Local Government and Public Involvement in Health Bill

House of Commons

Session 2006 - 07
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Other Bills before Parliament

Local Government and Public Involvement in Health Bill

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
81

Part 8
Local services: inspection and audit
Chapter 1
Constitution of the Audit Commission
113
Membership
5
In section 1(2) of the Audit Commission Act 1998 (c. 18) (number of members
of Commission)—
(a)
for “15” substitute “10”, and
(b)
for “20” substitute “15”.
114
Change of name
10
(1)
The body which, immediately before the commencement of this section, was
known as the Audit Commission for Local Authorities and the National Health
Service in England and Wales is to be known as the Audit Commission for
Local Authorities and the National Health Service in England.
(2)
Accordingly, in section 1(1) of the Audit Commission Act 1998 (which
15
continues the existence of the Audit Commission for Local Authorities and the
National Health Service in England and Wales), omit “and Wales”.
(3)
Schedule 9 (further amendments consequential on subsection (1)) has effect.
(4)
References in any enactment (other than this section) or in subordinate
legislation to—
20
(a)
the Audit Commission for Local Authorities and the National Health
Service in England and Wales, or
(b)
the Audit Commission for Local Authorities in England and Wales,

are, unless the contrary intention appears, to be read as references to the Audit
Commission for Local Authorities and the National Health Service in England.
25
Chapter 2
Audit Commission and auditors: functions and procedure
Benefits inspections
115
Powers of the Audit Commission relating to benefits
(1)
In section 13 of the Local Government Act 1999 (c. 27) (reports by Audit
30
Commission relating to best value authorities), after subsection (4) insert—
“(4A)
If a report relates to any extent to the administration of housing benefit
or council tax benefit and the Commission thinks fit to do so, it shall as
soon as reasonably practicable send a copy of the report to the Secretary
of State.”
35
(2)
In section 139D of the Social Security Administration Act 1992 (c. 5) (power of
Secretary of State to give directions following report), in subsection (1), after

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
82

paragraph (ba) insert—
“(bb)
a copy of a report has been sent to a local authority under
subsection (3) of section 13 of the Local Government Act 1999
and to the Secretary of State under subsection (4A) of that
section;”.
5
116
Benefits Fraud Inspectorate: transfers to the Audit Commission
(1)
The Secretary of State may make a scheme for the transfer to the Audit
Commission of property, rights and liabilities of—
(a)
the Secretary of State;
(b)
a person authorised under section 139A of the Social Security
10
Administration Act 1992 (c. 5) (reports on administration of housing
benefit and council tax benefit).
(2)
The Secretary of State may only exercise the power under subsection (1) to the
extent that he considers it appropriate having regard to the functions of the
Audit Commission relating to the administration of housing benefit and
15
council tax benefit in England.
(3)
Before making an order under this section, the Secretary of State must consult
the Audit Commission.
(4)
A transfer scheme may make provision for rights and liabilities relating to an
individual’s contract of employment to be transferred, but only if—
20
(a)
immediately before the date on which the scheme takes effect, the
individual is employed in the civil service of the State in the part of the
Department for Work and Pensions known as the Benefits Fraud
Inspectorate; and
(b)
the individual and the Audit Commission have consented to the
25
provision.
(5)
Schedule 10 (further provision about transfer schemes) has effect.
(6)
For the purposes of this section and Schedule 10, where an individual is
employed in the civil service of the State on terms which do not constitute a
contract of employment—
30
(a)
the individual shall be treated as if he were employed under a contract
of employment; and
(b)
the terms of his service shall be treated as if they were the terms of the
contract.
(7)
In this section and in Schedule 10—
35
“the Audit Commission” means the Audit Commission for Local
Authorities and the National Health Service in England;
“transfer scheme” means a transfer scheme under subsection (1).
Interaction with other authorities
117
Interaction of the Audit Commission with other authorities
40
(1)
The Audit Commission Act 1998 (c. 18) is amended as follows.
(2)
Omit section 37 (assistance to inspection authorities).

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
83

(3)
In Part 4, before section 48 insert—
“Interaction with other authorities
47B
Interaction with other authorities
Schedule 2A (interaction with other authorities) has effect.”
(4)
After Schedule 2 to that Act, insert the Schedule 2A (interaction with other
5
authorities) set out at Schedule 11.
118
Interaction of benefits inspectors with the Audit Commission
After section 139B of the Social Security Administration Act 1992 (c. 5) insert—
“139BA
Interaction with Audit Commission
(1)
A person authorised under section 139A(1) must from time to time, or
10
at such times as the Secretary of State may specify by order, prepare—
(a)
a document setting out what inspections of English authorities
he proposes to carry out (an “inspection programme”);
(b)
a document setting out the way in which he proposes to carry
out his functions of inspecting and reporting on such
15
authorities (an “inspection framework”).
(2)
The person authorised under section 139A(1) must—
(a)
consult the Audit Commission before preparing an inspection
programme or an inspection framework; and
(b)
once an inspection programme or inspection framework is
20
prepared, send a copy of it to—
(i)
the Secretary of State; and
(ii)
the Audit Commission.
(3)
The Secretary of State may by order specify the form that inspection
programmes or inspection frameworks must take.
25
(4)
A person authorised under section 139A(1)—
(a)
must co-operate with the Audit Commission, and
(b)
may act jointly with the Audit Commission,

where it is appropriate to do so for the efficient and effective discharge
of the person’s functions in relation to English authorities.
30
(5)
In this section—
“the Audit Commission” means the Audit Commission for Local
Authorities and the National Health Service in England;
“English authorities” means authorities administering housing
benefit or council tax benefit in England;
35
“person” does not include the Audit Commission.”
Inspections and audit
119
Powers of auditors and inspectors to obtain information
(1)
In section 6 of the Audit Commission Act 1998 (c. 18) (auditors’ right to
documents and information)—
40

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
84

(a)
after subsection (1) insert—
“(1A)
The right conferred by subsection (1) includes power to inspect,
copy or take away the document.”;
(b)
after subsection (4) insert—
“(4A)
In relation to a document kept in electronic form, the power in
5
subsection (2)(b) to require a person to produce a document
includes power to require it to be produced in a form in which
it is legible and can be taken away.
(4B)
In connection with inspecting such a document, an inspector—
(a)
may obtain access to, and inspect and check the
10
operation of, any computer and associated apparatus or
material which he considers is or has been used in
connection with the document;
(b)
may require a person within subsection (4C) to afford
him such reasonable assistance as he may require for
15
that purpose.
(4C)
A person is within this subsection if he is—
(a)
the person by whom or on whose behalf the computer is
or has been used; or
(b)
a person having charge of, or otherwise concerned with
20
the operation of, the computer, apparatus or material.”;
(c)
in subsection (5), for “(4)” substitute “(4C)”;
(d)
in subsection (6)—
(i)
after “reasonable excuse” insert “obstructs the exercise of any
power conferred by this section or”;
25
(ii)
for “subsection (1), (2) or (4)” substitute “this section”.
(2)
In section 11 of the Local Government Act 1999 (c. 27) (inspectors’ powers and
duties in connection with best value inspections)—
(a)
after subsection (1) insert—
“(1A)
The right conferred by subsection (1)(b) includes power to
30
inspect, copy or take away the document.”;
(b)
after subsection (2) insert—
“(2A)
In relation to a document kept in electronic form, the power in
subsection (2)(b) to require a person to produce a document
includes power to require it to be produced in a form in which
35
it is legible and can be taken away.
(2B)
In connection with inspecting such a document, an inspector—
(a)
may obtain access to, and inspect and check the
operation of, any computer and associated apparatus or
material which he considers is or has been used in
40
connection with the document;
(b)
may require a person within subsection (2C) to afford
him such reasonable assistance as he may require for
that purpose.
(2C)
A person is within this subsection if he is—
45
(a)
the person by whom or on whose behalf the computer is
or has been used; or

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
85

(b)
a person having charge of, or otherwise concerned with
the operation of, the computer, apparatus or material.”;
(c)
in subsection (5), after “reasonable excuse” insert “obstructs the
exercise of any power conferred by this section or”.
120
Inspections of best value authorities
5
(1)
Section 10 of the Local Government Act 1999 (c. 27) (inspections) is amended
as follows.
(2)
Before subsection (1) insert—
“(A1)
The Audit Commission may carry out an inspection of a best value
authority’s performance of its functions or of any particular function or
10
functions.”
(3)
In subsection (1), after “may” insert “, in particular,”.
Studies and reports etc
121
National studies
(1)
Part 3 of the Audit Commission Act 1998 (c. 18) (studies, performance
15
standards and other functions) is amended as follows.
(2)
In section 33(6) (studies for improving economy etc in services)—
(a)
before paragraph (a) insert—
“(za)
consult the Secretary of State;”;
(b)
in paragraph (c) omit “the Secretary of State,”;
20
(c)
in paragraph (ca), after “consult” insert “the Welsh Ministers and”;
(d)
after paragraph (e) insert “; and
(f)
in the case of any other study relating to a body in
respect of which the Welsh Ministers may exercise
functions, consult the Welsh Ministers.”
25
(3)
In section 34(6) (reports on impact of statutory provisions etc)—
(a)
for paragraph (b) substitute—
“(b)
the Secretary of State;”;
(b)
in paragraph (da), after “consult” insert “the Welsh Ministers and”.
122
Studies at request of particular bodies
30
In the Audit Commission Act 1998, omit—
(a)
section 35 (studies at request of bodies subject to audit), and
(b)
section 35A (studies for functional bodies at request of Greater London
Authority).
123
Information about performance standards of local authorities etc
35
In the Audit Commission Act 1998, omit sections 44 to 47 (publication of
information about standards of performance).