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Audit of best value performance plans |
| Audit. |
7. - (1) A performance plan published by a best value authority for a financial year under section 6 shall be audited by the authority's auditor.
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(2) An audit of a performance plan is an inspection for the purpose of establishing whether the plan was prepared and published in accordance with section 6 and any order or guidance under that section.
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(3) Subsections (1), (2) and (4) to (7) of section 6 of the Audit Commission Act 1998 (auditor's right to documents and information) shall have effect in relation to an auditor's functions under this Part as they have effect in relation to his functions under that Act.
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(4) In relation to an authority's performance plan the auditor shall issue a report-
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(a) certifying that he has audited the plan, |
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(b) stating whether he believes that it was prepared and published in accordance with section 6 and any order or guidance under that section, |
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(c) if appropriate, recommending how it should be amended so as to accord with section 6 and any order or guidance under that section, |
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(d) if appropriate, recommending procedures to be followed by the authority in relation to the plan, |
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(e) recommending whether the Audit Commission should carry out a best value inspection of the authority under section 10, and |
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(f) recommending whether the Secretary of State should give a direction under section 14. |
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(5) An auditor shall send a copy of his report relating to an authority's performance plan-
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(b) to the Audit Commission, and |
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(c) if the report recommends that the Secretary of State give a direction under section 14, to the Secretary of State. |
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(6) Copies of a report shall be sent in accordance with subsection (5)-
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(a) by 30th June of the financial year to which the relevant performance plan relates, or |
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(b) by such other date as the Secretary of State may specify by order. |
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(7) Subject to subsection (8), the reference in subsection (1) to an authority's auditor is, in respect of a financial year, a reference to the auditor or auditors appointed to audit the authority's accounts for the previous financial year.
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(8) If a person who would by virtue of subsection (7) be an authority's auditor in respect of a financial year or one of an authority's auditors in respect of a financial year-
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(a) is no longer eligible for appointment under section 3 of the Audit Commission Act 1998, or |
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(b) is not willing to act, |
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the reference in subsection (1) to the authority's auditor is, in respect of that financial year, a reference to an auditor or auditors appointed by the Audit Commission.
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(9) Section 3 of the 1998 Act shall apply to an appointment under subsection (8) as if it were an appointment of a person to audit the authority's accounts under section 2(1) of the 1998 Act.
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| Code of practice and fees. |
8. - (1) An auditor carrying out an audit under section 7 shall have regard to any code of practice under this section.
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(2) The Commission shall prepare, and keep under review, a code of practice prescribing the way in which auditors are to carry out their functions under section 7.
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(3) Section 4(3) to (6) of the Audit Commission Act 1998 (code of audit practice) shall have effect in relation to a code of practice under this section.
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(4) The Audit Commission shall prescribe a scale or scales of fees in respect of the audit of performance plans which are required to be audited in accordance with this Part.
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(5) Section 7(3) to (8) of the Audit Commission Act 1998 (fees for audit) (read with section 52(1) and (3) of that Act (orders and regulations)) shall have effect in relation to fees under subsection (4).
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(6) Before preparing or altering a code under subsection (2) or prescribing a scale of fees under subsection (4) the Commission shall consult-
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(a) the Secretary of State, and |
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(b) persons appearing to the Commission to represent best value authorities. |
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(7) Before making any regulations under section 7(8) of the Audit Commission Act 1998 as it has effect in relation to fees under subsection (4) the Secretary of State shall consult-
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(b) persons appearing to the Secretary of State to represent best value authorities. |
| Response to audit. |
9. - (1) A best value authority shall publish any report received in accordance with section 7(5)(a).
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(2) The following subsections apply where a best value authority receives a report under subsection (4) of section 7 which contains a recommendation under any of paragraphs (c) to (f) of that subsection.
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(3) The authority shall prepare a statement of-
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(a) any action which it proposes to take as a result of the report, and |
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(b) its proposed timetable. |
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(4) A statement required by subsection (3) shall be prepared-
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(a) before the end of the period of 30 working days starting with the day on which the authority receives the report, or |
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(b) if the report specifies a shorter period starting with that day, before the end of that period. |
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(5) The authority shall incorporate the statement in its next best value performance plan.
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(6) If the statement relates to a report which recommends that the Secretary of State give a direction under section 14, the authority shall send a copy of the statement to the Secretary of State-
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(a) before the end of the period of 30 working days starting with the day on which the authority receives the report, or |
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(b) if the report specifies a shorter period starting with that day, before the end of that period. |
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(7) For the purposes of this section a working day is a day other than-
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(a) a Saturday or a Sunday, |
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(b) Christmas Day or Good Friday, or |
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(c) a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in England and Wales. |
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Best value inspections |
| Inspections. |
10. - (1) The Audit Commission may carry out an inspection of a best value authority's compliance with the requirements of this Part.
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(2) If the Secretary of State directs the Commission to carry out an inspection of a specified best value authority's compliance with the requirements of this Part in relation to specified functions, the Commission shall comply with the direction.
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(3) Before giving a direction under subsection (2) the Secretary of State shall consult the Commission.
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(4) In carrying out an inspection, and in deciding whether to do so, the Commission shall have regard to-
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(a) any relevant recommendation under section 7(4)(e), and |
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(b) any guidance issued by the Secretary of State. |
| Inspectors' powers and duties. |
11. - (1) An inspector has a right of access at all reasonable times-
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(a) to any premises of the best value authority concerned, and |
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(b) to any document relating to the authority which appears to him to be necessary for the purposes of the inspection. |
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(2) An inspector-
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(a) may require a person holding or accountable for any such document to give him such information and explanation as he thinks necessary, and |
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(b) may require that person to attend before him in person to give the information or explanation or to produce the document. |
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(3) A best value authority shall provide an inspector with every facility and all information which he may reasonably require for the purposes of the inspection.
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(4) An inspector shall-
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(a) give three clear days' notice of any requirement under this section, and |
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(b) must, if so required, produce documents identifying himself. |
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(5) A person who without reasonable excuse fails to comply with a requirement of an inspector under this section is guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.
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(6) Any expenses incurred by an inspector in connection with proceedings for an offence under subsection (5) alleged to have been committed in relation to an inspection of a best value authority are, so far as not recovered from any other source, recoverable from the authority.
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(7) In this section "inspector" means an officer, servant or agent of the Audit Commission carrying out an inspection under section 10.
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| Fees. |
12. - (1) The Audit Commission shall prescribe a scale or scales of fees in respect of inspections carried out under section 10.
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(2) An authority inspected under section 10 shall, subject to subsection (3), pay to the Commission the fee applicable to the inspection in accordance with the appropriate scale.
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(3) If it appears to the Commission that the work involved in a particular inspection was substantially more or less than that envisaged by the appropriate scale, the Commission may charge a fee which is larger or smaller than that referred to in subsection (2).
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(4) Before prescribing a scale of fees under this section the Commission shall consult-
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(a) the Secretary of State, and |
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(b) persons appearing to the Commission to represent best value authorities. |
