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Budget Responsibility and National Audit Bill [HL]


Budget Responsibility and National Audit Bill [HL]
Schedule 3 — Relationship between NAO and Comptroller and Auditor General

29

 

(b)   

provision about the matters to be covered by the strategy and the

periods to be covered by it from time to time;

(c)   

provision as to how resources are to be provided for the purposes of

paragraph 2(1);

(d)   

provision about the preparation of estimates for the purposes of

5

section 23;

(e)   

provision as to how NAO is to make decisions for the purposes of

paragraph 3;

(f)   

provision as to how NAO is to monitor the Comptroller and Auditor

General’s functions for the purposes of paragraph 4;

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(g)   

provision as to how advice is to be given by NAO for the purposes of

paragraph 5, including the nature of the advice to be given;

(h)   

provision as to how the Comptroller and Auditor General is to

charge fees and other amounts under paragraph 8;

(i)   

provision about the extent to which NAO’s functions are to be

15

delegated to the Comptroller and Auditor General (see paragraph 23

of Schedule 2);

(j)   

provision restricting 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.

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      (2)  

The code may also make provision about—

(a)   

the way in which reports required by paragraph 9 are to be prepared

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 Public Accounts Commission from time

25

to time;

(c)   

standards for corporate governance.

      (3)  

This paragraph is not exhaustive as regards the matters that may be covered

by the code.

Documents and information

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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 any

document or information held by NAO as mentioned in paragraph 2(2)(c) is

35

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 by section 3 of the National Audit Act

1983.

40

 
 

Budget Responsibility and National Audit Bill [HL]
Schedule 4 — Transitional provision relating to Part 2

30

 

Schedule 4

Section 26

 

Transitional provision relating to Part 2

Transfer of property etc

1     (1)  

Before the appointed day the Comptroller and Auditor General must—

(a)   

determine the property, rights and liabilities of the Comptroller and

5

Auditor General that are to be transferred to NAO in consequence of

the provision made by this Part, and

(b)   

prepare a scheme describing, in the way the Comptroller and

Auditor General considers appropriate, that property and those

rights and liabilities.

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      (2)  

The scheme must be approved by the Public Accounts Commission.

      (3)  

On the appointed day 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—

(a)   

whether or not they would otherwise be capable of being

15

transferred,

(b)   

without any instrument or other formality being required, and

(c)   

irrespective of any kind of requirement for consent that would

otherwise apply.

      (5)  

In sub-paragraph (1) the references to rights and liabilities include

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references to rights and liabilities under or in connection with contracts of

employment with staff that were appointed under section 3(2) of the

National Audit Act 1983.

      (6)  

For any purpose relating to a person who becomes an employee of NAO by

virtue of sub-paragraph (3)—

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(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

(b)   

the transfer to NAO is not to be treated as a break in service.

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      (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 on and after the appointed day.

      (8)  

Anything (including legal proceedings) which, immediately before the

35

appointed day, 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

NAO.

      (9)  

So far as necessary or appropriate in consequence of sub-paragraphs (3) to

40

(8), a reference to the Comptroller and Auditor General in any agreement

(whether written or not) or instrument or other document is to be treated as

a reference to, or as including a reference to, NAO.

 
 

Budget Responsibility and National Audit Bill [HL]
Schedule 4 — Transitional provision relating to Part 2

31

 

     (10)  

Before the appointed day a person’s employment under section 3(2) of the

National Audit Act 1983 is to be treated for the purposes of paragraph 1(2)(c)

and Part 4 of Schedule 2 as if it were employment with NAO.

     (11)  

In this paragraph “the appointed day” means the day appointed for the

purposes of this paragraph by an order made by the Treasury by statutory

5

instrument.

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

10

of the transfer, they 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

assets) a transfer by virtue of paragraph 1(3) of a chargeable intangible asset

15

of the Comptroller and Auditor General is to be treated as a tax-neutral

transfer.

      (2)  

Part 4 of the Taxation (International and Other Provisions) Act 2010 (transfer

pricing) does not apply in relation to a transfer to which sub-paragraph (1)

applies.

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      (3)  

For the purposes of section 882 of the Corporation Tax Act 2009 (application

of Part 8 to assets created or acquired on or after 1 April 2002) assets acquired

by NAO on a transfer by virtue of paragraph 1(3) are to be treated as if they

were acquired from a person who at the time of the acquisition was a related

party in relation to NAO.

25

      (4)  

Expressions used in this paragraph and in Part 8 of the Corporation Tax Act

2009 have the same meaning in this paragraph as they have in that Part.

4          

For the purposes of the Taxation of Chargeable Gains Act 1992 a disposal

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

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consideration such that no gain or loss accrues to the Comptroller and

Auditor General.

Old Comptroller and Auditor General to continue to be Comptroller and Auditor General

5     (1)  

This paragraph applies to the person who is the Comptroller and Auditor

General immediately before the appointed day.

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      (2)  

On and after the appointed day the person—

(a)   

continues to be the Comptroller and Auditor General and is treated

as having been appointed to that office under this Part, and

(b)   

holds the office for 10 years less a period equal to that during which

the person was the Comptroller and Auditor General before the

40

appointed day.

      (3)  

The person’s remuneration arrangements under section 13 are to be

determined jointly by the Prime Minister and the person who chairs the

Committee of Public Accounts before the appointed day (but are not to cover

any period before the appointed day).

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Budget Responsibility and National Audit Bill [HL]
Schedule 4 — Transitional provision relating to Part 2

32

 

      (4)  

In this paragraph “the appointed day” means the day appointed for the

purposes of this paragraph by an order made by the Treasury by statutory

instrument.

Provision of services

6     (1)  

This paragraph applies in relation to anything done by or on behalf of the

5

Comptroller and Auditor General under a power that ceases to be

exercisable upon the coming into force of section 16 of this Act.

      (2)  

So far as necessary or appropriate for continuing its effect after the coming

into force of section 16, the thing is treated as having been done by or on

behalf of the Comptroller and Auditor General under that section.

10

7     (1)  

Paragraph 3 of Schedule 3 does not apply in relation to the provision of any

services which, at the time that paragraph comes into force, the Comptroller

and Auditor General has a contractual duty to provide.

      (2)  

But paragraph 8 of that Schedule applies in relation to any such services as

if they were NAO-approved services.

15

Indemnification

8     (1)  

The liabilities covered by section 24 of this Act include liabilities that—

(a)   

arise before the coming into force of that section, or

(b)   

arise in relation to any act or omission occurring before the coming

into force of that section.

20

      (2)  

For this purpose section 24(3)(d) covers former members of the staff of the

National Audit Office established by section 3 of the National Audit Act

1983.

NAO’s procedural rules before rules made under paragraph 18 of Schedule 2

9     (1)  

This paragraph applies until the first rules under paragraph 18 of Schedule

25

2 are made.

      (2)  

It applies in relation to any matter to be decided by NAO for the purpose of

preparing or making those rules or for the purposes of paragraph 10 of

Schedule 3.

      (3)  

The matter is to be decided—

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(a)   

at a meeting of NAO at which the person who chairs 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.

      (4)  

But the matter may not be decided unless a majority of the members voting

35

on the matter are non-executive members.

      (5)  

If the votes are tied, the person who chairs NAO is to have the casting vote,

whether or not that person has already voted on the matter.

           

But the person who chairs NAO is to be counted only once for the purposes

of sub-paragraph (4) above or paragraph 11(3) of Schedule 3.

40

 
 

Budget Responsibility and National Audit Bill [HL]
Schedule 5 — Consequential amendments relating to Part 2
Part 2 — Amendments

33

 

      (6)  

It is for the person who chairs NAO to call a meeting of NAO by giving

written notice to the other members of the date, time and venue of the

meeting.

Schedule 5

Section 26

 

Consequential amendments relating to Part 2

5

Part 1

Meaning of “old NAO”

1          

In this Schedule “old NAO” means the National Audit Office established by

section 3 of the National Audit Act 1983.

Part 2

10

Amendments

Exchequer and Audit Departments Act 1866

2          

In the Exchequer and Audit Departments Act 1866, omit sections 3 and 6

(which relate to the tenure of, and vacancies in, the office of Comptroller and

Auditor General).

15

Exchequer and Audit Departments Act 1957

3     (1)  

The Exchequer and Audit Departments Act 1957 is repealed.

      (2)  

Sub-paragraph (1) does not affect the position of any person by virtue of

section 1(3A) of that Act (computation of salary of former Comptroller and

Auditor General for purposes of pension).

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Public Records Act 1958

4          

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 the reference to old NAO is

to be read as a reference to NAO.

Superannuation Act 1972

25

5          

The Superannuation Act 1972 is amended as follows.

6     (1)  

In section 13 (the Comptroller and Auditor General), before subsection (1)

insert—

“(A1)   

This section does not apply to a person appointed as Comptroller

and Auditor General under Part 2 of the Budget Responsibility and

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National Audit Act 2011.”

      (2)  

Sub-paragraph (1) does not affect the position of the person mentioned in

paragraph 5(1) of Schedule 4 to this Act so far as section 13 of the 1972 Act

applies in relation to that person’s service as Comptroller and Auditor

 
 

Budget Responsibility and National Audit Bill [HL]
Schedule 5 — Consequential amendments relating to Part 2
Part 2 — Amendments

34

 

General before the appointed day (within the meaning of paragraph 5(4) of

that Schedule).

7     (1)  

In Schedule 1 (kinds of employment to which the Act applies), in the list of

“Other Bodies”—

(a)   

omit “National Audit Office.”, and

5

(b)   

insert at the appropriate place—

“Employment by the National Audit Office.”

      (2)  

Sub-paragraph (1) does not affect the position of any person who was a

member of the staff of old NAO but who ceased to be a member before the

appointed day (within the meaning of paragraph 1(11) of Schedule 4).

10

House of Commons Disqualification Act 1975

8     (1)  

Schedule 1 to the House of Commons Disqualification Act 1975 (offices

disqualifying for membership) is amended as follows.

      (2)  

In Part 2, insert at the appropriate place—

“The National Audit Office.”

15

      (3)  

In Part 3—

(a)   

omit “Comptroller and Auditor General.” and “Member of the staff

of the National Audit Office.”, and

(b)   

insert at the appropriate place—

“Employee of the National Audit Office.”

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Northern Ireland Assembly Disqualification Act 1975

9     (1)  

Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975

(offices disqualifying for membership) is amended as follows.

      (2)  

In Part 2, insert at the appropriate place—

“The National Audit Office.”

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      (3)  

In Part 3—

(a)   

omit “Comptroller and Auditor General.” and “Member of the staff

of the National Audit Office.”, and

(b)   

insert at the appropriate place—

“Employee of the National Audit Office.”

30

Parliamentary and other Pensions and Salaries Act 1976

10    (1)  

In section 6 of the Parliamentary and other Pensions and Salaries Act 1976,

omit subsection (3).

      (2)  

Sub-paragraph (1) does not affect the position of any person by virtue of

section 1(3A) of the Exchequer and Audit Departments Act 1957.

35

Race Relations Act 1976

11    (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”—

 
 

Budget Responsibility and National Audit Bill [HL]
Schedule 5 — Consequential amendments relating to Part 2
Part 2 — Amendments

35

 

(a)   

insert at the appropriate place—

“The Comptroller and Auditor General.”, and

(b)   

the reference to old NAO is to be read as a reference to NAO.

      (2)  

Sub-paragraphs (3) and (4) apply in relation to any function that was a

function of old NAO by virtue of Part 2 of that Schedule.

5

      (3)  

Anything done by, on behalf of or in relation to old NAO has effect as if done

by, on behalf of or in relation to the relevant person, so far as necessary or

appropriate for continuing its effect after the coming into force of sub-

paragraph (1).

      (4)  

Anything (including legal proceedings) which, immediately before the

10

coming into force of sub-paragraph (1), is in the process of being done by, on

behalf of or in relation to old NAO may be continued by, on behalf of or in

relation to the relevant person.

      (5)  

“The relevant person” means—

(a)   

in relation to matters within NAO’s functions, NAO;

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(b)   

in relation to matters within the Comptroller and Auditor General’s

functions, the Comptroller and Auditor General.

      (6)  

The amendments made by sub-paragraph (1) cease to have effect when the

repeal of the Race Relations Act 1976 by Schedule 27 to the Equality Act 2010

has effect for all purposes.

20

Interpretation Act 1978

12         

In Schedule 1 to the Interpretation Act 1978, in the definition of “Comptroller

and Auditor General”, omit “appointed in pursuance of the Exchequer and

Audit Departments Act 1866”.

National Audit Act 1983

25

13    (1)  

In the National Audit Act 1983, omit the following provisions—

(a)   

sections 1, 3(1) to (6), 4 and 5;

(b)   

paragraphs 1 to 3 of Schedule 2;

(c)   

Schedule 3.

      (2)  

Sub-paragraph (1) does not affect the position of any person by virtue of

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paragraph 2(3) or (4) of Schedule 2 to that Act (transfers of staff).

      (3)  

The repeal of section 3(4) of that Act does not affect the position under the

Superannuation Act 1972 of any person who was a member of the staff of old

NAO but who ceased to be a member before the appointed day (within the

meaning of paragraph 1(11) of Schedule 4).

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Finance Act 1989

14    (1)  

Section 182 of the Finance Act 1989 (disclosure of information) is amended

as follows.

      (2)  

In subsection (4)(a)—

(a)   

in sub-paragraph (i), for “and any member of the staff of the National

40

Audit Office” substitute “, of the National Audit Office and any

member or employee of that Office or of any member of the staff of

 
 

 
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Revised 8 February 2011