Previous

Contents page 1-9 10-19 20-28 30-39 40-53 54-59 60-69 70-79 80-89 90-99 100-101 Last page

Local Audit and Accountability BillPage 100

(4) Those steps are—

(a) to direct the trust or trustees to appoint an auditor named in the
direction given under this paragraph, or

(b) to appoint an auditor on behalf of the trust or trustees.

(5) 5An appointment under sub-paragraph (4)(b) takes effect—

(a) as if it had been made by the trust or trustees, and

(b) on such terms as the Secretary of State or (as the case may be) the
Authority may direct.

(6) The Secretary of State or the Authority must—

(a) 10inform the trust or trustees of the intention to give a direction or
appoint an auditor under sub-paragraph (4) not less than 28 days
before the direction is given or the appointment made, and

(b) consider any representations made by the trust or trustees regarding
the proposed direction or appointment.

(7) 15But the Secretary of State or the Authority may give a direction or make an
appointment under sub-paragraph (4) without having complied with sub-
paragraph (6) if the Secretary of State or the Authority thinks it is likely that
an auditor would have to exercise a function under this Act in relation to the
trust or trustees within the period of 60 days beginning with the day on
20which the direction is given or the appointment is made.

(8) The National Health Service Trust Development Authority is the Special
Health Authority established under the National Health Service Trust
Development Authority (Establishment and Constitution) Order 2012 (SI
2012/901)).

25General duties of auditors

10 Section 20(3) (general duties of auditors of accounts of special trustees for a
hospital) is to be read as if—

(a) for “accounts of special trustees for a hospital” there were substituted
“accounts of a health service body other than a clinical
30commissioning group”, and

(b) in paragraph (c)—

(i) for “the special trustees have” there were substituted “the
body has”, and

(ii) for “their” there were substituted “its”.

35Independence requirement: directors of NHS trusts

11 In Schedule 5, paragraph 5 (independence requirement: modification of
section 1214 of the Companies Act 2006) is to be read as if the substitution
for section 1214 of the Companies Act 2006 provided (in addition to its
existing provision) that a director of an NHS trust may not act as a local
40auditor of—

(a) that NHS trust, or

(b) the trustees for that NHS trust.

Public interest reports and written recommendations

12 (1) Schedule 7 is to be read in accordance with the following sub-paragraphs.

Local Audit and Accountability BillPage 101

(2) In paragraph 2(3) (persons to whom written recommendations must be sent)
after paragraph (c) insert—

(ca) where the relevant authority is an NHS trust or the trustees
for an NHS trust, to the National Health Service Trust
5Development Authority,.

(3) In paragraph 3(3) (persons to whom public interest reports must be sent)
after paragraph (c) omit “and” and insert—

(ca) where the relevant authority is an NHS trust or the trustees
for an NHS trust, to the National Health Service Trust
10Development Authority, and

(4) In paragraph 4(7) (means of publicising public interest reports and related
notices) after paragraph (c) insert—

(d) in the case of an NHS trust, it publishes the notice in such
manner as it thinks is likely to bring the notice to the attention
15of persons to whom the trust provides services for the
purposes of the health service in England;

(e) in the case of trustees for an NHS trust, they publish the
notice in such manner as they think is likely to bring the
notice to the attention of persons to whom that NHS trust
20provides services for the purposes of the health service in
England.

(5) In the modifications made by this paragraph, “National Health Service Trust
Development Authority” is to be construed in accordance with paragraph
9(8).

25Unlawful expenditure or activity

13 (1) Section 29(2) (referral of health service bodies to certain persons as regards
unlawful expenditure or activity) is to be read as if, at the end of paragraph
(b), there were inserted “, and

(c) if the health service body is an NHS trust or the trustees for
30an NHS trust, notify the National Health Service Trust
Development Authority of the matter.

(2) In the modification made by sub-paragraph (1), “National Health Service
Trust Development Authority” is to be construed in accordance with
paragraph 9(8).

Previous

Contents page 1-9 10-19 20-28 30-39 40-53 54-59 60-69 70-79 80-89 90-99 100-101 Last page