Local Audit and Accountability Bill (HL Bill 36)

Local Audit and Accountability BillPage 80

(b) to the Authority, and

(c) to each of the councils of the districts comprised in the county
which is coterminous with or includes the Executive’s area.

Local Government Act 1972 (c. 70)Local Government Act 1972 (c. 70)

4 5The Local Government Act 1972 is amended as follows.

5 In section 86(1) (disqualifications from being local authority member that do
not trigger a declaration of vacancy), for the words from “under the Audit
Commission 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
10virtue 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) for the words from “under the Audit Commission Act 1998” to “or by
virtue of a” substitute “by virtue of a”, and

(b) 15omit “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
that section)—

(a) for “section 14 of the Audit Commission Act 1998 (rights of
20inspection)” substitute “section 24 of the Local Audit and
Accountability Act 2013 (inspection of statements of accounts etc)”,
and

(b) for “regulations under section 27” substitute “section 3(3)”.

8 Section 246(15) of the Local Government Act 1972 continues to have effect
25with 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”.

House 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) 30omit 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
Authorities and the National Health Service in England in receipt of
remuneration.

35Local 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
paragraph (b) substitute—

(b) its inclusion in a statement of accounts prepared by an
40authority 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
2004 or in an abstract of accounts prepared by such an
authority in accordance with regulations under section 105 of
45the Local Government (Scotland) Act 1973; or.

Local Audit and Accountability BillPage 81

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”.

10Housing Associations Act 1985 (c. 69)Housing Associations Act 1985 (c. 69)

13 In section 75 of the Housing Associations Act 1985 (general functions) omit
subsections (1A) and (1B) (function of the Housing Corporation of giving
assistance to the Audit Commission).

Local Government Act 1986 (c. 10)Local Government Act 1986 (c. 10)

14 15In 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
Commission Act 1998” substitute “section 31(1)(e) of the Local Audit and
Accountability Act 2013”.

20Airports Act 1986 (c. 31)Airports Act 1986 (c. 31)

15 The Airports Act 1986 is amended as follows.

16 In section 24(3)(a) (provision of services by principal council for public
airport companies: requirement for separate account)—

(a) for “section 14 of the Audit Commission Act 1998 (rights of
25inspection)” substitute “section 24 of the Local Audit and
Accountability Act 2013 (inspection of statements of accounts etc)”,
and

(b) for “regulations under section 27” substitute “section 3(3)”.

Norfolk and Suffolk Broads Act 1988 (c. 4)Norfolk and Suffolk Broads Act 1988 (c. 4)

17 30In 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” substitute “section 31 of the Local Audit and
Accountability Act 2013”.

Local Government and Housing Act 1989 (c. 42)Local Government and Housing Act 1989 (c. 42)

18 (1) 35Section 11 of the Local Government and Housing Act 1989 is amended as
follows.

(2) In subsection (1)—

(a) omit “section 79 of the Local Government Act 1985 (public inspection
of accounts etc) or in”, and

Local Audit and Accountability BillPage 82

(b) for “(which makes corresponding provision for Scotland)” insert
“(public inspection of accounts etc)”.

(3) In subsection (3) (confidentiality of staff records: definitions), in the
definition of “relevant body” omit—

(a) 5“the Audit Commission Act 1998 or”, and

(b) “or, as the case may be, the Common Council of the City of London”.

19 (1) Until the coming into force of the repeal of Part 5 of the Local Government
and Housing Act 1989 by section 216(1) of the Local Government and Public
Involvement in Health Act 2007, section 70 of the Local Government and
10Housing Act 1989 (requirements for companies under control or subject to
influence of local authorities) has effect with the following modifications.

(2) In each of subsections (2) and (4), for “the Audit Commission Act 1998”
substitute “the Local Audit and Accountability Act 2013”.

(3) In subsection (5) omit “or of the Audit Commission for Local Authorities and
15the National Health Service in England,”.

Town and Country Planning Act 1990 (c. 8)Town and Country Planning Act 1990 (c. 8)

20 In section 2(6B) of the Town and Country Planning Act 1990 (application of
certain provisions to joint planning boards) omit paragraph (a).

Environmental Protection Act 1990 (c. 43)Environmental Protection Act 1990 (c. 43)

21 20In paragraph 5 of Schedule 3 to the Environmental Protection Act 1990
(protection of members etc of authorities) omit the words “(other than any
liability under section 17 or 18 of the Audit Commission Act 1998 (powers of
district auditor and court))”.

Social Security Administration Act 1992 (c. 5)Social Security Administration Act 1992 (c. 5)

22 25The Social Security Administration Act 1992 is amended as follows.

23 In section 123(8) (unauthorised disclosure of information relating to
particular persons: “persons employed in audit” etc)—

(a) after paragraph (jza) insert—

(jzb) a local auditor within the meaning of the Local Audit
30and Accountability Act 2013;, and

(b) omit paragraph (ja).

24 Omit section 139BA (interaction with Audit Commission).

Police Act 1996 (c. 16)Police Act 1996 (c. 16)

25 (1) Schedule 4A to the Police Act 1996 (further provisions about Her Majesty’s
35Inspectors of Constabulary) 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).

Local Audit and Accountability BillPage 83

(4) In 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) 5An inspector of constabulary may—

(a) if the inspector agrees, be appointed as an inspector
or assistant inspector under section 10 of the Local
Government Act 1999 (inspection of best value
authorities), or

(b) 10co-operate with, or do anything else to facilitate,
the carrying out of the functions of an inspector or
assistant inspector appointed under that section.”,
and

(b) for sub-paragraph (2) substitute—

(2) 15Anything done under this paragraph may be done on such
terms (including terms as to payment) as the chief
inspector of constabulary thinks fit.

Noise Act 1996 (c. 37)Noise Act 1996 (c. 37)

26 The Noise Act 1996 is amended as follows.

27 20In section 12 (protection of members etc of authorities) omit subsection (2)
(exception for liability under section 17 or 18 of the Audit Commission Act
1998).

28 In section 14(4) (application of Act to Northern Ireland), in paragraph (g), for
“for subsection (2) there is substituted” substitute “after subsection (1) there
25is inserted”.

Local Government (Contracts) Act 1997 (c. 65)Local Government (Contracts) Act 1997 (c. 65)

29 (1) Section 8 of the Local Government (Contracts) Act 1997 (audit reviews) is
amended as follows.

(2) In subsection (1)—

(a) 30in paragraph (a), for “section 17 of the Audit Commission Act 1998”
substitute “section 27 of the Local Audit and Accountability Act
2013”,

(b) omit paragraphs (b) and (c), and

(c) in the closing words, for “any of paragraphs (a) to (c)” substitute
35“that paragraph”.

(3) Omit subsection (2).

Greater London Authority Act 1999 (c. 29)Greater London Authority Act 1999 (c. 29)

30 The Greater London Authority Act 1999 is amended as follows.

31 In section 7(a) (disqualifications from being an Assembly member that do
40not trigger a declaration of vacancy) omit sub-paragraph (i) (disqualification
under the Audit Commission Act 1998).

Local Audit and Accountability BillPage 84

32 In section 9(1)(f) (date of vacancy in Assembly membership in case of
disqualification under the Audit Commission Act 1998)—

(a) omit “the Audit Commission Act 1998 or”, and

(b) omit “that Act of 1998 or”.

33 5In section 14(a) (disqualifications from being Mayor that do not trigger a
declaration of vacancy) omit sub-paragraph (i) (disqualification under the
Audit Commission Act 1998).

34 In section 21(1)(e) (disqualification from election as Assembly member or
the Mayor) omit sub-paragraph (ii) and the “or” immediately preceding that
10sub-paragraph (disqualification under the Audit Commission Act 1998).

35 In section 125(2) (certification of information)—

(a) omit “in one or both of the following ways”, and

(b) omit paragraph (b) and the “and” which precedes it.

36 (1) Section 134 (summary statement of accounts of Authority and other bodies)
15is amended as follows.

(2) In subsection (4) (application of section 14 of the Audit Commission Act 1998
to summary statement of accounts)—

(a) for “Section 14 of the Audit Commission Act 1998” substitute
“Section 24 of the Local Audit and Accountability Act 2013
20(inspection of statements of accounts etc)”, and

(b) for “regulations under section 27” substitute “section 3(3)”.

(3) In subsection (5) (disapplication of public inspection etc provisions in Audit
Commission Act 1998 in relation to summary statement of accounts), for
“Sections 15 to 24 of the Audit Commission Act 1998” substitute “Sections 25
25to 30 of the Local Audit and Accountability Act 2013, and Schedule 8 to that
Act”.

(4) In subsection (6) (application of section 27 of the Audit Commission Act 1998
to summary statement of accounts)—

(a) for “Section 27 of the Audit Commission Act 1998” substitute
30“Section 31 of the Local Audit and Accountability Act 2013”, and

(b) omit “accounts or”.

Crown Prosecution Service Inspectorate Act 2000 (c. 10)Crown Prosecution Service Inspectorate Act 2000 (c. 10)

37 (1) The Schedule to the Crown Prosecution Service Inspectorate Act 2000
(further provisions about Her Majesty’s Chief Inspector of the Crown
35Prosecution Service) 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 4 (duty to co-operate) omit paragraph (h) (the Audit
Commission).

(4) 40In paragraph 6 (assistance for other public authorities)—

(a) after sub-paragraph (1) insert—

(1A) The Chief Inspector may—

(a) if the Chief Inspector agrees, be appointed as an
inspector or assistant inspector under section 10 of

Local Audit and Accountability BillPage 85

the Local Government Act 1999 (inspection of best
value authorities), or

(b) co-operate with, or do anything else to facilitate,
the carrying out of the functions of an inspector or
5assistant inspector appointed under that section.”,
and

(b) for sub-paragraph (2) substitute—

(2) Anything done under this paragraph may be done on such
terms (including terms as to payment) as the Chief
10Inspector thinks fit.

Freedom of Information Act 2000 (c. 36)Freedom of Information Act 2000 (c. 36)

38 In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (other public
bodies and offices to which the Act applies) omit the entry for the Audit
Commission for Local Authorities and the National Health Service in
15England.

Criminal Justice and Court Services Act 2000 (c. 43)Criminal Justice and Court Services Act 2000 (c. 43)

39 (1) Schedule 1A to the Criminal Justice and Court Services Act 2000 (further
provisions about Her Majesty’s Inspectorate of Probation) is amended as
follows.

(2) 20In 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) In paragraph 4 (duty to co-operate) omit paragraph (h) (the Audit
25Commission).

(5) In paragraph 6 (assistance for other public authorities)—

(a) after sub-paragraph (1) insert—

(1A) A member of the inspectorate may—

(a) if that member agrees, be appointed as an inspector
30or assistant inspector under section 10 of the Local
Government Act 1999 (inspection of best value
authorities), or

(b) co-operate with, or do anything else to facilitate,
the carrying out of the functions of an inspector or
35assistant inspector appointed under that section.”,
and

(b) for sub-paragraph (2) substitute—

(2) Anything done under this paragraph may be done on such
terms (including terms as to payment) as the chief
40inspector thinks fit.

Public Finance and Accountability (Scotland) Act 2000 (ASP 1)

40 In section 26D(4) of the Public Finance and Accountability (Scotland) Act
2000 (meaning of “United Kingdom audit agency”), for paragraph (b)

Local Audit and Accountability BillPage 86

substitute—

(b) the Secretary of State or the Minister for the Cabinet Office,.

Anti-terrorism, Crime and Security Act 2001 (c. 24)Anti-terrorism, Crime and Security Act 2001 (c. 24)

41 In Part 1 of Schedule 4 to the Anti-terrorism, Crime and Security Act 2001
5(extension of existing disclosure powers under other Acts)—

(a) omit paragraph 41 (application to Audit Commission Act 1998), and

(b) after paragraph 53E insert—

53F Paragraph 2 of Schedule 11 to the Local Audit and
Accountability Act 2013.

10Local Government Act 2003 (c. 26)Local Government Act 2003 (c. 26)

42 The Local Government Act 2003 is amended as follows.

43 (1) Section 21 (accounting practices) is amended as follows.

(2) In subsection (4) (enactments to which definition of proper practices applies)
omit paragraph (d) (the Audit Commission Act 1998).

(3) 15For subsection (6) (local authorities to which the section applies)
substitute—

(6) In this section, “local authority” includes—

(a) a parish council,

(b) a parish meeting of a parish which does not have a separate
20parish council,

(c) a community council,

(d) a Passenger Transport Executive,

(e) the London Waste and Recycling Board,

(f) charter trustees (within the meaning of the Local Audit and
25Accountability Act 2013),

(g) a port health authority for a port health district that is wholly
in England,

(h) a conservation board established by order of the Secretary of
State under section 86 of the Countryside and Rights of Way
30Act 2000,

(i) a chief constable for a police force for a police area in
England,

(j) the Commissioner of Police of the Metropolis,

(k) an internal drainage board for an internal drainage district—

(i) 35wholly in England, or

(ii) partly in England and partly in Wales, and

(l) any other person or body which for the time being is a
relevant authority for the purposes of the Local Audit and
Accountability Act 2013 and—

(i) 40is not listed in paragraphs (a) to (k) or section 23(1),

(ii) is not a health service body (within the meaning of
that Act),

(iii) is not specified in regulations under section 23(2), and

(iv) does not fall within a class of bodies so specified.

Local Audit and Accountability BillPage 87

44 In section 22 (meaning of “revenue account” for the purposes of certain
enactments), for subsection (3) (local authorities to which the section
applies) substitute—

(3) In this section, “local authority” includes—

(a) 5a parish council,

(b) a parish meeting of a parish which does not have a separate
parish council,

(c) a community council,

(d) a Passenger Transport Executive,

(e) 10the London Waste and Recycling Board,

(f) charter trustees (within the meaning of the Local Audit and
Accountability Act 2013),

(g) a port health authority for a port health district that is wholly
in England,

(h) 15a conservation board established by order of the Secretary of
State under section 86 of the Countryside and Rights of Way
Act 2000,

(i) a chief constable for a police force for a police area in
England,

(j) 20the Commissioner of Police of the Metropolis,

(k) an internal drainage board for an internal drainage district—

(i) wholly in England, or

(ii) partly in England and partly in Wales, and

(l) any other person or body which for the time being is a
25relevant authority for the purposes of the Local Audit and
Accountability Act 2013 and—

(i) is not listed in paragraphs (a) to (k) or section 23(1),

(ii) is not a health service body (within the meaning of
that Act),

(iii) 30is not specified in regulations under section 23(2), and

(iv) does not fall within a class of bodies so specified.

45 In section 24 (by which, in the application of Part 1 to Wales, references to
the Welsh Ministers are substituted for references to the Secretary of State),
after subsection (1) insert—

(1A) 35Subsection (1) does not apply to section 21 to the extent that it confers
functions on the Secretary of State in relation to a person or body
that—

(a) is a relevant authority for the purposes of the Local Audit and
Accountability Act 2013, and

(b) 40exercises functions in relation to an area that is partly in
England and partly in Wales.

46 Omit section 99 (categorisation of English local authorities by reference to
performance).

Health and Social Care (Community Health and Standards) Act 2003 (c. 43)Health and Social Care (Community Health and Standards) Act 2003 (c. 43)

47 45The Health and Social Care (Community Health and Standards) Act 2003 is
amended as follows.

Local Audit and Accountability BillPage 88

48 In section 95 (studies as to economy, efficiency etc), omit subsection (4).

49 In section 148 (interpretation of Part 2) omit the definition of “the Audit
Commission”.

Audit and Accountability (Northern Ireland) Order 2003 (SI 2003/418 (NI 5)SI 2003/418 (NI 5))

50 5In article 4D(3) of the Audit and Accountability (Northern Ireland) Order
2003 (disclosure of results of data matching etc), for paragraph (a)
substitute—

(a) the Secretary of State,

(aa) the Minister for the Cabinet Office,.

10Public Audit (Wales) Act 2004 (c. 23)Public Audit (Wales) Act 2004 (c. 23)

51 The Public Audit (Wales) Act 2004 is amended as follows.

52 In section 64D(4) (disclosure of results of data matching etc), for paragraph
(a) substitute—

(a) the Secretary of State,

(aa) 15the Minister for the Cabinet Office,.

Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27)Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27)

53 In section 16 of the Companies (Audit, Investigations and Community
Enterprise) Act 2004 (grants to bodies concerned with accounting standards
etc) after subsection (6) insert—

(6A) 20References in this section to Part 42 of the Companies Act 2006 or to
paragraph 21, 22, 23(1) or 24(1) of Schedule 10 to that Act include that
Part or paragraph as it has effect by virtue of Schedule 5 to the Local
Audit and Accountability Act 2013 (which applies Part 42 with
modifications in relation to audits of local authorities etc).

(6B) 25The reference in the definition of “professional accountancy body” in
subsection (5) to section 1220 of the Companies Act 2006 includes a
reference to section 1219 of that Act as it has effect by virtue of
Schedule 5 to the Local Audit and Accountability Act 2013.

Children Act 2004 (c. 31)Children Act 2004 (c. 31)

54 30In section 20(4) of the Children Act 2004 (joint area review: persons to whom
that section applies) omit paragraph (e).

Education and Inspections Act 2006 (c. 40)Education and Inspections Act 2006 (c. 40)

55 (1) Schedule 13 to the Education and Inspections Act 2006 (interaction between
Her Majesty’s Chief Inspector of Education, Children’s Services and Skills
35and other authorities) is amended as follows.

(2) In paragraph 1 (meaning of inspection authorities)—

(a) in sub-paragraph (2)—

(i) at the end of paragraph (d) insert “, and”, and

(ii) omit paragraph (h) and the “and” preceding it, and

Local Audit and Accountability BillPage 89

(b) in sub-paragraph (3), for paragraph (f) substitute—

(f) the Care Quality Commission.

(3) In paragraph 8 (advice or assistance for other public authorities)—

(a) after sub-paragraph (1) insert—

(1A) 5The Chief Inspector may—

(a) if the Chief Inspector agrees, be appointed as an
inspector or assistant inspector under section 10 of
the Local Government Act 1999 (inspection of best
value authorities), or

(b) 10co-operate with, or do anything else to facilitate,
the carrying out of the functions of an inspector or
assistant inspector appointed under that section.”,
and

(b) for sub-paragraph (2) substitute—

(2) 15Anything done under this paragraph may be done on such
terms as the Chief Inspector thinks fit.

(4) In paragraph 10(a) (charges for advice or assistance) for “providing advice
or assistance” substitute “doing anything”.

National Health Service Act 2006 (c. 41)National Health Service Act 2006 (c. 41)

56 20The National Health Service Act 2006 is amended as follows.

57 In Schedule 1A (clinical commissioning groups), in paragraph 17(5), for the
words from “Audit Commission Act 1998” to the end substitute “Local
Audit and Accountability Act 2013, by a local auditor appointed by the
clinical commissioning group in accordance with that Act”.

58 25In Schedule 4 (NHS trusts established under the National Health Service Act
2006), in paragraph 12—

(a) in sub-paragraph (2)(b) omit “section 8 of the Audit Commission Act
1998 (c. 18)1998 (c. 18) or”, and

(b) omit sub-paragraph (2A).

59 30Schedule 7 (constitution of public benefit corporations: auditors) is amended
as follows.

60 (1) Paragraph 23 is amended as follows.

(2) In sub-paragraph (3)—

(a) after “may be” insert “an individual or a firm”, and

(b) 35omit paragraphs (a) to (c).

(3) In sub-paragraph (4)—

(a) after paragraph (a) insert—

(aa) eligible for appointment as a local auditor (see Part
4 of the Local Audit and Accountability Act 2013),
40or, and

(b) omit paragraph (b).

(4) Omit sub-paragraph (5).

(5) In sub-paragraph (7)—