Local Audit and Accountability Bill (HL Bill 42)

Section 42

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 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) (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 24 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”.

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 (1) Section 22 (other local authority capital controls in England and Wales) is
amended as follows.

(2) For subsection (5) substitute—

“(5) 25In 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
councils are county councils or county borough councils in
30Wales,

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
addition to meeting the requirements of Part 42 of the Companies
35Act 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
as to ensure that the company appoints as auditors of the company
40only 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)”.

17 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
inspection)” substitute “section 24 of the Local Audit and
5Accountability 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)

18 In section 17 of the Norfolk and Suffolk Broads Act 1988 (accounts and
10auditing), 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”.

Education Reform Act 1988 (c. 40)Education Reform Act 1988 (c. 40)

19 The Education Reform Act 1988 is amended as follows.

20 15In section 124B, omit subsection (5) (duty of certain higher education
corporations to consult Audit Commission before appointing auditor in
respect of first financial year).

21 In paragraph 18 of Schedule 7 (higher education corporations)—

(a) omit sub-paragraph (4) (duty of certain higher education
20corporations to consult Audit Commission before appointing
auditor in respect of first financial year),

(b) in sub-paragraph (5) for “that sub-paragraph” substitute “sub-
paragraph (3) above”, and

(c) in sub-paragraph (6) omit the definition of “the first financial year”
25and the “and” which follows it.

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

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

(2) In subsection (1)—

(a) 30omit “section 79 of the Local Government Act 1985 (public inspection
of accounts etc) or in”, and

(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
35definition of “relevant body” omit—

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

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

23 (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
40Involvement in Health Act 2007, section 70 of the Local Government and
Housing 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
the National Health Service in England,”.

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

24 In section 2(6B) of the Town and Country Planning Act 1990 (application of
5certain provisions to joint planning boards) omit paragraph (a).

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

25 In 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
10district auditor and court))”.

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

26 The Social Security Administration Act 1992 is amended as follows.

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

(a) 15after paragraph (jza) insert—

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

(b) omit paragraph (ja).

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

20Police Act 1996 (c. 16)Police Act 1996 (c. 16)

29 (1) Schedule 4A to the Police Act 1996 (further provisions about Her Majesty’s
Inspectors 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) 25In 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
Commission).

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

(a) 30after sub-paragraph (1) insert—

“(1A) The chief inspector of constabulary may do anything the
chief inspector thinks appropriate to facilitate the carrying
out of an inspection under section 10 of the Local
Government Act 1999 (inspection of best value
35authorities).”, 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
inspector of constabulary thinks fit.”

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

30 The Noise Act 1996 is amended as follows.

31 In section 12 (protection of members etc of authorities) omit subsection (2)
(exception for liability under section 17 or 18 of the Audit Commission Act
51998).

32 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
is inserted”.

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

33 (1) 10Section 8 of the Local Government (Contracts) Act 1997 (audit reviews) is
amended as follows.

(2) In subsection (1)—

(a) in paragraph (a), for “section 17 of the Audit Commission Act 1998”
substitute “section 27 of the Local Audit and Accountability Act
152013”,

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

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

(3) Omit subsection (2).

20Greater London Authority Act 1999 (c. 29)Greater London Authority Act 1999 (c. 29)

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

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

36 25In 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”.

37 In section 14(a) (disqualifications from being Mayor that do not trigger a
30declaration of vacancy) omit sub-paragraph (i) (disqualification under the
Audit Commission Act 1998).

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

39 35In 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.

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

(2) 40In 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
(inspection of statements of accounts etc)”, and

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

(3) 5In 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
to 30 of the Local Audit and Accountability Act 2013, and Schedule 8 to that
Act”.

(4) 10In 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
“Section 31 of the Local Audit and Accountability Act 2013”, and

(b) omit “accounts or”.

15Crown Prosecution Service Inspectorate Act 2000 (c. 10)Crown Prosecution Service Inspectorate Act 2000 (c. 10)

41 (1) The Schedule to the Crown Prosecution Service Inspectorate Act 2000
(further provisions about Her Majesty’s Chief Inspector of the Crown
Prosecution Service) is amended as follows.

(2) In paragraph 2(2) (duty to consult on inspection programme or inspection
20framework) omit paragraph (h) (the Audit Commission).

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

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

(a) after sub-paragraph (1) insert—

“(1A) 25The Chief Inspector may do anything the Chief Inspector
thinks 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) 30Anything done under this paragraph may be done on such
terms (including terms as to payment) as the Chief
Inspector thinks fit.”

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

42 In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (other public
35bodies and offices to which the Act applies) omit the entry for the Audit
Commission for Local Authorities and the National Health Service in
England.

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

43 (1) Schedule 1A to the Criminal Justice and Court Services Act 2000 (further
40provisions about Her Majesty’s Inspectorate of Probation) 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) In paragraph 4 (duty to co-operate) omit paragraph (h) (the Audit
Commission).

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

(a) after sub-paragraph (1) insert—

“(1A) The chief inspector may do anything the chief inspector
thinks appropriate to facilitate the carrying out of an
inspection under section 10 of the Local Government Act
101999 (inspection of best value authorities).”, 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
inspector thinks fit.”

15Public Finance and Accountability (Scotland) Act 2000 (ASP 1)

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

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

20Anti-terrorism, Crime and Security Act 2001 (c. 24)Anti-terrorism, Crime and Security Act 2001 (c. 24)

45 In Part 1 of Schedule 4 to the Anti-terrorism, Crime and Security Act 2001
(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 25Paragraph 2 of Schedule 11 to the Local Audit and
Accountability Act 2013.”

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

46 The Local Government Act 2003 is amended as follows.

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

(2) 30In subsection (4) (enactments to which definition of proper practices applies)
omit paragraph (d) (the Audit Commission Act 1998).

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

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

(a) 35a 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) 40the 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) 5a 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) 10the 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
15relevant 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) 20is not specified in regulations under section 23(2), and

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

48 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) 25In this section, “local authority” includes—

(a) a parish council,

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

(c) a community council,

(d) 30a Passenger Transport Executive,

(e) the 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
35in England,

(h) a 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
40England,

(j) the 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) 45any 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) 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) is not specified in regulations under section 23(2), and

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

49 5In 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) Subsection (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
10that—

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

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

50 15Omit 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)

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

52 20In section 95 (studies as to economy, efficiency etc), omit subsection (4).

53 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))

54 In article 4D(3) of the Audit and Accountability (Northern Ireland) Order
252003 (disclosure of results of data matching etc), for paragraph (a)
substitute—

“(a) the Secretary of State,

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

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

55 30The Public Audit (Wales) Act 2004 is amended as follows.

56 Omit section 43 (co-operation with Audit Commission).

57 Omit section 57 (provision of information to Audit Commission).

58 In section 62, omit paragraph (b) (co-operation with Audit Commission).

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

“(a) the Secretary of State,

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

60 (1) Schedule 3 (transfer schemes) is amended as follows.

(2) In paragraph 1(1), omit paragraph (b) and the “and” preceding it.

(3) 40In paragraph 2—