Public Audit (Wales) Bill [HL]

House of Commons

Session 2003 - 04
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Public Audit (Wales) Bill [HL]

Public Audit (Wales) Bill [HL]
Schedule 2 — Minor and consequential amendments
50

accounts prepared by the council pursuant to regulations
under section 39 of that Act;”.
Local Government Finance Act 1988 (c. 41)
8
In Schedule 8 to the Local Government Finance Act 1988 (non-domestic
rating: pooling), in paragraph 5—
5
(a)
in sub-paragraph (6)(c) for the words from “to be certified” to the end
substitute “to be certified—
(i)
if it is an authority in England, under
arrangements made by the Audit
Commission for Local Authorities and the
10
National Health Service in England and
Wales (“the Commission”), and
(ii)
if it is an authority in Wales, under
arrangements made by the Auditor General
for Wales.”, and
15
(b)
in sub-paragraph (6A), after “The Commission” insert “or the
Auditor General for Wales, as the case may be,”.
Education Reform Act 1988 (c. 40)
9     (1)
Section 124B of the Education Reform Act 1988 (accounts of higher
education corporations) is amended as follows.
20
      (2)
In subsection (5) for “The corporation” substitute “A corporation in
England”.
      (3)
After that subsection insert—
“(5A)
A corporation in Wales shall consult, and take into account any
advice given by, the Auditor General for Wales before appointing
25
any auditor under subsection (4) above in respect of their first
financial year.”
      (4)
In subsection (6) for “that subsection” substitute “subsection (4) above”.
Local Government and Housing Act 1989 (c. 42)
10
The Local Government and Housing Act 1989 is amended as follows.
30
11
In section 65(2) (certification of information supplied to Secretary of State) in
paragraph (b) after “arrangements made” insert “(i) if the authority is in
England,” and at the end insert—
“(ii)
if the authority is in Wales, by the Auditor General for
Wales.”
35
12    (1)
Section 70 (requirements for companies under control or subject to influence
of local authorities) is amended as follows.
      (2)
In subsection (2) after “Audit Commission Act 1998” insert “and Part 2 of the
Public Audit (Wales) Act 2004”.
      (3)
In subsection (4) after “Audit Commission Act 1998” insert “and Part 2 of the
40
Public Audit (Wales) Act 2004”.
      (4)
In subsection (5) after “England and Wales,” insert “or of the Auditor
General for Wales,”.

Public Audit (Wales) Bill [HL]
Schedule 2 — Minor and consequential amendments
51

Town and Country Planning Act 1990 (c. 8)
13
In section 2 of the Town and Country Planning Act 1990 (joint planning
boards) for subsection (6A) substitute—
“(6A)
Section 241 of the Local Government Act 1972 shall be taken to
authorise the application to a joint planning board, by such an order
5
as is mentioned in subsection (6) above, of any provisions mentioned
in subsection (6B) below (as well as any provisions of the Local
Government Act 1972), subject to any necessary modifications.
(6B)
The provisions referred to in subsection (6A) above are—
(a)
the Audit Commission Act 1998, except sections 11, 12, 44 to
10
47 and 51;
(b)
Part 2 of the Public Audit (Wales) Act 2004, except sections
25, 26, 46 to 49 and 56.”
National Health Service and Community Care Act 1990 (c. 19)
14
In Schedule 2 to the National Health Service and Community Care Act 1990
15
(national health service trusts), in paragraph 7(2) after “Audit Commission
Act 1998” insert “or section 96A of the Government of Wales Act 1998”.
Social Security Administration Act 1992 (c. 5)
15    (1)
Section 139D of the Social Security Administration Act 1992 (directions
concerning prevention and detection of fraud) is amended as follows.
20
      (2)
In subsection (1), after paragraph (b) insert—
“(ba)
a copy of a report has been sent to an authority under section
22(5) or (6) of the Public Audit (Wales) Act 2004 and to the
Secretary of State under section 51(3) of that Act;”.
      (3)
In subsection (1)(d) after “Audit Commission Act 1998” insert “, section 45(5)
25
of the Public Audit (Wales) Act 2004”.
Health Service Commissioners Act 1993 (c. 46)
16
In Schedule 1A to the Health Service Commissioners Act 1993, omit
paragraph 13(5) (co-operation of Auditor General for Wales and
Comptroller and Auditor General in connection with examinations in
30
respect of the Health Service Commissioner for Wales).
Education Act 1997 (c. 44)
17
The Education Act 1997 is amended as follows.
18
In section 41 (inspections involving collaboration of Audit Commission), in
subsection (1) after “inspection under section 38” insert “of a local education
35
authority in England”.
19
After that section insert—
“41A Inspections involving collaboration of Auditor General for Wales
(1)
If requested to do so by the Chief Inspector, the Auditor General for
Wales may assist with any inspection under section 38 of a local
40
education authority in Wales; and subsections (2) to (5) below have

Public Audit (Wales) Bill [HL]
Schedule 2 — Minor and consequential amendments
52

effect where the Auditor General for Wales assists with any such
inspection.
(2)
Section 40 shall apply to the Auditor General for Wales and to any
authorised person as it applies to the inspector.
(3)
Any information obtained by virtue of section 40 by a person falling
5
within one of the categories mentioned in subsection (4) may be
disclosed for the purposes of the inspection, or the preparation or
making of the report under section 39(1), to a person falling within
the other category.
(4)
Those categories are—
10
(a)
the Auditor General for Wales and any authorised person;
and
(b)
the inspector and any person assisting him.
(5)
Any report prepared under section 39(1) shall be prepared by the
inspector acting in conjunction with the Auditor General for Wales.
15
(6)
The Auditor General for Wales shall not provide assistance under
this section unless, before he does so, the Chief Inspector has agreed
to pay the Auditor General for Wales an amount equal to the full
costs incurred by the Auditor General for Wales in providing the
assistance.
20
(7)
In this section “authorised person” means a person authorised by the
Auditor General for Wales for the purposes of this section.”
Local Government (Contracts) Act 1997 (c. 65)
20
In section 8(1) of the Local Government (Contracts) Act 1997 (meaning of
“audit review”)—
25
(a)
in paragraph (a) after “Audit Commission Act 1998” insert “or
section 32 of the Public Audit (Wales) Act 2004”;
(b)
in paragraph (b) for “that Act” substitute “the Audit Commission Act
1998”.
Audit Commission Act 1998 (c. 18)
30
21
The Audit Commission Act 1998 is amended as follows.
22
In section 29 (agreed audit of accounts), in subsection (1)(b) after “body
subject to audit” insert “, a local government body in Wales or a Welsh NHS
body”.
23    (1)
Section 33 (studies for improving economy etc in services) is amended as
35
follows.
      (2)
In subsection (1)(a)—
(a)
after “best value authorities” insert “which are bodies subject to
audit”;
(b)
after “bodies subject to audit” insert “and by local government
40
bodies in Wales”.
      (3)
In subsection (1)(b) after “bodies subject to audit” insert “and local
government bodies in Wales”.

Public Audit (Wales) Bill [HL]
Schedule 2 — Minor and consequential amendments
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      (4)
In subsection (4) after “bodies subject to audit” insert “and by local
government bodies in Wales”.
      (5)
In subsection (6)(a) for “best value authorities or other bodies subject to
audit” substitute “best value authorities which are bodies subject to audit,
other bodies subject to audit and local government bodies in Wales”.
5
      (6)
In subsection (6) omit the word “and” immediately preceding paragraph (c)
and after that paragraph insert—
“(ca)
in the case of a study relating to a local government body in
Wales, also consult the Auditor General for Wales and take
into account any relevant work done or being done by the
10
Auditor General for Wales.”
      (7)
After subsection (6) insert—
“(6A)
The Commission may undertake or promote studies under this
section relating to a local government body in Wales only if the
Commission considers it necessary or desirable to do so for the
15
purposes of any of these—
(a)
a study into the exercise throughout England and Wales of
particular functions of all local government bodies or a
description of local government body;
(b)
a study into the provision throughout England and Wales of
20
particular services provided by all local government bodies
or a description of local government body;
(c)
a study into the financial or other management throughout
England and Wales of all local government bodies or a
description of local government body.”
25
24    (1)
Section 34 (reports on impact of statutory provisions etc) is amended as
follows.
      (2)
In subsection (1)—
(a)
after “local authority services” insert “by bodies subject to audit and
local government bodies in Wales”;
30
(b)
after “health service bodies” insert “and by local government bodies
in Wales”;
(c)
for “such bodies” substitute “bodies subject to audit and local
government bodies in Wales”.
      (3)
In subsection (6) omit the word “and” immediately preceding paragraph (d)
35
and after that paragraph insert—
“(da)
in the case of a study relating to a local government body in
Wales, also consult the Auditor General for Wales and take
account of any relevant work done or being done by the
Auditor General for Wales.”
40
      (4)
After subsection (6) insert—
“(6A)
The Commission may undertake or promote studies under this
section relating to a local government body in Wales only if the
Commission considers it necessary or desirable to do so for the
purposes of any of these—
45
(a)
a study into the impact of anything mentioned in paragraph
(a) or (b) of subsection (1) on economy, efficiency and
effectiveness in the provision of local authority services

Public Audit (Wales) Bill [HL]
Schedule 2 — Minor and consequential amendments
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throughout England and Wales by all local government
bodies or a description of local government body;
(b)
a study into the impact of anything mentioned in paragraph
(a) or (b) of subsection (1) on economy, efficiency and
effectiveness in the provision of other services throughout
5
England and Wales by all local government bodies or a
description of local government body;
(c)
a study into the impact of anything mentioned in paragraph
(a) or (b) of subsection (1) on the financial management
throughout England and Wales of all local government
10
bodies or a description of local government body.”
25    (1)
Section 36 (studies at request of educational bodies) is amended as follows.
      (2)
In the Table in subsection (1)—
(a)
in the entry relating to a higher education funding council, for “A
higher education funding council” substitute “The Higher Education
15
Funding Council for England”;
(b)
in the entry relating to the governing body of an institution within
the higher education sector—
(i)
after “institution” insert “in England”;
(ii)
for “higher education funding council” substitute “Higher
20
Education Funding Council for England”;
(c)
in the entry relating to a funding agency under Part 1 of the
Education Act 1994, after “Education Act 1994” insert “in England”;
(d)
in the entry relating to the governing body of an institution receiving
financial support under Part 1 of the Education Act 1994, after
25
“institution” insert “in England”;
(e)
omit the entry relating to the National Council for Education and
Training for Wales;
(f)
in the entry relating to the governing body of an institution within
the further education sector—
30
(i)
after “institution” insert “in England”;
(ii)
for “the Learning and Skills Council for England or the
National Council for Education and Training for Wales”
substitute “or the Learning and Skills Council for England”.
      (3)
In subsection (2) for “a higher education funding council” substitute “the
35
Higher Education Funding Council for England”.
      (4)
In subsection (3) after “further education corporation” insert “in England”.
26
In section 38 (benefit administration studies for Secretary of State) after
subsection (1) insert—
“(1A)
The Secretary of State may not exercise the power conferred by
40
subsection (1) in relation to a county council, county borough council
or community council in Wales.”
27    (1)
Section 40 (studies relating to registered social landlords) is amended as
follows.
      (2)
In subsection (1)—
45
(a)
for “Relevant Authority” substitute “Housing Corporation”;
(b)
after “registered social landlords” insert “(other than registered
social landlords in Wales)”.

Public Audit (Wales) Bill [HL]
Schedule 2 — Minor and consequential amendments
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      (3)
Omit subsection (2A).
      (4)
In subsection (4) for “Relevant Authority” substitute “Housing
Corporation”.
      (5)
In subsection (6) for “Relevant Authority” (in both places) substitute
“Housing Corporation”.
5
28    (1)
Section 41 (provisions supplementary to section 40) is amended as follows.
      (2)
In subsection (1) for “Relevant Authority” substitute “Housing
Corporation”.
      (3)
In subsection (4) for “Relevant Authority” substitute “Housing
Corporation”.
10
29    (1)
Section 41A (inspections of registered social landlords) is amended as
follows.
      (2)
After subsection (1) insert—
“(1A)
The Commission may not carry out an inspection under subsection
(1) in relation to a registered social landlord in Wales.”
15
      (3)
In subsection (3) for “Relevant Authority” substitute “Housing
Corporation”.
      (4)
In subsection (4)(a) for “Relevant Authority” substitute “Housing
Corporation”.
      (5)
In subsection (6) for “Relevant Authority” substitute “Housing
20
Corporation”.
30    (1)
Section 41B (fees for inspections under section 41A) is amended as follows.
      (2)
In subsection (1) for “appropriate person” (in both places) substitute
“Secretary of State”.
      (3)
Omit subsections (2), (4) and (6).
25
      (4)
In subsection (5) omit “made by the Secretary of State”.
31
In section 43 (sections 40 to 42: interpretation)—
(a)
after “In” insert “this section and”;
(b)
after “Housing Act 1996” insert “and “registered social landlord in
Wales” means a registered social landlord which is mentioned in any
30
of paragraphs (a) to (c) of section 56(2) of that Act”.
32
In section 47 (application of performance standards provisions to parish and
community councils and charter trustees)—
(a)
for the heading substitute “Application to parish councils and
charter trustees”;
35
(b)
in subsection (1)(a) omit the words “and community” and “and
Wales”.
33
In section 49(1) (restriction on disclosure of information) after paragraph (d)
insert—
“(da)
for the purposes of any function of the Auditor General for
40
Wales under the Public Audit (Wales) Act 2004 or (in relation
to a health service body) under the Government of Wales Act
1998;”.

Public Audit (Wales) Bill [HL]
Schedule 2 — Minor and consequential amendments
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34
After section 51 insert—
“51A
Co-operation with the Auditor General for Wales
The Commission must co-operate with the Auditor General for
Wales where it seems to it appropriate to do so for the efficient and
effective discharge of—
5
(a)
its functions under sections 33 and 34, or
(b)
its functions in relation to bodies mentioned in paragraph
1(g) of Schedule 2.
51B Provision of information to Auditor General for Wales
The Commission must, on request, provide the Auditor General for
10
Wales with any information he may reasonably require for the
purpose of making comparisons, in the discharge of his functions
under sections 41 and 42 of the Public Audit (Wales) Act 2004,
between local government bodies in Wales and other local
government bodies.”
15
35
In section 52(1) (orders and regulations) omit “or the National Assembly for
Wales”.
36
In section 53(1) (interpretation) at the appropriate places insert—

““local government body” means a body mentioned in paragraph 1 of
Schedule 2, other than one mentioned in paragraph (g) of that
20
paragraph;”;

““local government body in Wales” has the meaning given in section
12(1) of the Public Audit (Wales) Act 2004;”;

““Welsh NHS body” has the meaning given in section 60 of the Public
Audit (Wales) Act 2004;”.
25
37
In paragraph 8A of Schedule 1 (grants in respect of inspections under section
41A) for the words from “Each of” to “National Assembly for Wales”
substitute “The Secretary of State”.
38    (1)
Schedule 2 (accounts subject to audit) is amended as follows.
      (2)
In paragraph 1(g) after “1977” insert “, other than a Welsh NHS body”.
30
      (3)
After paragraph 1A insert—
“1B
Section 2 does not apply to the accounts of a local government
body in Wales.”
School Standards and Framework Act 1998 (c. 31)
39
The School Standards and Framework Act 1998 is amended as follows.
35
40
In section 53 (certification of statements by Audit Commission), in
subsection (1) after “local education authority” insert “in England”.
41
After that section insert—
“53A
Certification of statements by Auditor General for Wales
(1)
A local education authority in Wales shall, if directed to do so by the
40
National Assembly for Wales, require the Auditor General for Wales