Constitutional Reform and Governance Bill

House of Commons

Session 2008 - 09
Internet Publications
Other Bills before Parliament

Constitutional Reform and Governance Bill

Constitutional Reform and Governance Bill
Part 7 — National audit
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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.
(7)
Subsection (6) is subject to any other statutory provision.
(8)
For provision that affects the carrying out of the Comptroller and Auditor
General’s functions, see (in particular)—
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(a)
section 43 and Schedule 6, which provide for the establishment of a
body corporate called the National Audit Office and for the
Comptroller and Auditor General to be one of the body’s nine members
and its chief executive;
(b)
section 44 and Schedule 7, which deal with the interaction between the
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National Audit Office and the Comptroller and Auditor General and
which (among other things)—
(i)
require the National Audit Office and the Comptroller and
Auditor General to prepare a strategy for their functions and to
give effect to that strategy;
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(ii)
require the National Audit Office to provide resources for the
Comptroller and Auditor General’s functions;
(iii)
require the Comptroller and Auditor General to obtain the
approval of the National Audit Office before providing certain
services;
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(iv)
require the National Audit Office to monitor the carrying out of
the Comptroller and Auditor General’s functions;
(v)
require the National Audit Office to provide advice to the
Comptroller and Auditor General and the Comptroller and
Auditor General to have regard to that advice;
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(vi)
require the National Audit Office and the Comptroller and
Auditor General to prepare a code of practice dealing with their
relationship and to comply with it;
(c)
section 46, which places requirements on the Comptroller and Auditor
General in relation to efficiency etc;
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(d)
section 7A of the National Audit Act 1983 (c. 44), which requires the
Comptroller and Auditor General to have regard to certain proposals
made by the Committee of Public Accounts.
39
Provision of services
The Comptroller and Auditor General may provide services to any person in
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any place within or outside the United Kingdom under agreements or other
arrangements entered into by the Comptroller and Auditor General.
40
Remuneration package of the Comptroller and Auditor General
(1)
The person (“P”) who is the Comptroller and Auditor General is to receive a
remuneration package.
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(2)
P’s package may include—
(a)
an annual salary, allowances, arrangements for a pension and other
benefits;
(b)
a formula or other mechanism for adjusting one or more elements of P’s
package from time to time.
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Constitutional Reform and Governance Bill
Part 7 — National audit
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(3)
In relation to arrangements for a pension, P’s package may provide that the
principal civil service pension scheme (as defined in section 2(10) of the
Superannuation Act 1972 (c. 11)) is to apply to P’s service as Comptroller and
Auditor General as if it were service in employment in the civil service of the
State (and the principal civil service pension scheme is to apply accordingly).
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(4)
No element of P’s package is to be performance based.
(5)
P’s package is to be determined jointly by the Prime Minister and the person
who chairs the Committee of Public Accounts before the start of P’s
appointment.
(6)
Amounts required for providing P’s package are to be charged on and paid out of the
10
Consolidated Fund.
(7)
The Treasury may, by statutory instrument, make regulations for purposes
supplementary to this section so far as it relates to arrangements for pensions.
(8)
Regulations under subsection (7) may provide for a statutory provision not to
apply, or to apply with modifications, in relation to arrangements for a pension
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included in a remuneration package, including, in the case of a remuneration
package that makes provision within subsection (3), for the principal civil
service pension scheme to apply with modifications.
(9)
A statutory instrument containing regulations under subsection (7) is subject
to annulment in pursuance of a resolution of the House of Commons.
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Resignation or removal of the Comptroller and Auditor General
(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 of both Houses of Parliament.
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42
Employment etc of a former Comptroller and Auditor General
(1)
This section applies to a person (“P”) who was appointed to the office of the
Comptroller and Auditor General under this Part but who no longer holds that
office.
(2)
Before—
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(a)
taking up an office or position, or
(b)
entering into an agreement or other arrangements,

of a specified description, P must consult the specified person about the office,
position, agreement or arrangements.
(3)
“Specified” means specified from time to time by the Commission.
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(4)
Subsections (5) and (6) apply for the period of two years starting with the day
after the day on which P ceased to be the Comptroller and Auditor General.
(5)
P must not—
(a)
hold an office or position for which P is appointed or recommended by
or on behalf of the Crown, or
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(b)
be a member, director, officer or employee of a body or other person
whose accounts are required by a statutory provision to be audited or

Constitutional Reform and Governance Bill
Part 7 — National audit
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examined by, or to be open to the inspection of, the Comptroller and
Auditor General.
(6)
P must not, in any capacity, provide 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 a statutory
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provision to be audited or examined by, or to be open to the inspection
of, the Comptroller and Auditor General.
(7)
But subsections (5) and (6) do not stop P from holding any of the following
offices—
(a)
the Auditor General for Scotland;
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(b)
the Auditor General for Wales;
(c)
the Comptroller and Auditor General for Northern Ireland.
The National Audit Office
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Incorporation of the National Audit Office
(1)
There is to be a body corporate called the National Audit Office.
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(2)
In Welsh it is called Y Swyddfa Archwilio Genedlaethol.
(3)
In this Part “NAO” means the National Audit Office.
(4)
Schedule 6 (which is about NAO) has effect.
44
Interaction between NAO and the Comptroller and Auditor General
Schedule 7 (which is about the interaction between NAO and the Comptroller
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and Auditor General) has effect.
45
NAO’s expenditure
(1)
NAO’s expenditure is to be paid out of money provided by Parliament.

(But see sections 40(6) and 47(1) and paragraph 6(2) of Schedule 6.)
(2)
For each financial year, NAO must prepare an estimate of NAO’s use of
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resources.
(3)
This must cover (in particular) the resources required for the purposes of
paragraph 2(1) of Schedule 7 (which requires NAO to provide resources for the
Comptroller and Auditor General’s functions).
(4)
The chair of NAO and the Comptroller and Auditor General must jointly
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submit the estimate to the Commission.
(5)
The Commission must—
(a)
review the estimate, and
(b)
lay it before the House of Commons with the modifications (if any) the
Commission thinks appropriate.
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(6)
In doing this the Commission must have regard to any advice given by the
Committee of Public Accounts or the Treasury.

Constitutional Reform and Governance Bill
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Other matters
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Efficiency etc
(1)
NAO and the Comptroller and Auditor General must aim to do things
efficiently and cost-effectively.
(2)
The Comptroller and Auditor General must, as the Comptroller and Auditor
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General thinks appropriate, have regard to the standards and principles that an
expert professional provider of accounting or auditing services would be
expected to apply.
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Indemnification
(1)
There is to be charged on and paid out of the Consolidated Fund, any amount payable
10
by an indemnified person in consequence of any liability for breach of duty (whether
under a contract or otherwise) incurred by an indemnified person in relation to any
audit, examination or inspection carried out as part of the Comptroller and Auditor
General’s functions.
(2)
The liability must not be to another indemnified person.
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(3)
The following are indemnified persons—
(a)
the Comptroller and Auditor General;
(b)
NAO;
(c)
a past or present member of NAO;
(d)
a past or present employee of NAO.
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Definitions
(1)
In this Part—
“the Commission” means the Public Accounts Commission;
“function” includes power or duty;
“NAO” is defined in section 43(3);
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“statutory provision” means a provision of an Act or subordinate
legislation (as defined in section 21(1) of the Interpretation Act 1978
(c. 30)) (whenever passed or made);
“use of resources” is to be read in accordance with section 27 of the
Government Resources and Accounts Act 2000 (c. 20).
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(2)
For the purposes of this Part each of the following is a financial year—
(a)
the period which begins with the appointed day and ends with the
following 31 March;
(b)
each successive period of 12 months.
(3)
In subsection (2)(a) “the appointed day” means the day appointed for the
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purposes of subsection (2)(a) by an order made by the Treasury by statutory
instrument.
(4)
Section 13 of the National Audit Act 1983 (c. 44) (interpretation of references to
the Committee of Public Accounts) applies for the purposes of this Part as it
applies for the purposes of that Act.
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