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 8 — Transparency of government financial reporting to Parliament
23

49
Transitional provision and consequential amendments
(1)
Schedule 8 (which contains transitional provision) has effect.
(2)
Schedule 9 (which contains amendments consequential on this Part) has effect.
50
Power to make Companies Act companies subject to audit of Comptroller and
Auditor General
5
After section 25(10) of the Government Resources and Accounts Act 2000
(c. 20) insert—
“(11)
Subsection (10)(c) does not apply to an order under subsection (6) if the
only bodies covered by the order are bodies which are companies as
defined in section 1(1) of the Companies Act 2006.
10

See sections 475 and 482 of that Act for provision about the interaction
between Part 16 of that Act (audit) and orders under subsection (6).
(12)
An order to which subsection (10)(c) does not apply by virtue of
subsection (11) is subject to annulment in pursuance of a resolution of
either House of Parliament.”
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Part 8
Transparency of government financial reporting to Parliament
51
Inclusion in departmental estimates of resources used by designated bodies
(1)
The Government Resources and Accounts Act 2000 is amended as follows.
(2)
After section 4 insert—
20
“Departmental estimates
4A
Inclusion in departmental estimates of resources used by designated
bodies
(1)
An estimate for a government department for approval by the House
of Commons in respect of a financial year must be prepared in
25
accordance with directions issued by the Treasury.
(2)
The Treasury may direct that the estimate is to include information
relating to resources expected to be used by any body that is a
designated body in relation to the department.
(3)
For the purposes of this section a body is a “designated” body in
30
relation to a government department if—
(a)
it is designated in relation to the department by an order made
by the Treasury, or
(b)
it falls within a description of body designated in relation to the
department by such an order.
35
(4)
A body, or a description of body, may be designated in relation to a
government department for a particular financial year or generally.
(5)
Subsections (6) and (7) apply if the Treasury—

Constitutional Reform and Governance Bill
Part 8 — Transparency of government financial reporting to Parliament
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(a)
expect the use of resources by a body in a financial year to
involve payments out of a devolved Consolidated Fund to or
for the benefit of the body, but
(b)
do not expect the use of resources by the body in the year to
involve payments out of the Consolidated Fund of the United
5
Kingdom to or for the benefit of the body.
(6)
If an order is in force under which the body would (but for this
subsection) be a designated body for the year in relation to a
government department—
(a)
the Treasury must notify the department that the conditions in
10
subsection (5) are met in the case of the body for the year, and
(b)
the body is to be treated as if it were not designated for the year
in relation to the department.
(7)
If no such order is in force, the Treasury may not make one.
(8)
Before designating a body, or a description of body, the Treasury must,
15
where they think it appropriate, consult—
(a)
the Scottish Ministers,
(b)
the Department of Finance and Personnel for Northern Ireland,
or
(c)
the Welsh Ministers.
20
(9)
In determining for any purpose whether a body has a particular
relationship with a government department (for example, whether it is
controlled by, or otherwise dependent on, the department), the
following must be disregarded—
(a)
the fact that an estimate for the department in respect of a
25
financial year includes information relating to the body, and
(b)
the fact that the department’s resource accounts for a financial
year prepared under section 5 include information relating to
the body.
(10)
An order under subsection (3) is to be made by statutory instrument.
30
(11)
A statutory instrument containing an order under that subsection is
subject to annulment in pursuance of a resolution of either House of
Parliament.
(12)
In this section “a devolved Consolidated Fund” means—
(a)
the Scottish Consolidated Fund,
35
(b)
the Consolidated Fund of Northern Ireland, or
(c)
the Welsh Consolidated Fund.”
(3)
In section 5(1) (resource accounts: preparation), for paragraphs (a) and (b)
substitute—
“(a)
resources acquired, held or disposed of during the year by—
40
(i)
the department, or
(ii)
any body that is a designated body under section 4A in
relation to the department for the year, and
(b)
the use of resources during the year by the department or any
such body.”
45
(4)
In section 6(1) (resource accounts: scrutiny by the Comptroller and Auditor

Constitutional Reform and Governance Bill
Part 8 — Transparency of government financial reporting to Parliament
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General), for paragraph (d) substitute—
“(d)
that—
(i)
the financial transactions of the department, and
(ii)
the financial transactions of any body that is a
designated body under section 4A in relation to the
5
department for the year in question,

are in accordance with any relevant authority.”
52
Corresponding provision in relation to Wales
(1)
Part 5 of the Government of Wales Act 2006 (c. 32) (finance) is amended as
follows.
10
(2)
After section 126 insert—
“126A
  Inclusion in Budget motions of resources used by designated bodies
(1)
A Budget motion for a financial year may include information relating
to resources expected to be used by any body that is a designated body
in relation to a relevant person.
15
(2)
For the purposes of this section a body is a “designated” body in
relation to a relevant person if—
(a)
it is designated in relation to the relevant person by an order
made by the Welsh Ministers, or
(b)
it falls within a description of body designated in relation to the
20
relevant person by such an order.
(3)
A body, or a description of body, may be designated in relation to a
relevant person for a particular financial year or generally.
(4)
If the Welsh Ministers expect the use of resources by a body in a
financial year to involve payments out of a relevant Consolidated Fund
25
to or for the benefit of the body, they may not make an order under
which the body would be a designated body for the year unless the
Treasury have consented to the making of the order.
(5)
“A relevant Consolidated Fund” means—
(a)
the Consolidated Fund of the United Kingdom,
30
(b)
the Scottish Consolidated Fund, or
(c)
the Consolidated Fund of Northern Ireland.
(6)
The Welsh Ministers must, where they think it appropriate, consult the
Treasury before designating a body or a description of body.
(7)
In determining for any purpose whether a body has a particular
35
relationship with a relevant person (for example, whether it is
controlled by, or otherwise dependent on, the person), the following
must be disregarded—
(a)
the fact that the provisions of a Budget motion relating to the
relevant person in respect of a financial year include
40
information relating to the body, and
(b)
the fact that the relevant person’s accounts for a financial year
prepared under this or any other Act include information
relating to the body.

Constitutional Reform and Governance Bill
Part 9 — Final provisions
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(8)
An order under subsection (2) is to be made by statutory instrument.
(9)
A statutory instrument containing an order under that subsection is
subject to annulment in pursuance of a resolution of the National
Assembly for Wales.
(10)
But subsection (9) does not apply if a draft of the statutory instrument
5
containing the order has been laid before, and approved by a resolution
of, the National Assembly for Wales.”
(3)
Schedule 8 (Auditor General for Wales) is amended as follows.
(4)
In paragraph 13 (accounts of Auditor General), after sub-paragraph (1) insert—
   “(1A)
The directions which the Treasury may give under sub-paragraph
10
(1) include directions to prepare accounts relating to financial affairs
and transactions of persons other than the Auditor General.”
(5)
In paragraph 15 (audit of accounts of Auditor General)—
(a)
in sub-paragraph (5)(b)—
(i)
for “the Auditor General”, in the first place, substitute “a
15
relevant person”; and
(ii)
for “the Auditor General”, in the second place, substitute “the
relevant person”; and
(b)
after sub-paragraph (5) insert—
   “(5A)
In sub-paragraph (5)(b) “relevant person” means—
20
(a)
the Auditor General, or
(b)
any person to whose financial affairs and transactions
the accounts are to relate by virtue of paragraph
13(1A).”
(6)
In paragraph 17(8) (access of Auditor General to documents), after paragraph
25
(b) insert—
“(ba)
in a case within that paragraph relating to any accounts which
the Public Services Ombudsman for Wales is directed to
prepare under paragraph 16 of Schedule 1 to the Public Services
Ombudsman (Wales) Act 2005, the Ombudsman and any
30
person to whose financial affairs and transactions the accounts
are to relate by virtue of sub-paragraph (1A) of that
paragraph,”.
(7)
In paragraph 16 of Schedule 1 to the Public Services Ombudsman (Wales) Act
2005 (c. 10) (accounts), after sub-paragraph (1) insert—
35
   “(1A)
The directions which the Treasury may give under sub-paragraph
(1)(b) include directions to prepare accounts relating to financial
affairs and transactions of persons other than the Ombudsman.”
Part 9
Final provisions
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53
Meaning of “Minister of the Crown”
In this Act “Minister of the Crown” has the same meaning as in the Ministers
of the Crown Act 1975 (c. 26).