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]
Part 1 — Auditor General for Wales
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(b)
provides services at the request of a body under section 145B of
this Act or section 44 of the Public Audit (Wales) Act 2004
(studies at request of local government bodies in Wales),

the Auditor General for Wales must charge that body a fee which
covers the full cost of providing those services.
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(4)
For the purposes of this section “body” includes a local government
body in Wales (within the meaning given in section 12(1) of the Public
Audit (Wales) Act 2004).”
Administrative matters
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Auditor General’s seal
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In section 90 of the Government of Wales Act 1998 (c. 38) (establishment of
office of Auditor General for Wales), after subsection (7) insert—
“(8)
The application of the seal of the Auditor General for Wales is to be
authenticated by the signature of—
(a)
the Auditor General for Wales, or
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(b)
any member of his staff authorised by him (generally or
specially) for that purpose.
(9)
A document purporting to be duly executed under the seal of the
Auditor General for Wales or to be signed on his behalf may be received
in evidence and, unless the contrary is proved, is to be taken to be so
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executed or signed.”
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Staff etc of the Auditor General
(1)
Section 92 of the Government of Wales Act 1998 (appointment and
remuneration of staff etc of Auditor General for Wales) is amended as follows.
(2)
Omit subsections (1) and (3).
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(3)
In subsection (6)—
(a)
for “The Assembly” substitute “The Auditor General for Wales”, and
(b)
for “he”, in both places it occurs, substitute “the Minister”.
(4)
For subsection (8) substitute—
“(8)
Any function of the Auditor General for Wales may be exercised by—
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(a)
a member of his staff, or
(b)
a person providing services to him,

who is authorised by the Auditor General for Wales for that purpose.
(8A)
Any function of the Auditor General for Wales may be exercised jointly
by him and a person providing services to him who is authorised by
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him for that purpose.
(8B)
Any provision made under subsection (8) for the exercise of any
function does not affect the responsibility of the Auditor General for
Wales on whose behalf the function is exercised.”
(5)
In subsection (9) for “for the Assembly” substitute “within subsection (9A)”.
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Public Audit (Wales) Bill [HL]
Part 1 — Auditor General for Wales
9

(6)
After that subsection insert—
“(9A)
Accounts (or statements of accounts) are within this subsection if, in
accordance with provision made by or under this or any other Act,
they—
(a)
fall to be examined by the Auditor General for Wales, and
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(b)
are required to be laid before the Assembly.”
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Accounting officer
After section 94 of the Government of Wales Act 1998 (c. 38) insert—
“94A
Accounting officer
(1)
The accounting officer for the Wales Audit Office is the Auditor
10
General for Wales.
(2)
But where—
(a)
the Auditor General for Wales is incapable of discharging his
responsibilities as accounting officer, or
(b)
the office of Auditor General for Wales is vacant,
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the Audit Committee may designate a member of the staff of the
Auditor General for Wales to be the accounting officer for so long as
paragraph (a) or (b) applies.
(3)
The accounting officer for the Wales Audit Office has, in relation to the
accounts of the Auditor General for Wales and the finances of the Wales
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Audit Office, the responsibilities which are from time to time specified
by the Audit Committee.
(4)
In this section references to responsibilities include in particular—
(a)
responsibilities in relation to the signing of accounts,
(b)
responsibilities for the propriety and regularity of the finances
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of the Wales Audit Office, and
(c)
responsibilities for the economy, efficiency and effectiveness
with which the resources of the Wales Audit Office are used.
(5)
The responsibilities which may be specified under this section include
responsibilities owed to—
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(a)
the Audit Committee, or
(b)
the House of Commons or its Committee of Public Accounts.
(6)
If requested to do so by the House of Commons Committee of Public
Accounts, the Audit Committee may—
(a)
on behalf of the Committee of Public Accounts take evidence
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from the accounting officer for the Wales Audit Office, and
(b)
report to the Committee of Public Accounts and transmit to that
Committee any evidence so taken.
(7)
In this section “the Wales Audit Office” means the Auditor General for
Wales and the members of his staff.”
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Access to information, etc by Auditor General
For section 95 of the Government of Wales Act 1998 (access to documents by

Public Audit (Wales) Bill [HL]
Part 1 — Auditor General for Wales
10

Auditor General for Wales) substitute—
“95
Access to documents by Auditor General
(1)
The Auditor General for Wales has a right of access at all reasonable
times to every document relating to a relevant person which appears to
him necessary—
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(a)
for the purposes of his examination of any auditable accounts;
(b)
for the purposes of undertaking studies under section 145A or
145C;
(c)
for the purposes of carrying out, in accordance with any
provision made by or by virtue of this or any other Act, other
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examinations or studies into the economy, efficiency and
effectiveness with which any person has used his resources in
discharging his functions.
(2)
The documents relating to a relevant person to which the right
conferred by subsection (1) applies may include, in particular—
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(a)
a document which is held or controlled by a person who has
received financial assistance from the relevant person by means
of a grant, loan or guarantee or as a result of the taking of an
interest in any property or body corporate;
(b)
a document which is held or controlled by a person who has
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supplied goods or services to the relevant person in pursuance
of a contract to which the relevant person was party or 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)
The Auditor General for Wales may require a person whom he thinks
has information of the kind mentioned in subsection (4)—
(a)
to give him any assistance, information and explanation which
the Auditor General for Wales thinks necessary for any of the
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purposes mentioned in paragraphs (a) to (c) of subsection (1);
(b)
to attend before him in person to—
(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
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subsection (1) applies;
(c)
to provide any facility which the Auditor General for Wales
may reasonably require for any of the purposes mentioned in
paragraphs (a) to (c) of subsection (1).
(4)
The information is information which relates to—
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(a)
a relevant person;
(b)
a document to which the right conferred by subsection (1)
applies; or
(c)
a person who holds or controls such a document.
(5)
The Auditor General for Wales may, for the purposes of his
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examination of any auditable accounts, require a relevant person to
provide him, at times specified by him, with accounts of such of the
person’s transactions as he may specify.

Public Audit (Wales) Bill [HL]
Part 2 — Local government bodies in Wales
Chapter 1 — Accounts and audit
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(6)
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 relevant person in another
contract.
(7)
In this section—
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“auditable accounts” means any accounts or statement of accounts
falling to be examined by the Auditor General for Wales in
accordance with any provision made by or by virtue of this or
any other Act; and

“relevant person” means—
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(a)
in a case within subsection (1)(a)—
(i)
the person by whom the auditable accounts are
prepared, and
(ii)
in the case of any accounts which the Assembly is
directed to prepare under section 97, any person to
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whose financial affairs and transactions the
auditable accounts are to relate by virtue of
directions under subsection (2) of that section, and
(b)
in any other case, a person to whom the study or
examination relates.
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(8)
Before making an order under subsection (2)(c), the Assembly must
consult the Treasury and the Auditor General for Wales.”
Part 2
Local government bodies in Wales
Chapter 1
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Accounts and audit
Local government bodies in Wales
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Local government bodies in Wales
(1)
In this Part “local government body in Wales” means any of these—
(a)
a local authority in Wales;
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(b)
a committee of a local authority in Wales (including a joint committee
of two or more local authorities in Wales);
(c)
a port health authority for a port health district wholly in Wales;
(d)
a National Park authority for a National Park in Wales;
(e)
a conservation board established by order of the Assembly under
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section 86 of the Countryside and Rights of Way Act 2000 (c. 37);
(f)
a police authority for a police area in Wales;
(g)
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;
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(h)
an internal drainage board for an internal drainage district wholly in
Wales;
(i)
a local probation board established under section 4 of the Criminal
Justice and Court Services Act 2000 (c. 43) for an area in Wales.

Public Audit (Wales) Bill [HL]
Part 2 — Local government bodies in Wales
Chapter 1 — Accounts and audit
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(2)
The Assembly may by order amend subsection (1) by—
(a)
adding a public body whose functions relate exclusively to Wales or an
area of Wales;
(b)
omitting a body;
(c)
altering the description of a body.
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(3)
In subsection (2) “public body” means a body which—
(a)
exercises functions of a public nature, or
(b)
is entirely or substantially funded from public money.
Audit of accounts
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Audit of accounts of local government bodies in Wales
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(1)
A local government body in Wales—
(a)
must make up its accounts each year to 31 March or such other date as
the Assembly may generally or in any special case direct;
(b)
must ensure that its accounts are audited in accordance with this
Chapter by one or more auditors appointed by the Auditor General for
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Wales.
(2)
The Auditor General for Wales must appoint auditors to audit the accounts of
local government bodies in Wales.
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Appointment of auditors
(1)
This section applies in relation to the appointment of persons as auditors under
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section 13.
(2)
The Auditor General for Wales may appoint a person only if the person is
eligible for appointment under this section.
(3)
But the Auditor General for Wales may not appoint himself.
(4)
A person is eligible for appointment under this section only if the person—
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(a)
is eligible for appointment as a company auditor under section 25 of the
Companies Act 1989 (c. 40), or
(b)
is a member of a body of accountants, established in the United
Kingdom or another EEA State, which is for the time being approved
by the Assembly for the purposes of this subsection.
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(5)
If two or more auditors are appointed to audit the accounts of a body they may
be appointed—
(a)
to act jointly;
(b)
to act separately in relation to different parts of the accounts;
(c)
to discharge different functions in relation to the audit.
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(6)
Before appointing an auditor to audit the accounts of a body the Auditor
General for Wales must consult the body.
(7)
The Auditor General for Wales may require a body to make available for
inspection by him or on his behalf any documents which he reasonably
requires for the purpose of assisting him to decide on the appointment of
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auditors to audit the body’s accounts.

Public Audit (Wales) Bill [HL]
Part 2 — Local government bodies in Wales
Chapter 1 — Accounts and audit
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(8)
The appointment of an auditor who is not a member of the staff of the Auditor
General for Wales must be on the terms, and for the period, determined by the
Auditor General for Wales.
(9)
In this section “EEA State” means any State which is a Contracting Party to the
Agreement on the European Economic Area signed at Oporto on 2nd May
5
1992, as adjusted by the Protocol signed at Brussels on 17th March 1993.
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Persons to assist auditors
(1)
The Auditor General for Wales may approve arrangements for one or more
persons to assist an auditor appointed under section 13 by carrying out the
functions of the auditor under this Part which are specified in the
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arrangements.
(2)
Arrangements may be approved under subsection (1) either generally or for a
particular case or cases.
(3)
References in the following provisions of this Part to an auditor include, in
relation to a function of an auditor, a person carrying out the function under
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arrangements approved under subsection (1).
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Code of audit practice
(1)
The Auditor General for Wales may issue a code of audit practice prescribing
the way in which auditors are to carry out their functions under this Chapter.
(2)
A code issued under this section must embody what appears to the Auditor
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General for Wales to be the best professional practice with respect to the
standards, procedures and techniques to be adopted by auditors.
(3)
A code issued under this section may make different provision for different
cases.
(4)
The Auditor General for Wales must not issue a code under this section unless
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a draft of the code has been laid before, and approved by a resolution of, the
Assembly.
(5)
In preparing a draft of a code under this section the Auditor General for Wales
must consult any associations of local authorities in Wales which appear to him
to be concerned.
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(6)
The Auditor General for Wales must arrange for any code issued by him under
this section to be published in such manner as he thinks appropriate.
(7)
A code issued under this section is subject to annulment in pursuance of a
resolution of either House of Parliament in the same way as a statutory
instrument; and section 5 of the Statutory Instruments Act 1946 (c. 36) applies
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accordingly.
(8)
The Auditor General for Wales may from time to time revise a code previously
issued under this section; and subsections (2) to (7) apply to a revised code as
they apply to a code as first prepared.
(9)
The Assembly may not delegate the function of approving a draft of a code
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under this section.