Government of Wales Bill

House of Lords

Session 2005 - 06
Internet Publications
Other Bills before Parliament

Government of Wales Bill

Government of Wales Bill
Part 5 — Finance
69

126
Appropriation without Budget resolution
(1)
If a Budget resolution for a financial year is not passed before the beginning of
the financial year, the following are deemed to have been authorised by a
Budget resolution of the Assembly for that year—
(a)
the use in the year for any service or purpose of the relevant percentage
5
of the amount of the resources authorised to be used in the preceding
financial year for the service or purpose,
(b)
the retention in the year for use for any service or purpose of the
relevant percentage of the amount of the resources authorised to be
retained in the previous financial year for use for the service or
10
purpose, and
(c)
the payment out of the Welsh Consolidated Fund in the year for any
service or purpose of the relevant percentage of the amount authorised
to be paid out of the Fund in the previous financial year for the service
or purpose.
15
(2)
“The relevant percentage” is—
(a)
where a Budget resolution for the financial year is not passed before the
end of July in the financial year, 95%, and
(b)
otherwise, 75%.
127
Contingencies
20
(1)
This section applies where it is proposed—
(a)
that resources be used in any financial year by any of the relevant
persons, or pursuant to a relevant enactment, otherwise than as
authorised by virtue of sections 124 to 126, or
(b)
that amounts be paid out of the Welsh Consolidated Fund in the year
25
to the relevant persons, or for use pursuant to a relevant enactment,
otherwise than as authorised by virtue of those sections.
(2)
The resources may be so used, or the amounts may be so issued, only with the
authority of the Welsh Ministers.
(3)
The Welsh Ministers may authorise the use of resources, or the payment of
30
amounts, only if they consider that—
(a)
the use of the resources, or the payment of the amounts, is necessary in
the public interest, and
(b)
it is not reasonably practicable, for reasons of urgency, for a motion to
be moved under section 124 or 125 to authorise the use of the resources
35
or the payment of the amounts.
(4)
The aggregate amount of resources which the Welsh Ministers may at any time
authorise to be used under this section by any person, or pursuant to any
enactment, in any financial year must not exceed 0.5% of—
(a)
the aggregate amount of the resources which, at the time, have been
40
authorised by virtue of sections 124 and 125 to be used by that person,
or pursuant to that enactment, in that financial year, or
(b)
(if none have) the aggregate amount of the resources which were so
authorised to be used by that person, or pursuant to that enactment, in
the immediately preceding financial year.
45
(5)
The aggregate amount which the Welsh Ministers may at any time authorise to
be paid out of the Welsh Consolidated Fund under this section to any person,

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or for use pursuant to any enactment, in any financial year must not exceed
0.5% of—
(a)
the aggregate of the amounts which, at the time, have been authorised
by virtue of sections 124 and 125 to be paid to that person, or for use
pursuant to that enactment, in that financial year, or
5
(b)
(if none have) the aggregate of the amounts which were so authorised
to be paid to that person, or for use pursuant to that enactment, in the
immediately preceding financial year.
(6)
The use of resources, or the payment of amounts, authorised by the Welsh
Ministers in accordance with this section is deemed to have been authorised by
10
a Budget resolution of the Assembly.
(7)
Where the Welsh Ministers authorise the use of resources or the payment of
amounts under this section, they must, as soon as possible, lay before the
Assembly a report setting out—
(a)
the resources authorised to be used or the amounts authorised to be
15
paid,
(b)
the services or purposes for which the resources were authorised to be
used, or the amounts were authorised to be paid, and
(c)
why they considered it to be necessary to authorise the use of the
resources, or the payment of the amounts, under this section.
20
128
Approvals to draw
(1)
The Auditor General must grant approvals to draw payments out of the Welsh
Consolidated Fund from time to time at the request of the Welsh Ministers.
(2)
An approval to draw may only be granted if, in the Auditor General’s opinion,
the proposed payment out of the Welsh Consolidated Fund would comply
25
with section 123.
(3)
A request for the grant of an approval to draw is to be made in any manner
which the Welsh Ministers, with the approval of the Auditor General, decide
to adopt.
(4)
Where an approval to draw is granted the Paymaster General must make the
30
funds available to the Welsh Ministers, the First Minister, the Counsel General,
the Assembly Commission, the Auditor General or the Public Services
Ombudsman for Wales (as appropriate).
(5)
The Paymaster General must make available to—
(a)
the Auditor General, and
35
(b)
the principal accounting officer for the Welsh Ministers,

a daily statement regarding all the issues made out of the Welsh Consolidated
Fund in respect of sums charged on that Fund and other payments out of it.
(6)
For the purposes of this Act the principal accounting officer for the Welsh
Ministers is the Permanent Secretary to the Welsh Assembly Government.
40
(7)
But the Treasury may designate another member of the staff of the Welsh
Assembly Government to be the principal accounting officer for the Welsh
Ministers if and for so long as—
(a)
the Permanent Secretary to the Welsh Assembly Government is
incapable of discharging the responsibilities of principal accounting
45
officer for the Welsh Ministers, or

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(b)
the office of Permanent Secretary to the Welsh Assembly Government
is vacant.
(8)
In this section “Permanent Secretary to the Welsh Assembly Government”
means the person appointed in accordance with section 52 to be the head of the
staff of the Welsh Assembly Government (whether or not that person is known
5
by the title of Permanent Secretary to the Welsh Assembly Government).
129
Payments in by mistake
Where a sum is paid into the Welsh Consolidated Fund which should not or
need not have been paid into the Fund, the Auditor General may grant an
approval to draw a payment equal to the amount of that sum out of the Fund.
10
Financial accountability of Welsh Ministers
130
Welsh Ministers’ accounts
(1)
The Welsh Ministers must, for each financial year, prepare accounts in
accordance with directions given to them by the Treasury.
(2)
The accounts must include details of the financial affairs and transactions of
15
the Counsel General.
(3)
The directions which the Treasury may give under subsection (1) include
directions to prepare accounts relating to financial affairs and transactions of
persons other than the Welsh Ministers.
(4)
The directions which the Treasury may give under subsection (1) include, in
20
particular, directions as to—
(a)
the financial affairs and transactions to which the accounts are to relate,
(b)
the information to be contained in the accounts and the manner in
which it is to be presented,
(c)
the methods and principles in accordance with which the accounts are
25
to be prepared, and
(d)
the additional information (if any) that is to accompany the accounts.
(5)
Any accounts which the Welsh Ministers are directed under this section to
prepare for any financial year must be submitted by the Welsh Ministers to the
Auditor General no later than 30th November in the following financial year.
30
(6)
The Auditor General must—
(a)
examine and certify any accounts submitted under this section, and
(b)
no later than four months after the accounts are submitted, lay before
the Assembly a copy of them as certified by the Auditor General
together with the Auditor General’s report on them.
35
(7)
In examining accounts submitted under this section, the Auditor General must,
in particular, be satisfied—
(a)
that the expenditure to which the accounts relate has been incurred
lawfully and in accordance with the authority which governs it, and
(b)
that money received for a particular purpose or particular purposes has
40
not been expended otherwise than for that purpose or those purposes.
(8)
Where—

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(a)
by virtue of any enactment other than this section the Welsh Ministers
are under an obligation to prepare accounts dealing with any matters,
and
(b)
it appears to the Treasury that those matters fall to be dealt with in
accounts directed to be prepared under this section,
5

the Treasury may relieve the Welsh Ministers of that obligation for or in respect
of such periods as the Treasury may direct.
131
Account relating to Welsh Consolidated Fund
(1)
The Welsh Ministers must, for each financial year, prepare an account of the
payments into and out of the Welsh Consolidated Fund.
10
(2)
The account must be prepared in accordance with directions given to the
Welsh Ministers by the Treasury.
(3)
The directions which the Treasury may give under subsection (2) include, in
particular, directions as to—
(a)
the information to be contained in the account and the manner in which
15
it is to be presented,
(b)
the methods and principles in accordance with which the account is to
be prepared, and
(c)
the additional information (if any) that is to accompany the account.
(4)
Any account which the Welsh Ministers are directed under this section to
20
prepare for any financial year must be submitted by the Welsh Ministers to the
Auditor General no later than 30th November in the following financial year.
(5)
The Auditor General must—
(a)
examine and certify any account submitted under this section, and
(b)
no later than four months after the account is submitted, lay before the
25
Assembly a copy of it as certified by the Auditor General together with
the Auditor General’s report on it.
(6)
In examining an account submitted under this section the Auditor General
must, in particular, be satisfied—
(a)
that any payment out of the Welsh Consolidated Fund to which the
30
account relates was paid out in compliance with section 123 or 129, and
(b)
that money which is required to be paid into the Welsh Consolidated
Fund has been paid into that Fund.
132
Accounting officers for Welsh Ministers
(1)
The principal accounting officer for the Welsh Ministers has—
35
(a)
in relation to the accounts of the Welsh Ministers and the finances of the
Welsh Ministers and the Counsel General, and
(b)
in relation to the performance by persons designated as accounting
officers in pursuance of any provision of this Act of their
responsibilities as accounting officers,
40

the responsibilities which are from time to time specified by the Treasury.
(2)
The principal accounting officer for the Welsh Ministers may designate other
members of the staff of the Welsh Assembly Government as additional
accounting officers.

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(3)
An additional accounting officer has, in relation to such of the accounts of the
Welsh Ministers and the finances of the Welsh Ministers and the Counsel
General as may be specified by the principal accounting officer for the Welsh
Ministers, the responsibilities which are from time to time specified by the
principal accounting officer for the Welsh Ministers.
5
133
Accounts of subsidiaries of Welsh Ministers
(1)
For the purposes of the examination by the Auditor General of any accounts of
the Welsh Ministers the Auditor General—
(a)
has a right of access at all reasonable times to every document relating
to the accounts of any subsidiary of the Welsh Ministers (whether or
10
not the accounts of the Welsh Ministers being examined relate to the
financial affairs and transactions of the subsidiary),
(b)
is entitled to require from any person holding or accountable for any of
those documents any assistance, information or explanation which the
Auditor General reasonably thinks necessary for those purposes, and
15
(c)
may require any subsidiary of the Welsh Ministers to provide the
Auditor General at times specified by the Auditor General with
accounts of such of the subsidiary’s transactions as the Auditor General
may specify.
(2)
The Treasury may, by directions given to a subsidiary of the Welsh Ministers,
20
require the subsidiary to include in any accounts which the subsidiary
prepares (under, for example, the law relating to companies or charities) such
additional information as may be specified in the directions.
(3)
The inclusion of information in any accounts in compliance with such
directions does not constitute a breach of any provision which prohibits, or
25
does not authorise, the inclusion in the accounts of that information.
(4)
In this section “subsidiary of the Welsh Ministers” means—
(a)
any body corporate or other undertaking in relation to which, if the
Welsh Ministers were an undertaking, the Welsh Ministers would be a
parent undertaking,
30
(b)
any trust of which the Welsh Ministers are settlors, or
(c)
any charitable institution of which the Welsh Ministers are founders
but which is neither a body corporate nor a trust.
(5)
For the purposes of subsection (4)(a)—
“undertaking” has the meaning given by section 259(1) of the Companies
35
Act 1985 (c. 6), and
“parent undertaking” is to be construed in accordance with section 258 of
that Act.
134
Examinations into Welsh Ministers’ use of resources
(1)
The Auditor General may carry out examinations into the economy, efficiency
40
and effectiveness with which the Welsh Ministers and the Counsel General
have used their resources in discharging their functions.
(2)
Subsection (1) does not entitle the Auditor General to question the merits of the
policy objectives of the Welsh Ministers or the Counsel General.

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(3)
In determining how to exercise functions under this section the Auditor
General must take into account the views of the Audit Committee as to the
examinations to be carried out under this section.
(4)
The Auditor General may lay before the Assembly a report of the results of any
examination carried out under this section.
5
135
Examinations by Comptroller and Auditor General
(1)
The Comptroller and Auditor General may carry out examinations into the
payments into and out of the Welsh Consolidated Fund.
(2)
The Comptroller and Auditor General may report the results of any
examination carried out under subsection (1) to the House of Commons.
10
(3)
If a report is made under subsection (2), the Comptroller and Auditor General
must at the same time lay a report of the results of the examination before the
Assembly.
(4)
For the purpose of enabling examinations under subsection (1) to be carried
out the Comptroller and Auditor General—
15
(a)
has a right of access at all reasonable times to all such documents in the
custody or under the control of any of the persons mentioned in
subsection (5) as the Comptroller and Auditor General may reasonably
require for that purpose, and
(b)
is entitled to require from any person holding or accountable for any of
20
those documents any assistance, information or explanation which the
Comptroller and Auditor General reasonably thinks necessary for that
purpose.
(5)
The persons referred to in subsection (4) are—
(a)
the Welsh Ministers and the Counsel General,
25
(b)
the Assembly Commission,
(c)
any other person audited by the Auditor General other than a Welsh
NHS body (within the meaning given in section 60 of the Public Audit
(Wales) Act 2004 (c. 23)), and
(d)
the Auditor General.
30
(6)
Before carrying out an examination under subsection (1) or acting in reliance
on subsection (4) the Comptroller and Auditor General must—
(a)
consult the Auditor General, and
(b)
take into account any relevant work done or being done by the Auditor
General.
35
Financial accountability of Assembly Commission
136
Assembly Commission’s accounts
(1)
The Assembly Commission must, for each financial year, prepare accounts in
accordance with directions given to it by the Treasury.
(2)
The directions which the Treasury may give under subsection (1) include
40
directions to prepare accounts relating to financial affairs and transactions of
persons other than the Assembly Commission.

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(3)
The directions which the Treasury may give under subsection (1) include, in
particular, directions as to—
(a)
the financial affairs and transactions to which the accounts are to relate,
(b)
the information to be contained in the accounts and the manner in
which it is to be presented,
5
(c)
the methods and principles in accordance with which the accounts are
to be prepared, and
(d)
the additional information (if any) that is to accompany the accounts.
(4)
Any accounts which the Assembly Commission is directed under this section
to prepare for any financial year must be submitted by the Assembly
10
Commission to the Auditor General no later than 30th November in the
following financial year.
(5)
The Auditor General must—
(a)
examine and certify any accounts submitted under this section, and
(b)
no later than four months after the accounts are submitted, lay before
15
the Assembly a copy of them as certified by the Auditor General
together with the Auditor General’s report on them.
(6)
In examining accounts submitted under this section the Auditor General must,
in particular, be satisfied—
(a)
that the expenditure to which the accounts relate has been incurred
20
lawfully and in accordance with the authority which governs it, and
(b)
that money received by the Assembly Commission for a particular
purpose or particular purposes has not been expended otherwise than
for that purpose or those purposes.
137
Accounting officers for Assembly Commission
25
(1)
For the purposes of this Act the principal accounting officer for the Assembly
Commission is the Clerk.
(2)
But the Treasury may designate another member of the staff of the Assembly
to be the principal accounting officer for the Assembly Commission if and for
so long as—
30
(a)
the Clerk is incapable of discharging the responsibilities of the principal
accounting officer for the Assembly Commission, or
(b)
the office of Clerk is vacant.
(3)
The principal accounting officer for the Assembly Commission has—
(a)
in relation to Assembly Commission’s accounts and finances, and
35
(b)
in relation to the performance by persons designated as accounting
officers in pursuance of any provision of this Act of their
responsibilities as accounting officers,

the responsibilities which are from time to time specified by the Treasury.
(4)
The principal accounting officer for the Assembly Commission may designate
40
other members of the staff of the Assembly as additional accounting officers.
(5)
An additional accounting officer has, in relation to such of the Assembly
Commission’s accounts and finances as may be specified by the principal
accounting officer for the Assembly Commission, the responsibilities which
are from time to time specified by the principal accounting officer for the
45
Assembly Commission.