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
which the direction is given or the appointment is made.

(8) The National Health Service Trust Development Authority is the Special
5Health Authority established under the National Health Service Trust
Development Authority (Establishment and Constitution) Order 2012 (SI
2012/901)).

General duties of auditors

10 (1) In section 20, subsection (1) is to be read (in relation to an NHS trust
10mentioned in paragraph 3(1)(a), or the trustees of such a trust as mentioned
in paragraph 3(1)(b)) as if paragraphs (d), (e) and (f) of that subsection
(duties relating to consideration of expenditure of money and resources
provided by Parliament) were omitted.

(2) Accordingly, that section is to be read as if subsection (2) (meaning of “use
15of resources”) were omitted.

Independence 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
20existing provision) that a director of an NHS trust may not act as a local
auditor of—

(a) that NHS trust, or

(b) the trustees for that NHS trust.

Public interest reports and written recommendations

12 (1) 25Schedule 7 is to be read in accordance with the following sub-paragraphs.

(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
30Development 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
35Development 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
40of 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

provides 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
59(8).

Unlawful 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) 10if the health service body is an NHS trust or the trustees for
an 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
15paragraph 9(8).