SCHEDULE Modifications to the Local Audit and Accountability Act 2014 and other Acts

PART 2

Failure of appointing person to appoint local auditor

6.  In the event that the appointing person fails to appoint a local auditor to an opted in authority in accordance with Part 3 of the Act, section 12 applies as if—

(a) for subsection (1) there were substituted—

“(1) If an appointing person fails to appoint a local auditor to audit the accounts of an opted in authority, other than a clinical commissioning group, in accordance with this Part, the authority must immediately inform the appointing person and the Secretary of State of that fact.”

(b) in subsection (2)—

(i) for the words from “relevant authority” to “commissioning group,” there were substituted “an appointing person”;

(ii) after “local auditor”, the first time those words appear, there were inserted “to audit the accounts of an opted in authority, other than a clinical commissioning group”;

(iii) after paragraph (a) there were inserted—

“(aa) direct the appointing person to appoint an auditor, or”;

(c) after subsection (2) there were inserted—

“(2A) Where an appointment is made under subsection (2)(aa)—

(a) the appointment takes effect on such terms as the Secretary of State may direct; and

(b) the appointing person may recover its reasonable administrative costs of making arrangements to appoint a local auditor for the local authority.”;

(d) in subsection (3)(a) “relevant” were omitted;

(e) in subsection (4)—

(i) “relevant” were omitted both times it occurs;

(ii) in paragraph (a), after “authority” there were inserted “and where the Secretary of State intends to direct the appointing person, that person”; and

(iii) in paragraph (b) after “authority” there were inserted “or the appointing person”; and

(f) in subsection (5) for “a relevant authority” there were substituted “an authority”.