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.
12.
| 
