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Public Audit (Wales) Bill [HL]


Public Audit (Wales) Bill [HL]
Part 2 — Local government bodies in Wales
Chapter 1 — Accounts and audit

14

 

17      

General duties of auditors

(1)   

This section applies in relation to the audit of a body’s accounts under this

Chapter.

(2)   

An auditor must, by examination of the accounts and otherwise, satisfy himself

of these things—

5

(a)   

that the accounts are prepared in accordance with regulations under

section 39;

(b)   

that they comply with the requirements of all other statutory

provisions applicable to the accounts;

(c)   

that proper practices have been observed in the compilation of the

10

accounts;

(d)   

that the body has made proper arrangements for securing economy,

efficiency and effectiveness in its use of resources;

(e)   

that the body, if required to publish information in pursuance of a

direction under section 47 (performance information) has made such

15

arrangements for collecting and recording the information and for

publishing it as are required for the performance of its duties under that

section.

(3)   

An auditor must comply with any provisions of a code of audit practice issued

under section 16 which—

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(a)   

are applicable to the audit of the accounts being audited, and

(b)   

are in force.

(4)   

At any time before there are provisions of a code of audit practice with which

an auditor is required to comply under subsection (3), the auditor must comply

with any provisions of a code of audit practice issued under section 4 of the

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Audit Commission Act 1998 (c. 18) which—

(a)   

are applicable to the audit under that Act of the accounts of bodies of a

corresponding description to the body, and

(b)   

are in force.

18      

Auditors’ rights to documents and information

30

(1)   

An auditor has a right of access at all reasonable times to every document

relating to a local government body in Wales which appears to him necessary

for the purposes of his functions under this Chapter.

(2)   

The documents relating to a body to which the right conferred by subsection

(1) applies may include in particular—

35

(a)   

a document which is held or controlled by a person who has received

financial assistance from the body by means of a grant, loan or

guarantee or as a result of the taking of an interest in any property or

body corporate;

(b)   

a document which is held or controlled by a person who has supplied

40

goods or services to the body in pursuance of a contract to which the

body was party or who has supplied goods or services in pursuance of

a relevant sub-contract;

(c)   

a document of a description specified in an order made by the

Assembly.

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Public Audit (Wales) Bill [HL]
Part 2 — Local government bodies in Wales
Chapter 1 — Accounts and audit

15

 

(3)   

For the purposes of subsection (2)(b) a contract is a relevant sub-contract if its

performance fulfils, or contributes to the fulfilment of, an obligation to supply

goods or services to the body in another contract.

(4)   

An auditor may require a person whom he thinks has information of the kind

mentioned in subsection (5)—

5

(a)   

to give him any assistance, information and explanation which the

auditor thinks necessary for the purposes of his functions under this

Chapter;

(b)   

to attend before him in person to—

(i)   

give the assistance, information or explanation, or

10

(ii)   

produce any document which is held or controlled by the

person and to which the right conferred by subsection (1)

applies.

(5)   

The information is information which relates to—

(a)   

a local government body in Wales in relation to which the auditor has

15

functions under this Chapter;

(b)   

a document to which the right conferred by subsection (1) applies;

(c)   

a person who holds or controls such a document.

(6)   

Every local government body in Wales must provide an auditor with every

facility and all information which he may reasonably need for the purposes of

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his functions under this Chapter.

(7)   

Before making an order under subsection (2)(c) the Assembly must consult—

(a)   

the Auditor General for Wales, and

(b)   

any associations of local authorities in Wales which appear to it to be

concerned.

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19      

Auditors’ rights to documents and information: offences

(1)   

A person commits an offence if without reasonable excuse he fails to comply

with a requirement imposed by an auditor under section 18(4).

(2)   

A person guilty of an offence under subsection (1) is liable on summary

conviction—

30

(a)   

to a fine not exceeding level 3 on the standard scale, and

(b)   

to an additional fine not exceeding £20 for each day on which the

offence continues after he has been convicted of it.

(3)   

Subsection (4) applies if—

(a)   

a person is convicted of an offence under subsection (1), and

35

(b)   

expenses are incurred by an auditor in connection with proceedings for

the offence.

(4)   

The expenses may be recovered from the convicted person or an appropriate

person, to the extent that they are not recovered from any other source.

(5)   

An appropriate person is a person who controlled the document referred to in

40

section 18(5) at the time the requirement was imposed.

 

 

Public Audit (Wales) Bill [HL]
Part 2 — Local government bodies in Wales
Chapter 1 — Accounts and audit

16

 

20      

Fees for audit

(1)   

The Auditor General for Wales must prescribe a scale or scales of fees payable

for one or more financial years in respect of the audit of accounts of local

government bodies in Wales under this Chapter.

(2)   

Before prescribing a scale of fees under subsection (1) the Auditor General for

5

Wales must consult—

(a)   

any associations of local authorities in Wales which appear to the

Auditor General for Wales to be concerned, and

(b)   

any bodies of accountants which appear to the Auditor General for

Wales to be appropriate.

10

(3)   

In prescribing a scale of fees under subsection (1) for a financial year the

Auditor General for Wales may take account of the expenses he expects to

incur in the financial year in undertaking or promoting studies under sections

41 and 42.

(4)   

A local government body in Wales must, subject to subsection (5), pay to the

15

Auditor General for Wales the fee payable in respect of the audit in accordance

with the appropriate scale.

(5)   

If it appears to the Auditor General for Wales that the work involved in a

particular audit differed substantially from that envisaged by him when

prescribing the appropriate scale, the Auditor General for Wales may charge a

20

fee which differs from that referred to in subsection (4).

(6)   

The fee payable in respect of an audit under this Chapter is the same whether

or not the auditor is a member of the staff of the Auditor General for Wales.

21      

Fees prescribed by Assembly

(1)   

The Assembly may, if it considers it necessary or desirable to do so, prescribe

25

by regulations a scale or scales of fees to have effect in place of a scale or scales

prescribed by the Auditor General for Wales under section 20(1).

(2)   

A scale of fees prescribed under subsection (1) has effect for the period

specified in relation to it in the regulations.

(3)   

Subsection (4) applies if—

30

(a)   

a scale of fees is prescribed under subsection (1) in place of a scale

prescribed by the Auditor General for Wales, and

(b)   

the scale prescribed by the Auditor General for Wales would otherwise

be the appropriate scale for the purposes of section 20(4) and (5).

(4)   

The references to the appropriate scale in section 20(4) and (5) are to be read as

35

references to the appropriate scale prescribed under subsection (1) of this

section.

(5)   

Before making regulations under subsection (1) the Assembly must consult—

(a)   

the Auditor General for Wales,

(b)   

any associations of local authorities in Wales which appear to it to be

40

concerned, and

(c)   

any bodies of accountants which appear to it to be appropriate.

 

 

Public Audit (Wales) Bill [HL]
Part 2 — Local government bodies in Wales
Chapter 1 — Accounts and audit

17

 

Auditors’ reports and recommendations

22      

Immediate and other reports in public interest

(1)   

In auditing accounts of a body under this Chapter, an auditor must consider

whether, in the public interest, he should make a report on any matter which

comes to his notice in the course of the audit, in order for it to be—

5

(a)   

considered by the body, or

(b)   

brought to the attention of the public.

(2)   

If the auditor considers that, in the public interest, he should make a report

such as is mentioned in subsection (1), he must consider whether the public

interest requires the matter to be made the subject of an immediate report.

10

(3)   

If the auditor considers that the public interest requires the matter to be made

the subject of an immediate report, he must make the report immediately.

(4)   

If the auditor considers that the public interest does not require the matter to

be made the subject of an immediate report, he must make the report at the

conclusion of the audit.

15

(5)   

In a case within subsection (3), the auditor must send the report to the body,

and a copy of the report to the Auditor General for Wales, immediately after

making it.

(6)   

In a case within subsection (4), the auditor must send the report to the body,

and a copy of the report to the Auditor General for Wales, before the end of the

20

period of 14 days starting with the day on which he concludes the audit.

23      

General report

(1)   

This section applies if an auditor has concluded his audit of a body’s accounts

under this Chapter.

(2)   

If a statement of accounts is required to be prepared by regulations under

25

section 39, the auditor must enter on the statement—

(a)   

a certificate that he has completed the audit in accordance with this

Chapter, and

(b)   

his opinion on the statement.

(3)   

In any other case, the auditor must enter on the accounts—

30

(a)   

a certificate that he has completed the audit in accordance with this

Chapter, and

(b)   

his opinion on the accounts.

(4)   

But if an auditor makes a report under section 22 at the conclusion of the audit,

he may include the certificate and opinion referred to in subsections (2) and (3)

35

in the report instead of making an entry on the statement or accounts.

24      

Consideration of reports in public interest

(1)   

This section applies if an auditor makes a report under section 22 on a matter

which comes to his notice in the course of the audit of the accounts of a body.

(2)   

The body must take the report into consideration—

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Public Audit (Wales) Bill [HL]
Part 2 — Local government bodies in Wales
Chapter 1 — Accounts and audit

18

 

(a)   

as soon as practicable after receiving it, if the body is a body mentioned

in subsection (3);

(b)   

in accordance with section 25, in any other case.

(3)   

The bodies referred to in subsection (2)(a) are—

(a)   

a port health authority;

5

(b)   

a conservation board;

(c)   

an internal drainage board;

(d)   

a local probation board.

(4)   

The agenda supplied to members of the body for the meeting of the body at

which the report is to be considered must be accompanied by the report.

10

(5)   

Subsection (6) applies to these powers—

(a)   

the power under section 1(4)(b) of the Public Bodies (Admission to

Meetings) Act 1960 (c. 67) to exclude items from the matter supplied

under that section (supply of agenda etc. to newspapers);

(b)   

the power under section 100B(2) of the Local Government Act 1972

15

(c. 70) to—

(i)   

exclude documents from the documents open to inspection

under section 100B(1) of that Act, or

(ii)   

exclude items from the matter supplied under section 100B(7) of

that Act (public access to agenda and reports before meetings

20

and supply of agenda etc. to newspapers).

(6)   

The powers mentioned in subsection (5) do not include power to exclude the

report.

(7)   

Part 5A of the Local Government Act 1972 has effect in relation to the report as

if section 100C(1)(d) of that Act (public access to copies of reports for 6 years

25

after meeting) were not limited to so much of the report as relates to an item

during which the meeting was open to the public.

25      

Procedure for consideration of reports and recommendations

(1)   

This section applies if a body is required under section 24(2)(b) to take a report

into consideration in accordance with this section.

30

(2)   

This section also applies if an auditor of any accounts of a local government

body in Wales—

(a)   

sends to the body a written recommendation, and

(b)   

states in the document containing the recommendation that in his

opinion the recommendation should be considered in accordance with

35

this section.

(3)   

But subsection (2) does not apply if the body is—

(a)   

a port health authority;

(b)   

a conservation board;

(c)   

an internal drainage board;

40

(d)   

a local probation board.

(4)   

If this section applies, the body must consider the report or recommendation at

a meeting held by it before the end of the period of one month starting with the

day on which the auditor sends the report or recommendation to it.

 

 

Public Audit (Wales) Bill [HL]
Part 2 — Local government bodies in Wales
Chapter 1 — Accounts and audit

19

 

(5)   

At the meeting the body must decide—

(a)   

if a report under section 22 is considered at the meeting, whether the

report requires it to take any action;

(b)   

if a recommendation within subsection (2) is considered at the meeting,

whether the recommendation is to be accepted;

5

(c)   

what action (if any) to take in response to the report or

recommendation.

(6)   

An auditor may extend the period of one month mentioned in subsection (4) in

relation to a report or recommendation if he is satisfied that it is reasonable to

allow the body more time to comply with its duties under subsections (4) and

10

(5) in relation to the report or recommendation.

(7)   

A period may be extended under subsection (6) more than once.

(8)   

Nothing in section 101 of the Local Government Act 1972 (c. 70) (delegation of

functions) applies to a duty imposed on a body by this section.

(9)   

This section does not affect any duties (so far as they relate to the subject-matter

15

of a report or recommendation) imposed by or under—

(a)   

this Act;

(b)   

sections 114 to 116 of the Local Government Finance Act 1988 (c. 41)

(reports by chief finance officers);

(c)   

section 5 of the Local Government and Housing Act 1989 (c. 42)

20

(functions of monitoring officers);

(d)   

any other enactment.

26      

Publicity for meetings under section 25

(1)   

This section applies if a body is required under section 25(4) to hold a meeting.

(2)   

The meeting may be held on a particular day only if, at least seven clear days

25

before that day, a notice complying with subsection (3) has been published in

a newspaper circulating in the area of the body.

(3)   

A notice complies with this subsection if it—

(a)   

states the time and place of the meeting,

(b)   

indicates that the meeting is to be held to consider an auditor’s report

30

or recommendation (as the case may be), and

(c)   

describes the subject-matter of the report or recommendation.

(4)   

As soon as practicable after the meeting the body must—

(a)   

ensure that the auditor is notified of the decisions made by the body

under section 25(5),

35

(b)   

obtain the approval of the auditor to a written summary of those

decisions (“the approved summary”), and

(c)   

ensure that a notice containing the approved summary is published in

one or more newspapers circulating in the area of the body.

(5)   

The approved summary need not summarise any decision made at the meeting

40

while the public were excluded—

(a)   

under section 100A(2) of the Local Government Act 1972 (confidential

information);

(b)   

in pursuance of a resolution under section 100A(4) of that Act (exempt

information);

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Public Audit (Wales) Bill [HL]
Part 2 — Local government bodies in Wales
Chapter 1 — Accounts and audit

20

 

(c)   

in pursuance of a resolution under section 1(2) of the Public Bodies

(Admission to Meetings) Act 1960 (c. 67) (protection of public interest).

(6)   

But if sections 100C and 100D of the Local Government Act 1972 (availability

for inspection after meeting of minutes, background papers and other

documents) apply in relation to the meeting the approved summary must

5

indicate the documents in relation to the meeting which are open for inspection

under those sections.

(7)   

This section does not affect any provisions made in relation to meetings of a

body by section 24(4) to (7) or by or under—

(a)   

the Local Government Act 1972 (c. 70);

10

(b)   

the Public Bodies (Admission to Meetings) Act 1960 (c. 67);

(c)   

any other enactment.

27      

Additional publicity for immediate reports

(1)   

This section applies where under section 22(5) an auditor has sent a report

made under section 22(3) to a body.

15

(2)   

From the time when the report is received by the body any member of the

public may—

(a)   

inspect the report at all reasonable times without payment;

(b)   

make a copy of the report or any part of it at all reasonable times

without payment;

20

(c)   

require the body to supply him on payment of a reasonable sum with a

copy of the report or any part of it.

(3)   

On receiving a report sent to it under section 22(5) a body must immediately—

(a)   

ensure that a notice is published in one or more newspapers circulating

in the area of the body, and

25

(b)   

supply a copy of the report to every member of the body.

(4)   

The notice published under subsection (3) must—

(a)   

identify the subject-matter of the report, and

(b)   

state that any member of the public may inspect the report and make a

copy of it or any part of it between such times and at such place or

30

places as are specified in the notice.

(5)   

An auditor who has made a report under section 22(3) may—

(a)   

notify any person that he has made the report;

(b)   

supply a copy of the report or of any part of it to any person.

(6)   

A person who has custody of a report made under section 22(3) commits an

35

offence if—

(a)   

he obstructs a person in the exercise of a right conferred by subsection

(2)(a) or (b), or

(b)   

he refuses to comply with a requirement under subsection (2)(c).

(7)   

A person guilty of an offence under subsection (6) is liable on summary

40

conviction to a fine not exceeding level 3 on the standard scale.

(8)   

A body commits an offence if it fails to comply with a requirement of

subsection (3).

 

 

 
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