Local Audit and Accountability Act 2014

119 (1) Section 149 (audit or examination of English NHS charity accounts) is amended as follows. E+W

(2) In subsection (2) for “a person appointed by the Audit Commission” substitute “a person who—

(a) is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006,

(b) is eligible for appointment as a local auditor (see Part 4 of the Local Audit and Accountability Act 2014), or

(c) is a member of a body for the time being specified in regulations under section 154 and is under the rules of that body eligible for appointment as auditor of the charity.”

(3) In subsection (3)—

(a) for “the Audit Commission” (where it first occurs) substitute “ the charity trustees ”,

(b) in paragraph (a) for “a person appointed by the Audit Commission” substitute “ a person who is within subsection (2)(a), (b) or (c) ”, and

(c) in paragraph (b) for “a person so appointed” substitute “ a person who is qualified to be an independent examiner ”.

(4) After subsection (3) insert—

“(3A) For the purposes of subsection (3)(b), a person is qualified to be an independent examiner if (and only if)—

(a) the person is independent,

(b) the charity trustees reasonably believe that the person has the requisite ability and practical experience to carry out a competent examination of the accounts, and

(c) the person—

(i) falls within a description of person for the time being included in the list in section 145(3), or

(ii) is eligible for appointment as a local auditor (see Part 4 of the Local Audit and Accountability Act 2014).”

(5) Omit subsection (4).

(6) For subsection (5) substitute—

“(5) The Commission may—

(a) give guidance to charity trustees of an English NHS charity in connection with the selection of a person for appointment as an independent examiner;

(b) give such directions as it thinks appropriate with respect to the carrying out of an examination in pursuance of subsection (3)(b);

and any such guidance or directions may either be of general application or apply to a particular charity only.”

(7) Omit subsection (8).

Commencement Information

I1 Sch. 12 para. 119 in force at 1.4.2017 by S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)