Local Audit and Accountability Bill (HC Bill 101)

Local Audit and Accountability BillPage 30

(8) References in this Act to accounts, accounting records or statements of account
in relation to the Common Council are to its accounts, accounting records or
statements of account so far as relating to—

(a) the collection fund of the Common Council,

(b) 5the City Fund, or

(c) a pension fund maintained and administered by the Common Council
under regulations under section 1 of the Public Service Pensions Act
2013.

42 Related amendments

10Schedule 12 (related amendments) has effect.

43 Power to make consequential provision

(1) The Secretary of State may by regulations make such consequential, incidental
or supplementary provision as the Secretary of State considers appropriate in
connection with any provision of, or made under, this Act.

(2) 15The power in subsection (1) includes power to amend, repeal or revoke any
provision of or made under an Act (including this Act) whenever passed or
made.

44 Application to NHS trusts and trustees for NHS trusts

Schedule 13 (NHS trusts and trustees for NHS trusts: transitory and saving
20provision) has effect.

45 Extent

(1) This Act extends to England and Wales only, subject as follows.

(2) An amendment, repeal or revocation made by this Act, other than one
mentioned in subsection (3), has the same extent as the relevant part of the Act
25or instrument amended, repealed or revoked.

(3) Subsection (2) does not apply to the amendment made by section 38(1) (power
to require compliance with local authority publicity code), which extends to
England and Wales only.

(4) The following provisions of this Act extend to England and Wales, Scotland
30and Northern Ireland—

(a) section 40 (orders and regulations) so far as it applies to regulations
under section 43 or an order under section 46;

(b) section 42 (related amendments) so far as it applies to amendments,
repeals and revocations within subsection (2) of this section;

(c) 35section 43 (power to make consequential provision);

(d) this section;

(e) section 46 (commencement);

(f) section 47 (short title).

Local Audit and Accountability BillPage 31

46 Commencement

(1) The provisions of this Act come into force on such day as the Secretary of State
may by order appoint, subject to subsections (2) and (3).

(2) Section 38 comes into force at the end of the period of 2 months beginning with
5the day on which this Act is passed.

(3) The following provisions come into force on the day on which this Act is
passed—

(a) section 39;

(b) section 40;

(c) 10section 41;

(d) section 43;

(e) section 45;

(f) this section;

(g) section 47.

(4) 15An order under this section may—

(a) appoint different days for different purposes or different areas;

(b) make transitional, transitory or saving provision.

(5) Provision under subsection (4)(b) may, in particular, enable a function of the
Audit Commission under—

(a) 20a provision that is amended or repealed by this Act, or

(b) any of sections 139A to 139C of the Social Security Administration Act
1992,

to be exercised by a person or body, or by the persons or bodies, specified in
the order for a period specified in or determined under the order.

(6) 25Where provision under subsection (4)(b) made by virtue of subsection (5)
enables a function to be exercised by a Minister of the Crown, an order under
this section may enable the Minister to delegate the exercise of that function to
another person or body or other persons or bodies.

(7) An order under this section which makes provision under subsection (4)(b) by
30virtue of subsection (5) or (6) may in particular provide for references in an
enactment to the Audit Commission to be read as references to the person or
body or persons or bodies by whom the function may be exercised.

(8) Provision under subsection (4)(b) may, in particular, provide for the first local
auditor appointed by a relevant authority under subsection (1) of section 7 to
35be appointed on a date later than that specified in that subsection.

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

47 Short title

(1) This Act may be cited as the Local Audit and Accountability Act 2013.

(2) 40Nothing in this Act shall impose any charge on the people or on public
funds, or vary the amount or incidence of or otherwise alter any such charge
in any manner, or affect the assessment, levying, administration or
application of any money raised by any such charge.

Local Audit and Accountability BillPage 32

SCHEDULES

Section 1

SCHEDULE 1 Abolition of Audit Commission: supplementary provision

Part 1 5Arrangements in connection with abolition of Audit Commission

Transfer of property, rights and liabilities

1 (1) The Secretary of State may make one or more schemes for the transfer of
property, rights and liabilities of the Audit Commission to a person or
persons specified in the scheme.

(2) 10The things that may be transferred under a transfer scheme include—

(a) property, rights and liabilities that could not otherwise be
transferred;

(b) property acquired, and rights and liabilities arising, after the making
of the scheme.

(3) 15A transfer scheme may make consequential, supplementary, incidental or
transitional provision and may in particular—

(a) create rights, or impose liabilities, in relation to property or rights
transferred;

(b) make provision about the continuing effect of things done by the
20transferor in respect of anything transferred;

(c) make provision about the continuation of things (including legal
proceedings) in the process of being done by, on behalf of or in
relation to the transferor, in respect of anything transferred;

(d) make provision for references to the transferor in an instrument or
25other document in respect of anything transferred to be treated as
references to the transferee;

(e) make provision for the shared ownership or use of property;

(f) if the TUPE regulations do not apply in relation to the transfer, make
provision which is the same or similar.

(4) 30A transfer scheme may, in such cases as may be specified in the scheme,
provide for a person’s period of employment before the person was
employed by the Audit Commission (as well as the person’s period of
employment by the Audit Commission) to be treated as a period of
employment with the transferee for the purposes of the scheme or, if they
35apply in relation to the transfer, the TUPE regulations.

(5) A transfer scheme may provide—

(a) for modification by agreement;

Local Audit and Accountability BillPage 33

(b) for modifications to have effect from the date when the original
scheme came into effect.

(6) In this paragraph—

(a) TUPE regulations” means the Transfer of Undertakings (Protection
5of Employment) Regulations 2006 (SI 2006/246SI 2006/246), and

(b) references to rights and liabilities include rights and liabilities under
a contract of employment.

Reduction in membership pending abolition

2 Until the coming into force of section 1, in section 1(2) of the Audit
10Commission Act 1998 (Audit Commission to consist of not less than 10 nor
more than 15 members) there is omitted the words “less than 10 nor”.

Final accounts

3 (1) As soon as is reasonably practicable after the abolition date, the Secretary of
State must prepare—

(a) 15a statement of account for the Audit Commission for the last
financial year to end before the abolition date, and

(b) a statement of account for the Audit Commission for the period (if
any) beginning immediately after the end of that financial year and
ending immediately before the abolition date.

(2) 20A statement of account under this paragraph must be prepared in
accordance with the last direction given by the Secretary of State to the Audit
Commission under paragraph 11(1) of Schedule 1 to the Audit Commission
Act 1998.

(3) The Secretary of State must, as soon as is reasonably practicable after
25preparing a statement of account under this paragraph, send a copy of it to
the Comptroller and Auditor General.

(4) The Comptroller and Auditor General must—

(a) examine, certify and report on the statement of account, and

(b) make arrangements for a copy of the statement and the report to be
30laid before Parliament.

(5) Sub-paragraph (1)(a) does not apply if the Audit Commission has already
sent a copy of the statement of account for that year to the Comptroller and
Auditor General.

(6) In that case, the repeal by this Act of paragraph 11 of Schedule 1 to the Audit
35Commission Act 1998 does not remove the obligation of the Comptroller
and Auditor General to take the steps specified in that paragraph in relation
to the statement of account if the Comptroller has not already done so.

(7) In this paragraph “financial year” means the period of 12 months ending
with 31st March in any year.

40Final annual report

4 (1) As soon as is reasonably practicable after the abolition date, the Secretary of
State must publish a report on the discharge of the functions of the Audit
Commission.

Local Audit and Accountability BillPage 34

(2) The report must relate to the period—

(a) beginning immediately after the period covered by the last annual
report published by the Audit Commission, and

(b) ending immediately before the abolition date.

(3) 5The Secretary of State must lay an annual report published under this
paragraph before Parliament.

(4) The repeal by this Act of paragraph 14(2) of Schedule 1 to the Audit
Commission Act 1998 does not remove the obligation of the Secretary of
State to lay copies of an annual report received from the Audit Commission
10before each House of Parliament if the Secretary of State has not already
done so.

Payments in respect of pension liabilities

5 The Secretary of State may make payments to any person to enable that
person to meet—

(a) 15liabilities arising as the result of provision made under paragraph
5(2) of Schedule 1 to the Audit Commission Act 1998 for the payment
of sums by way of pension, allowances or gratuities, or

(b) liabilities under the pension scheme established under paragraph
7(4)(c) of that Schedule.

20Meaning of “the abolition date”

6 In this Schedule “the abolition date” means the date on which section 1(1)
(abolition of Audit Commission) comes into force.

Part 2 Repeal of Audit Commission Act 1998: consequential repeals and revocations

Reference 25Extent of repeal or revocation
School Standards and
Framework Act 1998 (c. 31)
In Schedule 30, paragraph 225.
Local Government Act 1999
(c. 27)
Section 22(3) to (6).
Greater London Authority Act
1999 (c. 29)
Section 133.
Schedule 8.
Local Government Act 2000
(c. 22)
30Section 91(1).
In Schedule 5, paragraph 30.
Countryside and Rights of Way
Act 2000 (c. 37)
In Schedule 13, paragraph 8.
Local Government Act 2003
(c. 26)
Sections 107 and 108.
Sections 110 and 111.
35In Schedule 7, paragraph 65.
Health and Social Care
(Community Health and
Standards) Act 2003 (c. 43)
In Schedule 9, paragraph 12.
Fire and Rescue Services Act
2004 (c. 21)
In Schedule 1, paragraph 88.
Public Audit (Wales) Act 2004
(c. 23)
In Schedule 2, paragraphs 21 to 26 and 32 to 38.
Freedom of Information
(Removal and Relaxation of
Statutory Prohibitions on
Disclosure of Information)
Order 2004 (SI 2004/3363)
Article 8.
40


Public Services Ombudsman
(Wales) Act 2005 (c. 10)
In Schedule 6, paragraph 59.
Serious Organised Crime and
Police Act 2005 (c. 15)
45In Schedule 4, paragraph 111.
Education Act 2005 (c. 18) In Schedule 14, paragraph 18.
Regulatory Reform (National
Health Service Charitable
and Non-Charitable Trust
Accounts and Audit) Order
2005 (SI 2005/1074)
Article 4.


50
Health Act 2006 (c. 28) In Schedule 8, paragraphs 39 to 42.
Education and Inspections Act
2006 (c. 40)
In Schedule 14, paragraphs 26 to 28, 30 and 31.
National Health Service
(Consequential Provisions)
Act 2006 (c. 43)
In Schedule 1, paragraphs 186 to 189 and 295 to
55297.
Serious Crime Act 2007 (c. 27) Part 1 of Schedule 7.
Local Government and Public
Involvement in Health Act
2007 (c. 28)
Sections 145 and 146.
Section 149.
Section 151(1).
60Section 153.
Section 155(3).
Section 157.
Sections 159 to 165.
Section 201(5).
65Schedule 9.
Schedule 11.
In Schedule 13, paragraph 52.
Health and Social Care Act 2008
(c. 14)
In Schedule 5, paragraphs 64 to 69.
Housing and Regeneration Act
2008 (c. 17)
In Schedule 9, paragraphs 20 to 27.
70
Local Transport Act 2008 (c. 26) In Schedule 4, paragraph 61.
Government Resources and
Accounts Act 2000 (Audit of
Public Bodies) Order 2008 (SI
2008/817)
Article 4.


75
Offender Management Act 2007
(Consequential
Amendments) Order 2008 (SI
2008/912)
In Schedule 1, paragraphs 26(2)(c) and (d) and
27(2)(c).

Companies Act 2006
(Consequential Amendments
etc) Order 2008 (SI 2008/948)
80In Schedule 1, paragraph 23.

London Waste and Recycling
Board Order 2008 (SI 2008/
2038)
Article 21(1).

85
Local Democracy, Economic
Development and
Construction Act 2009 (c. 20)
In Schedule 6, paragraph 89.

Companies Act 2006
(Consequential
Amendments, Transitional
Provisions and Savings)
Order 2009 (SI 2009/1941)
In Schedule 1, paragraph 173.
90


Housing and Regeneration Act
2008 (Registration of Local
Authorities) Order 2010 (SI
2010/844)
In Schedule 2, paragraph 24.
95

Apprenticeship, Skills, Children
and Learning Act 2009
(Consequential
Amendments) (England and
Wales) Order 2010 (SI 2010/
1080)
In Schedule 1, paragraph 98.

100


Police Reform and Social
Responsibility Act 2011
(c. 13)
In Schedule 16, paragraphs 226 to 230.
105
Localism Act 2011 (c. 20) In Schedule 20, paragraph 3.
Education Act 2011 (c. 21) In Schedule 5, paragraph 13.
Local Government Finance Act
2012 (c.17)
In Schedule 3, paragraph 31.
110
Crime and Courts Act 2013
(c. 22)
In Schedule 9, paragraph 62.
Health and Social Care Act 2012
(Consequential
Amendments) Order 2013 (SI
2013/594)
Article 4.

115

Local Audit and Accountability BillPage 35

Section 2

SCHEDULE 2 Relevant authorities

1 A county council in England.

2 A district council.

3 5A London borough council.

Local Audit and Accountability BillPage 36

4 A parish council.

5 A joint authority established under Part 4 of the Local Government Act 1985.

6 A Passenger Transport Executive.

7 The Greater London Authority.

8 5A functional body.

9 The London Pensions Fund Authority.

10 The London Waste and Recycling Board.

11 The Common Council.

  • NOTE: This Act applies to the Common Council only to the extent that it
    10exercises functions in relation to—

    (a)

    the collection fund of the Common Council,

    (b)

    the City Fund, or

12 A parish meeting of a parish which does not have a separate parish council.

13 The Council of the Isles of Scilly.

14 15Charter trustees.

15 A port health authority for a port health district that is wholly in England.

16 The Broads Authority.

17 A National Park authority for a National Park in England.

18 A conservation board established by order of the Secretary of State under
20section 86 of the Countryside and Rights of Way Act 2000.

19 A police and crime commissioner for a police area in England.

20 A chief constable for an area in England.

21 The Commissioner of Police of the Metropolis.

22 A fire and rescue authority in England constituted by a scheme under
25section 2 of the Fire and Rescue Services Act 2004 or a scheme to which
section 4 of that Act applies.

23 A clinical commissioning group.

24 Special trustees for a hospital.

25 An authority established for an area in England by an order under section
30207 of the Local Government and Public Involvement in Health Act 2007
(joint waste authorities).

26 An internal drainage board for an internal drainage district—

(a) wholly in England, or

(b) partly in England and partly in Wales.

27 35An economic prosperity board established under section 88 of the Local
Democracy, Economic Development and Construction Act 2009.

Local Audit and Accountability BillPage 37

28 A combined authority.

29 Any person or body exercising functions in relation to an area wholly in
England or partly in England and partly in Wales—

(a) which was originally subject to audit provisions contained in an
5enactment passed before the Audit Commission Act 1998, and

(b) to which the audit provisions of that Act applied by virtue of
paragraph 4(1) or 7 of Schedule 4 to that Act immediately before the
repeal of section 2(1) of that Act by this Act.

Section 7

SCHEDULE 3 10Further provisions about appointment of local auditors

Provisions applying to certain local authorities

1 (1) If a relevant authority is a local authority operating executive arrangements,
the function of appointing a local auditor to audit its accounts is not the
responsibility of an executive of the authority under those arrangements.

(2) 15If a relevant authority is a local authority within the meaning of section 101
of the Local Government Act 1972 (arrangements for discharge of functions),
that section does not apply to the authority’s function of appointing a local
auditor to audit its accounts.

(3) A local auditor appointed to audit the accounts of the Greater London
20Authority must be appointed by the Mayor of London and the London
Assembly acting jointly on behalf of the Authority.

Provisions applying to chief constables

2 (1) This paragraph applies to the accounts for a financial year of a chief
constable for an area.

(2) 25The chief constable must not appoint a local auditor to audit the accounts.

(3) The accounts must be audited by the local auditor appointed by the police
and crime commissioner for the area to audit the commissioner’s accounts
for the financial year.

(4) The police and crime commissioner must consult and take into account the
30advice of the commissioner’s auditor panel on the selection and
appointment of the local auditor.

Provisions applying to the Commissioner of Police of the Metropolis

3 (1) This paragraph applies to the accounts for a financial year of the
Commissioner of Police of the Metropolis.

(2) 35The Commissioner of Police of the Metropolis must not appoint a local
auditor to audit the accounts.

(3) The accounts must be audited by the local auditor appointed by the Mayor’s
Office for Policing and Crime to audit the Office’s accounts for the financial
year.

Local Audit and Accountability BillPage 38

(4) The Mayor’s Office for Policing and Crime must consult and take into
account the advice of the Office’s auditor panel on the selection and
appointment of the auditor.

Provisions applying to other authorities

4 (1) 5The Secretary of State may by regulations make provision about the
appointment of a local auditor to audit the accounts of a relevant authority—

(a) which is not an authority to which any of paragraphs 1 to 3 applies,
and

(b) which is specified, or of a description specified, in the regulations.

(2) 10Regulations under sub-paragraph (1) may, in particular—

(a) make further provision about the operation of this Act or any
provision made under it in relation to a relevant authority to which
the regulations apply;

(b) provide for any provision of or made under this Act not to apply, or
15to apply with modifications, in relation to a relevant authority to
which the regulations apply.

Section 9

SCHEDULE 4 Further provisions about auditor panels

Options for auditor panels

1 (1) 20The auditor panel of a relevant authority (“R”) must be—

(a) a panel appointed as an auditor panel by R,

(b) a panel appointed as an auditor panel by R and one or more other
relevant authorities,

(c) a committee of R to which sub-paragraph (2) applies, or

(d) 25a panel to which sub-paragraph (3) applies.

(2) This sub-paragraph applies to a committee of R (however described) which
has not been appointed as an auditor panel if—

(a) R determines that the committee should be R’s auditor panel,

(b) the committee agrees to be R’s auditor panel, and

(c) 30the committee complies with the other provisions applying to
auditor panels made by or under this Schedule.

(3) This sub-paragraph applies to a panel if—

(a) the panel is (by virtue of any of paragraphs (a) to (c) of sub-
paragraph (1)) the auditor panel of a relevant authority other than R,

(b) 35R determines that the panel should be R’s auditor panel,

(c) the panel agrees to be R’s auditor panel, and

(d) the panel complies (as regards R) with the other provisions applying
to auditor panels made by or under this Schedule.

(4) References in sub-paragraphs (1) and (2) to a committee of R include a sub-
40committee of a committee of R.

Local Audit and Accountability BillPage 39

(5) The function of appointing a panel or making a determination under this
paragraph is to be exercised in the case of the Greater London Authority by
the Mayor of London and the London Assembly acting jointly on behalf of
the Authority.

5Constitution of auditor panels

2 (1) A relevant authority’s auditor panel, other than a health service body’s
auditor panel—

(a) must consist of a majority of independent members (or wholly of
independent members), and

(b) 10must be chaired by an independent member.

(2) A member of a relevant authority’s auditor panel, other than a health service
body’s auditor panel, is “independent” at any given time if—

(a) the panel member has not been a member or officer of the authority
within the period of 5 years ending with that time,

(b) 15the panel member has not been an officer or employee of an entity
connected with the authority within that period, and

(c) the panel member is not at that time a relative or close friend of a
member or officer of the authority or an officer or employee of an
entity connected with the authority.

(3) 20An elected mayor of a relevant authority is not independent of that authority
for the purposes of sub-paragraph (2).

(4) In the application of sub-paragraph (2) to a corporation sole, the reference to
a member is a reference to a holder of that office.

(5) In the application of sub-paragraph (2) to the auditor panel of a police and
25crime commissioner for an area, references to the authority include the chief
constable for the area.

(6) In the application of sub-paragraph (2) to the auditor panel of the Mayor’s
Office for Policing and Crime, references to the authority include the
Commissioner of Police of the Metropolis.

(7) 30In sub-paragraph (2) “officer”, in relation to an entity connected with a
relevant authority, means a person elected or appointed as, or to, that entity
or to an office of that entity.

(8) For the purposes of sub-paragraph (2)(c), a person (“R”) is a relative of
another person (“P”) if R is—

(a) 35P’s partner,

(b) P’s parent or grandparent,

(c) P’s son, daughter, stepson, stepdaughter or grandchild,

(d) P’s brother or sister,

(e) P’s uncle, aunt, nephew or niece,

(f) 40a parent, son, daughter, brother or sister of P’s partner, or

(g) a partner of any person within paragraphs (b) to (f),

and for this purpose “partner” means a spouse, civil partner or someone a
person lives with as if they were husband and wife or civil partners.