Local Government and Public Involvement in Health Bill

House of Lords

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Local Government and Public Involvement in Health Bill

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
109

151
Change of name
(1)
The body which, immediately before the commencement of this section, was
known as the Audit Commission for Local Authorities and the National Health
Service in England and Wales is to be known as the Audit Commission for
Local Authorities and the National Health Service in England.
5
(2)
Accordingly, in section 1(1) of the Audit Commission Act 1998 (c. 18) (which
continues the existence of the Audit Commission for Local Authorities and the
National Health Service in England and Wales), omit “and Wales”.
(3)
Schedule 10 (further amendments consequential on subsection (1)) has effect.
(4)
References in any enactment (other than this section) or in subordinate
10
legislation to—
(a)
the Audit Commission for Local Authorities and the National Health
Service in England and Wales, or
(b)
the Audit Commission for Local Authorities in England and Wales,

are, unless the contrary intention appears, to be read as references to the Audit
15
Commission for Local Authorities and the National Health Service in England.
Chapter 2
Audit Commission and auditors: functions and procedure
Benefits inspections
152
Powers of the Audit Commission relating to benefits
20
(1)
In section 13 of the Local Government Act 1999 (c. 27) (reports by Audit
Commission relating to best value authorities), after subsection (4) insert—
“(4A)
If a report relates to any extent to the administration of housing benefit
or council tax benefit and the Commission thinks fit to do so, it shall as
soon as reasonably practicable send a copy of the report to the Secretary
25
of State.”
(2)
In section 139D of the Social Security Administration Act 1992 (c. 5) (power of
Secretary of State to give directions following report), in subsection (1), after
paragraph (ba) insert—
“(bb)
a copy of a report has been sent to a local authority under
30
subsection (3) of section 13 of the Local Government Act 1999
and to the Secretary of State under subsection (4A) of that
section;”.
153
Benefit Fraud Inspectorate: transfers to the Audit Commission
(1)
The Secretary of State may make a scheme for the transfer to the Audit
35
Commission of property, rights and liabilities of—
(a)
the Secretary of State;
(b)
a person authorised under section 139A of the Social Security
Administration Act 1992 (reports on administration of housing benefit
and council tax benefit).
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Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
110

(2)
The Secretary of State may only exercise the power under subsection (1) to the
extent that he considers it appropriate having regard to the functions of the
Audit Commission relating to the administration of housing benefit and
council tax benefit in England.
(3)
Before making a scheme under this section, the Secretary of State must consult
5
the Audit Commission.
(4)
A transfer scheme may make provision for rights and liabilities relating to an
individual’s contract of employment to be transferred, but only if—
(a)
immediately before the date on which the scheme takes effect, the
individual is employed in the civil service of the State in the part of the
10
Department for Work and Pensions known as the Benefit Fraud
Inspectorate; and
(b)
the individual and the Audit Commission have consented to the
provision.
(5)
Schedule 11 (further provision about transfer schemes) has effect.
15
(6)
For the purposes of this section and Schedule 11, where an individual is
employed in the civil service of the State on terms which do not constitute a
contract of employment—
(a)
the individual shall be treated as if he were employed under a contract
of employment; and
20
(b)
the terms of his service shall be treated as if they were the terms of the
contract.
(7)
In this section and in Schedule 11—
“the Audit Commission” means the Audit Commission for Local
Authorities and the National Health Service in England;
25
“transfer scheme” means a transfer scheme under subsection (1).
Interaction with other authorities
154
Interaction of the Audit Commission with other authorities
(1)
The Audit Commission Act 1998 (c. 18) is amended as follows.
(2)
Omit section 37 (assistance to inspection authorities).
30
(3)
In Part 4, before the italic heading preceding section 48 insert—
“Interaction with other authorities
47B
Interaction with other authorities
Schedule 2A (interaction with other authorities) has effect.”
(4)
After Schedule 2 to that Act, insert the Schedule 2A (interaction with other
35
authorities) set out at Schedule 12.

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
111

155
Interaction of benefits inspectors with the Audit Commission
After section 139B of the Social Security Administration Act 1992 (c. 5) insert—
“139BA
Interaction with Audit Commission
(1)
A person authorised under section 139A(1) must from time to time, or
at such times as the Secretary of State may specify by order, prepare—
5
(a)
a document setting out what inspections of English authorities
he proposes to carry out (an “inspection programme”);
(b)
a document setting out the way in which he proposes to carry
out his functions of inspecting and reporting on such
authorities (an “inspection framework”).
10
(2)
The person authorised under section 139A(1) must—
(a)
consult the Audit Commission before preparing an inspection
programme or an inspection framework; and
(b)
once an inspection programme or inspection framework is
prepared, send a copy of it to—
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(i)
the Secretary of State; and
(ii)
the Audit Commission.
(3)
The Secretary of State may by order specify the form that inspection
programmes or inspection frameworks must take.
(4)
A person authorised under section 139A(1)—
20
(a)
must co-operate with the Audit Commission, and
(b)
may act jointly with the Audit Commission,

where it is appropriate to do so for the efficient and effective discharge
of the person’s functions in relation to English authorities.
(5)
In this section—
25
“the Audit Commission” means the Audit Commission for Local
Authorities and the National Health Service in England;
“English authorities” means authorities administering housing
benefit or council tax benefit in England;
“person” does not include the Audit Commission.”
30
Inspections and audit
156
Powers of auditors and inspectors to obtain information
(1)
In section 6 of the Audit Commission Act 1998 (c. 18) (auditors’ right to
documents and information)—
(a)
after subsection (1) insert—
35
“(1A)
The right conferred by subsection (1) includes power to inspect,
copy or take away the document.”;
(b)
after subsection (4) insert—
“(4A)
In relation to a document kept in electronic form, the power in
subsection (2)(b) to require a person to produce a document
40
includes power to require it to be produced in a form in which
it is legible and can be taken away.

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
112

(4B)
In connection with inspecting such a document, an auditor—
(a)
may obtain access to, and inspect and check the
operation of, any computer and associated apparatus or
material which he considers is or has been used in
connection with the document;
5
(b)
may require a person within subsection (4C) to afford
him such reasonable assistance as he may require for
that purpose.
(4C)
A person is within this subsection if he is—
(a)
the person by whom or on whose behalf the computer is
10
or has been used; or
(b)
a person having charge of, or otherwise concerned with
the operation of, the computer, apparatus or material.”;
(c)
in subsection (5), for “(4)” substitute “(4C)”;
(d)
in subsection (6)—
15
(i)
after “reasonable excuse” insert “obstructs the exercise of any
power conferred by this section or”;
(ii)
for “subsection (1), (2) or (4)” substitute “this section”.
(2)
In section 11 of the Local Government Act 1999 (c. 27) (inspectors’ powers and
duties in connection with best value inspections)—
20
(a)
after subsection (1) insert—
“(1A)
The right conferred by subsection (1)(b) includes power to
inspect, copy or take away the document.”;
(b)
after subsection (2) insert—
“(2A)
In relation to a document kept in electronic form, the power in
25
subsection (2)(b) to require a person to produce a document
includes power to require it to be produced in a form in which
it is legible and can be taken away.
(2B)
In connection with inspecting such a document, an inspector—
(a)
may obtain access to, and inspect and check the
30
operation of, any computer and associated apparatus or
material which he considers is or has been used in
connection with the document;
(b)
may require a person within subsection (2C) to afford
him such reasonable assistance as he may require for
35
that purpose.
(2C)
A person is within this subsection if he is—
(a)
the person by whom or on whose behalf the computer is
or has been used; or
(b)
a person having charge of, or otherwise concerned with
40
the operation of, the computer, apparatus or material.”;
(c)
in subsection (5), after “reasonable excuse” insert “obstructs the
exercise of any power conferred by this section or”.
157
Inspections of best value authorities
(1)
Section 10 of the Local Government Act 1999 (inspections) is amended as
45
follows.

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
113

(2)
Before subsection (1) insert—
“(A1)
The Audit Commission may carry out an inspection of a best value
authority’s performance of its functions or of any particular function or
functions.”
(3)
In subsection (1), after “may” insert “, in particular,”.
5
Studies and reports etc
158
National studies
(1)
Part 3 of the Audit Commission Act 1998 (c. 18) (studies, performance
standards and other functions) is amended as follows.
(2)
In section 33(6) (studies for improving economy etc in services)—
10
(a)
before paragraph (a) insert—
“(za)
consult the Secretary of State;”;
(b)
in paragraph (c), omit “the Secretary of State,”;
(c)
in paragraph (ca), after “consult” insert “the Welsh Ministers and”;
(d)
after paragraph (e) insert “; and
15
(f)
in the case of any other study relating to a body in
respect of which the Welsh Ministers may exercise
functions, consult the Welsh Ministers.”
(3)
In section 34(6) (reports on impact of statutory provisions etc)—
(a)
for paragraph (b) substitute—
20
“(b)
the Secretary of State;”;
(b)
in paragraph (da), after “consult” insert “the Welsh Ministers and”.
159
Studies at request of particular bodies
In the Audit Commission Act 1998, omit—
(a)
section 35 (studies at request of bodies subject to audit);
25
(b)
section 35A (studies for functional bodies at request of Greater London
Authority).
160
Registered social landlords
(1)
In section 40(1) of the Audit Commission Act 1998 (studies relating to
registered social landlords), omit “(other than registered social landlords in
30
Wales)”.
(2)
In section 41A of that Act (inspections of registered social landlords), omit
subsection (1A) (registered social landlords in Wales).
(3)
After section 41B of that Act insert—
“41C
Advice and assistance for registered social landlords
35
(1)
The Commission may, if it thinks it appropriate to do so, provide
advice or assistance to a registered social landlord for the purpose of
the exercise by the registered social landlord of its functions.

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
114

(2)
Advice or assistance under this section may be provided on such terms,
including terms as to payment, as the Commission thinks fit.”
(4)
Omit section 42 of that Act (consultancy services relating to audit of accounts
of registered social landlords).
(5)
For section 43 of that Act substitute—
5
“43
Meaning of “registered social landlord”
In sections 40 to 41C, “registered social landlord” means a body
registered as a social landlord under Part 1 of the Housing Act 1996,
other than a body mentioned in any of paragraphs (a) to (c) of section
56(2) of that Act (bodies registered in Wales).”
10
161
Information about performance standards of local authorities etc
In the Audit Commission Act 1998 (c. 18), omit sections 44 to 47 (publication of
information about standards of performance).
162
Reports on English local authorities
(1)
In Part 3 of the Audit Commission Act 1998, after section 47 insert—
15
“Reports on performance
“47A
Reports relating to performance of English local authorities
(1)
The Commission may produce comparative and other reports in
relation to one or more of the following aspects of the performance of
English local authorities in exercising their functions—
20
(a)
the risk that authorities may fail to perform their functions or
fail to perform their functions adequately;
(b)
the rate at which authorities’ performance is improving;
(c)
the economy, efficiency and effectiveness of authorities’ use of
resources.
25
(2)
A report under subsection (1) may relate to—
(a)
all English local authorities;
(b)
any particular English local authority or authorities; or
(c)
particular descriptions of English local authority.
(3)
A report under subsection (1) may relate to particular functions of
30
authorities.
(4)
In this section, “English local authority” means—
(a)
a county council in England;
(b)
a district council;
(c)
a London borough council;
35
(d)
the Council of the Isles of Scilly;
(e)
the Common Council of the City of London in its capacity as a
local authority;
(f)
a metropolitan fire and civil defence authority;
(g)
the London Fire and Emergency Planning Authority; or
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Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
115

(h)
a fire and rescue authority constituted by a scheme under
section 2 of the Fire and Rescue Services Act 2004 or a scheme to
which section 4 of that Act applies.
(5)
The Secretary of State may by order amend the definition of “English
local authority” in subsection (4) by adding any authority or body
5
which is a best value authority, other than—
(a)
an authority or body which is a Welsh best value authority for
the purposes of Part 1 of the Local Government Act 1999;
(b)
a police authority for a police area in Wales.
(6)
The Secretary of State may by order remove from that definition any
10
authority or body for the time being mentioned in it.
(7)
The powers in subsections (5) and (6) may be exercised to add or
remove an authority or body to the extent that it acts in a capacity, or
exercises functions, specified in the order.
(8)
Before making an order under subsection (5) or (6) the Secretary of State
15
must consult the best value authorities concerned or persons appearing
to him to represent the best value authorities concerned.”
(2)
In section 48 of that Act (provision of information etc to the Commission), in
subsection (2) (functions in relation to which powers to obtain information etc
do not apply), at the end insert “or 47A”.
20
163
Reports categorising English local authorities
(1)
Section 99 of the Local Government Act 2003 (c. 26) (categorisation of English
local authorities by reference to performance) is amended as follows.
(2)
In subsection (1)—
(a)
for “from time to time” substitute “, if the Secretary of State so directs,”;
25
(b)
after “English local authorities” insert “, or of English local authorities
of a description specified in the direction,”.
(3)
After subsection (2) insert—
“(2A)
A direction by the Secretary of State under subsection (1) may specify—
(a)
the period or periods of performance to be covered by the
30
report;
(b)
the form of the report;
(c)
the time by which the report must be produced.
(2B)
The power to give a direction under subsection (1) includes power to
give a direction varying or revoking a previous direction given in
35
exercise of that power.
(2C)
The Secretary of State must consult the Audit Commission before
giving a direction under subsection (1).”