The framework
5. The review process will have regard to the following
framework. It is designed to ensure that the C&AG should as
far as possible, consistent with his or her distinct role and
constitutional position and the significant representational aspect
of the work, follow the rules and practices of Permanent Secretaries
of government departments.
Transport
Rail: first class where available;
Air: business class (the rules for Permanent Secretaries
generally allow first class for long-haul flights but the C&AG
wishes to standardise on business class, even for long-haul flights).
Accommodation
Hotels will be selected on the basis of the best
of three competitive quotations. Alternatively the C&AG will
stay in diplomatic service accommodation if offered, or, when
attending a conference, at the venue if accommodation is available
there.
Travel accompanied by spouse
Cabinet Office rules state that spouse-accompanied
travel at public expense is to be exceptional, and in practice
it is understood to be rare. In practice the need for the C&AG
to be accompanied by his or her spouse should not usually arise
where he or she goes not by invitation but: to perform audit work
or to seek appointment as auditor; for fact-finding purposes in
support of audit reports; or for meetings of international or
other bodies to which the C&AG or the National Audit Office
belongs and attends as of right. The need may exceptionally arise
in respect of technical assistance projects where diplomatic and
social contact would build trust with key figures and promote
acceptance of necessary change. If in these circumstances there
is a case for the C&AG to be accompanied by his or her spouse,
it will first be discussed with the Chairman of the Audit Committee.
Other expenses
It is not possible to specify in advance all of the
expenses to which these arrangements might be applicable. The
Chairman of the Audit Committee will therefore be able to request
briefing from the Director of Internal Assurance where the Chairman
requires assurance on any other potential benefits accruing to
the C&AG from the use of the Office's resources.
Cost
Subject to any constraints imposed by law, the C&AG
has complete discretion in the exercise of his or her functions.
He or she therefore decides which particular visits should be
made for that purpose, in the light of advice from the Office,
and what other expenditure should be incurred. The cost of performing
the C&AG's statutory functions, and of carrying out any non-statutory
activities, is however a matter for the Public Accounts Commission;
and it is our intention that the scope and style of the C&AG's
arrangements should be reviewed accordingly as described above.
Corporate governance
6. The Commission will also be reviewing the corporate
governance arrangements for the National Audit Office to ensure
that these conform to best practice.
Conclusion
7. Independence is essential to the effective performance
of the C&AG's functions, and is embodied in complete statutory
discretion for the exercise of those functions. That discretion
necessarily extends to control of - and accountability for - the
National Audit Office and its resources. The C&AG is paid
directly from the Consolidated Fund rather than the NAO budget.
The arrangements set out in this report are designed to buttress
his or her independence by providing for a high degree of transparency
in the management of expenses, which do come from the NAO budget,
and in respect of which the C&AG might otherwise be perceived
as both controller and beneficiary of National Audit Office resources.
By strengthening the oversight by this Commission, we believe
these arrangements will serve to allay any such concern.
