|
| |
|
(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 |
| |
| |
| 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 |
| |
| |
(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. |
| |
| |
| |
| |
| “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; |
| |
| |
|
| |
|
| |
|
| “financial year” means the 12 months ending with 31 March. |
| |
| |
The enactments mentioned in Schedule 4 are repealed to the extent specified. |
| |
| |
(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 |
| |
| |
(3) | Orders under subsection (1)— |
| |
(a) | may include transitional provision or savings; |
| 10 |
(b) | may make different provision for different purposes. |
| |
| |
(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 |
| |
This Act may be cited as the Public Audit (Wales) Act 2004. |
| |
|
| |
|
| |
|
| |
| |
| |
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 |
| |
| |
(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 |
| |
(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 |
| |
(a) | which is specified in the order, and |
| |
(b) | to which the authority would otherwise be subject under this |
| |
| |
4 (1) | Section 4 (performance indicators and standards) is amended as follows. |
| 35 |
|
| |
|
| |
|
(2) | In subsection (4)(b) for “Audit Commission” substitute “relevant audit |
| |
| |
(3) | After subsection (5) insert— |
| |
“(6) | The relevant audit authority is— |
| |
(a) | in relation to best value authorities in Wales, the Auditor |
| 5 |
| |
(b) | in relation to other best value authorities, the Audit |
| |
| |
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 |
| |
| |
(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 |
| |
| |
(4) | In subsection (4)(e) at the beginning insert “if the auditor is appointed by the |
| 20 |
| |
(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 |
| |
(6) | In subsection (5)(b) at the beginning insert “if the auditor is appointed by the |
| |
| |
(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,”. |
| |
| |
(a) | for “reference in subsection (1)” substitute “references in subsections |
| |
| |
(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 |
| |
| |
(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).” |
| |
|
| |
|
| |
|
(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 |
| |
| |
(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 |
| |
| |
(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 |
| |
| 25 |
(5) | Before prescribing a scale of fees under subsection (3) the Auditor |
| |
General for Wales shall consult— |
| |
| |
(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 |
| |
| 35 |
(a) | are applicable to the audit, and |
| |
| |
(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 |
| |
(a) | are applicable to the audit, and |
| |
| |
|
| |
|
| |
|
(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 |
| |
| 5 |
(4) | The auditor shall have regard to any provisions of a code of practice |
| |
| |
(a) | are applicable to an audit of a performance plan published by |
| |
an authority of a corresponding description to the authority, |
| |
| 10 |
| |
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 |
| |
| |
(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 |
| |
| |
(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. |
| |
|
| |
|
| |
|
(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 |
| |
| |
(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. |
| |
| |
(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 |
| |
| |
(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 |
| |
| |
(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 |
| |
(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— |
| |
| |
(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,”. |
| 45 |
|
| |
|