|
| |
|
(3) | The Commission must lay the report before the House of Commons. |
| |
27 (1) | 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 paragraph 25 or 26. |
| |
(2) | The auditor may also require any person holding or accountable for any |
| 5 |
document to provide any information or explanation that the auditor thinks |
| |
necessary for those purposes. |
| |
| |
28 (1) | The application of NAO’s seal is to be authenticated by the signature of any |
| |
| 10 |
| |
(b) | any person authorised (whether generally or specifically) for the |
| |
purpose by a member of NAO. |
| |
(2) | A document purporting to be duly executed under NAO’s seal or signed on |
| |
| 15 |
(a) | is to be received in evidence, and |
| |
(b) | is to be taken to be executed or signed in that way, unless the |
| |
| |
(3) | This paragraph does not extend to Scotland. |
| |
| 20 |
| |
Interaction between NAO and the Comptroller and Auditor General |
| |
| |
1 (1) | NAO and the Comptroller and Auditor General must jointly— |
| |
(a) | prepare a strategy for the national audit functions; |
| |
(b) | review the strategy (and revise it as appropriate) at least once every |
| 25 |
| |
| “The national audit functions” means NAO’s functions and the Comptroller |
| |
and Auditor General’s functions. |
| |
| |
(a) | for the period for the time being covered by it, include a plan for the |
| 30 |
use of resources for the national audit functions; |
| |
(b) | for each financial year for the time being covered by it, specify the |
| |
maximum amount of resources to be provided by NAO for the |
| |
purposes of paragraph 2(1). |
| |
(3) | The strategy (including any revision) must be approved by the Commission. |
| 35 |
(4) | For this purpose, the chair of NAO and the Comptroller and Auditor |
| |
General must jointly submit the strategy (or revision) to the Commission. |
| |
(5) | Before approving the strategy (or revision), the Commission must review it |
| |
| |
|
| |
|
| |
|
(6) | In doing this the Commission must have regard to any advice given by the |
| |
| |
(7) | NAO and the Comptroller and Auditor General must each give effect to the |
| |
| |
NAO to provide resources for the Comptroller and Auditor General’s functions |
| 5 |
2 (1) | NAO must provide resources for the Comptroller and Auditor General’s |
| |
functions as required by the Comptroller and Auditor General. |
| |
(2) | In particular, NAO is responsible for— |
| |
(a) | employing staff to assist in the carrying out of those functions, |
| |
(b) | procuring services for the purposes of those functions, |
| 10 |
(c) | holding documents or information acquired or generated in the |
| |
course of, or otherwise for the purposes of, those functions (see, |
| |
further, paragraph 13 below), and |
| |
(d) | keeping records in relation to those functions, |
| |
| as required by the Comptroller and Auditor General. |
| 15 |
(3) | For any financial year, the maximum amount of resources that the |
| |
Comptroller and Auditor General may require for the purposes of sub- |
| |
paragraph (1) is the maximum amount specified for that year in the strategy |
| |
| |
(4) | Sub-paragraph (1) is also subject to paragraph 3. |
| 20 |
Provision of certain services by the Comptroller and Auditor General to require NAO’s |
| |
| |
3 (1) | The Comptroller and Auditor General may provide services that are not |
| |
within sub-paragraph (2) only with NAO’s approval. |
| |
(2) | The services within this sub-paragraph are services provided by the |
| 25 |
Comptroller and Auditor General— |
| |
(a) | to NAO by virtue of Schedule 6 to this Act, |
| |
(b) | that are part of, or are incidental to, the Comptroller and Auditor |
| |
General’s functions given by or under the Exchequer and Audit |
| |
Departments Act 1866 (c. 39), the Exchequer and Audit Departments |
| 30 |
Act 1921 (c. 52), the National Loans Act 1968 (c. 13), the National |
| |
Audit Act 1983 (c. 44) or the Government Resources and Accounts |
| |
| |
(c) | that consist of, or are incidental to, an audit, examination or |
| |
inspection that the Comptroller and Auditor General is required or |
| 35 |
authorised to carry out by a statutory provision, excluding section |
| |
1226 of the Companies Act 2006 (c. 46) and any provision of this Part |
| |
| |
(3) | If NAO approves the provision of any services under sub-paragraph (1), it is |
| |
for NAO to determine the maximum amount of resources that the |
| 40 |
Comptroller and Auditor General may require for the services for the |
| |
purposes of paragraph 2(1). |
| |
(4) | In this Schedule “NAO approved services” means services provided with |
| |
NAO’s approval under sub-paragraph (1). |
| |
|
| |
|
| |
|
NAO to monitor and provide advice |
| |
4 | NAO must, as it thinks appropriate, monitor the carrying out of the |
| |
Comptroller and Auditor General’s functions. |
| |
5 (1) | NAO must, as it thinks appropriate, provide advice to the Comptroller and |
| |
Auditor General about that office’s functions. |
| 5 |
(2) | The Comptroller and Auditor General must have regard to any advice |
| |
| |
Delegation of the Comptroller and Auditor General’s functions |
| |
6 (1) | The Comptroller and Auditor General may prepare a scheme for the |
| |
delegation of functions of that office to employees of NAO. |
| 10 |
(2) | The scheme (including any revision) must be approved by the Commission. |
| |
(3) | If the Commission approves the scheme (or any revision), the Comptroller |
| |
and Auditor General may delegate functions in accordance with it. |
| |
(4) | A delegation does not stop the Comptroller and Auditor General from doing |
| |
| 15 |
Vacancy in office of Comptroller and Auditor General or incapacity of Comptroller and Auditor |
| |
| |
7 (1) | This paragraph applies if the office of the Comptroller and Auditor General |
| |
| |
(2) | This paragraph also applies if— |
| 20 |
(a) | a person (“P”) holds the office of the Comptroller and Auditor |
| |
| |
(b) | the Speaker of the House of Commons certifies to that House that, in |
| |
the view of the Speaker, P’s ability to carry out the office’s functions |
| |
is seriously impaired because of ill health (mental or physical), and |
| 25 |
(c) | this paragraph has not previously applied in relation to P. |
| |
(3) | NAO may, with the Commission’s agreement, authorise an employee of |
| |
NAO to carry out the Comptroller and Auditor General’s functions during |
| |
| |
| 30 |
(b) | the period of ill health. |
| |
(4) | “The period of ill health” means the period— |
| |
(a) | starting when the Speaker of the House of Commons certifies to that |
| |
House as mentioned in sub-paragraph (2)(b), and |
| |
(b) | ending when the Speaker certifies to that House that, in the view of |
| 35 |
the Speaker, P’s ability to carry out the office’s functions is no longer |
| |
seriously impaired because of ill health (mental or physical). |
| |
(5) | The functions covered by sub-paragraph (3) include the function of |
| |
delegating under paragraph 6. |
| |
(6) | In relation to a vacancy or period of ill health of more than six months, |
| 40 |
functions may not be carried out by virtue of sub-paragraph (3) after the end |
| |
| |
|
| |
|
| |
|
| |
8 (1) | NAO may charge fees for audits carried out by the Comptroller and Auditor |
| |
| |
(2) | Any charging of fees must be done in accordance with a scheme prepared by |
| |
| 5 |
(3) | The scheme (including any revision) must be approved by the Commission. |
| |
(4) | The agreement of a Minister of the Crown is required for the charging of a |
| |
fee if the accounts to be audited are the accounts of a body or other person |
| |
who acts on behalf of the Crown. |
| |
(5) | Sub-paragraphs (1) to (4) do not apply in relation to an audit carried out as |
| 10 |
part of any NAO approved services. |
| |
(6) | The Comptroller and Auditor General may charge fees and other amounts |
| |
in relation to NAO approved services but only in accordance with the |
| |
agreement or other arrangements under which the services are provided. |
| |
(7) | Fees and other amounts received by the Comptroller and Auditor General |
| 15 |
| |
(8) | Fees and other amounts received by NAO under this paragraph must be paid into |
| |
| |
| |
9 (1) | NAO and the Comptroller and Auditor General must, as soon as practicable |
| 20 |
after the end of each financial year, jointly prepare a report on the carrying |
| |
out during the year of the national audit functions (see paragraph 1(1)). |
| |
(2) | The chair of NAO and the Comptroller and Auditor General must jointly |
| |
submit the report to the Commission. |
| |
(3) | The Commission must lay the report before Parliament. |
| 25 |
| |
10 (1) | NAO and the Comptroller and Auditor General must jointly prepare a code |
| |
of practice dealing with the relationship between NAO and the Comptroller |
| |
| |
(2) | In doing this, they must (in particular) seek to reflect the principle set out in |
| 30 |
section 38(6) and (7) of this Act, subject to any limitations on that principle |
| |
that are agreed between the Commission, NAO and the Comptroller and |
| |
| |
(3) | NAO and the Comptroller and Auditor General must jointly review the code |
| |
regularly and revise it as appropriate. |
| 35 |
(4) | In preparing or revising the code, they must consult the Treasury. |
| |
(5) | They must also consider any proposals for revisions of the code made by the |
| |
Commission from time to time. |
| |
(6) | The code (including any revision) must be approved by the Commission. |
| |
|
| |
|
| |
|
(7) | For this purpose, the chair of NAO and the Comptroller and Auditor |
| |
General must jointly submit the code (or revision) to the Commission. |
| |
(8) | If the Commission approves the code (or revision), the Commission must lay |
| |
it before Parliament (stating the time from which it takes effect). |
| |
(9) | NAO and the Comptroller and Auditor General must each comply with the |
| 5 |
| |
11 (1) | This paragraph applies for the purposes of NAO’s approval of the code (or |
| |
| |
(2) | The approval must be given at a meeting of NAO. |
| |
(3) | The approval can be given only if at least one half of the non-executive |
| 10 |
members present and voting on the matter vote in favour of giving the |
| |
| |
(4) | The requirements of this paragraph are in addition to any other |
| |
requirements relating to NAO’s procedure. |
| |
| 15 |
(a) | in relation to the strategy required by paragraph 1, deal with— |
| |
(i) | the way in which it is to be prepared, reviewed and revised; |
| |
(ii) | the matters to be covered by it; |
| |
(iii) | the periods to be covered by it from time to time; |
| |
(b) | deal with the way in which resources are to be provided for the |
| 20 |
purposes of paragraph 2(1); |
| |
(c) | deal with the way in which estimates are to be prepared for the |
| |
purposes of section 45 of this Act; |
| |
(d) | deal with the way in which NAO is to make decisions for the |
| |
| 25 |
(e) | deal with the way in which NAO is to monitor the Comptroller and |
| |
Auditor General’s functions for the purposes of paragraph 4; |
| |
(f) | deal with the way in which advice is to be given by NAO for the |
| |
purposes of paragraph 5, including the nature of the advice to be |
| |
| 30 |
(g) | deal with the way in which the Comptroller and Auditor General is |
| |
to charge fees and other amounts under paragraph 8; |
| |
(h) | deal with the extent to which NAO’s functions are to be delegated to |
| |
the Comptroller and Auditor General (see paragraph 23 of Schedule |
| |
| 35 |
(i) | place restrictions upon the public comments that a non-executive |
| |
member of NAO may make in relation to the carrying out of the |
| |
Comptroller and Auditor General’s functions. |
| |
(2) | The code may also deal with the following— |
| |
(a) | the way in which reports required by paragraph 9 are to be prepared |
| 40 |
and the matters to be covered by those reports; |
| |
(b) | matters about which NAO or the Comptroller and Auditor General |
| |
(or both) are to consult the Commission from time to time; |
| |
(c) | standards for corporate governance. |
| |
(3) | This paragraph is not exhaustive as regards the matters that may be covered |
| 45 |
| |
|
| |
|
| |
|
Documents and information |
| |
13 (1) | Any document or information which a person is required to provide, or may |
| |
provide, to the Comptroller and Auditor General, may be provided to NAO |
| |
(either by that person or the Comptroller and Auditor General). |
| |
(2) | For the purposes of section 3(2) of the Freedom of Information Act 2000 |
| 5 |
(c. 36) any document or information held by NAO as mentioned in |
| |
paragraph 2(2)(c) is treated as held by NAO on its own behalf. |
| |
(3) | The documents and information to be held by NAO as mentioned in |
| |
paragraph 2(2)(c) include documents and information previously held by |
| |
the National Audit Office established under section 3(2) of the National |
| 10 |
| |
| |
| |
Transitional provision relating to Part 7 |
| |
| |
1 (1) | Before the appointed time, the Comptroller and Auditor General must— |
| 15 |
(a) | determine the property, rights and liabilities of the Comptroller and |
| |
Auditor General that are to be transferred to NAO in consequence of |
| |
the provision made by this Part of this Act, and |
| |
(b) | prepare a scheme describing, in the way the Comptroller and |
| |
Auditor General thinks appropriate, that property and those rights |
| 20 |
| |
(2) | The scheme must be approved by the Commission. |
| |
(3) | At the appointed time, the property, rights and liabilities described in the |
| |
scheme are transferred to NAO. |
| |
(4) | Sub-paragraph (3) operates in relation to property, rights and liabilities— |
| 25 |
(a) | whether or not they would otherwise be capable of being |
| |
| |
(b) | without any instrument or other formality being required, and |
| |
(c) | irrespective of any kind of requirement for consent that would |
| |
| 30 |
(5) | In sub-paragraph (1) the references to rights and liabilities include |
| |
references to rights and liabilities under or in connection with contracts of |
| |
employment with staff that were appointed under section 3(2) of the |
| |
| |
(6) | For any purpose relating to a person who becomes an employee of NAO by |
| 35 |
virtue of sub-paragraph (3)— |
| |
(a) | a period of employment under section 3(2) of the National Audit Act |
| |
1983 (including a period that was counted as such a period by virtue |
| |
of paragraph 2(3) of Schedule 2 to that Act) is to be treated as a period |
| |
of employment with NAO, and |
| 40 |
(b) | the transfer to NAO is not to be treated as a break in service. |
| |
|
| |
|
| |
|
(7) | Anything done by, on behalf of or in relation to the Comptroller and Auditor |
| |
General in relation to anything transferred by sub-paragraph (3) has effect |
| |
as if done by, on behalf of or in relation to NAO, so far as necessary or |
| |
appropriate for continuing its effect after the appointed time. |
| |
(8) | Anything (including legal proceedings) which, immediately before the |
| 5 |
appointed time, is in the process of being done by, on behalf of or in relation |
| |
to the Comptroller and Auditor General in relation to anything transferred |
| |
by sub-paragraph (3) may be continued by, on behalf of or in relation to |
| |
| |
(9) | So far as necessary or appropriate in consequence of sub-paragraphs (3) to |
| 10 |
(8), in any agreement (whether written or not) or instrument or other |
| |
document a reference to the Comptroller and Auditor General is to be |
| |
treated as a reference to, or as including a reference to, NAO. |
| |
(10) | Sub-paragraph (11) applies for the purposes of paragraph 1(2)(c) and Part 4 |
| |
of Schedule 6 to this Act. |
| 15 |
(11) | Before the appointed time, a person’s employment under section 3(2) of the |
| |
National Audit Act 1983 (c. 44) is to be treated as if it were employment with |
| |
| |
(12) | In this paragraph “the appointed time” means the time appointed for the |
| |
purposes of this paragraph by an order made by the Treasury by statutory |
| 20 |
| |
Tax consequences of transfers by virtue of paragraph 1(3) |
| |
2 (1) | For the purposes of the application of Part 5 of the Corporation Tax Act 2009 (loan |
| |
relationships) in relation to a transfer by virtue of paragraph 1(3), the Comptroller |
| |
and Auditor General and NAO are to be treated as if, at the time of the transfer, they |
| 25 |
were members of the same group. |
| |
(2) | In sub-paragraph (1) the reference to being members of the same group is to be read |
| |
in accordance with section 335(6) of that Act. |
| |
3 (1) | For the purposes of Part 8 of the Corporation Tax Act 2009 (intangible fixed |
| |
| 30 |
(a) | a transfer by virtue of paragraph 1(3) of a chargeable intangible asset of the |
| |
Comptroller and Auditor General is to be treated as a tax-neutral transfer, |
| |
| |
(b) | an intangible fixed asset which is a pre-FA 2002 asset of the Comptroller |
| |
and Auditor General at the time it is transferred by virtue of paragraph 1(3) |
| 35 |
is to be treated, on and after the transfer, as a pre-FA 2002 asset in the hands |
| |
| |
(2) | Expressions used in sub-paragraph (1) and in Part 8 have the same meanings in sub- |
| |
paragraph (1) as they have in Part 8. |
| |
4 | For the purposes of the Taxation of Chargeable Gains Act 1992 (c. 12) a disposal |
| 40 |
constituted by virtue of a transfer by paragraph 1(3) is to be taken (in relation to both |
| |
the Comptroller and Auditor General and NAO) to be for a consideration such that |
| |
no gain or loss accrues to the Comptroller and Auditor General. |
| |
|
| |
|