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
113

156
Reports on English local authorities
(1)
In Part 3 of the Audit Commission Act 1998 (c. 18), after section 47 insert—
“Reports on performance
“47A
Reports relating to performance of English local authorities
(1)
The Commission may produce comparative and other reports in
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relation to one or more of the following aspects of the performance of
English local authorities in exercising their functions—
(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;
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(c)
the economy, efficiency and effectiveness of authorities’ use of
resources.
(2)
A report under subsection (1) may relate to—
(a)
all English local authorities;
(b)
any particular English local authority or authorities; or
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(c)
particular descriptions of English local authority.
(3)
A report under subsection (1) may relate to particular functions of
authorities.
(4)
In this section, “English local authority” means—
(a)
a county council in England;
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(b)
a district council;
(c)
a London borough council;
(d)
the Council of the Isles of Scilly;
(e)
the Common Council of the City of London in its capacity as a
local authority;
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(f)
a metropolitan fire and civil defence authority;
(g)
the London Fire and Emergency Planning Authority; or
(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.
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(5)
The Secretary of State may by order amend the definition of “English
local authority” in subsection (4) by adding any authority or body
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;
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(b)
a police authority for a police area in Wales.
(6)
The Secretary of State may by order remove from that definition any
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
40
exercises functions, specified in the order.
(8)
Before making an order under subsection (5) or (6) the Secretary of State
must consult the best value authorities concerned or persons appearing
to him to represent the best value authorities concerned.”

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)
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”.
157
Reports categorising English local authorities
(1)
Section 99 of the Local Government Act 2003 (c. 26) (categorisation of English
5
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,”;
(b)
after “English local authorities” insert “, or of English local authorities
of a description specified in the direction,”.
10
(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
report;
(b)
the form of the report;
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(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
exercise of that power.
(2C)
The Secretary of State must consult the Audit Commission before
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giving a direction under subsection (1).”
Miscellaneous
158
Appointment of auditors
In section 3(6) of the Audit Commission Act 1998 (c. 18) (appointment of firm
as auditor) for “each of its members” substitute “the appointment provides that
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the audit may be conducted only by a member or employee of the firm who”.
159
Inspection and disclosure of personal information
(1)
Section 15 of the Audit Commission Act 1998 (inspection of documents and
questions at audit) is amended as follows.
(2)
In subsection (3) for “about a member of the staff of the body whose accounts
30
are being audited” substitute “within the meaning of subsection (3A) or (4)”.
(3)
After subsection (3) insert—
“(3A)
Information is personal information if—
(a)
it identifies a particular individual or enables a particular
individual to be identified; and
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(b)
the auditor considers that it should not be inspected or
disclosed.”
(4)
In subsection (4), for the words from the beginning to “if it” substitute
“Information is personal information if it is information about a member of the
staff of the body whose accounts are being audited which”.
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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

160
Right to make objections at audit
(1)
Section 16 of the Audit Commission Act 1998 (c. 18) (right to make objections
at audit) is amended as follows.
(2)
In subsection (1), for the words from “, or any representative” to “objections”
substitute “may make objections to the auditor”.
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(3)
For subsections (2) and (3) substitute—
“(2)
An objection under subsection (1) must be sent to the auditor in writing.
(3)
At the same time as the objection is sent to the auditor, a copy of the
objection must be sent to the body whose accounts are being audited.”
(4)
Nothing in this section affects section 16 of the Audit Commission Act 1998 in
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so far as it relates to accounts prepared for a period beginning before the
commencement of this section.
161
Appointment of auditor to carry out agreed audits
(1)
Section 29 of the Audit Commission Act 1998 (agreed audit of accounts) is
amended as follows.
15
(2)
In subsection (1), for “undertake the audit of” substitute “appoint an auditor to
audit”.
(3)
After subsection (1) insert—
“(1A)
An auditor appointed under subsection (1) may be—
(a)
an officer of the Commission,
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(b)
an individual who is not an officer of the Commission, or
(c)
a firm of individuals who are not officers of the Commission.”
(4)
In subsection (2), after “the Commission” insert “, the auditor”.
162
Consent for the purposes of agreed audit
In section 29 of the Audit Commission Act 1998 (agreed audit of accounts),
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after subsection (4) insert—
“(5)
Consent for the purposes of subsection (1) may be given in respect of
any particular body or description of body.
(6)
If the Secretary of State thinks fit he may notify any person of, or
publish in any manner—
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(a)
a consent that he has given for the purposes of subsection (1);
(b)
any matter related to the consent.”
163
Disclosure of information obtained by the Audit Commission or an auditor
(1)
The Audit Commission Act 1998 is amended as follows.
(2)
In section 49 of that Act (restriction on disclosure of information) omit
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subsection (1A).

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 2 — Audit Commission and auditors: functions and procedure
116

(3)
After subsection (2) of that section insert—
“(2A)
A person who is, or acts on behalf of a person who is, a public authority
for the purposes of the Freedom of Information Act 2000, may also
disclose such information—
(a)
in accordance with section 41(4); or
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(b)
in any other circumstances, except where the disclosure would,
or would be likely to, prejudice the effective performance of a
function imposed or conferred on the person by or under an
enactment.
(2B)
An auditor who does not fall within subsection (2A), or a person acting
10
on his behalf, may also disclose such information except where the
disclosure would, or would be likely to, prejudice the effective
performance of a function imposed or conferred on the auditor by or
under an enactment.
(2C)
A person who does not fall within subsection (2A) or (2B) may also
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disclose such information in accordance with consent given by the
Commission or an auditor.
(2D)
Section 49ZA makes further provision about consent for the purposes
of subsection (2C).”.
(4)
In subsection (3) of that section—
20
(a)
for “subsection (1)” substitute “this section”;
(b)
in paragraph (a), omit “to imprisonment for a term not exceeding six
months or” and “or to both; or”;
(c)
omit paragraph (b).
(5)
After that section insert—
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“49ZA
Consent under section 49(2C)
(1)
Consent for the purposes of section 49(2C) must be obtained in
accordance with this section.
(2)
A person requesting consent (“the applicant”) must make a request for
consent which—
30
(a)
is in writing,
(b)
states the name of the applicant and an address for
correspondence,
(c)
describes the information in relation to which consent is
requested, and
35
(d)
identifies the person to whom the information will be disclosed.
(3)
Consent must be given except where the disclosure would, or would be
likely to, prejudice the effective performance of a function imposed or
conferred on the Commission or an auditor by or under an enactment.
(4)
Consent may be given or refused orally or in writing; but where it is
40
given or refused orally the consent or refusal must be confirmed in
writing.
(5)
A refusal (or, where the refusal is oral, the confirmation of the refusal)
must contain the reasons for the refusal.

Local Government and Public Involvement in Health Bill
Part 8 — Local services: inspection and audit
Chapter 3 — Auditor General for Wales and auditors
117

(6)
A person to whom a request for consent is made must give or refuse
consent not later than the twentieth working day following the day on
which the request is received.
(7)
“Working day” means any day other than a Saturday, a Sunday,
Christmas Day, Good Friday or a day which is a bank holiday under the
5
Banking and Financial Dealings Act 1971 in any part of the United
Kingdom.”.
(6)
Omit section 49A of that Act (disclosure of information by or on behalf of
public authorities).
(7)
Nothing in this section has effect in relation to a disclosure made before the
10
commencement of this section.
164
Publication of information by the Audit Commission
For subsections (1) to (3) of section 51 of the Audit Commission Act 1998 (c. 18)
(publication of information by the Audit Commission) substitute—
“(1)
The Commission may publish such information as it thinks fit except
15
where the publication would, or would be likely to, prejudice the
effective performance of a function imposed or conferred on the
Commission or an auditor by or under an enactment.”.
Chapter 3
Auditor General for Wales and auditors
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165
Registered social landlords in Wales
After section 145C of the Government of Wales Act 1998 (c. 38) insert—
“145D
Advice and assistance for registered social landlords
(1)
The Auditor General for Wales may, if he thinks it appropriate to do so,
provide advice or assistance to a registered social landlord in Wales for
25
the purpose of the exercise by the registered social landlord of its
functions.
(2)
Advice or assistance under this section may be provided on such terms
and conditions, including conditions as to payment, as the Auditor
General for Wales thinks fit.
30
(3)
This section has effect without prejudice to paragraph 21 of Schedule 8
to the Government of Wales Act 2006 (arrangements between Auditor
General for Wales and certain bodies).
(4)
In this section, “registered social landlord in Wales” means a body
which is—
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(a)
registered as a social landlord under Chapter 1 of Part 1 of the
Housing Act 1996, and
(b)
mentioned in any of paragraphs (a) to (c) of section 56(2) of that
Act.”