponding provision for Scotland)” insert
“(public inspection of accounts etc)”.

(3) In subsection (3) (confidentiality of staff records: definitions), in the
35definition of “relevant body” omit—

(a) “the Audit Commission Act 1998 or”, and

(b) “or, as the case may be, the Common Council of the City of London”.

23 (1) Until the coming into force of the repeal of Part 5 of the Local Government
and Housing Act 1989 by section 216(1) of the Local Government and Public
40Involvement in Health Act 2007, section 70 of the Local Government and
Housing Act 1989 (requirements for companies under control or subject to
influence of local authorities) has effect with the following modifications.

(2) In each of subsections (2) and (4), for “the Audit Commission Act 1998”
substitute “the Local Audit and Accountability Act 2013”.

(3) In subsection (5) omit “or of the Audit Commission for Local Authorities and
the National Health Service in England,”.

Town and Country Planning Act 1990 (c. 8)Town and Country Planning Act 1990 (c. 8)

24 In section 2(6B) of the Town and Country Planning Act 1990 (application of
5certain provisions to joint planning boards) omit paragraph (a).

Environmental Protection Act 1990 (c. 43)Environmental Protection Act 1990 (c. 43)

25 In paragraph 5 of Schedule 3 to the Environmental Protection Act 1990
(protection of members etc of authorities) omit the words “(other than any
liability under section 17 or 18 of the Audit Commission Act 1998 (powers of
10district auditor and court))”.

Social Security Administration Act 1992 (c. 5)Social Security Administration Act 1992 (c. 5)

26 The Social Security Administration Act 1992 is amended as follows.

27 In section 123(8) (unauthorised disclosure of information relating to
particular persons: “persons employed in audit” etc)—

(a) 15after paragraph (jza) insert—

“(jzb) a local auditor within the meaning of the Local Audit
and Accountability Act 2013;”, and

(b) omit paragraph (ja).

28 Omit section 139BA (interaction with Audit Commission).

20Police Act 1996 (c. 16)Police Act 1996 (c. 16)

29 (1) Schedule 4A to the Police Act 1996 (further provisions about Her Majesty’s
Inspectors of Constabulary) is amended as follows.

(2) In paragraph 2(2) (duty to consult on inspection programme or inspection
framework) omit paragraph (h) (the Audit Commission).

(3) 25In paragraph 3(2) (power to prevent inspection by other person or body)
omit paragraph (e) (the Audit Commission).

(4) In paragraph 4 (duty to co-operate) omit paragraph (h) (the Audit
Commission).

(5) In paragraph 6 (assistance for other public authorities)—

(a) 30after sub-paragraph (1) insert—

“(1A) The chief inspector of constabulary may do anything the
chief inspector thinks appropriate to facilitate the carrying
out of an inspection under section 10 of the Local
Government Act 1999 (inspection of best value
35authorities).”, and

(b) for sub-paragraph (2) substitute—

“(2) Anything done under this paragraph may be done on such
terms (including terms as to payment) as the chief
inspector of constabulary thinks fit.”

Noise Act 1996 (c. 37)Noise Act 1996 (c. 37)

30 The Noise Act 1996 is amended as follows.

31 In section 12 (protection of members etc of authorities) omit subsection (2)
(exception for liability under section 17 or 18 of the Audit Commission Act
51998).

32 In section 14(4) (application of Act to Northern Ireland), in paragraph (g), for
“for subsection (2) there is substituted” substitute “after subsection (1) there
is inserted”.

Local Government (Contracts) Act 1997 (c. 65)Local Government (Contracts) Act 1997 (c. 65)

33 (1) 10Section 8 of the Local Government (Contracts) Act 1997 (audit reviews) is
amended as follows.

(2) In subsection (1)—

(a) in paragraph (a), for “section 17 of the Audit Commission Act 1998”
substitute “section 27 of the Local Audit and Accountability Act
152013”,

(b) omit paragraphs (b) and (c), and

(c) in the closing words, for “any of paragraphs (a) to (c)” substitute
“that paragraph”.

(3) Omit subsection (2).

20Greater London Authority Act 1999 (c. 29)Greater London Authority Act 1999 (c. 29)

34 The Greater London Authority Act 1999 is amended as follows.

35 In section 7(a) (disqualifications from being an Assembly member that do
not trigger a declaration of vacancy) omit sub-paragraph (i) (disqualification
under the Audit Commission Act 1998).

36 25In section 9(1)(f) (date of vacancy in Assembly membership in case of
disqualification under the Audit Commission Act 1998)—

(a) omit “the Audit Commission Act 1998 or”, and

(b) omit “that Act of 1998 or”.

37 In section 14(a) (disqualifications from being Mayor that do not trigger a
30declaration of vacancy) omit sub-paragraph (i) (disqualification under the
Audit Commission Act 1998).

38 In section 21(1)(e) (disqualification from election as Assembly member or
the Mayor) omit sub-paragraph (ii) and the “or” immediately preceding that
sub-paragraph (disqualification under the Audit Commission Act 1998).

39 35In section 125(2) (certification of information)—

(a) omit “in one or both of the following ways”, and

(b) omit paragraph (b) and the “and” which precedes it.

40 (1) Section 134 (summary statement of accounts of Authority and other bodies)
is amended as follows.

(2) 40In subsection (4) (application of section 14 of the Audit Commission Act 1998
to summary statement of accounts)—

(a) for “Section 14 of the Audit Commission Act 1998” substitute
“Section 24 of the Local Audit and Accountability Act 2013
(inspection of statements of accounts etc)”, and

(b) for “regulations under section 27” substitute “section 3(3)”.

(3) 5In subsection (5) (disapplication of public inspection etc provisions in Audit
Commission Act 1998 in relation to summary statement of accounts), for
“Sections 15 to 24 of the Audit Commission Act 1998” substitute “Sections 25
to 30 of the Local Audit and Accountability Act 2013, and Schedule 8 to that
Act”.

(4) 10In subsection (6) (application of section 27 of the Audit Commission Act 1998
to summary statement of accounts)—

(a) for “Section 27 of the Audit Commission Act 1998” substitute
“Section 31 of the Local Audit and Accountability Act 2013”, and

(b) omit “accounts or”.

15Crown Prosecution Service Inspectorate Act 2000 (c. 10)Crown Prosecution Service Inspectorate Act 2000 (c. 10)

41 (1) The Schedule to the Crown Prosecution Service Inspectorate Act 2000
(further provisions about Her Majesty’s Chief Inspector of the Crown
Prosecution Service) is amended as follows.

(2) In paragraph 2(2) (duty to consult on inspection programme or inspection
20framework) omit paragraph (h) (the Audit Commission).

(3) In paragraph 4 (duty to co-operate) omit paragraph (h) (the Audit
Commission).

(4) In paragraph 6 (assistance for other public authorities)—

(a) after sub-paragraph (1) insert—

“(1A) 25The Chief Inspector may do anything the Chief Inspector
thinks appropriate to facilitate the carrying out of an
inspection under section 10 of the Local Government Act
1999 (inspection of best value authorities).”, and

(b) for sub-paragraph (2) substitute—

“(2) 30Anything done under this paragraph may be done on such
terms (including terms as to payment) as the Chief
Inspector thinks fit.”

Freedom of Information Act 2000 (c. 36)Freedom of Information Act 2000 (c. 36)

42 In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (other public
35bodies and offices to which the Act applies) omit the entry for the Audit
Commission for Local Authorities and the National Health Service in
England.

Criminal Justice and Court Services Act 2000 (c. 43)Criminal Justice and Court Services Act 2000 (c. 43)

43 (1) Schedule 1A to the Criminal Justice and Court Services Act 2000 (further
40provisions about Her Majesty’s Inspectorate of Probation) is amended as
follows.

(2) In paragraph 2(2) (duty to consult on inspection programme or inspection
framework) omit paragraph (h) (the Audit Commission).

(3) In paragraph 3(2) (power to prevent inspection by other person or body)
omit paragraph (e) (the Audit Commission).

(4) In paragraph 4 (duty to co-operate) omit paragraph (h) (the Audit
Commission).

(5) 5In paragraph 6 (assistance for other public authorities)—

(a) after sub-paragraph (1) insert—

“(1A) The chief inspector may do anything the chief inspector
thinks appropriate to facilitate the carrying out of an
inspection under section 10 of the Local Government Act
101999 (inspection of best value authorities).”, and

(b) for sub-paragraph (2) substitute—

“(2) Anything done under this paragraph may be done on such
terms (including terms as to payment) as the chief
inspector thinks fit.”

15Public Finance and Accountability (Scotland) Act 2000 (ASP 1)

44 In section 26D(4) of the Public Finance and Accountability (Scotland) Act
2000 (meaning of “United Kingdom audit agency”), for paragraph (b)
substitute—

“(b) the Secretary of State or the Minister for the Cabinet Office,”.

20Anti-terrorism, Crime and Security Act 2001 (c. 24)Anti-terrorism, Crime and Security Act 2001 (c. 24)

45 In Part 1 of Schedule 4 to the Anti-terrorism, Crime and Security Act 2001
(extension of existing disclosure powers under other Acts)—

(a) omit paragraph 41 (application to Audit Commission Act 1998), and

(b) after paragraph 53E insert—

“53F 25Paragraph 2 of Schedule 11 to the Local Audit and
Accountability Act 2013.”

Local Government Act 2003 (c. 26)Local Government Act 2003 (c. 26)

46 The Local Government Act 2003 is amended as follows.

47 (1) Section 21 (accounting practices) is amended as follows.

(2) 30In subsection (4) (enactments to which definition of proper practices applies)
omit paragraph (d) (the Audit Commission Act 1998).

(3) For subsection (6) (local authorities to which the section applies)
substitute—

“(6) In this section, “local authority” includes—

(a) 35a parish council,

(b) a parish meeting of a parish which does not have a separate
parish council,

(c) a community council,

(d) a Passenger Transport Executive,

(e) 40the London Waste and Recycling Board,

(f) charter trustees (within the meaning of the Local Audit and
Accountability Act 2013),

(g) a port health authority for a port health district that is wholly
in England,

(h) 5a conservation board established by order of the Secretary of
State under section 86 of the Countryside and Rights of Way
Act 2000,

(i) a chief constable for a police force for a police area in
England,

(j) 10the Commissioner of Police of the Metropolis,

(k) an internal drainage board for an internal drainage district—

(i) wholly in England, or

(ii) partly in England and partly in Wales, and

(l) any other person or body which for the time being is a
15relevant authority for the purposes of the Local Audit and
Accountability Act 2013 and—

(i) is not listed in paragraphs (a) to (k) or section 23(1),

(ii) is not a health service body (within the meaning of
that Act),

(iii) 20is not specified in regulations under section 23(2), and

(iv) does not fall within a class of bodies so specified.”

48 In section 22 (meaning of “revenue account” for the purposes of certain
enactments), for subsection (3) (local authorities to which the section
applies) substitute—

“(3) 25In this section, “local authority” includes—

(a) a parish council,

(b) a parish meeting of a parish which does not have a separate
parish council,

(c) a community council,

(d) 30a Passenger Transport Executive,

(e) the London Waste and Recycling Board,

(f) charter trustees (within the meaning of the Local Audit and
Accountability Act 2013),

(g) a port health authority for a port health district that is wholly
35in England,

(h) a conservation board established by order of the Secretary of
State under section 86 of the Countryside and Rights of Way
Act 2000,

(i) a chief constable for a police force for a police area in
40England,

(j) the Commissioner of Police of the Metropolis,

(k) an internal drainage board for an internal drainage district—

(i) wholly in England, or

(ii) partly in England and partly in Wales, and

(l) 45any other person or body which for the time being is a
relevant authority for the purposes of the Local Audit and
Accountability Act 2013 and—

(i) is not listed in paragraphs (a) to (k) or section 23(1),

(ii) is not a health service body (within the meaning of
that Act),

(iii) is not specified in regulations under section 23(2), and

(iv) does not fall within a class of bodies so specified.”

49 5In section 24 (by which, in the application of Part 1 to Wales, references to
the Welsh Ministers are substituted for references to the Secretary of State),
after subsection (1) insert—

“(1A) Subsection (1) does not apply to section 21 to the extent that it confers
functions on the Secretary of State in relation to a person or body
10that—

(a) is a relevant authority for the purposes of the Local Audit and
Accountability Act 2013, and

(b) exercises functions in relation to an area that is partly in
England and partly in Wales.”

50 15Omit section 99 (categorisation of English local authorities by reference to
performance).

Health and Social Care (Community Health and Standards) Act 2003 (c. 43)Health and Social Care (Community Health and Standards) Act 2003 (c. 43)

51 The Health and Social Care (Community Health and Standards) Act 2003 is
amended as follows.

52 20In section 95 (studies as to economy, efficiency etc), omit subsection (4).

53 In section 148 (interpretation of Part 2) omit the definition of “the Audit
Commission”.

Audit and Accountability (Northern Ireland) Order 2003 (SI 2003/418 (NI 5)SI 2003/418 (NI 5))

54 In article 4D(3) of the Audit and Accountability (Northern Ireland) Order
252003 (disclosure of results of data matching etc), for paragraph (a)
substitute—

“(a) the Secretary of State,

(aa) the Minister for the Cabinet Office,”.

Public Audit (Wales) Act 2004 (c. 23)Public Audit (Wales) Act 2004 (c. 23)

55 30The Public Audit (Wales) Act 2004 is amended as follows.

56 Omit section 43 (co-operation with Audit Commission).

57 Omit section 57 (provision of information to Audit Commission).

58 In section 62, omit paragraph (b) (co-operation with Audit Commission).

59 In section 64D(4) (disclosure of results of data matching etc), for paragraph
35(a) substitute—

“(a) the Secretary of State,

(aa) the Minister for the Cabinet Office,”.

60 Omit sections 69 and 70 (transitional provision: local government bodies in
Wales and Welsh NHS bodies).

61 (1) 40Schedule 3 (transfer schemes) is amended as follows.

(2) In paragraph 1(1), omit paragraph (b) and the “and” preceding it.

(3) In paragraph 2—

(a) in paragraph (a) after “Wales,” insert “and”, and

(b) omit paragraph (c) and the “and” preceding it.

62 (1) 5The amendments of Schedule 3 to the Public Audit (Wales) Act 2004 by
paragraph 61 do not affect—

(a) the transfers of property, rights and liabilities of the Audit
Commission to the Auditor General for Wales by a scheme under
that Schedule, or

(b) 10the operation of that Schedule or of such a scheme in relation to those
transfers.

(2) In this paragraph “the Audit Commission” means the Audit Commission for
Local Authorities and the National Health Service in England.

Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27)Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27)

63 15In section 16 of the Companies (Audit, Investigations and Community
Enterprise) Act 2004 (grants to bodies concerned with accounting standards
etc) after subsection (6) insert—

“(6A) References in this section to Part 42 of the Companies Act 2006 or to
paragraph 21, 22, 23(1) or 24(1) of Schedule 10 to that Act include that
20Part or paragraph as it has effect by virtue of Schedule 5 to the Local
Audit and Accountability Act 2013 (which applies Part 42 with
modifications in relation to audits of local authorities etc).

(6B) The reference in the definition of “professional accountancy body” in
subsection (5) to section 1220 of the Companies Act 2006 includes a
25reference to section 1219 of that Act as it has effect by virtue of
Schedule 5 to the Local Audit and Accountability Act 2013.”

Children Act 2004 (c. 31)Children Act 2004 (c. 31)

64 In section 20(4) of the Children Act 2004 (joint area review: persons to whom
that section applies) omit paragraph (e).

30Education and Inspections Act 2006 (c. 40)Education and Inspections Act 2006 (c. 40)

65 (1) Schedule 13 to the Education and Inspections Act 2006 (interaction between
Her Majesty’s Chief Inspector of Education, Children’s Services and Skills
and other authorities) is amended as follows.

(2) In paragraph 1 (meaning of inspection authorities)—

(a) 35in sub-paragraph (2)—

(i) at the end of paragraph (d) insert “, and”, and

(ii) omit paragraph (h) and the “and” preceding it, and

(b) in sub-paragraph (3), for paragraph (f) substitute—

“(f) the Care Quality Commission.”

(3) 40In paragraph 8 (advice or assistance for other public authorities)—

(a) after sub-paragraph (1) insert—

“(1A) The Chief Inspector may do anything the Chief Inspector
thinks appropriate to facilitate the carrying out of an
inspection under section 10 of the Local Government Act
51999 (inspection of best value authorities).”, and

(b) for sub-paragraph (2) substitute—

“(2) Anything done under this paragraph may be done on such
terms as the Chief Inspector thinks fit.”

(4) In paragraph 10(a) (charges for advice or assistance) for “providing advice
10or assistance” substitute “doing anything”.

National Health Service Act 2006 (c. 41)National Health Service Act 2006 (c. 41)

66 The National Health Service Act 2006 is amended as follows.

67 In Schedule 1A (clinical commissioning groups), in paragraph 17(5), for the
words from “Audit Commission Act 1998” to the end substitute “Local
15Audit and Accountability Act 2013”.

68 Schedule 7 (constitution of public benefit corporations: auditors) is amended
as follows.

69 (1) Paragraph 23 is amended as follows.

(2) In sub-paragraph (3)—

(a) 20after “may be” insert “an individual or a firm”, and

(b) omit paragraphs (a) to (c).

(3) In sub-paragraph (4)—

(a) after paragraph (a) insert—

“(aa) eligible for appointment as a local auditor (see Part
254 of the Local Audit and Accountability Act 2013),
or”,

(b) omit paragraph (b), and

(c) in paragraph (c) for “any other” substitute “a”.

(4) Omit sub-paragraph (5).

(5) 30In sub-paragraph (7)—

(a) omit the definition of “the Audit Commission” (and the “and” which
follows it), and

(b) in the definition of “firm” for “the Audit Commission Act 1998 (see
section 51(3) of that Act)” substitute “section 1261(1) of the
35Companies Act 2006”.

70 (1) Paragraph 24 is amended as follows.

(2) After sub-paragraph (4) insert—

“(4A) The auditor must, in carrying out functions in relation to the
accounts—

(a) 40comply with the code of audit practice applicable to the
accounts that is for the time being in force (see Schedule 6
to the Local Audit and Accountability Act 2013), and

(b) have regard to guidance issued by the Comptroller and
Auditor General under paragraph 9 of that Schedule (as it
has effect by virtue of paragraph 10(6) of that Schedule).

(4B) The auditor of the accounts must comply with any directions
5given by the Secretary of State as to arrangements to monitor the
standard of the work of auditors in the performance of audits
under this paragraph (including arrangements to inspect that
work).

(4C) The arrangements mentioned in sub-paragraph (4B) may include
10arrangements made by the regulator or by any other person the
Secretary of State considers appropriate.”

(3) Omit sub-paragraph (5).

71 In Schedule 15 (accounts and audit of certain NHS bodies), in paragraph 4—

(a) in sub-paragraph (2) for the words from “Audit Commission Act
151998” to the end substitute “Local Audit and Accountability Act
2013”, and

(b) omit sub-paragraph (4).

72 (1) Until the repeal of Chapter 3 of Part 2 of the National Health Service Act 2006
by section 179 of the Health and Social Care Act 2012 is fully in force,
20Schedule 4 to the National Health Service Act 2006 (NHS trusts) has effect
with the following modifications.

(2) In paragraph 12 (reports and other information)—

(a) in sub-paragraph (2)(b) for “section 8 of the Audit Commission Act
1998 (c. 18)Audit Commission Act
1998 (c. 18) or paragraph 19 of Schedule 8 to the Government of
25Wales Act 2006 (c. 32)Government of
25Wales Act 2006 (c. 32)” substitute “paragraph 1 of Schedule 7 to the
Local Audit and Accountability Act 2013”, and

(b) in sub-paragraph (2A) for “section 8 of the Audit Commission Act
1998” substitute “paragraph 1 of Schedule 7 to the Local Audit and
Accountability Act 2013”.

30National Health Service (Wales) Act 2006 (c. 42)National Health Service (Wales) Act 2006 (c. 42)

73 In paragraph 12(2)(b) of Schedule 3 to the National Health Service (Wales)
Act 2006 (NHS trusts established under section 18 of that Act: reports and
other information) omit “section 8 of the Audit Commission Act 1998 (c. 18)1998 (c. 18)
or”.

35Companies Act 2006 (c. 46)Companies Act 2006 (c. 46)

74 In Part 1 of Schedule 11A to the Companies Act 2006 (specified persons for
the purposes of the disclosure provisions in section 1224A of that Act), after
paragraph 17 insert—

“17A A recognised supervisory body as defined in section 1217(4) and
40Schedule 10 as they have effect by virtue of Schedule 5 to the Local
Audit and Accountability Act 2013.

17B A recognised qualifying body as defined in section 1219(12) as it
has effect by virtue of that Schedule.