Public Audit (Wales) Bill [HL]

House of Commons

Session 2003 - 04
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Other Bills before Parliament

Public Audit (Wales) Bill [HL]

Public Audit (Wales) Bill [HL]
Schedule 2 — Minor and consequential amendments
48

15
In section 25 (coordination of inspections etc.), in subsection (2) after
paragraph (a) insert—
“(aa)
the Auditor General for Wales;”.
16
In section 26 (guidance issued by Secretary of State), after subsection (3)
insert—
5
“(3A)
Before issuing guidance under section 10A the Secretary of State
shall, in addition to the consultation required by subsection (2)(c)
above, consult the Auditor General for Wales.”
17
In section 33(3) (grants by National Assembly for Wales) after “make grants
to” insert “(a)” and after “this Act” insert “;
10
(b)
the Auditor General for Wales in respect of expenditure
incurred or to be incurred by him under this Act”.
Schedule 2
Section 66

Minor and consequential amendments
Local Government Act 1972 (c. 70)
15
1     (1)
Section 137 of the Local Government Act 1972 (local authority expenditure
for certain purposes not otherwise authorised) is amended as follows.
      (2)
In subsection (7), omit the words from “and section 14” to the end.
      (3)
After that subsection insert—
“(7A)
In relation to England, section 14 of the Audit Commission Act 1998
20
(rights of inspection) applies in relation to a separate account
included in a local authority’s accounts by virtue of subsection (7)
above as it applies in relation to a statement of accounts prepared by
the authority pursuant to regulations under section 27 of that Act.
(7B)
In relation to Wales, section 29 of the Public Audit (Wales) Act 2004
25
(rights of inspection) applies in relation to a separate account
included in a local authority’s accounts by virtue of subsection (7)
above as it applies in relation to a statement of accounts prepared by
the authority pursuant to regulations under section 39 of that Act.”
National Health Service Act 1977 (c. 49)
30
2
In section 98 of the National Health Service Act 1977 (accounts and audits of
health bodies) after subsection (1C) insert—
“(1D)
The second sentence of subsection (1) does not apply in relation to
accounts to which section 61 of the Public Audit (Wales) Act 2004
(accounts of Welsh NHS bodies to be audited by Auditor General for
35
Wales) applies.”
Local Government, Planning and Land Act 1980 (c. 65)
3
In section 2(7) of the Local Government, Planning and Land Act 1980 (ways
in which information may be published), in paragraph (b) after “Audit

Public Audit (Wales) Bill [HL]
Schedule 2 — Minor and consequential amendments
49

Commission Act 1998” insert “or section 39 of the Public Audit (Wales) Act
2004”.
Further Education Act 1985 (c. 47)
4
In section 3(4) of the Further Education Act 1985 (accounting provisions:
local education authorities) after “Audit Commission Act 1998” insert “or
5
section 39 of the Public Audit (Wales) Act 2004”.
Housing Associations Act 1985 (c. 69)
5     (1)
Section 75 of the Housing Associations Act 1985 (general functions of
Relevant Authority) is amended as follows.
      (2)
In subsection (1), omit paragraph (f).
10
      (3)
After subsection (1) insert—
“(1A)
The Housing Corporation also has the general function of providing,
on request, to such extent as the Housing Corporation considers
appropriate, advice and assistance to the Audit Commission for
Local Authorities and the National Health Service in England and
15
Wales in relation to the functions of the Commission mentioned in
subsection (1B).
(1B)
The functions referred to in subsection (1A) are the functions of the
Commission under Part 1 of the Local Government Act 1999 (best
value), except to the extent that those functions are exercisable in
20
relation to best value authorities in Wales (within the meaning given
in that Act).”
Local Government Act 1986 (c. 10)
6
In section 5 of the Local Government Act 1986 (separate account of local
authority’s expenditure on publicity), in subsection (4) after “Audit
25
Commission Act 1998” insert “, section 39(1)(e) of the Public Audit (Wales)
Act 2004”.
Airports Act 1986 (c. 31)
7     (1)
The Airports Act 1986 is amended as follows.
      (2)
In section 22(5) (audit of accounts of public airport companies) for the words
30
from “the Audit Commission” to the end substitute—
“(a)
the Auditor General for Wales, in a case where the
company’s controlling authority are—
(i)
a county council or county borough council in Wales,
or
35
(ii)
a composite authority of which both or all the
constituent councils are county councils or county
borough councils in Wales;
(b)
the Audit Commission for Local Authorities and the National
Health Service in England and Wales, in any other case.”.
40
      (3)
In section 24(3) (inspection of accounts of councils providing services for
public airport companies), in paragraph (a) omit “and Wales” and after that

Public Audit (Wales) Bill [HL]
Schedule 2 — Minor and consequential amendments
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paragraph insert—
“(aa)
in Wales, section 29 of the Public Audit (Wales) Act 2004
(rights of inspection) shall apply in relation to any such
separate account as it applies in relation to any statement of
accounts prepared by the council pursuant to regulations
5
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—
(a)
in sub-paragraph (6)(c) for the words from “to be certified” to the end
10
substitute “to be certified—
(i)
if it is an authority in England, under
arrangements made by the Audit
Commission for Local Authorities and the
National Health Service in England and
15
Wales (“the Commission”), and
(ii)
if it is an authority in Wales, under
arrangements made by the Auditor General
for Wales.”, and
(b)
in sub-paragraph (6A), after “The Commission” insert “or the
20
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.
      (2)
In subsection (5) for “The corporation” substitute “A corporation in
25
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
any auditor under subsection (4) above in respect of their first
30
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.
11
In section 65(2) (certification of information supplied to Secretary of State) in
35
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.”
12    (1)
Section 70 (requirements for companies under control or subject to influence
40
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”.

Public Audit (Wales) Bill [HL]
Schedule 2 — Minor and consequential amendments
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      (3)
In subsection (4) after “Audit Commission Act 1998” insert “and Part 2 of the
Public Audit (Wales) Act 2004”.
      (4)
In subsection (5) after “England and Wales,” insert “or of the Auditor
General for Wales,”.
Town and Country Planning Act 1990 (c. 8)
5
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
as is mentioned in subsection (6) above, of any provisions mentioned
10
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
47 and 51;
15
(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
(national health service trusts), in paragraph 7(2) after “Audit Commission
20
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.
      (2)
In subsection (1), after paragraph (b) insert—
25
“(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)
of the Public Audit (Wales) Act 2004”.
30
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
respect of the Health Service Commissioner for Wales).
35
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
authority in England”.
40

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

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
education authority in Wales; and subsections (2) to (5) below have
5
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
10
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—
15
(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.
20
(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.
25
(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”)—
30
(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)
35
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
40
follows.
      (2)
In subsection (1)(a)—

Public Audit (Wales) Bill [HL]
Schedule 2 — Minor and consequential amendments
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(a)
after “best value authorities” insert “which are bodies subject to
audit”;
(b)
after “bodies subject to audit” insert “and by local government
bodies in Wales”.
      (3)
In subsection (1)(b) after “bodies subject to audit” insert “and local
5
government bodies in Wales”.
      (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,
10
other bodies subject to audit and local government bodies in Wales”.
      (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
15
into account any relevant work done or being done by the
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
20
Commission considers it necessary or desirable to do so for the
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;
25
(b)
a study into the provision throughout England and Wales of
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
30
description of local government body.”
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
35
local government bodies in Wales”;
(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”.
40
      (3)
In subsection (6) omit the word “and” immediately preceding paragraph (d)
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
45
Auditor General for Wales.”

Public Audit (Wales) Bill [HL]
Schedule 2 — Minor and consequential amendments
54

      (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—
5
(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
throughout England and Wales by all local government
bodies or a description of local government body;
10
(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
England and Wales by all local government bodies or a
description of local government body;
15
(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
bodies or a description of local government body.”
25    (1)
Section 36 (studies at request of educational bodies) is amended as follows.
20
      (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
Funding Council for England”;
(b)
in the entry relating to the governing body of an institution within
25
the higher education sector—
(i)
after “institution” insert “in England”;
(ii)
for “higher education funding council” substitute “Higher
Education Funding Council for England”;
(c)
in the entry relating to a funding agency under Part 1 of the
30
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
“institution” insert “in England”;
(e)
omit the entry relating to the National Council for Education and
35
Training for Wales;
(f)
in the entry relating to the governing body of an institution within
the further education sector—
(i)
after “institution” insert “in England”;
(ii)
for “the Learning and Skills Council for England or the
40
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
Higher Education Funding Council for England”.
      (4)
In subsection (3) after “further education corporation” insert “in England”.
45
26
In section 38 (benefit administration studies for Secretary of State) after