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]
Part 2 — Local government bodies in Wales
Chapter 4 — General
34

52
Rights of Auditor General for Wales to documents and information
(1)
The Auditor General for Wales 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 Part.
(2)
The documents relating to a body to which the right conferred by subsection
5
(1) applies may include in particular—
(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;
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(b)
a document which is held or controlled by a person who has supplied
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
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Assembly.
(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)
The Auditor General for Wales may require a person whom he thinks has
20
information of the kind mentioned in subsection (5)—
(a)
to give him any assistance, information and explanation which the
Auditor General for Wales thinks necessary for the purposes of his
functions under this Part;
(b)
to attend before him in person to—
25
(i)
give the assistance, information or explanation, or
(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—
30
(a)
a local government body in Wales;
(b)
a document to which the right conferred by subsection (1) applies;
(c)
a person who holds or controls such a document.
(6)
For the purpose of assisting the Auditor General for Wales to maintain proper
standards in the auditing of accounts of local government bodies in Wales, the
35
Auditor General for Wales may require a local government body in Wales to
make available for inspection by him or on his behalf—
(a)
the accounts of the body, and
(b)
any other documents relating to the body which might reasonably be
required by an auditor for the purposes of an audit under Chapter 1.
40
(7)
Every local government body in Wales must provide the Auditor General for
Wales with every facility and all information which he may reasonably need
for the purposes of his functions under this Part.
(8)
Before making an order under subsection (2)(c) the Assembly must consult—
(a)
the Auditor General for Wales, and
45
(b)
any associations of local authorities in Wales which appear to it to be
concerned.

Public Audit (Wales) Bill [HL]
Part 2 — Local government bodies in Wales
Chapter 4 — General
35

53
Rights of Auditor General for Wales to documents and information: offences
(1)
A person commits an offence if without reasonable excuse he fails to comply
with a requirement imposed by the Auditor General for Wales under section
52(4).
(2)
A person guilty of an offence under subsection (1) is liable on summary
5
conviction—
(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—
10
(a)
a person is convicted of an offence under subsection (1), and
(b)
expenses are incurred by the Auditor General for Wales 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.
15
(5)
An appropriate person is a person who controlled the document referred to in
section 52(5) at the time the requirement was imposed.
54
Restriction on disclosure of information
(1)
This section applies if information relating to a particular body or other person
is obtained by the Auditor General for Wales or an auditor, or by a person
20
acting on behalf of the Auditor General for Wales or an auditor—
(a)
pursuant to a provision of this Part or Part 1 of the Local Government
Act 1999 (c. 27), or
(b)
in the course of an audit, study or inspection under a provision of this
Part, section 145C of the Government of Wales Act 1998 (c. 38) or Part 1
25
of the Local Government Act 1999.
(2)
The information must not be disclosed except in accordance with any of
these—
(a)
with the consent of the body or person to whom the information relates;
(b)
for the purposes of any functions of the Auditor General for Wales or
30
an auditor under this Part or Part 1 of the Local Government Act 1999;
(c)
for the purposes of the functions of the Secretary of State relating to
social security;
(d)
for the purposes of the functions of a Local Commissioner in Wales
under Part 3 of the Local Government Act 2000 (c. 22);
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(e)
for the purposes of any functions of the Assembly which are connected
with the discharge of social services functions by local authorities in
Wales;
(f)
in accordance with section 145C(5) or (8) of the Government of Wales
Act 1998;
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(g)
for the purposes of any criminal investigation which is being or may be
carried out, whether in the United Kingdom or elsewhere;
(h)
for the purposes of any criminal proceedings which have been or may
be initiated, whether in the United Kingdom or elsewhere;
(i)
for the purposes of the initiation or bringing to an end of any such
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investigation or proceedings;

Public Audit (Wales) Bill [HL]
Part 2 — Local government bodies in Wales
Chapter 4 — General
36

(j)
for the purpose of facilitating a determination of whether any such
investigation or proceedings should be initiated or brought to an end.
(3)
A person commits an offence if he discloses information in contravention of
subsection (2).
(4)
A person guilty of an offence under subsection (3) is liable—
5
(a)
on summary conviction, to imprisonment for a term not exceeding six
months or to a fine not exceeding the statutory maximum or to both;
(b)
on conviction on indictment, to imprisonment for a term not exceeding
two years or to a fine or to both.
(5)
In subsection (2) “social services functions” has the same meaning as in the
10
Local Authority Social Services Act 1970 (c. 42).
(6)
The Secretary of State may by order made by statutory instrument amend or
repeal the preceding provisions of this section.
(7)
An order under subsection (6) may be made only if—
(a)
section 49 of the Audit Commission Act 1998 (c. 18) (restriction on
15
disclosure of information) has been amended or repealed in the same
Session as that in which this Act is passed or in any later Session;
(b)
the Secretary of State thinks that the amendments or repeals to be made
by the order under subsection (6) will (subject to paragraph (c)) have
the same effect as the amendments to or repeal of section 49 of that Act;
20
(c)
the order would not have the effect of imposing any further restriction
on the disclosure of information under this section.
(8)
An order under subsection (6) may not be made unless a draft of the order has
been laid before, and approved by a resolution of, each House of Parliament.
55
Supply of benefit information to Auditor General for Wales
25
The Secretary of State may supply to the Auditor General for Wales any
information held by the Secretary of State which—
(a)
relates to housing benefit or council tax benefit, and
(b)
appears to the Secretary of State to be relevant to the exercise of any
function of the Auditor General for Wales.
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56
Publication of information by Auditor General for Wales
(1)
The Auditor General for Wales may publish information with respect to any of
these—
(a)
the making by an auditor of a report under section 22;
(b)
the subject-matter of a report under section 22;
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(c)
the decision made and other action taken by a body in response to the
receipt of a report under section 22 or to anything in a report under
section 22;
(d)
a contravention by a body of regulations made under section 39;
(e)
a contravention by a body of an obligation imposed on the body under
40
section 47(4).
(2)
The information that may be published under subsection (1)(a), (b) or (c) does
not include information excluded under section 26(5) from an approved
summary published under section 26(4)(c).

Public Audit (Wales) Bill [HL]
Part 2 — Local government bodies in Wales
Chapter 4 — General
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(3)
The Auditor General for Wales must inform a body before publishing
information under subsection (1) relating to it.
(4)
Information published under subsection (1) must be published in any manner
which the Auditor General for Wales considers appropriate for bringing the
information to the attention of members of the public who may be interested in
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it.
57
Provision of information to Audit Commission
(1)
The Auditor General for Wales must, on request, provide the Audit
Commission with any information it may reasonably require for the purpose
of making comparisons, in the discharge of its functions under sections 33 and
10
34 of the Audit Commission Act 1998 (c. 18), between local government bodies
in Wales and other local government bodies.
(2)
In this section “local government body” has the meaning given in section 53(1)
of the Audit Commission Act 1998.
58
Orders and regulations
15
(1)
Any power conferred on the Assembly by this Part to make orders or
regulations is exercisable by statutory instrument.
(2)
Any power conferred on the Assembly or the Secretary of State to make an
order or regulations under this Part includes power—
(a)
to make such incidental, consequential, transitional or supplementary
20
provision as the Assembly or the Secretary of State thinks appropriate;
(b)
to make different provision for different cases, including different
provision for different localities and different bodies and descriptions
of bodies.
59
Interpretation of Part 2
25
(1)
This section applies for the interpretation of this Part.
(2)
“Auditor” in relation to accounts of a body—
(a)
means a person appointed by the Auditor General for Wales under
section 13 to act as auditor of those accounts;
(b)
to the extent provided by section 15(3), includes a person assisting an
30
auditor appointed under section 13 under arrangements approved
under section 15(1).
(3)
“The auditor”, if there is more than one auditor, means any one of them (subject
to any express provision to the contrary).
(4)
“Best value authority in Wales” means a local government body in Wales
35
which is also a best value authority for the purposes of Part 1 of the Local
Government Act 1999 (c. 27).
(5)
“Local authority in Wales” means a county council, county borough council or
community council in Wales.
(6)
“Local government elector” means a person registered as a local government
40
elector in the register of electors in accordance with the provisions of the
Representation of the People Acts.

Public Audit (Wales) Bill [HL]
Part 3 — Welsh NHS bodies
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(7)
A reference to a local government elector for an area, in relation to a National
Park authority which is the local planning authority for a National Park, is to a
local government elector for any area the whole or part of which is comprised
in the Park.
(8)
“Statutory provision” means a provision contained in or having effect under an
5
enactment.
Part 3
Welsh NHS bodies
60
Meaning of “Welsh NHS body”
In this Part “Welsh NHS body” means—
10
(a)
a Local Health Board,
(b)
a Special Health Authority performing functions only or mainly in
respect of Wales,
(c)
a National Health Service trust all or most of whose hospitals,
establishments and facilities are situated in Wales or any trustees
15
appointed in pursuance of section 11 of the National Health Service and
Community Care Act 1990 (c. 19) for such a trust, or
(d)
a body of trustees appointed in pursuance of section 29(1) of the
National Health Service Reorganisation Act 1973 (c. 32) and section
95(1) of the National Health Service Act 1977 (c. 49) for a trust all or
20
most of whose hospitals, establishments and facilities are situated in
Wales.
61
Audit of Welsh NHS bodies
(1)
The accounts prepared by a Welsh NHS body under section 98(2) of the
National Health Service Act 1977 (accounts of NHS bodies) for a financial year
25
must be submitted by that body to the Auditor General for Wales no later than
five months after the end of that year.
(2)
The Auditor General for Wales must—
(a)
examine and certify any accounts submitted to him under this section,
and
30
(b)
no later than four months after the accounts are submitted to him, lay
before the Assembly a copy of them as certified by him together with
his report on them.
(3)
In examining any accounts submitted to him under this section, the Auditor
General for Wales must, in particular, satisfy himself—
35
(a)
that the expenditure to which the accounts relate has been incurred
lawfully and in accordance with the authority which governs it, and
(b)
that the body to which the accounts relate has made proper
arrangements for securing economy, efficiency and effectiveness in its
use of resources.
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62
Co-operation with Assembly, Audit Commission or CHAI
The Auditor General for Wales must co-operate with—
(a)
the Assembly,

Public Audit (Wales) Bill [HL]
Part 4 — Miscellaneous and general
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(b)
the Audit Commission, or
(c)
the Commission for Healthcare Audit and Inspection,
where it seems to him appropriate to do so for the efficient and effective
discharge of his functions in relation to Welsh NHS bodies.
63
Audit of accounts of officers of Welsh NHS bodies
5
(1)
This section applies where an officer of a Welsh NHS body receives money or
other property—
(a)
on behalf of that body, or
(b)
for which he ought to account to that body.
(2)
The officer must keep accounts.
10
(3)
The accounts of the officer must—
(a)
be made up each year to 31 March, and
(b)
be audited by the Auditor General for Wales,

and section 61 applies with the necessary modifications in relation to the
accounts and audit.
15
64
Provision of information by CHAI
(1)
The Commission for Healthcare Audit and Inspection must, on request,
provide the Auditor General for Wales with any information he may
reasonably require for the purpose of making comparisons, in the discharge of
his functions under sections 145 and 145A of the Government of Wales Act
20
1998 (c. 38) in relation to a Welsh NHS body, between the Welsh NHS body
and English NHS bodies and cross-border SHAs.
(2)
Subsection (1) does not require information to be provided in circumstances
where (but for that subsection) the disclosure of the information would
contravene section 136 of the Health and Social Care (Community Health and
25
Standards) Act 2003 (c. 43) (restriction on disclosure of personal information by
CHAI).
(3)
In this section “English NHS body” and “cross-border SHA” have the meaning
given by section 148 of that Act.
Part 4
30
Miscellaneous and general
Miscellaneous
65
Public bodies subject to audit etc
(1)
The Government of Wales Act 1998 is amended as follows.
(2)
In section 144 (accounts, audit and reports), after subsection (8) insert—
35
“(8A)
The Assembly may, with the consent of the Secretary of State, by order
amend any of the Parts of Schedule 17 in the manner mentioned in
paragraph (a) or (c) of subsection (8).”

Public Audit (Wales) Bill [HL]
Part 4 — Miscellaneous and general
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(3)
In subsection (9) of that section, after paragraph (b) add “and
(c)
“public body” means—
(i)
a body exercising functions of a public nature, or
(ii)
a body entirely or substantially funded from public
money.”
5
(4)
In Schedule 17, in Part 1 (bodies subject generally to audit etc provisions), in
paragraph 1 omit “(other than the Care Council for Wales)”.
66
Minor and consequential amendments
Schedule 2 (which makes minor and consequential amendments) has effect.
67
Functions transferred to Assembly
10
(1)
Any reference in Schedule 1 to the National Assembly for Wales (Transfer of
Functions) Order 1999 (S.I.1999/672) to an enactment amended by this Act is
to be treated as a reference to that enactment as amended by this Act.
(2)
Subsection (1) does not affect the power to make further Orders varying or
omitting those references.
15
Transitional provision
68
Transfer of property etc to Auditor General
(1)
Any property, rights and liabilities which are the subject of a transfer scheme
are to be transferred to and vested in the Auditor General for Wales in
accordance with the scheme.
20
(2)
For this purpose “a transfer scheme” means a scheme contained in an order
made under paragraph 1 of Schedule 3.
(3)
Schedule 3 (which makes provision about schemes for the transfer of property
etc) has effect.
69
Local government bodies in Wales
25
(1)
Subsection (2) applies where, immediately before the commencement of
paragraph 38(3) of Schedule 2, an appointment of a person as an auditor in
relation to accounts of a local government body in Wales has effect under Part
2 of the Audit Commission Act 1998 (c. 18).
(2)
Until the end of the period for which that appointment was made, Part 2 of this
30
Act applies, in relation to that body, as if the appointment had been made
under section 13.
(3)
Subsection (4) applies where, immediately before the commencement of
paragraph 38(3) of Schedule 2—
(a)
arrangements approved under section 3(9) of the Audit Commission
35
Act 1998 have effect;
(b)
the arrangements authorise a person to carry out specified functions of
an auditor appointed under Part 2 of that Act in relation to accounts of
a local government body in Wales; and