Local Audit and Accountability Bill (HC Bill 129)
SCHEDULE 7 continued
Local Audit and Accountability BillPage 70
(b)
what, if any, action to take in response to the report or
recommendation.
(7)
Where the relevant authority is a police and crime commissioner or the
Mayor’s Office for Policing and Crime, the authority must, before the end of
5the period of one month beginning with the day on which the report or
recommendation was sent to the authority, decide—
(a)
whether the report requires the authority to take any action or
whether the recommendation is to be accepted, and
(b)
what, if any, action to take in response to the report or
10recommendation.
(8)
If the local auditor is satisfied that it is reasonable to allow more time for the
relevant authority to comply with sub-paragraph (5) or (7), the auditor may
extend or further extend the period of one month mentioned in that sub-
paragraph.
(9)
15This paragraph does not affect any duties (so far as they relate to the subject-
matter of a report or recommendation sent to a relevant authority) which are
imposed by or under—
(a) this Act,
(b)
sections 114 to 116 of the Local Government Finance Act 1988
20(functions and reports of finance officers),
(c)
section 5 of the Local Government and Housing Act 1989 (functions
of monitoring officers), or
(d) any other enactment.
(10)
The Secretary of State may by regulations provide for this paragraph to
25apply with modifications in relation to a relevant authority specified, or of a
description specified, in the regulations.
(11)
The Secretary of State may by regulations provide for any provisions of the
following that do not otherwise apply to a meeting of a relevant authority
under this paragraph to apply (with or without modifications) to such a
30meeting—
(a) the Public Bodies (Admission to Meetings) Act 1960;
(b)
Part 5A of the Local Government Act 1972 (access to meetings and
documents);
(c)
Schedule 12 to that Act (meetings and proceedings of local
35authorities).
Consideration of report or recommendation: Greater London Authority
6 (1) This paragraph applies if—
(a)
a local auditor has made a public interest report relating to the
Greater London Authority (“the Authority”) or an entity connected
40with it, or
(b)
a local auditor has made a recommendation relating to the Authority
or an entity connected with it.
(2)
This paragraph does not apply where a local auditor has made a report or
recommendation relating to the Commissioner of Police of the Metropolis
45regardless of whether the Commissioner is connected with the Authority or
was so connected at the time to which the report or recommendation relates.
Local Audit and Accountability BillPage 71
(3)
The London Assembly (“the Assembly”) must consider the report or
recommendation at a meeting.
(4) The Mayor of London (“the Mayor”) must attend the meeting.
(5)
At the meeting, the Assembly must decide what recommendations to make
5to the Mayor about the decisions to be made under sub-paragraph (6).
(6)
Having considered the report or recommendation, and the Assembly’s
recommendations under sub-paragraph (5), the Mayor must decide—
(a)
whether the report requires the Authority to take any action or
whether the recommendation is to be accepted, and
(b)
10what, if any, action to take in response to the report or
recommendation.
(7)
The Mayor and the Assembly must comply with sub-paragraphs (3) to (6)
before the end of the period of one month beginning with the day on which
the report or recommendation was sent to the Authority.
(8)
15If the local auditor is satisfied that it is reasonable to allow more time for the
Mayor or the Assembly to comply with sub-paragraphs (3) to (6), the auditor
may extend or further extend the period of one month mentioned in sub-
paragraph (7).
(9)
This paragraph does not affect any duties (so far as they relate to the subject-
20matter of a report or recommendation sent to the Authority) which are
imposed by or under—
(a) this Act,
(b)
sections 114 to 116 of the Local Government Finance Act 1988
(functions and reports of finance officers),
(c)
25section 5 of the Local Government and Housing Act 1989 (functions
of monitoring officers), or
(d) any other enactment.
Bar on delegation of functions relating to meetings
7
(1)
If a relevant authority is a local authority operating executive arrangements,
30the authority’s functions under paragraph 5 are not the responsibility of an
executive of the authority under those arrangements.
(2)
If 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 its functions under paragraph 5.
(3)
35The functions of a parish meeting under paragraph 5 are to be exercised by
the parish meeting itself (and not by its chairman on behalf of the parish
meeting).
(4)
Any functions of the Mayor of London under paragraph 6 must be exercised
by the Mayor personally.
(5)
40Section 54 of the Greater London Authority Act 1999 (discharge of London
Assembly functions by committees etc) does not apply in relation to any
function of the London Assembly under paragraph 6.
Local Audit and Accountability BillPage 72
Publicity for meetings
8
(1)
If a relevant authority is required to hold a meeting under paragraph 5, it
must publish a notice in compliance with sub-paragraphs (2) to (4).
(2) The notice must be published—
(a) 5if the relevant authority has a website, on its website;
(b)
otherwise, in such manner as the authority thinks is likely to bring
the notice to the attention of persons who live in its area.
(3) The notice must—
(a) state the time and place of the meeting,
(b)
10indicate that the meeting is to be held to consider a local auditor’s
report or recommendation (as the case may be),
(c)
if the meeting is to be held to consider a report, describe the subject
matter of the report, and
(d)
if the meeting is to be held to consider a recommendation, set out the
15recommendation or, where this is not reasonably practicable,
describe its subject matter.
(4)
The notice must be published before the beginning of the period of 8 days
ending with the day of the meeting.
(5)
The agenda supplied to the members of the relevant authority for the
20meeting must be accompanied by a copy of the report or recommendation
(as the case may be).
(6) Sub-paragraph (5) does not apply in relation to a parish meeting.
(7)
If the London Assembly is required to hold a meeting under paragraph 6,
the Greater London Authority must publish on its website a notice in
25compliance with sub-paragraphs (3) and (4).
(8)
The agenda supplied to the members of the London Assembly for the
meeting must be accompanied by a copy of the report or recommendation
(as the case may be).
(9)
This paragraph applies in addition to any provision made in relation to the
30relevant authority in question by or under the Public Bodies (Admission to
Meetings) Act 1960, the Local Government Act 1972 or any other enactment.
Access to meetings and documents
9
(1)
Where a public interest report or a recommendation is to be considered
under paragraph 5 by a relevant authority to which the Public Bodies
35(Admission to Meetings) Act 1960 applies, the report or recommendation is
not to be excluded from the matter supplied under section 1(4)(b) of that Act
(supply of agenda etc to newspapers).
(2)
Part 5A (access to meetings and documents) of the Local Government Act
1972 applies to a meeting of the London Pensions Fund Authority under
40paragraph 5 as if the Authority were a principal council.
(3)
Sub-paragraphs (4) to (6) apply in relation to the consideration under
paragraph 5 or 6 of a public interest report or a recommendation by a
relevant authority to which Part 5A (access to meetings and documents) of
the Local Government Act 1972 applies.
Local Audit and Accountability BillPage 73
(4)
Information contained in the report or recommendation is not to be treated
as exempt information for the purposes of that Part.
(5) The report or recommendation is not to be excluded—
(a)
from the documents open to inspection under section 100B(1) of that
5Act (public access to agenda and reports before meetings), or
(b)
from the matter supplied under section 100B(7) of that Act (supply of
agenda etc to newspapers).
(6)
Part 5A of the Local Government Act 1972 has effect in relation to the report
or recommendation as if section 100C(1)(d) of that Act (public access to
10copies of reports for six years after meeting) were not limited to so much of
the report or recommendation as relates to an item during which the
meeting was open to the public.
(7)
Information contained in a public interest report or a recommendation is not
to be treated as exempt information for the purposes of any Act or
15instrument made under an Act that applies in relation to exempt
information within the meaning of Part 5A of the Local Government Act
1972.
(8)
References in this paragraph to a public interest report or a recommendation
include any report on the report or recommendation.
20Publicity for decisions under paragraph 5 or 6
10
(1)
As soon as is practicable after making decisions under paragraph 5(6) or (7)
or 6(6), a relevant authority must—
(a) notify the authority’s local auditor of those decisions, and
(b)
publish a notice containing a summary of those decisions which has
25been approved by the auditor.
(2) The notice under sub-paragraph (1)(b) must be published—
(a) if the relevant authority has a website, on its website;
(b)
otherwise, in such manner as the authority thinks is likely to bring
the notice to the attention of persons who live in its area.
(3)
30The notice required by sub-paragraph (1)(b) in relation to a meeting need not
summarise any decision made while the public were excluded from the
meeting—
(a)
as the result of a resolution under section 1(2) of the Public Bodies
(Admission to Meetings) Act 1960 (protection of public interest),
(b)
35under section 100A(2) of the Local Government Act 1972
(confidential matters), or
(c)
as the result of a resolution under section 100A(4) of that Act (exempt
information).
(4)
If sections 100C and 100D of the Local Government Act 1972 (availability for
40inspection after meetings of minutes etc) apply in relation to a meeting
under paragraph 5 or 6, the notice required by sub-paragraph (1)(b) must
indicate the documents in relation to the meeting that are open for
inspection in accordance with those paragraphs.
(5)
This paragraph applies in addition to any provision made in relation to the
45relevant authority by or under the Public Bodies (Admission to Meetings)
Act 1960, the Local Government Act 1972 or any other enactment.
Local Audit and Accountability BillPage 74
Section 29
SCHEDULE 8 Advisory notices
Power to issue advisory notice
1
(1)
A local auditor of the accounts of a relevant authority, other than a health
5service body, may issue a notice under this paragraph (an “advisory notice”)
if the auditor thinks that the authority or an officer of the authority—
(a)
is about to make or has made a decision which involves or would
involve the authority incurring unlawful expenditure,
(b)
is about to take or has begun to take a course of action which, if
10followed to its conclusion, would be unlawful and likely to cause a
loss or deficiency, or
(c) is about to enter an item of account, the entry of which is unlawful.
(2) An advisory notice is a notice which—
(a) is addressed to the authority or officer concerned,
(b)
15specifies the paragraph of sub-paragraph (1) which is relevant and
the decision, course of action or item of account to which the notice
relates,
(c)
specifies that the notice will take effect on the day on which a copy of
the notice is served on the person to whom it is addressed, and
(d)
20requires the authority or officer to give the authority’s local auditor
at least the specified number of days’ notice in writing of the
intention of the authority or officer to—
(i) make or implement the decision,
(ii) take or continue to take the course of action, or
(iii) 25enter the item of account,
(as the case may be).
(3)
In sub-paragraph (2)(d) “the specified number” means the number of days
specified in the notice, which may not be more than 21.
(4)
For the purposes of this Schedule the actions of the following are to be
30treated as actions of the relevant authority itself—
(a) a committee or sub-committee of the authority;
(b)
any other person (other than an officer) authorised to act on behalf of
the authority.
Service and withdrawal of notice
2 (1) 35A copy of an advisory notice—
(a)
in the case of a notice addressed to a relevant authority, must be
served on the relevant authority,
(b)
in the case of a notice addressed to an officer, must be served on the
relevant authority concerned and the officer, and
(c)
40may be served on any other person the local auditor thinks
appropriate.
(2)
If the relevant authority referred to in sub-paragraph (1)(a) or (b) is a
connected entity, a copy of the notice must also be served on its related
authority or authorities.
Local Audit and Accountability BillPage 75
(3)
The local auditor must serve a statement of the auditor’s reasons for the
belief referred to in paragraph 1(1)—
(a) on the relevant authority concerned,
(b)
on any officer on whom a copy of the notice was served under sub-
5paragraph (1)(b), and
(c)
if a copy of the notice was served on a related authority or authorities
under sub-paragraph (2), on that authority or those authorities.
(4)
The statement must be served before the end of the period of 7 days
beginning with the day on which a copy of the notice was served on the
10person to whom it is addressed.
(5)
Where this paragraph requires a document to be served on an officer of a
relevant authority, it must be served by addressing it to the officer and
delivering it to the officer or leaving it at, or sending it by post to, the office
where the officer is employed.
(6)
15An advisory notice may at any time be withdrawn by the local auditor of the
accounts of the relevant authority to which, or to an officer of which, the
notice was addressed.
(7)
The local auditor must give notice in writing of the withdrawal to any
person on whom a copy of the advisory notice was served under sub-
20paragraph (1) or (2).
(8)
In this Schedule “the relevant authority concerned”, in relation to an
advisory notice, means the relevant authority to which, or to any officer of
which, the notice is addressed.
Effect of an advisory notice
3
(1)
25While an advisory notice has effect, it is not lawful for the relevant authority
concerned or any officer of that authority—
(a) if the notice relates to a decision, to make or implement the decision,
(b)
if the notice relates to a course of action, to take or continue to take
the course of action, or
(c) 30if the notice relates to an item of account, to enter the item of account.
(2) Sub-paragraph (1) does not apply if—
(a)
the relevant authority has considered, in the light of the advisory
notice and the statement under paragraph 2(3), the consequences of
doing the thing mentioned in sub-paragraph (1) which is relevant,
(b)
35the relevant authority or officer has given the authority’s local
auditor and (where applicable) its related authority or each of its
related authorities the period of notice in writing required by the
advisory notice under paragraph 1(2)(d), and
(c) that period has expired.
(3)
40The condition in paragraph (a) of sub-paragraph (2) is met in relation to a
parish meeting only if the matters referred to in that paragraph are
considered by the parish meeting itself (and not by its chairman on behalf of
the parish meeting).
(4)
An advisory notice takes effect on the day on which a copy of the notice is
45served on the person to whom it is addressed, and ceases to have effect—
Local Audit and Accountability BillPage 76
(a)
if a statement of reasons is not served in accordance with paragraph
2(3), at the end of the period specified in paragraph 2(4), or
(b) when it is withdrawn under paragraph 2(6).
(5) A local auditor may recover from a relevant authority—
(a)
5the reasonable costs of determining whether to issue an advisory
notice to that authority or an officer of that authority, and
(b)
the reasonable costs of issuing an advisory notice to that authority or
an officer of that authority.
(6)
Sub-paragraph (5)(a) applies regardless of whether the notice is in fact
10issued.
Further provisions about advisory notices
4 (1) Sub-paragraph (2) applies if—
(a)
before an advisory notice is served, a relevant authority enters into a
contract to dispose of or acquire an interest in land, and
(b)
15before the disposal or acquisition is completed, an advisory notice
takes effect as a result of which it is unlawful for the authority to
complete the disposal or acquisition.
(2)
The existence of the advisory notice does not affect any remedy in damages
which may be available to any person by reason of the relevant authority’s
20failure to complete the contract.
(3)
No action lies against a local auditor in respect of loss or damage alleged to
have been caused by reason of the issue of an advisory notice which was
issued in good faith.
Section 33
SCHEDULE 9 25Data matching
Power to conduct data matching exercises
1
(1)
A relevant minister may conduct data matching exercises or arrange for
them to be conducted on the minister’s behalf.
(2)
“Relevant minister” means the Secretary of State or the Minister for the
30Cabinet Office.
(3)
A data matching exercise is an exercise involving the comparison of sets of
data to determine how far they match (including the identification of any
patterns and trends).
(4)
The power in sub-paragraph (1) is exercisable for the purpose of assisting in
35the prevention and detection of fraud.
(5)
A data matching exercise may not be used to identify patterns and trends in
an individual’s characteristics or behaviour which suggest nothing more
than the individual’s potential to commit fraud in the future.
(6)
In this Schedule, any reference to a data matching exercise is to an exercise
40conducted or arranged to be conducted under this paragraph.
Local Audit and Accountability BillPage 77
Mandatory provision of data
2
(1)
A relevant minister may require a person within sub-paragraph (2) to
provide the minister or a person acting on the minister’s behalf with such
data (and in such form) as the minister or that person may reasonably
5require for the purpose of conducting data matching exercises.
(2) The persons within this sub-paragraph are—
(a) a relevant authority,
(b) a best value authority which is not a relevant authority, and
(c) an NHS foundation trust.
(3)
10“Best value authority” has the meaning given by section 1 of the Local
Government Act 1999.
Voluntary provision of data
3
(1)
If a relevant minister thinks it appropriate to conduct a data matching
exercise using data held by or on behalf of a body or person in England, the
15data may be disclosed to the minister or a person acting on the minister’s
behalf.
(2)
Sub-paragraph (1) applies to the disclosure of data by a relevant authority, a
best value authority or an NHS foundation trust otherwise than in response
to a requirement under paragraph 2 as it applies to other disclosures of data.
(3) 20Sub-paragraph (1) does not authorise—
(a) a disclosure which contravenes the Data Protection Act 1998, or
(b)
a disclosure prohibited by Part 1 of the Regulation of Investigatory
Powers Act 2000.
(4)
Data may not be disclosed under sub-paragraph (1) if the data comprise or
25include patient data.
(5)
“Patient data” means data relating to an individual which are held for
medical purposes (within the meaning of section 251 of the National Health
Service Act 2006) and from which the individual can be identified.
(6) A disclosure under sub-paragraph (1) does not breach—
(a)
30any obligation of confidence owed by a person making the
disclosure, or
(b)
any other restriction on the disclosure of information (however
imposed).
(7)
This paragraph does not limit the circumstances in which data may be
35disclosed apart from this paragraph.
(8)
Data matching exercises may include data provided by a body or person
outside England.
Disclosure of results of data matching etc
4 (1) This paragraph applies to the following information—
(a)
40information relating to a particular body or person obtained by or on
behalf of a relevant minister for the purpose of conducting a data
matching exercise, and
(b) the results of any such exercise.
Local Audit and Accountability BillPage 78
(2)
Information to which this paragraph applies may be disclosed by or on
behalf of the minister if the disclosure—
(a)
is for or in connection with a purpose for which the data matching
exercise is conducted,
(b)
5is to a local auditor and is made for or in connection with the
auditor’s functions,
(c) is in pursuance of a duty imposed by or under an enactment, or
(d) is within sub-paragraph (3).
(3) A disclosure is within this sub-paragraph if it is—
(a) 10to a relevant audit authority or a related party, and
(b)
for or in connection with a function of the relevant audit authority
corresponding or similar to—
(i) the functions of a local auditor, or
(ii) the functions of a relevant minister under this Schedule.
(4) 15“Relevant audit authority” means—
(a) the Auditor General for Wales;
(b) the Auditor General for Scotland;
(c) the Accounts Commission for Scotland;
(d) Audit Scotland;
(e) 20the Comptroller and Auditor General for Northern Ireland;
(f)
a person designated as a local government auditor under Article 4 of
the Local Government (Northern Ireland) Order 2005 (SI 2005/1968SI 2005/1968
(N.I.18)).
(5) The related parties in relation to a relevant audit authority are—
(a) 25a body or person acting on the authority’s behalf,
(b)
a body whose accounts are required to be audited by the authority or
by a person appointed by the authority, and
(c) a person appointed by the authority to audit those accounts.
(6) If the data used for a data matching exercise include patient data—
(a)
30sub-paragraph (2)(a) applies only so far as the purpose for which the
disclosure is made relates to a relevant NHS body;
(b)
sub-paragraph (2)(b) or (d) applies only so far as the function for or
in connection with which the disclosure is made relates to a relevant
NHS body.
(7)
35Information disclosed under sub-paragraph (2) may not be further disclosed
except—
(a)
in the case of information disclosed under sub-paragraph (2)(a), for
or in connection with the purpose for which it was disclosed under
that sub-paragraph,
(b)
40in the case of information disclosed under sub-paragraph (2)(b) or
under sub-paragraphs (2)(d) and (3), for or in connection with the
function for which it was disclosed under that sub-paragraph or
those sub-paragraphs,
(c)
for the investigation or prosecution of an offence (so far as the
45disclosure does not fall within paragraph (a) or (b)), or
(d) in pursuance of a duty imposed by or under an enactment.
Local Audit and Accountability BillPage 79
(8)
A person who discloses information to which this paragraph applies, except
so far as that disclosure is authorised by sub-paragraph (2) or (7), is guilty of
an offence and liable on summary conviction to a fine not exceeding level 5
on the standard scale.
(9)
5If section 85(1) of the Legal Aid, Sentencing and Punishment of Offenders
Act 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 (8) as if it were a relevant offence (as defined in section
1085(3) of that Act), and
(b)
regulations described in section 85(11) of that Act may amend or
otherwise modify sub-paragraph (8).
(10)
Schedule 11 (restriction on disclosure of information obtained under this
Act) does not apply to information to which this paragraph applies.
(11) 15In this paragraph “enactment” includes—
(a)
an enactment contained in, or in an instrument made under, a
Measure 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)
20an enactment contained in, or in an instrument made under,
Northern Ireland legislation.
(12) In sub-paragraph (6)—
-
“patient data” has the same meaning as in paragraph 3(5);
-
“relevant NHS body” means—
(a)25a health service body;
(b)an NHS foundation trust;
(c)the NHS Commissioning Board;
(d)a Welsh NHS body as defined in section 60 of the Public
Audit (Wales) Act 2004;(e)30an NHS body as defined in section 22(1) of the Community
Care and Health (Scotland) Act 2002;(f)a health and social care body mentioned in paragraphs (a) to
(e) of section 1(5) of the Health and Social Care (Reform) Act
(Northern Ireland) 2009.
35Publication
5
(1)
Nothing in paragraph 4 prevents a relevant minister from publishing a
report on a data matching exercise (including on the results of the exercise).
(2)
But the report may not include information relating to a particular body or
person if—
(a)
40the body or person is the subject of any data included in the data
matching exercise,
(b) the body or person can be identified from the information, and
(c) the information is not otherwise in the public domain.
(3)
A report published under this paragraph may be published in such manner
45as the relevant minister considers appropriate for bringing it to the attention
of those members of the public who may be interested.