Appendix I
Letter from the Assembly Compliance Officer, Welsh
Assembly Government to the Clerk of the Committee
Thank you for your letter of 27th February.
We have been aware of the above Order ("the
Order") for some considerable time, and have taken account
of it in our instructions to Parliamentary Counsel in relation
to the Public Audit (Wales) Bill ("the Bill"). It would
appear that the Order is likely to be made before the Bill receives
Royal Assent. We estimate Royal Assent being received in June
or July 2004, subject to the successful passage of the Bill through
Parliament. On that basis, Parliamentary Counsel has advised
us that the consequential amendments to our Bill, including consequential
amendments which the Bill will need to make to the legislation
amended by the Order, should be tabled when the Bill reaches the
House of Commons.
In answer to the specific questions in your letter
(I am working from the draft Order laid before Parliament on 7th
January 2004):
1) As the Bill stands, it will apply to the accounts
and audit of NHS charities in Wales. It is intended that the Auditor
General for Wales ("AGW") will audit their accounts.
If the Order is made as presently drafted, this will require an
amendment to the Bill, inserting a new consequential amendment
of the Charities Act 1993 (please see attached table of suggested
amendments to the Bill consequent on the Order).
2) As the Bill stands, clause 60(1) of the Bill,
together with paragraphs 2 and 38 of Schedule 2 to the Bill
(which amend s. 98 National Health Service Act 1977 and Schedule
2 to the Audit Commission Act 1998 respectively) will bring NHS
charities in Wales within the audit responsibilities of the Auditor
General.
The "Wales Audit Office" is merely
intended to be the "business name" of the Auditor General
for Wales and his staff. The Bill does not create a body
called the Wales Audit Office.
3) The intention is that NHS charities in Wales
will be required to submit accounts to the Auditor General. If
the Order is made as presently drafted, the Bill will have to
make a consequential amendment to the Charities Act 1993.
4 and 5) The Charities Act 1993 will have to
be amended by the Bill to ensure that the accounts of NHS charities
in Wales are audited, or examined, by the Auditor General for
Wales. The 1993 Act will have to be amended so as to include a
definition of "NHS charities in Wales" (or similar expression),
which will be charitable trusts, the trustees of which at any
time during the financial year in question are one or more Welsh
NHS bodies, as that expression is defined in clause 59 of the
Bill. Please see attached table for further detail.
6) No. The Wales Office, which is responsible
for the Bill and to which I am answerable, in relation to the
Bill, under an agreement made between the Assembly and the Secretary
of State for Wales, under s. 41 Government of Wales Act 1998,
is content with the policy intention of the Order in respect of
removing the dual accounting burden. The Bill does not affect
article 2 of the draft Order, which removes NHS charity accounts
from the duty to submit account to the Secretary of State for
Health/National Assembly for Wales.
7) As I have indicated above we anticipate that
the Order will be made before the Public Audit (Wales) Bill receives
Royal Assent.
I would be grateful if you could alert me to any
other regulatory reform orders of which you may be aware that
could impact on the Bill.
2 March 2004
Annex
Proposal for the Regulatory Reform (National Health
Service Charitable Trust Accounts and Audit) Order 2004
| Amendment made by RRO
| Suggested amendment in PAWB
|
| Charities Act 1993
|
| Art 2
| Amends s.98 of the National Health Service Act 1977 to exclude NHS charity accounts from the requirements of s.98
| No amendments necessary
|
| Art 3(2)
| Inserts s.43A into the Charities Act 1993.
(1) Provides for the accounts of an NHS charity to be audited by a person appointed by the Audit Commission where the criteria set out in s.43(1) are met (ie. total expenditure exceeds £250,000)
(2) Provides that in any other case NHS charity accounts may, at the election of the Audit Commission be audited by a person appointed by the Audit Commission or examined by a person so appointed.
(3) s.3 of the ACA 1998 to apply in relation to s.43A(1) or (2)(a)
| Insert amendment so that in the case of NHS charities in Wales, accounts to be audited by the AGW
Audit or examination in Wales to take place at the election of the AGW.
|
| Audit Commission Act 1998
|
| Art 4(3)
| Amends Sch 2 of Audit Commission Act 1998. Amends para 1(g) to exclude from bodies specified in s 98(1) of the National Health Service Act 1977 accounts which relate to the property of any charity administered by such a body.
| No substantive amendment necessary. Paragraph 38 of Schedule 2 to the Bill takes Welsh NHS bodies out of the remit of the Audit Commission in any event.
Clause 60 defines Welsh NHS bodies' accounts by reference to s.98(1) of the 1977 Act. Paragraph 2 of Schedule 2 to the Bill, unaffected. Paragraph 38 of Schedule 2 to the Bill takes Welsh NHS bodies out of the remit of the Audit Commission in any event.
But drafting amendment necessary to para. 38 of Schedule 2 to the Bill, as a result of article 4(2) - new words inserted after "1977".
|
| Charities (Accounts and Reports) Regulations 1995
|
| Sch
| Consequential amendments relating to reg 6 and 7 of the Charities Act 1993
| No amendment required
|
| 
