Local Audit and Accountability BillPage 60
Section 23
1
(1)
A local auditor of the accounts of a relevant authority must consider
5whether, in the public interest, the auditor should make a report on any
matter coming to the auditor’s notice during the audit and relating to the
authority or an entity connected with the authority, so it can be considered
in accordance with this Schedule or brought to the public’s attention.
(2)
A report under sub-paragraph (1) is referred to in this Act as a public interest
10report.
(3) A public interest report may be made during or after the end of an audit.
(4)
A local auditor must notify a relevant authority’s auditor panel (if it has one)
before making a public interest report relating to the authority or an entity
connected with it.
(5) 15A local auditor may recover from a relevant authority—
(a)
the reasonable costs of determining whether to make a public
interest report relating to the authority or an entity connected with it,
and
(b)
the reasonable costs of making a public interest report relating to the
20authority or an entity connected with it.
(6)
Sub-paragraph (5)(a) applies regardless of whether the report is in fact
made.
2
(1)
A local auditor of the accounts of a relevant authority may make a written
25recommendation to the authority relating to the authority or an entity
connected with it, so that the recommendation can be considered under this
Schedule.
(2) A recommendation may be made during or at the end of an audit.
(3) A recommendation must be sent at the time it is made—
(a) 30to the Secretary of State,
(b)
where the recommendation relates to an entity connected with the
relevant authority, to that entity and to any other relevant authority
with which the entity is connected,
(c)
where the relevant authority is itself a connected entity, to its related
35authority or authorities,
(d)
where the relevant authority is a clinical commissioning group, to
the National Health Service Commissioning Board, and
(e)
where the relevant authority is the London Pensions Fund
Authority, to the Greater London Authority.
(4) 40A local auditor may recover from a relevant authority—
(a)
the reasonable costs of determining whether to make a
recommendation relating to the authority or an entity connected
with it, and
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(b)
the reasonable costs of making a recommendation relating to the
authority or an entity connected with it.
(5)
Sub-paragraph (4)(a) applies regardless of whether the recommendation is
in fact made.
(6)
5In this Act “related authority”, in relation to a connected entity, means the
relevant authority with which the entity is connected.
3
(1)
If a local auditor makes a public interest report arising out of the audit of the
accounts of a relevant authority, the auditor must send the report to—
(a) 10the authority, and
(b)
where the report relates to an entity connected with the authority, to
that entity and to any other relevant authority with which the entity
is connected.
(2)
If the relevant authority is a parish meeting, the report must instead be sent
15to its chairman.
(3) The local auditor must also send the report—
(a) to the Secretary of State,
(b)
where the relevant authority is itself a connected entity, to its related
authority or authorities,
(c)
20where the relevant authority is a clinical commissioning group, to
the National Health Service Commissioning Board, and
(d)
where the relevant authority is the London Pensions Fund
Authority, to the Greater London Authority.
(4)
A report required to be sent under any of sub-paragraphs (1) to (3) must be
25sent as soon as is reasonably practicable after it is made.
(5)
If a relevant authority to which a report is sent under this paragraph is a
health service body, it must take the report into consideration as soon as is
reasonably practicable after receiving it.
(6)
If paragraph 5 applies to a relevant authority to which a report is sent under
30this paragraph, it must, if required by that paragraph to do so, take the
report into consideration in accordance with that paragraph.
(7)
If a relevant authority to which a report is sent under this paragraph is the
Greater London Authority, it must, if required by that paragraph to do so,
take the report into consideration in accordance with paragraph 6.
4
(1)
This paragraph applies to a relevant authority if a local auditor has made a
public interest report relating to the authority or an entity connected with it.
(2)
As soon as is practicable after receiving the report, the relevant authority
must publish the report and a notice that—
(a) 40identifies the subject matter of the report, and
(b)
unless the authority is a health service body, states that any member
of the public may inspect the report and make a copy of it or any part
of it between the times and at the place or places specified in the
notice.
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(3)
As soon as is practicable after receiving the report, the relevant authority
must supply a copy of the report to—
(a) each of its members (if it has members), and
(b) its auditor panel (if it has one).
(4)
5From the time when the report is received, the relevant authority, unless it
is a health service body, must ensure that any member of the public may—
(a) inspect the report at all reasonable times without payment,
(b) make a copy of it, or any part of it, and
(c)
be supplied with a copy of it, or any part of it, on payment of a
10reasonable sum.
(5) The local auditor may—
(a)
notify any person the auditor thinks fit of the fact that the auditor has
made the report, and
(b)
supply a copy of it or any part of it to any person the auditor thinks
15fit.
(6)
A notice or report required to be published under this paragraph must be
published—
(a) if the authority has a website, on its website;
(b) otherwise, in accordance with sub-paragraph (7).
(7)
20A relevant authority publishes a notice or report in accordance with this sub-
paragraph if—
(a)
in the case of an authority other than a health service body, it
publishes the notice or report in such manner as it thinks is likely to
bring the notice or report to the attention of persons who live in its
25area;
(b)
in the case of a clinical commissioning group, it publishes the notice
or report in such manner as it thinks is likely to bring the notice or
report to the attention of—
(i) persons who live in the area of the group, and
(ii)
30persons who do not live in the area of the group but for
whom the group is responsible;
(c)
in the case of special trustees for a hospital, they publish the notice or
report in such manner as they think is likely to bring the notice to the
attention of persons to whom services are provided at that hospital.
(8)
35Where the relevant authority is a parish meeting, references in this
paragraph to the authority (other than references to its area or members) are
to its chairman.
(9) Nothing in this paragraph affects the operation of paragraph 9.
5
(1)
40Subject to sub-paragraphs (2) and (3), this paragraph applies to a relevant
authority if—
(a)
a local auditor has made a public interest report relating to the
authority or an entity connected with it, or
(b)
a local auditor has made a recommendation relating to the authority
45or an entity connected with it.
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(2)
This paragraph does not apply to a relevant authority which is itself a
connected entity unless the authority is the Mayor’s Office for Policing and
Crime and the report or recommendation relates to the Commissioner of
Police of the Metropolis.
(3) 5This paragraph does not apply to—
(a) the Greater London Authority (but see paragraph 6), and
(b) health service bodies.
(4)
The relevant authority must consider the report or recommendation at a
meeting held before the end of the period of one month beginning with the
10day on which it was sent to the authority or, in the case of a parish meeting,
its chairman.
(5) At that meeting the relevant authority must decide—
(a)
whether the report requires the authority to take any action or
whether the recommendation is to be accepted, and
(b)
15what, if any, action to take in response to the report or
recommendation.
(6)
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
the period of one month beginning with the day on which the report or
20recommendation 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
recommendation.
(7)
25If the local auditor is satisfied that it is reasonable to allow more time for the
relevant authority to comply with sub-paragraph (4) or (6), the auditor may
extend or further extend the period of one month mentioned in that sub-
paragraph.
(8)
This paragraph does not affect any duties (so far as they relate to the subject-
30matter 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
(functions and reports of finance officers),
(c)
35section 5 of the Local Government and Housing Act 1989 (functions
of monitoring officers), or
(d) any other enactment.
(9)
The Secretary of State may by regulations provide for this paragraph to
apply with modifications in relation to a relevant authority specified, or of a
40description specified, in the regulations.
(10)
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
meeting—
(a) 45the Public Bodies (Admission to Meetings) Act 1960;
(b)
Part 5A of the Local Government Act 1972 (access to meetings and
documents);
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(c)
Schedule 12 to that Act (meetings and proceedings of local
authorities).
6 (1) This paragraph applies if—
(a)
5a local auditor has made a public interest report relating to the
Greater London Authority (“the Authority”) or an entity connected
with it, or
(b)
a local auditor has made a recommendation relating to the Authority
or an entity connected with it.
(2)
10The references in sub-paragraph (1) to an entity connected with the
Authority do not include the Commissioner of Police of the Metropolis.
(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)
15At the meeting, the Assembly must decide what recommendations to make
to 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
20whether the recommendation is to be accepted, and
(b)
what, 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
25the report or recommendation was sent to the Authority.
(8)
If 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)
30This paragraph does not affect any duties (so far as they relate to the subject-
matter 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
35(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.
7
(1)
40If a relevant authority is a local authority operating executive arrangements,
the authority’s functions under paragraph 5 are not the responsibility of an
executive of the authority under those arrangements.
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(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)
Any functions of the Mayor of London under paragraph 6 must be exercised
5by the Mayor personally.
(4)
Section 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.
8
(1)
10If 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) if the relevant authority has a website, on its website;
(b)
otherwise, in such manner as the authority thinks is likely to bring
15the 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)
indicate that the meeting is to be held to consider a local auditor’s
report or recommendation (as the case may be),
(c)
20if 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
recommendation or, where this is not reasonably practicable,
describe its subject matter.
(4)
25The 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
meeting must be accompanied by a copy of the report or recommendation
(as the case may be).
(6)
30If the London Assembly is required to hold a meeting under paragraph 6,
the Greater London Authority must publish on its website a notice in
compliance with sub-paragraphs (3) and (4).
(7)
The agenda supplied to the members of the London Assembly for the
meeting must be accompanied by a copy of the report or recommendation
35(as the case may be).
(8)
This paragraph applies in addition to any provision made in relation to the
relevant authority in question by or under the Public Bodies (Admission to
Meetings) Act 1960, the Local Government Act 1972 or any other enactment.
9
(1)
40Where a public interest report or a recommendation is to be considered
under paragraph 5 by a relevant authority to which the Public Bodies
(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).
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(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
paragraph 5 as if the Authority were a principal council.
(3)
Sub-paragraphs (4) to (6) apply in relation to the consideration under
5paragraph 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.
(4)
Information contained in the report or recommendation is not to be treated
as exempt information for the purposes of that Part.
(5) 10The report or recommendation is not to be excluded—
(a)
from the documents open to inspection under section 100B(1) of that
Act (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)
15Part 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
copies 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)
20Information contained in a public interest report or a recommendation is not
to be treated as exempt information for the purposes of any Act or
instrument made under an Act that applies in relation to exempt
information within the meaning of Part 5A of the Local Government Act
1972.
(8)
25References in this paragraph to a public interest report or a recommendation
include any report on the report or recommendation.
10
(1)
As soon as is practicable after making decisions under paragraph 5(5) or (6)
or 6(6), a relevant authority must—
(a) 30notify the authority’s local auditor of those decisions, and
(b)
publish a notice containing a summary of those decisions which has
been 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)
35otherwise, 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 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)
40as the result of a resolution under section 1(2) of the Public Bodies
(Admission to Meetings) Act 1960 (protection of public interest),
(b)
under 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
45information).
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(4)
If sections 100C and 100D of the Local Government Act 1972 (availability for
inspection 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
5inspection in accordance with those paragraphs.
(5)
This paragraph applies in addition to any provision made in relation to the
relevant authority by or under the Public Bodies (Admission to Meetings)
Act 1960, the Local Government Act 1972 or any other enactment.
Section 28
1
(1)
A local auditor of the accounts of a relevant authority, other than a health
service 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)
15is 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
followed to its conclusion, would be unlawful and likely to cause a
loss or deficiency, or
(c) 20is 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)
specifies the paragraph of sub-paragraph (1) which is relevant and
the decision, course of action or item of account to which the notice
25relates,
(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)
requires the authority or officer to give the authority’s local auditor
at least the specified number of days’ notice in writing of the
30intention of the authority or officer to—
(i) make or implement the decision,
(ii) take or continue to take the course of action, or
(iii) enter the item of account,
(as the case may be).
(3)
35In 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
treated as actions of the relevant authority itself—
(a) a committee or sub-committee of the authority;
(b)
40any other person (other than an officer) authorised to act on behalf of
the authority.
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2 (1) A 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)
5in the case of a notice addressed to an officer, must be served on the
relevant authority concerned and the officer, and
(c)
may 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
10connected entity, a copy of the notice must also be served on its related
authority or authorities.
(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)
15on any officer on whom a copy of the notice was served under sub-
paragraph (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
20beginning with the day on which a copy of the notice was served on the
person 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
25where the officer is employed.
(6)
An 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
30person on whom a copy of the advisory notice was served under sub-
paragraph (1) or (2).
3
(1)
While an advisory notice has effect, it is not lawful for the relevant authority
concerned or any officer of that authority—
(a) 35if 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) if the notice relates to an item of account, to enter the item of account.
(2) Sub-paragraph (1) does not apply if—
(a)
40the 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)
the relevant authority or officer has given the authority’s local
auditor and (where applicable) its related authority or each of its
45related authorities the period of notice in writing required by the
advisory notice under paragraph 1(2)(d), and
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(c) that period has expired.
(3)
An advisory notice takes effect on the day on which a copy of the notice is
served on the person to whom it is addressed, and ceases to have effect—
(a)
if a statement of reasons is not served in accordance with paragraph
52(3), at the end of the period specified in paragraph 2(4), or
(b) when it is withdrawn under paragraph 2(6).
(4)
Any costs reasonably incurred by a local auditor in connection with the issue
of an advisory notice are recoverable by the auditor from the relevant
authority concerned.
(5)
10In this paragraph “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.
4 (1) Sub-paragraph (2) applies if—
(a)
15before an advisory notice is served, a relevant authority enters into a
contract to dispose of or acquire an interest in land, and
(b)
before 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)
20The 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
failure 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
25issued in good faith.
Section 32
1
(1)
A relevant minister may conduct data matching exercises or arrange for
30them to be conducted on the minister’s behalf.
(2)
“Relevant minister” means the Secretary of State or the Minister for the
Cabinet 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
35patterns and trends).
(4)
The power in sub-paragraph (1) is exercisable for the purpose of assisting in
the 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
40than the individual’s potential to commit fraud in the future.