Appendix 2: Draft clauses prepared by
the National Audit Office
National Audit Bill
CONTENTS
The Comptroller and
Auditor General
1 Office of Comptroller and Auditor General
2 Status of Comptroller and Auditor General
The National Audit Office
3 Incorporation of the National Audit Office
4 Expenditure of the National Audit Office
General
5 Code of practice
6 Liabilities of Comptroller and Auditor General
and NAO
7 Transfers of property, contracts of employment,
etc
8 Consequential amendments
9 Interpretation
10 Repeals
11 Short title, commencement and transitional
provision
_________________________________
Schedule 1 - The Comptroller and Auditor General
Schedule 2 - The National Audit Office
Part 1 - Membership and status
Part 2 - Non-executive members
Part 3 - Employee members
Part 4 - Chief executive and employees
Part 5 - NAO's strategy
Part 6 - Standing orders
Part 7 - Other matters
Schedule 3 - Code of practice
Schedule 4 - Consequential amendments
Schedule 5 - Repeals
A
BILL
TO
Make provision about the functions and status of
the Comptroller and Auditor General, and for the incorporation
of the National Audit Office and about its governance and functions;
and for connected purposes.
BE IT ENACTED by the Queen's most Excellent Majesty,
by and with the advice and consent of the Lords Spiritual and
Temporal, and the Commons, in this present Parliament assembled,
and by the authority of the same, as follows: -
The Comptroller and Auditor General
1 Office of Comptroller and Auditor General
(1) The office of the Comptroller and Auditor
General is to continue.
(2) In Welsh the office is to be called
Y Rheolwr ac Archwilydd Cyffredinol.
(3) It is for Her Majesty by Letters Patent
to appoint a person to the office.
(4) Her Majesty's power is exercisable on
an address presented by the House of Commons.
(5) It is for the Prime Minister to move
the motion for the address, and to do so the Prime Minister must
have the agreement of the chair of the Committee of Public Accounts.
(6) The person appointed holds the office
for ten years.
(7) The person may not be appointed again.
(8) Subject to subsection (9), the person
who immediately before the coming into force of this section holds
the office of the Comptroller and Auditor General shall continue
to hold that office (but see section 11(4) and (5) in relation
to transitional provision).
(9) Subsection (8) does not apply if that
person had resigned the office by written notice to the Prime
Minister to have effect at the end of the day before this section
comes into force.
2 Status of Comptroller and Auditor General
(1) The Comptroller and Auditor General
is by that name a corporation sole.
(2) The Comptroller and Auditor General
is an officer of the House of Commons (but section 4(4) of the
House of Commons (Administration) Act 1978 (c. 36) does not apply
in relation to the office of the Comptroller and Auditor General).
(3) The person who is the Comptroller and
Auditor General must not hold any other office or position for
which the person is appointed or recommended by or on behalf of
the Crown, and must not be a member of the House of Lords.
(4) The Comptroller and Auditor General
is not to be regarded -
(a) as the servant or agent of the Crown, or
(b) as enjoying any status, immunity or privilege
of the Crown.
(5) Subject to any duty imposed by statute
and to subsection (6), the Comptroller and Auditor General shall
have complete discretion in the discharge of the functions of
the office, including in determining whether to carry out any
examination under Part 2 of the National Audit Act 1983 (c.44)
and as to the manner in which any such examination is carried
out.
(6) In carrying out any of the functions
of the office, the Comptroller and Auditor General must take into
account the strategy prepared by the NAO under paragraph 17 of
Schedule 1 and any advice of the NAO, and in determining whether
to carry out an examination under Part 2 of the National Audit
Act 1983 the Comptroller and Auditor General must also take into
account any proposals of the Committee of Public Accounts.
(7) Schedule 1 (which makes further provision
about the office of the Comptroller and Auditor General) has effect
The National Audit Office
3 Incorporation of the National Audit Office
(1) There shall be a body corporate called
the National Audit Office.
(2) In Wales it is called Y Swyddfa Archwilio
Genedlaethol.
(3) Schedule 2 (which is about the National Audit
Office) has effect.
4 Expenditure of the National Audit Office
(1) The NAO's expenditure is to be paid
out of moneys provided by Parliament.
(2) This is subject to section 6 and paragraph
1(9) of Schedule 1 (which provide for certain amounts to be charged
on and paid out of the Consolidated Fund).
(3) For each financial year (see subsection
(8)), the NAO must prepare an estimate of the NAO's use of resources
(see section 27 of the Government Resources and Accounts Act 2000
(c. 20)).
(4) The estimate must make provision for
(amongst other matters) such resources as are in the opinion of
the NAO required to enable the Comptroller and Auditor General's
functions and the NAO's functions to be carried out.
(5) The chair of the NAO and the Comptroller
and Auditor General must together present to the Commission the
estimate prepared by the NAO under subsection (3).
(6) The Commission must -
(a) examine the estimate, and
(b) lay it before the House of Commons with the
modifications (if any) the Commission think appropriate.
(7) In doing this the Commission must have
regard to any advice given by the Committee of Public Accounts
or the Treasury.
(8) Each of the following is a financial
year -
(a) the period which begins when section 3 comes
into force and ends with the following 31 March;
(b) each successive period of 12 months.
General
5 Code of practice
Schedule 3 (which contains provisions for
a code of practice dealing with amongst other matters governance
of the NAO) has effect.
6 Liabilities of Comptroller and Auditor General
and NAO
There shall be charged on and issued out
of the Consolidated Fund any amount payable by the Comptroller
and Auditor General or the NAO in consequence of any liability
for breach of duty (whether under a contract or otherwise) incurred
by the Comptroller and Auditor General or a member of the staff
of the NAO in performing the functions of the Comptroller and
Auditor General or the member of staff in respect of any audit
or examination.
7 Transfers of property, contracts of employment,
etc
(1) In this section, "the old NAO"
means the National Audit Office that was established by section
3 of the National Audit Act 1983.
(2) Subject to subsection (7), all property,
rights and liabilities held by the Comptroller and Auditor General
and the old NAO at the time this section comes into force vest
in the NAO.
(3) Subsection (2) operates in relation
to property, rights and liabilities -
(a) whether or not they would otherwise be capable
of being transferred;
(b) without any instrument or other formality
being required; and
(c) irrespective of any kind of requirement for
consent that would otherwise apply.
(3) The rights and liabilities transferred
under subsection (2) include rights and liabilities under contracts
of employment with staff appointed under section 3(2) of the National
Audit Act 1983.
(4) The transfer of rights and liabilities
under such a contract does not break the continuity of the employee's
employment, and accordingly -
(a) the employee is not to be regarded for the
purposes of Part 11 of the Employment Rights Act 1996 (c.18) (redundancy)
as having been dismissed by virtue of the transfer; and
(b) the employee's period of employment under
section 3(2) of the National Audit Act 1983 counts as a period
of employment with the NAO for the purposes of the Employment
Rights Act 1996.
(5) Anything done by, on behalf of or in
relation to the Comptroller and Auditor General or the old NAO
with respect to a matter transferred under subsection (2) has
effect as if done by, on behalf of or in relation to the NAO,
so far as necessary or appropriate for continuing its effect after
that subsection comes into force.
(6) Anything (including legal proceedings)
which, immediately before the coming into force of subsection
(2), is in the process of being done by, on behalf of or in relation
to the Comptroller and Auditor General or the old NAO with respect
to a matter transferred under that subsection may be continued
by, on behalf of or in relation to the NAO.
(7) Rights and liabilities under any agreements,
made before subsection (2) comes into force, for the Comptroller
and Auditor General or staff of the old NAO to carry out an audit
or examination shall not transfer under that subsection, but shall
be and remain rights and liabilities of the Comptroller and Auditor
General.
8 Consequential amendments
(1) Reference in any other Act, or in any
subordinate legislation, to the National Audit Office that was
established by section 3 of the National Audit Act 1983 is to
be read as a reference to, or as including a reference to, the
NAO.
(2) Schedule 4 (which contains amendments
consequential on this Act) has effect.
9 Interpretation
In this Act -
"the code of practice" means the code made
and approved from time to time under Schedule 3;
"the Commission" means the Public Accounts
Commission; and
"the NAO" means the body established by
section 3.
10 Repeals
The repeals set out in Schedule 5 (which
include repeals of spent provisions) have effect.
11 Short title, commencement and transitional
provision
(1) This Act may be cited as the National
Audit Act 2008.
(2) The provisions of this Act come into
force on such day as the Treasury may by order made by statutory
instrument appoint.
(3) An order under subsection (2) may appoint
different days for different purposes.
(4) An order under subsection (2) bringing
section 1 or paragraph 1 of Schedule 1 into force may make transitional
provision about how section 1(6) and that paragraph are to have
effect in relation to the person to whom section 1(8) applies.
(5) Transitional provision under subsection
(4) about how section 1(6) is to have effect may not provide that,
leaving paragraph 4 of Schedule 1 out of account, the aggregate
of the period of office of that person before the day on which
section 1 comes into force and the period of office of that person
on and after that day is to be less than ten years.
(6) An order under subsection (2) which
makes transitional provision under subsection (4) is subject to
annulment pursuant to a resolution of either House of Parliament.
SCHEDULES
SCHEDULE 1
Section 2
THE COMPTROLLER AND AUDITOR GENERAL
Remuneration package of Comptroller and Auditor
General
1 (1) The Comptroller and Auditor General
is to receive a remuneration package.
(2) The package may include an annual salary,
allowances, provision for a pension and other benefits.
(3) The package is to be determined by the
Commission at the time of the appointment of the person to whom
it relates to the office of the Comptroller and Auditor General.
(4) The package determined must cover the
period of ten years referred to in section 1(6).
(5) No element of the package is to be performance
based.
(6) The value of the Comptroller and Auditor
General's package (as estimated by the Commission at the time
of the determination) for the first year of appointment must not
exceed the maximum value (as so estimated) that a permanent secretary's
package could have for that year.
(7) The package may provide that for the
remainder of the period of appointment any element of the package
is to be increased from time to time by reference to an index.
(8) In sub-paragraph (6), "permanent
secretary's package" means a remuneration package for a permanent
secretary in the civil service of the State (taking into account
annual salary, allowances, provision for a pension and other benefits).
(9) Amounts required for providing the Comptroller
and Auditor General's package are to be charged on and paid out
of the Consolidated Fund.
Delegation of Comptroller and Auditor General's
functions
2 (1) The Comptroller and Auditor General
may delegate any of the functions of the office to employees of
the NAO in accordance with a scheme made by the Comptroller and
Auditor General and approved by the Commission.
(2) A delegation does not prevent the Comptroller
and Auditor General from doing anything personally.
The Comptroller and Auditor General: vacancies
in the office and incapacity
3 (1) This paragraph applies while the office
of Comptroller and Auditor General is vacant.
(2) This paragraph also applies if the Speaker
of the House of Commons has certified to that House that, in the
view of the Speaker taken on medical advice, the ability of the
Comptroller and Auditor General to exercise the functions of the
office has become seriously impaired through ill health (whether
physical or mental), and the House of Commons has resolved that
this paragraph should apply with respect to the period of ill
health.
(3) The NAO may with the approval of the
Commission authorise a member of the staff of the NAO to carry
out the functions of the Comptroller and Auditor General while
the office is vacant or during the period of ill health (as the
case may be).
(4) The functions referred to in sub-paragraph
(3) include the function of delegating under paragraph 2.
(5) In relation to a vacancy or period of
ill health that exists for more than six months, functions may
not be carried out by virtue of provision within sub-paragraph
(3) after the end of the first six months; and sub-paragraph (2)
may not apply to any one person holding the office of the Comptroller
and Auditor General more than once.
Resignation or removal of Comptroller and Auditor
General
4 (1) The person who is the Comptroller and
Auditor General may resign from office by giving written notice
to the Prime Minister.
(2) Her Majesty may remove from office the
person who is the Comptroller and Auditor General on an address
from both Houses of Parliament.
Restriction on employment etc of a former Comptroller
and Auditor General
5 (1) This paragraph applies to a person
("P") who once held the office of the Comptroller and
Auditor General, for the period of [n years] starting with
the day after the day on which P left office.
(2) P must not -
(a) hold an office or position for which the
person is appointed or recommended by or on behalf of the Crown;
(b) be a member, director, officer or employee
of a body or other person whose accounts are required by an Act
or subordinate legislation to be examined and certified by, or
to be open to the inspection of, the Comptroller and Auditor General.
(3) P must not, in any capacity, provide
consultancy services to-
(a) the Crown or any body or other person acting
on behalf of the Crown;
(b) a body or other person whose accounts are
required by an Act or subordinate legislation to be examined and
certified by, or to be open to the inspection of, the Comptroller
and Auditor General.
(4) This paragraph does not apply to a person
who ceased to hold the office of the Comptroller and Auditor General
before the day on which section 1 comes into force.
Expenditure relating to Comptroller and Auditor
General
6 Subject to paragraph 1(9), expenditure
relating to the office of the Comptroller and Auditor General
is expenditure of the NAO and is to be dealt with (with other
expenditure of the NAO) in accordance with section 4.
SCHEDULE 2
Section 3
THE NATIONAL AUDIT OFFICE
PART 1
MEMBERSHIP AND STATUS
Membership
1 (1) The NAO is to have nine members.
(2) They are to be -
(a) five persons who are not employees of the
NAO ("non-executive members") (see Part 2 below);
(b) the Comptroller and Auditor General;
(c) three employees of the NAO ("employee
members") (see Parts 3 and 4 below).
Status
2 (1) The NAO (including its members and
employees) is not to be regarded -
(a) as the servant or agent of the Crown, or
(b) as enjoying any status, immunity or privilege
of the Crown.
(2) The NAO's property is not to be regarded
as property of, or held on behalf of, the Crown.
PART 2
NON-EXECUTIVE MEMBERS
Chair of NAO
3 (1) One of the non-executive members is
to be the chair of the NAO.
(2) It is for Her Majesty by Letters Patent
to appoint the chair of the NAO.
(3) Her Majesty's power is exercisable on
an address presented by the House of Commons.
(4) It is for the Prime Minister to move
the motion for the address, and to do so the Prime Minister must
have the agreement of the chair of the Committee of Public Accounts.
(5) The person who is the chair of the NAO
must not hold any other office or position for which the person
is appointed or recommended by or on behalf of the Crown.
Appointment of other non-executive members
4 (1) The other non-executive members are
to be appointed by the Commission as follows.
(2) If there is a vacancy, the chair of
the NAO must recommend a person to the Commission for appointment.
(3) The Commission may -
(a) appoint that person, or
(b) require the chair to recommend another person
(in which event this sub-paragraph applies again and so on until
someone is appointed).
Period of appointment and re-appointment
5 (1) An appointment under this Part of this
Schedule is to be for a period of no more than three years.
(2) A person may not be appointed under
this Part of this Schedule more than twice.
Other terms of appointment
6 (1) The other terms of an appointment under
this Part of this Schedule are to be determined by the Commission
(which may include restrictions on other appointments or employments
that the member may accept while, or after ceasing to be, a member).
(2) Before making a determination the Commission
must consult any person with oversight of public appointments
who the Commission thinks it is appropriate to consult.
(3) Terms may provide for the appointee
to receive a remuneration package, which may include an annual
salary, allowances, provision for a pension and other benefits.
(4) The remuneration packages of the non-executive
members are to be paid for by the NAO.
Resignation and termination of appointments
7 A person appointed under this Part of
this Schedule may resign by giving written notice to the Commission.
8 Her Majesty may terminate the appointment
of the chair of the NAO on an address from both Houses of Parliament.
9 The Commission may terminate the appointment
of any other non-executive member by giving the member written
notice if -
(a) the member has been absent from meetings
of the NAO without the NAO's permission for a period of more than
three months,
(b) the member is the subject of a bankruptcy
restrictions order (or interim order),
(c) the member's estate has been sequestrated
in Scotland or, under Scots law, the member has made a composition
or arrangement with, or granted a trust deed for, the member's
creditors,
(d) the member is unfit to continue the appointment
because of misconduct,
(e) the member has failed to comply with the
terms of the appointment, or
(f) the member is otherwise unable, unfit or
unwilling to carry out the member's functions.
PART 3
EMPLOYEE MEMBERS
Appointment
10 (1) The employee members are to be appointed
by the non-executive members as follows.
(2) If there is a vacancy, the Comptroller
and Auditor General must recommend a person to the non-executive
members for appointment.
(3) The non-executive members may -
(a) appoint that person, or
(b) require the Comptroller and Auditor General
to recommend another person (in which event this sub-paragraph
applies again and so on until someone is appointed).
Terms of appointment
11 (1) The terms of an employee member's appointment
are to be determined by the non-executive members.
(2) The terms may provide for the employee
member to receive a remuneration package which may include an
annual salary, allowances, provision for a pension and other benefits.
(3) The package is to be paid for by the
NAO.
Resignation and termination of appointments
12 An employee member shall cease to be
a member upon ceasing to be an employee of the NAO.
13 An employee member may resign before
then by giving written notice to the NAO.
14 The NAO may terminate the appointment
of an employee member by giving the member written notice if -
(a) the member has been absent from meetings
of the NAO without the NAO's permission for a period of more than
three months,
(b) the member is the subject of a bankruptcy
restrictions order (or interim order),
(c) the member's estate has been sequestrated
in Scotland or, under Scots law, the member has made a composition
or arrangement with, or granted a trust deed for, the member's
creditors,
(d) the member is unfit to continue the appointment
because of misconduct,
(e) the member has failed to comply with the
terms of the appointment, or
(f) the member is otherwise unable, unfit or
unwilling to carry out the member's functions.
PART 4
CHIEF EXECUTIVE AND EMPLOYEES
Chief executive
15 The Comptroller and Auditor General is
to be the chief executive (but not an employee) of the NAO.
Employment of staff
16 (1) The NAO may employ staff.
(2) In exercise of its powers under sub-paragraph
(1), the NAO shall employ such staff as are in its opinion required
to enable the Comptroller and Auditor General's functions and
the NAO's functions to be carried out.
(3) In determining the terms of employment
of any staff, the NAO must have regard to the desirability of
keeping the terms broadly in line with those applying to civil
servants.
(4) A person who is an employee of the NAO
must not hold any office or position for which the person is appointed
or recommended by or on behalf of the Crown.
PART 5
NAO'S STRATEGY
17 (1) The NAO must -
(a) prepare a strategy for the NAO, and
(b) review the strategy (and revise it as appropriate)
at least once every 12 months.
(2) In preparing, reviewing and revising
the strategy the NAO must consult the Commission, and have regard
to the code of practice and any advice given by the Treasury.
(3) In carrying out its functions, the NAO
must have regard to its strategy.
PART 6
STANDING ORDERS
General
18 The NAO must make rules ("the standing
orders") for the purpose of regulating the NAO's procedures
and management.
19 (1) This paragraph applies in relation
to any matter to be decided by the NAO for the purposes of paragraph
18 before the standing orders are made.
(2) A matter is to be decided -
(a) at a meeting of the NAO at which the chair
of the NAO and at least six other members are present, and
(b) by the majority of votes of the members present
and voting on the matter.
(3) But the matter may not be decided unless
a majority of the members voting on the matter are non-executive
members.
(4) If the votes are tied, the chair of
the NAO is to have the casting vote, whether or not the chair
has already voted on the matter.
(5) It is for the chair of the NAO to call
a meeting of the NAO by giving written notice to the other members
of the date, time and venue of the meeting.
20 The following provisions of this Part
of this Schedule are not exhaustive as to the provision that may
be included in the standing orders, but the NAO must not make
any provision in the standing orders which contravenes the principle
in section 2(5) or which is required to form part of the code
of practice.
Quorum for NAO meetings and voting
21 If the standing orders provide for a
quorum for meetings of the NAO, the quorum cannot be met unless
a majority of the members present are non-executive members.
Committees
22 (1) The standing orders may include provision
-
(a) for the setting up of committees of the NAO
and for those committees to set up sub-committees;
(b) regulating the procedures of those committees
and sub-committees.
(2) An employee of the NAO who is not an
employee member may be a member of a committee or sub-committee.
(3) A person who is neither a member of
the NAO nor an employee of the NAO may be a member of a committee
or sub-committee so long as no functions of the NAO are delegated
to the committee or subcommittee (see paragraph 25).
Delegation
23 (1) The standing orders may provide for
-
(a) the NAO to delegate any of its functions
to any of its members, employees or committees;
(b) a committee to delegate any of its functions
(including functions delegated to it) to a sub-committee.
(2) The delegation of a function does not
prevent the NAO or the committee (as the case may be) from carrying
out the function itself.
(3) The following functions may not be delegated
under this paragraph -
(a) the functions given by paragraph 17(1) and
(2) (the NAO's strategy);
(b) the functions given by paragraph 18 (making
and revising the standing orders);
(c) the duty to appoint an auditor under paragraph
27(1);
(d) the decision referred to in paragraph 3 of
Schedule 3 (concerning the code of practice to be presented to
the Commission).
PART 7
OTHER MATTERS
Powers
24 The NAO may do anything calculated to
facilitate, or incidental or conducive to, the carrying out of
any of its functions.
Validity of proceedings
25 The validity of any proceedings of the
NAO or any committee or sub-committee established under the standing
orders is not affected by a vacancy or a defective appointment.
NAO to prepare resource accounts
26 (1) Resource accounts of the kind mentioned
in section 5 of the Government Resources and Accounts Act 2000
must be prepared for the NAO for each financial year (see section
4(8)).
(2) The Commission must appoint a person
as accounting officer to be responsible for that.
(3) That person must carry out any other
functions determined by the Commission.
Audit of NAO
27 (1) The NAO must appoint an auditor for
the NAO for each financial year (see section 4(8)).
(2) The Commission's approval is required
for the appointment (including its terms).
(3) The auditor must be eligible for appointment
as a statutory auditor (see section 1212 of the Companies Act
2006).
(4) The auditor must examine the NAO's resource
accounts for the financial year.
(5) Sections 6(1) and 25(2) of the Government
Resources and Accounts Act 2000 apply in relation to the examination
as they apply in relation to an examination by the NAO of the
resource accounts of a department.
(6) On completion of the examination the
auditor must -
(a) certify the accounts, and
(b) send them, together with the auditor's report
on them, to the Commission.
(7) The Commission must lay the accounts
and report before the House of Commons.
(8) The terms of the auditor's appointment
may require the auditor to carry out economy, efficiency and effectiveness
examinations of the NAO's use of resources.
(9) On completion of the examinations, the
auditor must send its report to the Commission.
(10) The Commission must lay the report
before the House of Commons.
(11) The auditor may require access at any
reasonable time to any document, as the auditor thinks necessary
for the purposes of the auditor's functions under this paragraph.
(12) The auditor may also require any person
holding or accountable for any document to provide any information
or explanation that the auditor thinks necessary for those purposes.
Reports
28 (1) The NAO must, as soon as practicable
after the end of each financial year (see section 4(8)), prepare
a report on the carrying out of its functions during the year.
(2) The chair of the NAO and the Comptroller
and Auditor General must together provide the report to the Commission.
(3) The Commission must lay the report before
Parliament.
Documentary evidence
29 The application of the NAO's seal is
to be authenticated by the signature of any of the following -
(a) a member of the NAO;
(b) any person authorised (whether generally
or specifically) for the purpose by a member of the NAO.
30 A document purporting to be duly executed
under the NAO's seal or signed on its behalf -
(a) is to be received in evidence, and
(b) is to be taken to be executed or signed in
that way, unless the contrary is proved.
SCHEDULE 3
Section 5
CODE OF PRACTICE
Preparation and review of code of practice
1 (1) The NAO must prepare a code of practice
dealing with the matters set out in paragraph 4.
(2) The code of practice may also deal with
matters relating to the governance of the NAO not mentioned in
that paragraph, including standards for corporate governance which
the members of the NAO must comply with or otherwise have regard
to, but must not contravene the principle in section 2(5).
(3) The NAO must from time to time review
the code, and must also consider any proposals for revising the
code made by the Commission.
(4) In preparing the code (including any
revision of it), the NAO must consult the Treasury.
2 (1) The Commission's approval is required
for the code of practice (including any revision of it).
(2) For that purpose, the chair of the NAO
and the Comptroller and Auditor General must together present
to the Commission the code of practice prepared or revised from
time to time by the NAO under paragraph 1.
3 (1) With respect to any proceedings of
the NAO in deciding that a code of practice (including any revision
of it) is in terms that should be presented to the Commission
under paragraph 2 which take place before the standing orders
under Part 6 of Schedule 2 are made, paragraph 19 of that Schedule
applies as it applies to the making of the standing orders.
(2) Notwithstanding anything in sub-paragraph
(1) or in the standing orders of the NAO, no code may be presented
to the Commission under paragraph 2 unless (in addition to the
requirements in sub-paragraph (1) or in the standing orders) not
less than one half of the non-executive members present and voting
have voted in favour of the terms of the code to be presented.
Contents of code
4 The code of practice must deal with the
following -
(a) the matters (if any) about which the NAO
thinks the NAO should be consulting the Commission from time to
time;
(b) the manner in which resources are to be allocated
for the purpose of enabling the Comptroller and Auditor General
to carry out audits and examinations under an enactment;
(c) the manner in which the Comptroller and Auditor
General is to obtain approval of the NAO before entering into
agreements or arrangements for the carrying out of audits or examinations,
or the giving of advice, under the natural powers of the office
(rather than under an enactment);
(d) the nature of the advice by the NAO referred
to in section 2(6) which it may properly tender to the Comptroller
and Auditor General;
(e) the matters with which the strategy referred
to in paragraph 17 of Schedule 2 is to be concerned;
(f) any restrictions to be placed on non-executive
members of the NAO about the public comments they may make in
relation to the carrying on of any of the functions of the Comptroller
and Auditor General;
(g) the requirements (if any) for a person who
once held the office of the Comptroller and Auditor General to
consult a specified person before taking up an employment or a
consultancy which is not precluded by paragraph 5 of Schedule
1.
5 The objective which is to apply to the
formulation of the matter mentioned in paragraph 4(c) is that
-
(a) the Comptroller and Auditor General is to
obtain approval to the expenditure which would be incurred in
carrying out an audit or examination, or giving advice, under
the natural powers of the office (rather than under an enactment)
and to the principle of carrying out the audit or examination,
or giving the advice, before entering into the agreement or arrangement
in question, but
(b) if the NAO approves the expenditure and the
principle then the complete discretion referred to in section
2(5) is to apply.
6 (1) The consultation requirements included
in the code pursuant to paragraph 4(g) do not apply to a person
who ceased to hold the office of the Comptroller and Auditor General
before the day on which section 1 comes into force.
(2) Subject to sub-paragraph (1), the code
of practice is to be complied with.
SCHEDULE 4
Section 8
CONSEQUENTIAL AMENDMENTS
Superannuation Act 1972 (c. 11)
1 In Schedule 1 (employment and offices
to which a scheme under section 1 of the Act may apply), in the
list of "Offices" insert "Employee member of the
National Audit Office".
House of Commons Disqualification Act 1975 (c.
24)
2 In Part 2 of Schedule 1, at the appropriate
place insert "The National Audit Office".
Northern Ireland Assembly Disqualification Act
1975 (c. 25)
3 In Part 2 of Schedule 1, at the appropriate
place insert "The National Audit Office".
Interpretation Act 1978 (c. 30)
4 In the definition of "the Comptroller
and Auditor General" in Schedule 1, for "appointed in
pursuance of the Exchequer and Audit Departments Act 1866"
substitute "in office pursuant to section 1 of the National
Audit Act 2008".
SCHEDULE 5
Section 10
REPEALS
| Reference
| Extent of repeal |
| Exchequer and Audit Departments Act 1866 (c. 39)
| Sections 3 and 6. |
| Exchequer and Audit Departments Act 1957 (c. 45)
| The whole Act. |
| Parliamentary and other Pensions and Salaries Act 1976 (c. 48)
| Section 6(3). |
| National Audit Act 1983 (c. 44) | Sections 1, 3 and 4.
In Schedule 2, paragraphs 1 and 2.
Schedule 3.
|
| Government of Wales Act 1998 (c. 38) | In Schedule 12, paragraph 1.
|
| Constitutional Reform Act 2005 (c. 4) | In Schedule 6, paragraph 7.
|
| 
