Local Audit and Accountability Bill (HC Bill 129)
SCHEDULE 9 continued
Local Audit and Accountability BillPage 80
Fees for data matching
6
(1)
A relevant minister must prescribe a scale or scales of fees in respect of data
matching exercises.
(2)
A person within paragraph 2(2) who is required under that paragraph to
5provide data for a data matching exercise must pay to the relevant minister
by whom or on whose behalf the exercise is conducted the fee applicable to
that exercise in accordance with the appropriate scale.
(3)
But if it appears to the relevant minister that the work involved in the
exercise was substantially more or less than that envisaged by the
10appropriate scale, the minister may charge the person a fee which is larger
or smaller than that referred to in sub-paragraph (2).
(4)
Before prescribing a scale of fees under this paragraph, a relevant minister
must consult—
(a) the persons within paragraph 2(2),
(b)
15such representatives of persons within paragraph 2(2) as the minister
thinks appropriate, and
(c) such other bodies or persons as the minister thinks appropriate.
(5)
In addition to the power under sub-paragraph (2), a relevant minister may
charge a fee to any body or person providing data for or receiving the results
20of a data matching exercise.
(6)
A fee under sub-paragraph (5) is payable in accordance with terms agreed
between the relevant minister and that body or person.
Code of data matching practice
7
(1)
A relevant minister must prepare, and keep under review, a code of practice
25with respect to data matching exercises.
(2)
Regard must be had to the code in conducting and participating in any data
matching exercise.
(3) Before preparing or altering the code, the relevant minister must consult—
(a) the persons within paragraph 2(2),
(b)
30such representatives of persons within paragraph 2(2) as the minister
thinks appropriate,
(c) the Information Commissioner, and
(d) such other bodies or persons as the minister thinks appropriate.
(4) The relevant minister must—
(a)
35lay a copy of the code, and of any alterations made to it, before
Parliament, and
(b) from time to time publish the code as for the time being in force.
Powers to amend this Schedule
8 (1) A relevant minister may by regulations amend this Schedule—
(a)
40to add a purpose mentioned in sub-paragraph (2) to the purposes for
which data matching exercises may be conducted (see paragraph
1(4));
Local Audit and Accountability BillPage 81
(b)
to modify the application of this Schedule in relation to a purpose so
added.
(2) The purposes which may be added are—
(a) to assist in the prevention and detection of crime (other than fraud),
(b) 5to assist in the apprehension and prosecution of offenders,
(c)
to assist in the prevention and detection of errors and inaccuracies,
and
(d) to assist in the recovery of debt owing to public bodies.
(3)
Before making regulations under sub-paragraph (1), a relevant minister
10must consult—
(a) the persons within paragraph 2(2),
(b)
such representatives of persons within paragraph 2(2) as the minister
thinks appropriate, and
(c) such other bodies or persons as the minister thinks appropriate.
(4) 15A relevant minister may by regulations amend this Schedule—
(a) to add a public body to the list in paragraph 2(2);
(b)
to modify the application of this Schedule in relation to a body so
added;
(c) to remove a person from that list.
(5)
20Before making regulations under sub-paragraph (4), a relevant minister
must consult—
(a) the body or person who is to be the subject of the regulations,
(b)
such representatives of persons within paragraph 2(2) as the minister
thinks appropriate, and
(c) 25such other bodies or persons as the minister thinks appropriate.
(6) In this paragraph, “public body” means a body or person whose functions—
(a) are functions of a public nature, or
(b) include functions of that nature,
but, in the latter case, the body or person is a public body only to the extent
30of those functions.
Section 34
SCHEDULE 10 Best value inspections
1 The Local Government Act 1999 is amended as follows.
2 For section 10 substitute—
“10 35Inspections
(1)
The Secretary of State may appoint a person to carry out an
inspection of a specified best value authority’s compliance with the
requirements of this Part in relation to specified functions.
(2)
The Secretary of State may appoint assistant inspectors for the
40purposes of the inspection.
Local Audit and Accountability BillPage 82
(3)
The appointment of an assistant inspector must be made on the
recommendation of the inspector, unless the Secretary of State thinks
that the urgency of the inspection makes it necessary to dispense
with this requirement.
(4)
5In carrying out an inspection, the inspector and any assistant
inspector must—
(a)
have regard to any guidance issued by the Secretary of State
generally in relation to inspections, and
(b)
comply with any directions issued by the Secretary of State in
10relation to that inspection.”
3
In section 11(7) (powers and duties: definition of “inspector”), for paragraph
(a) substitute “an inspector or assistant inspector appointed under section
10(1) or (2).”
4 For section 12 substitute—
“12 15Fees
An authority inspected under section 10 must pay the reasonable
fees of the inspector for carrying out the inspection.”
5 (1) Section 13 (reports) is amended as follows.
(2) In subsection (1)—
(a) 20for “the Audit Commission” substitute “an inspector”, and
(b) for “it” substitute “the inspector”.
(3) In subsection (2)(a), for “Commission” substitute “inspector”.
(4) In subsection (3)—
(a) for “Commission” substitute “inspector”, and
(b)
25in paragraph (a), after “to the authority concerned” insert “and to the
Secretary of State”.
(5) After subsection (3) insert—
“(3A)
The Secretary of State may publish a report and any information in
respect of a report.”
(6) 30In subsection (4)—
(a) for “Commission” substitute “inspector”, and
(b) omit paragraph (b) and the word “and” preceding it.
(7) In subsection (4A)—
(a) for “Commission” substitute “inspector”, and
(b) 35for “it” substitute “the inspector”.
6 In section 15 (Secretary of State’s powers)—
(a) omit subsection (10), and
(b) in subsections (11) and (12) omit “or (10)”.
7 Omit section 22(1) (Audit Commission).
8 40In section 25(2) (coordination of inspections: persons to whom the section
Local Audit and Accountability BillPage 83
applies), for paragraph (a) substitute—
“(a)
an inspector or assistant inspector appointed under section
10(1) or (2);”.
9
Omit section 26(3) (consultation with Audit Commission before issuing
5guidance).
10
In section 33 (grants to Audit Commission and Wales Audit Office) omit
subsections (2) and (3)(a).
11
On the coming into force of the repeal (by the Welfare Reform Act 2012) of
section 139D of the Social Security Administration Act 1992 omit—
(a) 10section 13(4A) of the Local Government Act 1999, and
(b) the amendments made to it by paragraph 5(7) of this Schedule.
Section 36
SCHEDULE 11 Disclosure of information
Information to which this Schedule applies
1
(1)
15This Schedule applies to information relating to a particular body or
person—
(a)
that is obtained by a local auditor, or a person acting on behalf of a
local auditor, under or by virtue of this Act or in the course of an
audit under this Act, or
(b)
20that is obtained by an inspector or an assistant inspector, or a person
acting on behalf of an inspector or an assistant inspector, under Part
1 of the Local Government Act 1999 (inspection of best value
authorities) or in the course of an inspection under that Part.
(2)
This Schedule also applies to information relating to a particular body or
25person that is obtained by an authority within sub-paragraph (3) in
connection with the exercise of the authority’s functions under or by virtue
of this Act.
(3) Those authorities are—
(a) a recognised supervisory body,
(b) 30 a recognised qualifying body,
(c)
a body performing functions for the purposes of arrangements
within paragraph 23(1) (independent monitoring of certain audits)
or 24(1) (independent investigation of public interest cases) of
Schedule 10 to the Companies Act 2006 as it has effect by virtue of
35Schedule 5,
(d) the Secretary of State, and
(e)
a body designated by the Secretary of State under section 1252 of the
Companies Act 2006 (delegation of the Secretary of State’s functions)
as it has effect by virtue of Schedule 5.
40General bar on disclosure and exceptions
2 (1) Information to which this Schedule applies may not be disclosed except—
Local Audit and Accountability BillPage 84
(a)
with the consent of the body or person to whom the information
relates,
(b)
for the purposes of any functions of a person under or by virtue of
this Act or Part 1 of the Local Government Act 1999,
(c)
5for the purposes of any function of a person under or by virtue of
Part 42 of the Companies Act 2006,
(d)
in the case of information relating to a health service body, for the
purposes of—
(i)
the functions of the Secretary of State, the National Health
10Service Commissioning Board or the Comptroller and
Auditor General under the National Health Service Act 2006,
or
(ii)
the functions of the Welsh Ministers under Chapter 4 of Part
2 of the Health and Social Care (Community Health and
15Standards) Act 2003,
(e)
to Her Majesty’s Chief Inspector of Education, Children’s Services
and Skills for the purposes of the Chief Inspector’s functions under
Chapter 4 of Part 8 of the Education and Inspections Act 2006,
(f)
for the purposes of the functions of the Regulator of Social Housing
20under Part 2 of the Housing and Regeneration Act 2008,
(g)
for the purposes of the functions of the Secretary of State relating to
social security,
(h)
for the purposes of any function of the Auditor General for Wales
under the Public Audit (Wales) Act 2004,
(i)
25to the Mayor of London, where the information relates to the Greater
London Authority or a functional body,
(j)
for the purposes of the functions of the Public Services Ombudsman
for Wales under Part 3 of the Local Government Act 2000, or
(k)
for the purposes of the functions of a monitoring officer under that
30Part or regulations made under that Part.
(2)
This paragraph does not prohibit the disclosure of information if the
information is or has been available to the public from any other source.
(3)
This paragraph does not limit the circumstances in which information may
be disclosed apart from this Schedule (and see in particular section 17 of the
35Anti-terrorism, Crime and Security Act 2001 (extension of disclosure powers
under other Acts: criminal proceedings and investigations)).
Further exceptions
3
(1)
A person who is, or acts on behalf of a person who is, a public authority for
the purposes of the Freedom of Information Act 2000 may also disclose
40information to which this Schedule applies unless the disclosure would, or
would be likely to, prejudice the effective performance of a function
imposed or conferred on the person by or under an enactment.
(2)
A local auditor, or a person acting on the auditor’s behalf, may also disclose
information to which this Schedule applies except where the disclosure
45would, or would be likely to, prejudice the effective performance of a
function imposed or conferred on the auditor by or under an enactment.
Local Audit and Accountability BillPage 85
Disclosure with consent of local auditor
4
(1)
A person who does not fall within paragraph 3 may also disclose
information to which this Schedule applies in accordance with consent given
by a local auditor under this paragraph.
(2)
5A person requesting consent (“the applicant”) must make a request for
consent which—
(a) is in writing,
(b) states the name of the applicant and an address for correspondence,
(c)
describes the information in relation to which consent is requested,
10and
(d) identifies the person to whom the information will be disclosed.
(3)
Consent must be given except where the disclosure would, or would be
likely to, prejudice the effective performance of a function imposed or
conferred on a local auditor by or under an enactment.
(4)
15Consent may be given or refused orally or in writing; but where it is given
or refused orally the consent or refusal must be confirmed in writing.
(5)
A refusal (or, where the refusal is given orally, the confirmation of the
refusal) must contain the reasons for the refusal.
(6)
A local auditor to whom a request for consent is made must give or refuse
20consent not later than the twentieth working day following the day on which
the request is received.
(7)
“Working day” means any day other than a Saturday, a Sunday, Christmas
Day, Good Friday or a day which is a bank holiday under the Banking and
Financial Dealings Act 1971 in any part of the United Kingdom.
25Offence of wrongful disclosure
5
(1)
A person who discloses information in breach of this Schedule is guilty of an
offence and liable on summary conviction to a fine not exceeding level 5 on
the standard scale.
(2)
If section 85(1) of the Legal Aid, Sentencing and Punishment of Offenders
30Act 2012 comes into force on or before the day on which this Act is passed—
(a)
section 85 of that Act (removal of limit on certain fines on conviction
by magistrates’ court) applies in relation to the offence in sub-
paragraph (1) as if it were a relevant offence (as defined in section
85(3) of that Act), and
(b)
35regulations described in section 85(11) of that Act may amend or
otherwise modify sub-paragraph (1).
Meaning of “enactment”
6 In this Schedule “enactment” includes—
(a)
an enactment contained in, or in an instrument made under, a
40Measure or Act of the National Assembly for Wales,
(b)
an enactment contained in, or in an instrument made under, an Act
of the Scottish Parliament, and
(c)
an enactment contained in, or in an instrument made under,
Northern Ireland legislation.
Local Audit and Accountability BillPage 86
Section 45
SCHEDULE 12 Related amendments
Public Health Act 1875 (c. 55)1875 (c. 55)
1
In section 265 of the Public Health Act 1875 (protection of members etc of
5authorities: exception for liability under section 17 or 18 of the Audit
Commission Act 1998), omit the words from “Provided that” to “Audit
Commission Act 1998”.
Prison Act 1952 (c. 52)Prison Act 1952 (c. 52)
2
(1)
Schedule A1 to the Prison Act 1952 (further provision about Her Majesty’s
10Chief Inspector of Prisons) 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)
15In paragraph 4 (duty to co-operate) omit paragraph (h) (the Audit
Commission).
(5) In paragraph 6 (assistance for other public authorities)—
(a) after sub-paragraph (1) insert—
“(1A)
The Chief Inspector may do anything the Chief Inspector
20thinks 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)
Anything done under this paragraph may be done on such
25terms (including terms as to payment) as the Chief
Inspector thinks fit.”
Transport Act 1968 (c. 73)Transport Act 1968 (c. 73)
3
In section 14 of the Transport Act 1968 (accounts of Passenger Transport
Executives), for the subsection (3) that extends to England and Wales
30substitute—
“(3)
As soon as the accounts of the Executive for any accounting period
have been audited in accordance with the Local Audit and
Accountability Act 2013, they must send a copy of the statement of
accounts prepared by them for that period under section 3 of that
35Act, together with a copy of the auditor’s opinion on that
statement—
(a) to the Secretary of State,
(b) to the Authority, and
(c)
to each of the councils of the districts comprised in the county
40which is coterminous with or includes the Executive’s area.”
Local Audit and Accountability BillPage 87
Local Government Act 1972 (c. 70)Local Government Act 1972 (c. 70)
4 The Local Government Act 1972 is amended as follows.
5
In section 86(1)(b) (disqualifications from being local authority member that
do not trigger a declaration of vacancy), for the words from “under the Audit
5Commission Act 1998” to “or by virtue of” substitute “under section 79 of the
Local Government Act 2000 or section 34 of the Localism Act 2011 or by
virtue of”.
6
In section 87(1)(d) (date of vacancy in local authority membership in case of
disqualification under the Audit Commission Act 1998)—
(a)
10for the words from “under the Audit Commission Act 1998” to “or by
virtue of a” substitute “by virtue of a”, and
(b)
omit “relevant order or decision under that Act or (as the case may
be) that”.
7
In section 137(7A) (requirement for separate account for expenditure under
15that section)—
(a)
for “section 14 of the Audit Commission Act 1998 (rights of
inspection)” substitute “section 25 of the Local Audit and
Accountability Act 2013 (inspection of statements of accounts etc)”,
and
(b) 20for “regulations under section 27” substitute “section 3(3)”.
8
Section 246(15) of the Local Government Act 1972 continues to have effect
with the amendment made by paragraph 5(5) of Schedule 5 to the Local
Government Finance Act 1982, that is with the substitution for “Sections 154
to 168 above” of “Section 168 above”.
25House of Commons Disqualification Act 1975 (c. 24)House of Commons Disqualification Act 1975 (c. 24)
9 In Part 3 of Schedule 1 to the House of Commons Disqualification Act 1975—
(a)
omit the entry for the Controller of Audit appointed under
paragraph 7(1) of Schedule 1 to the Audit Commission Act 1998, and
(b)
omit the entry for any member of the Audit Commission for Local
30Authorities and the National Health Service in England in receipt of
remuneration.
Local Government, Planning and Land Act 1980 (c. 65)Local Government, Planning and Land Act 1980 (c. 65)
10
In section 2(7) of the Local Government, Planning and Land Act 1980
(recommended ways for local authorities to publish information), for
35paragraph (b) substitute—
“(b)
its inclusion in a statement of accounts prepared by an
authority to which this section applies in accordance with
section 3 of the Local Audit and Accountability Act 2013 or
regulations under section 39 of the Public Audit (Wales) Act
402004 or in an abstract of accounts prepared by such an
authority in accordance with regulations under section 105 of
the Local Government (Scotland) Act 1973; or”.
Local Audit and Accountability BillPage 88
Building Act 1984 (c. 55)Building Act 1984 (c. 55)
11
In section 115 of the Building Act 1984 (protection of members etc of
authorities) omit subsection (3) (exception for liability under section 17 or 18
of the Audit Commission Act 1998).
5Further Education Act 1985 (c. 47)Further Education Act 1985 (c. 47)
12
In section 3(4) of the Further Education Act 1985 (duty of local authorities to
keep accounts in addition to accounts under Audit Commission Act 1998),
for “section 27 of the Audit Commission Act 1998” substitute “section 3 of
the Local Audit and Accountability Act 2013”.
10Transport Act 1985 (c. 67)1985 (c. 67)
13
(1)
Section 76 of the Transport Act 1985 (audit of accounts of public transport
companies) is amended as follows.
(2) For subsection (1) substitute—
“(1A)
In a case where a public transport company’s controlling authority
15are—
(a) a county council or county borough council in Wales, or
(b)
a composite authority of which both or all the constituent
councils are county councils or county borough councils in
Wales,
20it shall be the duty of the controlling authority to exercise their
control over that company so as to ensure that the company appoints
as auditors of the company only persons who, in addition to meeting
the requirements of Part 42 of the Companies Act 2006 (statutory
auditors), are approved for appointment as such auditors by the
25Auditor General for Wales.
(1B)
In any other case, it shall be the duty of a public transport company’s
controlling authority to exercise their control over that company so
as to ensure that the company appoints as auditors of the company
only persons who meet the requirements of Part 42 of the Companies
30Act 2006 (statutory auditors).”
(3) In subsection (2), after “(1)” insert “or (as the case may be) (1A)”.
Housing Associations Act 1985 (c. 69)Housing Associations Act 1985 (c. 69)
14
In section 75 of the Housing Associations Act 1985 (general functions) omit
subsections (1A) and (1B) (function of the Housing Corporation of giving
35assistance to the Audit Commission).
Local Government Act 1986 (c. 10)Local Government Act 1986 (c. 10)
15
In section 5(4) of the Local Government Act 1986 (separate account of
expenditure on publicity: application of section 27(1)(e) of the Audit
Commission Act 1998 to right of inspection) for “section 27(1)(e) of the Audit
40Commission Act 1998” substitute “section 32(1)(e) of the Local Audit and
Accountability Act 2013”.
Local Audit and Accountability BillPage 89
Airports Act 1986 (c. 31)Airports Act 1986 (c. 31)
16 The Airports Act 1986 is amended as follows.
17
(1)
Section 22 (other local authority capital controls in England and Wales) is
amended as follows.
(2) 5For subsection (5) substitute—
“(5)
In a case where the controlling authority of a public airport company
are—
(a) a county council or county borough council in Wales, or
(b)
a composite authority of which both or all the constituent
10councils are county councils or county borough councils in
Wales,
it shall be the duty of the controlling authority to exercise their
control over the public airport company so as to ensure that the
company appoints as auditors of the company only persons who, in
15addition to meeting the requirements of Part 42 of the Companies
Act 2006 (statutory auditors), are approved for appointment as such
auditors by the Auditor General for Wales.
(5A)
In any other case, it shall be the duty of the controlling authority of a
public airport company to exercise their control over the company so
20as to ensure that the company appoints as auditors of the company
only persons who meet the requirements of Part 42 of the Companies
Act 2006 (statutory auditors).”
(3) In subsection (6), after “(5)” insert “or (as the case may be) (5A)”.
18
In section 24(3)(a) (provision of services by principal council for public
25airport companies: requirement for separate account)—
(a)
for “section 14 of the Audit Commission Act 1998 (rights of
inspection)” substitute “section 25 of the Local Audit and
Accountability Act 2013 (inspection of statements of accounts etc)”,
and
(b) 30for “regulations under section 27” substitute “section 3(3)”.
Norfolk and Suffolk Broads Act 1988 (c. 4)Norfolk and Suffolk Broads Act 1988 (c. 4)
19
In section 17 of the Norfolk and Suffolk Broads Act 1988 (accounts and
auditing), in the second subsection (11), for “section 27 of the Audit
Commission Act 1998 (accounts and audit regulations)” substitute “section
3532 of the Local Audit and Accountability Act 2013 (accounts and audit
regulations)”.
Education Reform Act 1988 (c. 40)Education Reform Act 1988 (c. 40)
20 The Education Reform Act 1988 is amended as follows.
21
In section 124B, omit subsection (5) (duty of certain higher education
40corporations to consult Audit Commission before appointing auditor in
respect of first financial year).
22 In paragraph 18 of Schedule 7 (higher education corporations)—