Statutory Functions
6. The Public Accounts Commission was established
under section 2 of the National Audit Act 1983. The Budget Responsibility
and National Audit Act 2011 put the arrangements for the governance
of the NAO on a statutory basis, and, in particular, established
the NAO as a body corporate. It also revised the statutory responsibilities
of the Commission.
7. Section 23 of the 2011 Act states that the NAO
and the Comptroller and Auditor General (C&AG) must jointly
prepare an Estimate of the NAO's resources, including resources
necessary for the C&AG's functions. The Commission must review
the Estimate and lay it before the House of Commons—modified
where it considers appropriate—and in doing so must have
regard to any advice provided by the Public Accounts Committee
or the Treasury.
8. Under paragraph 4 of schedule 2 of the 2011 Act,
the Commission also appoints non-executive members of the NAO
board other than the chair, on the recommendation of the chair.
In the event of the Commission not appointing, the chair of the
NAO must make another recommendation.
9. Under paragraph 10 of the same schedule the Commission
must appoint the C&AG (or some other appropriate person) as
the NAO's accounting officer. Under paragraph 11 the Commission
must approve the appointment of an auditor for the NAO for each
year and lay the NAO's Report and Accounts before the House of
Commons.
10. Paragraph 1 of schedule 3 of the 2011 Act requires
the NAO and the C&AG to prepare and maintain a strategy for
national audit functions, including a plan for the use of resources.
This strategy (including any revision) must be submitted for approval
to the Public Accounts Commission (which may modify it) having
regard to any advice given by the Treasury.
11. Under paragraph 8 of the same schedule, the Commission
must approve any revision to the Scheme of Audit Fees and, under
paragraph 10, must approve a Code of Practice dealing with the
relationship between the NAO and the Comptroller and Auditor General.
| 
