Budget Responsibility and National Audit Bill [HL]

House of Commons

Session 2010 - 11
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Budget Responsibility and National Audit Bill [HL]

Budget Responsibility and National Audit Bill [HL]
Schedule 1 — Office for Budget Responsibility
15

      (3)
This paragraph does not extend to Scotland.
Annual report
15    (1)
The Office must prepare a report of the performance of its functions in each
financial year.
      (2)
The report must include, in particular, an assessment by the Non-executive
5
Committee of the extent to which the Office’s duty under section 4 has been
performed in accordance with section 5(1) and (2).
      (3)
The report relating to a financial year must be prepared as soon as possible
after the end of the financial year.
      (4)
The report must be sent to the Treasury.
10
      (5)
The Treasury must lay the report before Parliament.
      (6)
The Office must publish the report.
      (7)
“Financial year” means—
(a)
the period which begins with the day on which this Schedule comes
into force and ends with the following 31 March;
15
(b)
each successive period of 12 months.
External review
16    (1)
The Non-executive Committee must, at least once in every relevant 5-year
period, appoint a person or body to review and report on such of the Office’s
reports as the Committee determines.
20
      (2)
In sub-paragraph (1) “the Office’s reports” means the reports which—
(a)
have been made in pursuance of the Office’s duty under section 4,
and
(b)
have been published since the relevant date.
      (3)
The “relevant date” is—
25
(a)
in the case of the first review carried out under this paragraph, 1
October 2010;
(b)
in the case of subsequent reviews, the date of the last review carried
out under this paragraph.
      (4)
A person or body may be appointed under this paragraph only if the person
30
or body has knowledge or experience likely to be relevant to the
performance of the Office’s duty under section 4.
      (5)
The Office may, with the approval of the Treasury, make payments to the
person or body in respect of the performance of the person’s or body’s
functions under this paragraph.
35
      (6)
The Office must—
(a)
publish each report prepared under this paragraph,
(b)
lay it before Parliament, and
(c)
send a copy of it to the Treasury.
      (7)
In this paragraph “relevant 5-year period” means—
40
(a)
the period of 5 years beginning with 1 October 2010;

Budget Responsibility and National Audit Bill [HL]
Schedule 1 — Office for Budget Responsibility
16

(b)
each successive period of 5 years.
Finance
17    (1)
The Treasury may make to the Office such payments out of money provided
by Parliament as the Treasury considers appropriate for the purpose of
enabling the Office to meet its expenses.
5
      (2)
Payments are to be made at such times, and subject to any such conditions,
as the Treasury considers appropriate.
Accounts and audit
18    (1)
The Office must—
(a)
keep proper accounts and proper records in relation to its accounts,
10
and
(b)
prepare in respect of each financial year a statement of accounts.
      (2)
Each statement of accounts must comply with any directions given by the
Treasury as to—
(a)
the information to be contained in it and the manner in which it is to
15
be presented,
(b)
the methods and principles according to which the statement is to be
prepared, and
(c)
the additional information (if any) which is to be provided for the
information of Parliament.
20
      (3)
The Office must send a copy of each statement of accounts to—
(a)
the Treasury, and
(b)
the Comptroller and Auditor General,

before the end of the month of June next following the financial year to
which the statement relates.
25
      (4)
The Comptroller and Auditor General must—
(a)
examine, certify and report on each statement of accounts, and
(b)
send a copy of each report and certified statement to the Treasury.
      (5)
The Treasury must lay before Parliament a copy of each such report and
certified statement.
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      (6)
“Financial year” has the same meaning as in paragraph 15.
19
The Office must keep under review whether its internal financial controls
secure the proper conduct of its financial affairs.
Powers
20
The Office may do anything calculated to facilitate, or conducive or
35
incidental to, the carrying out of any of its functions.
Validity
21
The validity of anything done by the Office (or a committee or sub-
committee of the Office) is not affected by—
(a)
a vacancy, or
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Budget Responsibility and National Audit Bill [HL]
Schedule 1 — Office for Budget Responsibility
17

(b)
a defective appointment.
Public records
22
In Schedule 1 to the Public Records Act 1958 (definition of public records),
in Part 2 of the Table at the end of paragraph 3, insert at the appropriate
place—
5
“Office for Budget Responsibility.”
Parliamentary Commissioner
23
In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments
and authorities subject to investigation), insert at the appropriate place—
“Office for Budget Responsibility.”
10
Disqualification
24
In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975
(bodies of which all members are disqualified), insert at the appropriate
place—
“The Office for Budget Responsibility.”
15
25
In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification
Act 1975 (bodies of which all members are disqualified), insert at the
appropriate place—
“The Office for Budget Responsibility.”
Race relations
20
26    (1)
In Part 2 of Schedule 1A to the Race Relations Act 1976 (bodies and persons
subject to general statutory duty), under the heading “Regulatory, audit and
inspection” insert at the appropriate place—
“The Office for Budget Responsibility.”
      (2)
The amendment made by sub-paragraph (1) ceases to have effect when the
25
repeal of that Act by Schedule 27 to the Equality Act 2010 has effect for all
purposes.
Freedom of information
27
In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public
authorities to which Act applies), insert at the appropriate place—
30
“The Office for Budget Responsibility.”
Equality
28
In Part 1 of Schedule 19 to the Equality Act 2010 (public authorities: general),
insert at the end—
“Other bodies and offices
35
The Office for Budget Responsibility.”

Budget Responsibility and National Audit Bill [HL]
Schedule 2 — National Audit Office
Part 2 — Non-executive members
18

References to Treasury Committee
29    (1)
Any reference in this Schedule to the Treasury Committee of the House of
Commons—
(a)
if the name of that Committee is changed, is to be treated as a
reference to that Committee by its new name, and
5
(b)
if the functions of that Committee (or substantially corresponding
functions) become functions of a different Committee of the House
of Commons, is to be treated as a reference to the Committee by
which those functions are exercisable.
      (2)
Any question arising under sub-paragraph (1) is to be determined by the
10
Speaker of the House of Commons.
Schedule 2
Section 20

National Audit Office
Part 1
Membership and status
15
Membership
1     (1)
NAO is to have 9 members.
      (2)
They are to be—
(a)
5 persons who are not employees of NAO (“non-executive
members”) (see Part 2),
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(b)
the Comptroller and Auditor General (see Part 3), and
(c)
3 employees of NAO (“employee members”) (see Parts 4 and 5).
Status
2     (1)
Neither NAO nor any of its members or employees is to be regarded—
(a)
as the servant or agent of the Crown, or
25
(b)
as enjoying any status, immunity or privilege of the Crown.
      (2)
NAO’s property is not to be regarded as property of, or held on behalf of,
the Crown.
Part 2
Non-executive members
30
Member to chair NAO
3     (1)
One of the persons who is a non-executive member of NAO is to chair it.
      (2)
It is for Her Majesty by Letters Patent to appoint that person.
      (3)
Her Majesty’s power is exercisable on an address of the House of Commons.

This is subject to sub-paragraph (6).
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Budget Responsibility and National Audit Bill [HL]
Schedule 2 — National Audit Office
Part 2 — Non-executive members
19

      (4)
It is for the Prime Minister to move the motion for the address.
      (5)
To do so the Prime Minister must have the agreement of the person who
chairs the Committee of Public Accounts.
      (6)
Her Majesty may by Letters Patent extend an appointment under this
paragraph on the recommendation of the Prime Minister.
5
      (7)
To make a recommendation the Prime Minister must have the agreement of
the person who chairs the Committee of Public Accounts.
      (8)
An extension of an appointment counts as a separate appointment for the
purposes of paragraphs 5 to 7.
Appointment of other non-executive members
10
4     (1)
The other non-executive members are to be appointed by the Public
Accounts Commission as follows.
      (2)
If there is a vacancy, the person who chairs NAO must recommend a person
to the Commission for appointment.
      (3)
The Commission may—
15
(a)
appoint the person who has been so recommended, or
(b)
require the person who chairs NAO 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
20
5     (1)
An appointment under this Part of this Schedule is to be for a period of no
more than 3 years.
      (2)
A person may not be appointed under this Part of this Schedule more than
twice.
Remuneration arrangements
25
6     (1)
The Prime Minister and the person who chairs the Committee of Public
Accounts may jointly make remuneration arrangements in relation to the
person who chairs NAO.
      (2)
Amounts payable by virtue of sub-paragraph (1) are to be charged on, and
paid out of, the Consolidated Fund.
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      (3)
The Public Accounts Commission may make remuneration arrangements in
relation to any other non-executive member.
      (4)
Amounts payable by virtue of sub-paragraph (3) are to be paid by NAO.
      (5)
Remuneration arrangements under this paragraph—
(a)
may make provision for a salary, allowances and other benefits but
35
not for a pension, and
(b)
may include a formula or other mechanism for adjusting one or more
of those elements from time to time.

Budget Responsibility and National Audit Bill [HL]
Schedule 2 — National Audit Office
Part 2 — Non-executive members
20

Other terms of appointment
7     (1)
The Public Accounts Commission may determine other terms for an
appointment under this Part of this Schedule.
      (2)
These terms may include restrictions on—
(a)
the offices or positions (including offices and positions to which
5
persons may be appointed, or recommended for appointment, by or
on behalf of the Crown) that the non-executive member may hold
while, or after ceasing to be, a member, and
(b)
the agreements or other arrangements (including agreements and
arrangements with the Crown or bodies or other persons acting on
10
behalf of the Crown) to which the non-executive member may be a
party while, or after ceasing to be, a member.
Consultation
8
Before making any arrangements under paragraph 6 or a determination
under paragraph 7, the Commission must consult any person with oversight
15
of public appointments whom the Commission thinks it is appropriate to
consult.
Termination of appointments
9     (1)
The person who chairs NAO may resign by giving written notice to the
Prime Minister.
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      (2)
Any other non-executive member may resign by giving written notice to the
Public Accounts Commission.
10    (1)
Her Majesty may terminate the appointment of the person who chairs NAO
on an address of both Houses of Parliament.
      (2)
The Public Accounts Commission may terminate the appointment of any
25
other non-executive member by giving the member written notice if—
(a)
the member has been absent from meetings of NAO without NAO’s
permission for a period of more than 3 months,
(b)
the member has become bankrupt or has made an arrangement with
creditors,
30
(c)
the member’s estate has been sequestrated in Scotland or the
member has entered into a debt arrangement programme under Part
1 of the Debt Arrangement and Attachment (Scotland) Act 2002 (asp
17) as the debtor or has, under Scots law, made a composition or
arrangement with, or granted a trust deed for, the member’s
35
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
40
(f)
the member is otherwise unable, unfit or unwilling to carry out the
member’s functions.

Budget Responsibility and National Audit Bill [HL]
Schedule 2 — National Audit Office
Part 4 — Employee members
21

Part 3
Chief executive
11
The Comptroller and Auditor General is to be the chief executive (but not an
employee) of NAO.
Part 4
5
Employee members
Appointment
12    (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
10
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
15
until someone is appointed).
Terms of appointment
13    (1)
The terms of an employee member’s appointment are to be determined by
the non-executive members.
      (2)
The terms may include remuneration arrangements which—
20
(a)
may make provision for a salary, allowances and other benefits but,
subject to sub-paragraph (4), not a pension, and
(b)
may include a formula or other mechanism for adjusting one or more
of those elements from time to time.
      (3)
Amounts payable by virtue of sub-paragraph (2) are to be paid by NAO
25
(subject to sub-paragraph (4)).
      (4)
If the employee is a participant in a pension scheme under the terms of the
person’s employment with NAO, the remuneration arrangements may
make provision for the person’s service as an employee member to be
treated, for the purposes of the scheme, as if it were service as an employee
30
of NAO.
Termination of appointments
14
The appointment of an employee member terminates—
(a)
if the terms of the member’s appointment provide for it to expire at
the end of a period, at the end of that period, and
35
(b)
in any event, when the member ceases to be an employee of NAO.
15
An employee member may resign by giving written notice to the non-
executive members.