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Public Audit (Wales) Bill [HL]


Public Audit (Wales) Bill [HL]
Part 4 — Miscellaneous and general

41

 

(c)   

the appointment of the auditor in relation to the accounts of that body

has effect under Part 2 of that Act.

(4)   

Until the end of the period for which the arrangements have effect, or (if

sooner) the end of the period for which the appointment of the auditor was

made, Part 2 of this Act applies, in relation to that body, as if—

5

(a)   

the arrangements had been approved under section 15(1);

(b)   

the appointment of the auditor had been made under section 13; and

(c)   

the arrangements authorised the person to carry out functions of the

auditor which correspond to the functions of the auditor that he is

authorised to carry out by the arrangements.

10

(5)   

Subsection (6) applies where, immediately before the commencement of

paragraphs 23, 24 and 38(3) of Schedule 2, the Audit Commission is promoting

or undertaking a study under Part 3 of the Audit Commission Act 1998 (c. 18)

in connection with a local government body in Wales.

(6)   

After (and notwithstanding) that commencement, Part 3 of the Audit

15

Commission Act 1998 continues to have effect in relation to the promotion or

undertaking of the study.

(7)   

In this section “local government body in Wales” has the meaning given in

section 12(1).

70      

Welsh NHS bodies

20

(1)   

Subsection (2) applies where, immediately before the commencement of

section 61, an appointment of a person as an auditor in relation to accounts of

a Welsh NHS body has effect under Part 2 of the Audit Commission Act 1998.

(2)   

Until the end of the period for which that appointment was made, sections 61

and 63 apply, in relation to that Welsh NHS body, as if that person were

25

authorised under section 92(8) of the Government of Wales Act 1998 (c. 38) to

exercise the functions of the Auditor General for Wales under sections 61 and

63.

(3)   

Subsection (4) applies where, immediately before the commencement of

section 61 and paragraph 38(2) of Schedule 2, the Audit Commission is

30

promoting or undertaking a study under section 33 or 35 of the Audit

Commission Act 1998 in connection with a Welsh NHS body.

(4)   

After (and notwithstanding) that commencement, section 33 or, as the case

may be, 35 of that Act continues to have effect in relation to the promoting or

undertaking of the study.

35

(5)   

In this section “Welsh NHS body” has the meaning given in section 60.

General

71      

Interpretation

In this Act—

“the Assembly” means the National Assembly for Wales;

40

“the Audit Commission” means the Audit Commission for Local

Authorities and the National Health Service in England and Wales;

“body” includes office;

 

 

Public Audit (Wales) Bill [HL]
Part 4 — Miscellaneous and general

42

 

“financial year” means the 12 months ending with 31 March.

72      

Repeals

The enactments mentioned in Schedule 4 are repealed to the extent specified.

73      

Commencement

(1)   

The preceding provisions (and the Schedules), except section 71, come into

5

force in accordance with provision made by the Assembly by order.

(2)   

The power to make orders under subsection (1) is exercisable by statutory

instrument.

(3)   

Orders under subsection (1)—

(a)   

may include transitional provision or savings;

10

(b)   

may make different provision for different purposes.

74      

Extent

(1)   

The amendment or repeal of a provision by this Act has the same extent as the

provision amended or repealed.

(2)   

Subject to that, this Act extends to England and Wales only.

15

75      

Short title

This Act may be cited as the Public Audit (Wales) Act 2004.

 

 

Public Audit (Wales) Bill [HL]
Schedule 1 — Best value audit and inspections

43

 

Schedules

Schedule 1

Section 50

 

Best value audit and inspections

1          

The Local Government Act 1999 (c. 27) is amended as follows.

2          

In section 1 (best value authorities) after subsection (5) insert—

5

“(6)   

For the purposes of this Part each of these is a best value authority in

Wales—

(a)   

a local authority in Wales;

(b)   

a National Park authority for a National Park in Wales;

(c)   

a police authority for a police area in Wales;

10

(d)   

a fire and rescue authority in Wales constituted by a scheme

under section 2 of the Fire and Rescue Services Act 2004 or a

scheme to which section 4 of that Act applies.

(7)   

In subsection (6) “local authority in Wales” means a county council,

county borough council or community council in Wales.”

15

3          

After section 2 insert—

“2A Power to extend or disapply: best value authorities in Wales

(1)   

The National Assembly for Wales may by order provide that any of

the bodies mentioned in subsection (2) is a best value authority in

Wales for the purposes of this Part.

20

(2)   

The bodies are—

(a)   

a levying body within the meaning of section 74(1) of the

Local Government Finance Act 1988;

(b)   

a body to which section 75 of that Act applies (special levies).

(3)   

An order under subsection (1) providing for a body to be a best value

25

authority in Wales may provide for section 7 to have effect in relation

to that body with specified modifications.

(4)   

The National Assembly for Wales may by order provide that a best

value authority in Wales specified, or of a description specified, in

the order is not to be subject, in relation to such functions as may be

30

specified, to a duty—

(a)   

which is specified in the order, and

(b)   

to which the authority would otherwise be subject under this

Part.”

4     (1)  

Section 4 (performance indicators and standards) is amended as follows.

35

 

 

Public Audit (Wales) Bill [HL]
Schedule 1 — Best value audit and inspections

44

 

      (2)  

In subsection (4)(b) for “Audit Commission” substitute “relevant audit

authority”.

      (3)  

After subsection (5) insert—

“(6)   

The relevant audit authority is—

(a)   

in relation to best value authorities in Wales, the Auditor

5

General for Wales;

(b)   

in relation to other best value authorities, the Audit

Commission.”

5     (1)  

Section 7 (audit) is amended as follows.

      (2)  

In subsection (3) at the beginning insert “If an authority’s auditor is

10

appointed by the Audit Commission,” and for “an auditor’s” substitute “the

auditor’s”.

      (3)  

After subsection (3) insert—

“(3A)   

If an authority’s auditor is appointed by the Auditor General for

Wales, sections 18 and 19 of the Public Audit (Wales) Act 2004

15

(auditor’s rights to documents and information) shall have effect in

relation to the auditor’s functions under this Part as those sections

have effect in relation to his functions under Chapter 1 of Part 2 of

that Act.”

      (4)  

In subsection (4)(e) at the beginning insert “if the auditor is appointed by the

20

Audit Commission,”.

      (5)  

In subsection (4) after “section 10,” insert—

“(ea)   

if the auditor is appointed by the Auditor General for Wales,

recommending whether the Auditor General for Wales

should carry out a best value inspection of the authority

25

under section 10A,”.

      (6)  

In subsection (5)(b) at the beginning insert “if the auditor is appointed by the

Audit Commission,”.

      (7)  

In subsection (5) after “Audit Commission,” insert—

“(ba)   

if the auditor is appointed by the Auditor General for Wales,

30

to the Auditor General for Wales,”.

      (8)  

In subsection (7)—

(a)   

for “reference in subsection (1)” substitute “references in subsections

(1), (3) and (3A)”;

(b)   

for “is” substitute “are”;

35

(c)   

for “a reference” substitute “references”.

      (9)  

In subsection (8)(a) at the beginning insert “if he was appointed by the Audit

Commission,”.

     (10)  

In subsection (8) after “Audit Commission Act 1998,” insert—

“(aa)   

if he was appointed by the Auditor General for Wales, is no

40

longer eligible for appointment under section 14 of the Public

Audit (Wales) Act 2004,”.

     (11)  

In subsection (8) for the words after paragraph (b) substitute “the references

in subsections (1), (3) and (3A) to the authority’s auditor are, in respect of

that financial year, references to the auditor or auditors appointed in

45

accordance with subsection (8A).”

 

 

Public Audit (Wales) Bill [HL]
Schedule 1 — Best value audit and inspections

45

 

     (12)  

After subsection (8) insert—

“(8A)   

The auditor or auditors shall be appointed—

(a)   

by the Auditor General for Wales, if the authority is a best

value authority in Wales;

(b)   

by the Audit Commission, in any other case.

5

(8B)   

Section 14 of the Public Audit (Wales) Act 2004 shall apply to an

appointment under subsection (8A)(a) as if it were an appointment

of a person to audit the authority’s accounts under section 13 of that

Act.”

     (13)  

In subsection (9) for “subsection (8)” substitute “subsection (8A)(b)”.

10

6          

Omit section 8(1) (auditor to have regard to code of practice under section 8).

7          

After section 8 insert—

“8A Code of practice and fees: Auditor General for Wales

(1)   

The Auditor General for Wales may prepare, and keep under review,

a code of practice prescribing the way in which auditors appointed

15

by him are to carry out their functions under section 7.

(2)   

Section 16(2) to (9) of the Public Audit (Wales) Act 2004 (code of audit

practice) shall have effect in relation to a code of practice under this

section.

(3)   

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

20

in respect of the audit of performance plans which are required to be

audited in accordance with this Part by auditors appointed by him.

(4)   

Sections 20(4) to (6) and 21(1) to (4) of the Public Audit (Wales) Act

2004 (fees for audit) shall have effect in relation to fees under

subsection (3).

25

(5)   

Before prescribing a scale of fees under subsection (3) the Auditor

General for Wales shall consult—

(a)   

the Assembly, and

(b)   

persons appearing to the Auditor General for Wales to

represent best value authorities in Wales.

30

8B Auditor’s duty in relation to codes

(1)   

An auditor appointed by the Audit Commission who is carrying out

an audit of an authority’s performance plan under section 7 shall

have regard to any provisions of a code of practice under section 8

which—

35

(a)   

are applicable to the audit, and

(b)   

are in force.

(2)   

An auditor appointed by the Auditor General for Wales who is

carrying out an audit of an authority’s performance plan under

section 7 shall have regard to any provisions of a code of practice

40

under section 8A which—

(a)   

are applicable to the audit, and

(b)   

are in force.

 

 

Public Audit (Wales) Bill [HL]
Schedule 1 — Best value audit and inspections

46

 

(3)   

Subsection (4) applies at any time before there are provisions of a

code of practice under section 8A to which an auditor appointed by

the Auditor General for Wales is required under subsection (2) to

have regard in carrying out an audit of an authority’s performance

plan under section 7.

5

(4)   

The auditor shall have regard to any provisions of a code of practice

under section 8 which—

(a)   

are applicable to an audit of a performance plan published by

an authority of a corresponding description to the authority,

and

10

(b)   

are in force.”

8          

In section 10 (inspections by Audit Commission) after subsection (4) insert—

“(5)   

The preceding provisions of this section do not apply in relation to a

best value authority in Wales.”

9          

After section 10 insert—

15

“10A Inspections: Auditor General for Wales

(1)   

The Auditor General for Wales may carry out an inspection of the

compliance with the requirements of this Part by a best value

authority in Wales.

(2)   

If the Secretary of State directs the Auditor General for Wales to carry

20

out an inspection of the compliance with the requirements of this

Part by a specified best value authority in Wales in relation to

specified functions, the Auditor General for Wales shall comply with

the direction.

(3)   

Before giving a direction under subsection (2) the Secretary of State

25

shall consult the Auditor General for Wales.

(4)   

In carrying out an inspection, and in deciding whether to do so, the

Auditor General for Wales shall have regard to—

(a)   

any relevant recommendation under section 7(4)(ea), and

(b)   

any guidance issued by the Secretary of State.”

30

10         

In section 11 (inspectors’ powers and duties) for subsection (7) substitute—

“(7)   

In this section “inspector” means—

(a)   

an officer, servant or agent of the Audit Commission carrying

out an inspection under section 10;

(b)   

the Auditor General for Wales, a member of his staff or a

35

person providing services to him who is carrying out an

inspection under section 10A.”

11         

In section 12 (fees in respect of inspections under section 10), in subsection

(4)(b) after “authorities” insert “which may be inspected under section 10”.

12         

After section 12 insert—

40

“12A Fees: inspections under section 10A

(1)   

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

in respect of inspections carried out under section 10A.

 

 

Public Audit (Wales) Bill [HL]
Schedule 1 — Best value audit and inspections

47

 

(2)   

An authority inspected under section 10A shall, subject to subsection

(3), pay to the Auditor General for Wales the fee applicable to the

inspection in accordance with the appropriate scale.

(3)   

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

in a particular inspection was substantially more or less than that

5

envisaged by the appropriate scale, the Auditor General for Wales

may charge a fee which is larger or smaller than that referred to in

subsection (2).

(4)   

Before prescribing a scale of fees under this section the Auditor

General for Wales shall consult—

10

(a)   

the Secretary of State, and

(b)   

persons appearing to the Auditor General for Wales to

represent best value authorities in Wales.”

13         

After section 13 insert—

“13A Reports of inspections under section 10A

15

(1)   

Where the Auditor General for Wales has carried out an inspection

of an authority under section 10A he shall issue a report.

(2)   

A report—

(a)   

shall mention any matter in respect of which the Auditor

General for Wales believes as a result of an inspection that the

20

authority is failing to comply with the requirements of this

Part, and

(b)   

may, if it mentions a matter under paragraph (a), recommend

that the Secretary of State give a direction under section 15.

(3)   

The Auditor General for Wales—

25

(a)   

shall send a copy of a report to the authority concerned, and

(b)   

may publish a report and any information in respect of a

report.

(4)   

If a report recommends that the Secretary of State give a direction

under section 15, the Auditor General for Wales shall as soon as

30

reasonably practicable—

(a)   

arrange for the recommendation to be published, and

(b)   

send a copy of the report to the Secretary of State.

(5)   

If a report states that the Auditor General for Wales believes as a

result of an inspection that an authority is failing to comply with the

35

requirements of this Part, the next performance plan prepared by the

authority under section 6 must record—

(a)   

that fact, and

(b)   

any action taken by the authority as a result of the report.”

14    (1)  

Section 23 (regulations about accounts) is amended as follows.

40

      (2)  

In subsection (4) before paragraph (a) insert—

“(za)   

if the regulations make provision in relation to best value

authorities in Wales, the Auditor General for Wales,”.

      (3)  

In subsection (4)(a), at the beginning insert “if the regulations make

provision in relation to other best value authorities,”.

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