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 1 — Constitution of the Audit Commission
84

114
Best value: minor and consequential amendments
(1)
In section 1 of the Local Government Act 1999 (c. 27) (best value authorities), in
subsection (6) (best value authorities in Wales)—
(a)
for “best value authority in Wales” substitute “Welsh best value
authority”;
5
(b)
omit paragraph (c) (police authority).
(2)
Schedule 8 (minor and consequential amendments) has effect.
Part 8
Local services: inspection and audit
Chapter 1
10
Constitution of the Audit Commission
115
Membership
In section 1(2) of the Audit Commission Act 1998 (c. 18) (number of members
of Commission)—
(a)
for “15” substitute “10”, and
15
(b)
for “20” substitute “15”.
116
Change of name
(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
20
Local Authorities and the National Health Service in England.
(2)
Accordingly, in section 1(1) of the Audit Commission Act 1998 (which
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.
25
(4)
References in any enactment (other than this section) or in subordinate
legislation to—
(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,
30

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.

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

Chapter 2
Audit Commission and auditors: functions and procedure
Benefits inspections
117
Powers of the Audit Commission relating to benefits
(1)
In section 13 of the Local Government Act 1999 (c. 27) (reports by Audit
5
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.”
10
(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
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
15
and to the Secretary of State under subsection (4A) of that
section;”.
118
Benefit 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—
20
(a)
the Secretary of State;
(b)
a person authorised under section 139A of the Social Security
Administration Act 1992 (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
25
extent that he considers it appropriate having regard to the functions of the
Audit Commission relating to the administration of housing benefit and
council tax benefit in England.
(3)
Before making a scheme under this section, the Secretary of State must consult
the Audit Commission.
30
(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—
(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 Benefit Fraud
35
Inspectorate; and
(b)
the individual and the Audit Commission have consented to the
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
40
employed in the civil service of the State on terms which do not constitute a
contract of employment—

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
86

(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—
5
“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
119
Interaction of the Audit Commission with other authorities
10
(1)
The Audit Commission Act 1998 (c. 18) is amended as follows.
(2)
Omit section 37 (assistance to inspection authorities).
(3)
In Part 4, before section 48 insert—
“Interaction with other authorities
47B
Interaction with other authorities
15
Schedule 2A (interaction with other authorities) has effect.”
(4)
After Schedule 2 to that Act, insert the Schedule 2A (interaction with other
authorities) set out at Schedule 11.
120
Interaction of benefits inspectors with the Audit Commission
After section 139B of the Social Security Administration Act 1992 (c. 5) insert—
20
“139BA
Interaction with Audit Commission
(1)
A person authorised under section 139A(1) must from time to time, or
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”);
25
(b)
a document setting out the way in which he proposes to carry
out his functions of inspecting and reporting on such
authorities (an “inspection framework”).
(2)
The person authorised under section 139A(1) must—
(a)
consult the Audit Commission before preparing an inspection
30
programme or an inspection framework; and
(b)
once an inspection programme or inspection framework is
prepared, send a copy of it to—
(i)
the Secretary of State; and
(ii)
the Audit Commission.
35
(3)
The Secretary of State may by order specify the form that inspection
programmes or inspection frameworks must take.
(4)
A person authorised under section 139A(1)—
(a)
must co-operate with the Audit Commission, and

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
87

(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.
(5)
In this section—
“the Audit Commission” means the Audit Commission for Local
5
Authorities and the National Health Service in England;
“English authorities” means authorities administering housing
benefit or council tax benefit in England;
“person” does not include the Audit Commission.”
Inspections and audit
10
121
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)—
(a)
after subsection (1) insert—
“(1A)
The right conferred by subsection (1) includes power to inspect,
15
copy or take away the document.”;
(b)
after subsection (4) insert—
“(4A)
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
20
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
operation of, any computer and associated apparatus or
material which he considers is or has been used in
25
connection with the document;
(b)
may require a person within subsection (4C) to afford
him such reasonable assistance as he may require for
that purpose.
(4C)
A person is within this subsection if he is—
30
(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
the operation of, the computer, apparatus or material.”;
(c)
in subsection (5), for “(4)” substitute “(4C)”;
35
(d)
in subsection (6)—
(i)
after “reasonable excuse” insert “obstructs the exercise of any
power conferred by this section or”;
(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
40
duties in connection with best value inspections)—
(a)
after subsection (1) insert—
“(1A)
The right conferred by subsection (1)(b) includes power to
inspect, copy or take away the document.”;

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
88

(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
it is legible and can be taken away.
5
(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
connection with the document;
10
(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—
(a)
the person by whom or on whose behalf the computer is
15
or has been used; or
(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”.
20
122
Inspections of best value authorities
(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
25
authority’s performance of its functions or of any particular function or
functions.”
(3)
In subsection (1), after “may” insert “, in particular,”.
Studies and reports etc
123
National studies
30
(1)
Part 3 of the Audit Commission Act 1998 (c. 18) (studies, performance
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;”;
35
(b)
in paragraph (c) omit “the Secretary of State,”;
(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
40
functions, consult the Welsh Ministers.”
(3)
In section 34(6) (reports on impact of statutory provisions etc)—

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
89

(a)
for paragraph (b) substitute—
“(b)
the Secretary of State;”;
(b)
in paragraph (da), after “consult” insert “the Welsh Ministers and”.
124
Studies at request of particular bodies
(1)
In the Audit Commission Act 1998 (c. 18), omit—
5
(a)
section 35 (studies at request of bodies subject to audit);
(b)
section 35A (studies for functional bodies at request of Greater London
Authority); and
(c)
section 42 (consultancy services relating to audit of accounts of
registered social landlords).
10
(2)
In section 43 of that Act (interpretation), for the words from the beginning to
“have” substitute “In this section and sections 40 to 41B, “registered social
landlord” has”.
125
Information about performance standards of local authorities etc
In the Audit Commission Act 1998, omit sections 44 to 47 (publication of
15
information about standards of performance).
126
Reports on English local authorities
(1)
In Part 3 of the Audit Commission Act 1998, after section 47 insert—
“Reports on performance
“47A
Reports relating to performance of English local authorities
20
(1)
The Commission may produce comparative and other reports in
relation to one or more of the following aspects of the performance of
English local authorities in exercising their functions—
(a)
the risk that authorities may fail to perform their functions or
fail to perform their functions adequately;
25
(b)
the rate at which authorities’ performance is improving;
(c)
the economy, efficiency and effectiveness of authorities’ use of
resources.
(2)
A report under subsection (1) may relate to—
(a)
all English local authorities;
30
(b)
any particular English local authority or authorities; or
(c)
particular descriptions of English local authority.
(3)
A report under subsection (1) may relate to particular functions of
authorities.
(4)
In this section, “English local authority” means—
35
(a)
a county council in England;
(b)
a district council;
(c)
a London borough council;
(d)
the Council of the Isles of Scilly;
(e)
the Common Council of the City of London in its capacity as a
40
local authority;

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
90

(f)
a metropolitan fire and civil defence authority;
(g)
the London Fire and Emergency Planning Authority; or
(h)
a fire and rescue authority 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.”
5
(2)
In section 48 of that Act (provision of information etc to the Commission), in
subsection (2) (functions in relation to which powers to obtain information etc
do not apply), at the end insert “or 47A”.
127
Reports categorising English local authorities
(1)
Section 99 of the Local Government Act 2003 (c. 26) (categorisation of English
10
local authorities by reference to performance) is amended as follows.
(2)
In subsection (1)—
(a)
for “from time to time” substitute “, if the Secretary of State so directs,”;
(b)
after “English local authorities” insert “, or of English local authorities
of a description specified in the direction,”.
15
(3)
After subsection (2) insert—
“(2A)
A direction by the Secretary of State under subsection (1) may specify—
(a)
the period or periods of performance to be covered by the
report;
(b)
the form of the report;
20
(c)
the time by which the report must be produced.
(2B)
The power to give a direction under subsection (1) includes power to
give a direction varying or revoking a previous direction given in
exercise of that power.
(2C)
The Secretary of State must consult the Audit Commission before
25
giving a direction under subsection (1).”
Miscellaneous
128
Appointment of auditors
In section 3(6) of the Audit Commission Act 1998 (c. 18) (appointment of firm
as auditor) for “each of its members” substitute “the appointment provides that
30
the audit may be conducted only by a member or employee of the firm who”.
129
Inspection and disclosure of personal information
(1)
Section 15 of the Audit Commission Act 1998 (inspection of documents and
questions at audit) is amended as follows.
(2)
In subsection (3) for “about a member of the staff of the body whose accounts
35
are being audited” substitute “within the meaning of subsection (3A) or (4)”.
(3)
After subsection (3) insert—
“(3A)
Information is personal information if—
(a)
it identifies a particular individual or enables a particular
individual to be identified; and
40