|
| |
|
17 | General duties of auditors |
| |
(1) | This section applies in relation to the audit of a body’s accounts under this |
| |
| |
(2) | An auditor must, by examination of the accounts and otherwise, satisfy himself |
| |
| 5 |
(a) | that the accounts are prepared in accordance with regulations under |
| |
| |
(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 |
| |
(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 |
| |
| |
(3) | An auditor must comply with any provisions of a code of audit practice issued |
| |
| 20 |
(a) | are applicable to the audit of the accounts being audited, and |
| |
| |
(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 |
| 25 |
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 |
| |
| |
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 |
| |
| |
(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 |
| |
| |
(c) | a document of a description specified in an order made by the |
| |
| 45 |
|
| |
|
| |
|
(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 |
| |
| |
(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) |
| |
| |
(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 |
| 20 |
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 |
| |
| 25 |
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 |
| |
| 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 |
| |
| |
(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. |
| |
|
| |
|
| |
|
| |
(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 |
| |
(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 |
| |
| 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 |
| |
| |
(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 |
| |
| |
(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 |
| |
(c) | any bodies of accountants which appear to it to be appropriate. |
| |
|
| |
|
| |
|
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 |
| |
| 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 |
| |
| |
(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. |
| |
| |
(1) | This section applies if an auditor has concluded his audit of a body’s accounts |
| |
| |
(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 |
| |
| |
(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 |
| |
| |
(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— |
| 40 |
|
| |
|
| |
|
(a) | as soon as practicable after receiving it, if the body is a body mentioned |
| |
| |
(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 |
| |
(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 |
| |
| |
(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 |
| |
| |
(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 |
| |
(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. |
| |
|
| |
|
| |
|
(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 |
| |
| |
(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— |
| |
| |
(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); |
| |
| |
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 |
| |
| 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 |
| |
| |
(b) | in pursuance of a resolution under section 100A(4) of that Act (exempt |
| |
| 45 |
|
| |
|
| |
|
(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 |
| |
| |
(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); |
| |
| |
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 |
| |
| |
(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 |
| |
| 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 |
| |
(a) | he obstructs a person in the exercise of a right conferred by subsection |
| |
| |
(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 |
| |
| |
|
| |
|