Government of Wales Bill

House of Commons

Session 2005 - 06
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Government of Wales Bill

Government of Wales Bill
Schedule 8 — Auditor General for Wales
126

      (4)
The validity of any act of a person appointed as Auditor General is not
affected by any defect in the person’s nomination by the Assembly.
Tenure
2     (1)
Subject as follows, a person appointed as Auditor General holds office until
the end of the period for which the person was appointed.
5
      (2)
Her Majesty may relieve a person from office as Auditor General before the
end of the period for which the person was appointed—
(a)
at the person’s request, or
(b)
on Her Majesty being satisfied that the person is incapable for
medical reasons of performing the duties of the office and of
10
requesting to be relieved of it.
      (3)
Her Majesty may remove a person from office as Auditor General before the
end of the period for which the person was appointed on the making of a
recommendation, on the ground of the person’s misbehaviour, that Her
Majesty should do so.
15
      (4)
A recommendation for the removal of a person from office as Auditor
General may not be made unless—
(a)
the Assembly has resolved that the recommendation should be
made, and
(b)
the resolution of the Assembly is passed on a vote in which the
20
number of Assembly members voting in favour of it is not less than
two-thirds of the total number of Assembly seats.
Independence and status
3     (1)
The Auditor General is not, in the exercise of any functions, subject to the
direction or control of the Assembly or the Welsh Assembly Government.
25
      (2)
The Auditor General is not to be regarded as holding office under Her
Majesty or as exercising any functions on behalf of the Crown; but the
Auditor General is to be taken to be a Crown servant for the purposes of the
Official Secrets Act 1989 (c. 6).
Corporation sole
30
4
The person for the time being holding the office of Auditor General shall by
the name of that office be a corporation sole.
Documents
5     (1)
The application of the seal of the Auditor General is to be authenticated by
the signature of—
35
(a)
the Auditor General, or
(b)
any member of the Auditor General’s staff authorised by the Auditor
General (generally or specially) for that purpose.
      (2)
A document purporting to be duly executed under the seal of the Auditor
General or to be signed on the Auditor General’s behalf may be received in
40
evidence and, unless the contrary is proved, is to be taken to be so executed
or signed.

Government of Wales Bill
Schedule 8 — Auditor General for Wales
127

Remuneration
6     (1)
The Assembly must—
(a)
pay the Auditor General such salary and any such allowances, and
(b)
make any such payments towards the provision of superannuation
benefits for or in respect of the Auditor General,
5

as may be provided for by or under the terms of the Auditor General’s
appointment.
      (2)
The Assembly must pay to or in respect of a person who has ceased to hold
office as Auditor General such amounts (if any) by way of—
(a)
pension or gratuities, or
10
(b)
provision for those benefits,

as may have been provided for by or under the terms of the Auditor
General’s appointment.
      (3)
Schedule 1 to the Superannuation Act 1972 (c. 11) (offices to which section 1
of that Act applies) is to continue to have effect with the insertion in the list
15
of “Offices” of the entry relating to the Auditor General (originally made by
section 91(3) of the Government of Wales Act 1998 (c. 38)).
      (4)
The Assembly must make payments to the Minister for the Civil Service, at
such times as the Minister for the Civil Service may determine, of such
amounts as may be so determined in respect of—
20
(a)
the provision of pensions, allowances or gratuities by virtue of
section 1 of the Superannuation Act 1972 to or in respect of any
person who holds or has ceased to hold office as Auditor General,
and
(b)
the expenses incurred in administering those pensions, allowances
25
and gratuities.
      (5)
Sums required for the making of payments under sub-paragraphs (1), (2)
and (4) are to be charged on the Welsh Consolidated Fund.
Staff
7     (1)
The Auditor General may appoint such staff or secure the provision of such
30
services as the Auditor General considers necessary for assisting in the
exercise of the Auditor General’s functions.
      (2)
The staff of the Auditor General are to be appointed on such terms and
conditions as the Auditor General may determine.
      (3)
The Auditor General must pay the staff such remuneration as may be
35
provided for by or under the terms of their appointment.
      (4)
Schedule 1 to the Superannuation Act 1972 (offices to which section 1 of that
Act applies) is to continue to have effect with the insertion in the list of
“Other bodies” of the entry relating to Employment as a member of the staff
of the Auditor General (originally made by section 92(5) of the Government
40
of Wales Act 1998).
      (5)
The Auditor General must make payments to the Minister for the Civil
Service, at such times as the Minister for the Civil Service may determine, of
such amounts as may be so determined in respect of—

Government of Wales Bill
Schedule 8 — Auditor General for Wales
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(a)
the provision of pensions, allowances or gratuities by virtue of
section 1 of the Superannuation Act 1972 (c. 11) to or in respect of any
persons who are or have been members of the staff of the Auditor
General, and
(b)
the expenses incurred in administering those pensions, allowances
5
and gratuities.
      (6)
No member of the staff of the Auditor General is to be regarded as holding
office under Her Majesty or as exercising any functions on behalf of the
Crown; but each member of the staff of the Auditor General is to be taken to
be a Crown servant for the purposes of the Official Secrets Act 1989 (c. 6)
10
Exercise of functions by staff etc.
8     (1)
Any function of the Auditor General may be exercised by—
(a)
a member of the Auditor General’s staff, or
(b)
a person providing services to the Auditor General,

who is authorised by the Auditor General for that purpose.
15
      (2)
Any function of the Auditor General may be exercised jointly by the Auditor
General and a person providing services to the Auditor General who is
authorised by the Auditor General for that purpose.
      (3)
Any provision made under sub-paragraph (1) for the exercise of any
function does not affect the responsibility of the Auditor General on whose
20
behalf the function is exercised.
      (4)
An authority under sub-paragraph (1) to certify or report on accounts (or
statements of accounts) within sub-paragraph (5)—
(a)
extends only to accounts (or statements) which the Presiding Officer
has certified to the Assembly are accounts (or statements) which the
25
Auditor General is unable to certify, or on which the Auditor General
is unable to report, in person, and
(b)
ceases when the office of Auditor General becomes vacant.
      (5)
Accounts (or statements of accounts) are within this sub-paragraph if, in
accordance with provision made by or under this or any other Act, they—
30
(a)
fall to be examined by the Auditor General, and
(b)
are required to be laid before the Assembly.
Special finance provisions
9     (1)
Any sums payable by the Auditor General in consequence of a breach, in the
performance of any of the Auditor General’s functions, of any contractual or
35
other duty are to be charged on the Welsh Consolidated Fund.
      (2)
And sub-paragraph (1) applies whether the breach occurs by reason of an act
or omission of—
(a)
the Auditor General,
(b)
a member of the Auditor General’s staff, or
40
(c)
any other person assisting the Auditor General in the exercise of the
Auditor General’s functions.
      (3)
The Auditor General may retain income within sub-paragraph (4) (rather
than pay it into the Welsh Consolidated Fund) for use in connection with the
exercise of the functions conferred or imposed by—
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Schedule 8 — Auditor General for Wales
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(a)
Part 1 of the Local Government Act 1999 (c. 27) (best value audits and
inspections), or
(b)
Part 2 of the Public Audit (Wales) Act 2004 (c. 23) (local government
audit).
      (4)
The following income is within this sub-paragraph—
5
(a)
fees charged by the Auditor General by virtue of Part 1 of the Local
Government Act 1999,
(b)
grants made to the Auditor General under section 33(3)(b) of that
Act, and
(c)
fees charged by the Auditor General by virtue of Part 2 of the Public
10
Audit (Wales) Act 2004 (including those charged as a result of
paragraph 11(3)(c)).
Borrowing
10
The Auditor General may borrow sums in sterling (by way of overdraft or
otherwise) to be applied for the purpose of meeting a temporary excess of
15
expenditure over sums otherwise available to meet it.
Fees
11    (1)
The Auditor General may charge a fee for auditing a person’s accounts.
      (2)
Where the Auditor General—
(a)
provides services under paragraph 18(3)(b) by carrying out an
20
examination in relation to a person, or
(b)
provides services under section 145A of the Government of Wales
Act 1998 (c. 38) (studies for improving economy etc. in services) at
the request of a person,

the Auditor General may charge the person a fee not exceeding the full cost
25
of providing those services.
      (3)
Where the Auditor General—
(a)
provides services to a body under paragraph 20,
(b)
provides services at the request of a body under section 145B of the
Government of Wales Act 1998 (studies at request of educational
30
bodies), or
(c)
provides services at the request of a body under section 44 of the
Public Audit (Wales) Act 2004 (studies at request of local
government bodies in Wales),

the Auditor General must charge that body a fee which covers the full cost
35
of providing those services.
Estimates
12    (1)
For each financial year the Auditor General must—
(a)
prepare an estimate of the income and expenses of the office of
Auditor General, and
40
(b)
submit the estimate to the Audit Committee.
      (2)
Each estimate must be submitted to the Audit Committee at least five
months before the beginning of the financial year to which it relates.
      (3)
The Audit Committee must—

Government of Wales Bill
Schedule 8 — Auditor General for Wales
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(a)
examine each estimate submitted to it, and
(b)
(having done so) lay the estimate before the Assembly with any
modifications which the Audit Committee considers appropriate.
      (4)
Before laying an estimate before the Assembly with modifications, the Audit
Committee must—
5
(a)
consult the Auditor General, and
(b)
take into account any representations which the Auditor General
may make.
      (5)
Nothing in this paragraph authorises the Audit Committee—
(a)
to examine that part of any estimate which relates to estimated
10
income or expenses of the office of Auditor General to which sub-
paragraph (6) applies, or
(b)
to lay an estimate before the Assembly with modifications relating to
such estimated income or expenses.
      (6)
This sub-paragraph applies to estimated income or expenses relating to—
15
(a)
Part 1 of the Local Government Act 1999 (c. 27) (best value audits and
inspections),
(b)
section 33(3)(b) of that Act (grants to the Auditor General), or
(c)
Part 2 of the Public Audit (Wales) Act 2004 (c. 23) (local government
audit), apart from section 44.
20
Accounts
13    (1)
The Auditor General must, for each financial year, prepare accounts in
accordance with directions given to the Auditor General by the Treasury.
      (2)
The directions which the Treasury may give under sub-paragraph (1)
include, in particular, directions as to—
25
(a)
the information to be contained in the accounts and the manner in
which it is to be presented,
(b)
the methods and principles in accordance with which the accounts
are to be prepared, and
(c)
the additional information (if any) that is to accompany the accounts.
30
Auditor
14    (1)
The Assembly must appoint an auditor of the accounts of the Auditor
General.
      (2)
A person is eligible for appointment under this paragraph only if the
person—
35
(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 an approved European body of accountants.
      (3)
An “approved European body of accountants” is a body of accountants
which—
40
(a)
is established in the United Kingdom or another state which is either
a member State or a non-member EEA State, and
(b)
is for the time being approved by the Welsh Ministers by order.

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Schedule 8 — Auditor General for Wales
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      (4)
“Non-member EEA State” means any State which is a Contracting Party to
the Agreement on the European Economic Area signed at Oporto on 2nd
May 1992 (as adjusted by the Protocol signed at Brussels on 17th March
1993) but which is not a member State.
      (5)
If a person appointed as the auditor ceases to be a person who could be so
5
appointed—
(a)
the person’s appointment is ended, and
(b)
the person ceases to be the auditor.
      (6)
The auditor is to be appointed on such terms and conditions as the Assembly
may determine.
10
      (7)
The Auditor General must pay the auditor such remuneration as may be
provided for by or under the terms of the auditor’s appointment.
      (8)
A statutory instrument containing an order under sub-paragraph (3)(b) is
subject to annulment in pursuance of a resolution of the Assembly.
Audit of accounts
15
15    (1)
The accounts which the Auditor General is required to prepare under
paragraph 13 for a financial year must be submitted by the Auditor General
(after having signed them) to the auditor appointed under paragraph 14 no
later than five months after the end of that financial year.
      (2)
The auditor must carry out an audit of any accounts submitted to the auditor
20
under sub-paragraph (1).
      (3)
On completing the audit the auditor must—
(a)
certify the accounts, and
(b)
lay the accounts and the auditor’s report on them before the
Assembly.
25
      (4)
The auditor has a right of access at all reasonable times to every document
which appears to the auditor to be necessary for the purposes of the audit of
the accounts.
      (5)
The auditor may—
(a)
require any person holding or accountable for any of those
30
documents to provide any assistance, information or explanation
which the auditor reasonably thinks necessary for those purposes,
and
(b)
require the Auditor General to provide the auditor, at times specified
by the auditor, with accounts of such of the transactions of the
35
Auditor General as the auditor may specify.
      (6)
The auditor—
(a)
may carry out examinations into the economy, efficiency and
effectiveness with which the Auditor General has used resources in
discharging the Auditor General’s functions, and
40
(b)
may lay before the Assembly a report of the results of any such
examinations.
      (7)
For the purposes of carrying out such examinations, the auditor—

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Schedule 8 — Auditor General for Wales
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(a)
has a right of access at all reasonable times to every document in the
possession, or under the control, of the Auditor General which the
auditor reasonably requires for that purpose, and
(b)
may require any person holding or accountable for any of those
documents to provide any assistance, information or explanation
5
which the auditor reasonable thinks necessary for that purpose.
Accounting officer
16    (1)
The accounting officer for the Wales Audit Office is the Auditor General.
      (2)
“The Wales Audit Office” means the Auditor General and the members of
the staff of the Auditor General.
10
      (3)
But the Audit Committee may designate a member of the staff of the Auditor
General to be the accounting officer if and for so long as —
(a)
the Auditor General is incapable of discharging the responsibilities
of the accounting officer, or
(b)
the office of Auditor General is vacant.
15
      (4)
The accounting officer for the Wales Audit Office has, in relation to the
accounts of the Auditor General and the finances of the Wales Audit Office,
the responsibilities which are from time to time specified by the Audit
Committee.
      (5)
If requested to do so by the House of Commons Committee of Public
20
Accounts, the Audit Committee may—
(a)
on behalf of the Committee of Public Accounts take evidence 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.
25
Access to documents
17    (1)
The Auditor General has a right of access at all reasonable times to every
document relating to a relevant person which appears to the Auditor
General necessary—
(a)
for the purposes of the Auditor General’s examination of any
30
auditable accounts,
(b)
for the purposes of undertaking studies under section 145A (studies
for improving economy etc. in services provided by relevant bodies)
or 145C (studies relating to registered social landlords) of the
Government of Wales Act 1998 (c. 38), or
35
(c)
for the purposes of carrying out, in accordance with any provision
made by or by virtue of this or any other Act, other examinations or
studies into the economy, efficiency and effectiveness with which a
person has used resources in discharging the person’s functions.
      (2)
The documents relating to a relevant person to which the right conferred by
40
sub-paragraph (1) applies include (in particular)—
(a)
a document which is in the possession, or under the control, of 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,
45