Audit Commission Act 1998

shall be made up each year to 31st March or such other date as the Secretary of State may generally or in any special case direct, and

shall be audited in accordance with this Act by an auditor or auditors appointed by the Commission.

an officer of the Commission,

an individual who is not an officer of the Commission, or

a firm of individuals who are not officers of the Commission.

to act jointly;

to act separately in relation to different parts of the accounts; or

to discharge different functions in relation to the audit.

he is a member of one or more of the bodies mentioned in subsection (7);

he has such other qualifications as may be approved for the purposes of this section by the Secretary of State; or

he was approved before 1st April 1996 by the Secretary of State under section 13(5) of the M1Local Government Finance Act 1982, and the approval has not been withdrawn.

the Institute of Chartered Accountants in England and Wales;

the Institute of Chartered Accountants of Scotland;

the Association of Certified Accountants;

the Chartered Institute of Public Finance and Accountancy;

the Institute of Chartered Accountants in Ireland; and

any other body of accountants established in the United Kingdom and for the time being approved by the Secretary of State for the purposes of this section.

if the accounts are or include those of health service bodies, F1 the Commission for Healthcare Audit and Inspection and such organisations connected with the health service as appear to the Commission to be concerned;

if the accounts are or include those of other bodies, F2 the Commission for Social Care Inspection and such associations of local authorities as appear to the Commission to be concerned; and

in any case, F3 the National Assembly for Wales and such bodies of accountants as appear to the Commission to be appropriate.

are applicable to accounts which are or include accounts of health service bodies; and

concern the function under section 5(1)(e).

if they are accounts of a health service body, that they are prepared in accordance with directions under subsection (2), F5or (2B) of section 98 of the M2National Health Service Act 1977;

in any other case, that they are prepared in accordance with regulations under section 27;

that they comply with the requirements of all other statutory provisions applicable to the accounts;

that proper practices have been observed in the compilation of the accounts;

that the body whose accounts are being audited has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources; and

that that body, if required to publish information in pursuance of a direction under section 44 (performance information), has made such arrangements for collecting and recording the information and for publishing it as are required for the performance of its duties under that section.

require a person holding or accountable for any such document to give him such information and explanation as he thinks necessary for the purposes of his functions under this Act; and

if he thinks it necessary, require the person to attend before him in person to give the information or explanation or to produce the document.

require any officer or member of a body subject to audit to give him such information or explanation as he thinks necessary for the purposes of his functions under this Act; and

if he thinks it necessary, require the officer or member to attend before him in person to give the information or explanation.

to a fine not exceeding level 3 on the standard scale, and

to an additional fine not exceeding £20 for each day on which the offence continues after conviction for that offence.

if the scale relates to the audit of accounts of a health service body, F7the Commission for Healthcare Audit and Inspection and such other organisations connected with the health service as appear to the Commission to be concerned;

if the scale relates to the audit of accounts of any other body, such associations of local authorities as appear to the Commission to be concerned; and

in any case, such bodies of accountants as appear to the Commission to be appropriate.

complete a statement containing such information as the Commission may require and submit it to the auditor, and

provide the Commission with such further information as it may at any time require.

the Commission,

the Commission for Healthcare Audit and Inspection;

such associations of local authorities as appear to him to be concerned, and

such bodies of accountants as appear to him to be appropriate.

a certificate that he has completed the audit in accordance with this Act, and

his opinion on the statement (or, as the case may be, on the accounts).

forthwith if it is an immediate report;

otherwise not later than 14 days after conclusion of the audit.

forthwith if it is an immediate report;

otherwise not later than 14 days after conclusion of the audit.

in accordance with sections 11 F11, 11A and 12, or

if section 11 does not apply to the body, as soon as practicable after receiving it.

from the matter supplied under section 1(4)(b) of the M3Public Bodies (Admission to Meetings) Act 1960 or section 100B(7) of the 1972 Act (supply of agenda etc. to newspapers); or

from the documents open to inspection under section 100B(1) of the 1972 Act (public access to agenda and reports before meetings).

any report under section 8, and

any written recommendation within subsection (3),

charter trustees constituted under section 246 of the 1972 Act;

health service bodies;

port health authorities;

licensing planning committees;

internal drainage boards;

local probation boards established under section 4 of the Criminal Justice and Court Services Act 2000

Passenger Transport Executives.

whether the report requires the body to take any action or whether the recommendation is to be accepted; and

what, if any, action to take in response to the report or recommendation.

Transport for London,

the London Development Agency,

the London Pensions Fund Authority,

paragraph 7 of Schedule 2 to the M4Regional Development Agencies Act 1998 (delegation by London Development Agency etc), nor

paragraph 7 of Schedule 10 to the Greater London Authority Act 1999 (delegation by Transport for London),

a report under section 8, or

any written recommendation within subsection (3) of section 11,

whether the report requires the Authority to take any action or whether the recommendation is to be accepted; and

what (if any) action to take in response to the report or recommendation.

states the time and place of the meeting,

indicates that the meeting is to be held to consider an auditor’s report or recommendation (as the case may be), and

describes the subject-matter of the report or recommendation.

the auditor of its accounts is notified of the decisions made in pursuance of section 11(5) F26or 11A(6); and

a notice containing a summary of those decisions which has been approved by the auditor is published in a newspaper circulating in that body’s area.

if sections 100C and 100D of the 1972 Act (availability for inspection after meetings of minutes, background papers and other documents) apply in relation to the meeting, shall indicate the documents in relation to the meeting which are open for inspection in accordance with those sections.

inspect the report at all reasonable times without payment,

make a copy of it, or of any part of it, and

require the body or chairman to supply him with a copy of it, or of any part of it, on payment of a reasonable sum.

identifies the subject-matter of the report, and

states that any member of the public may inspect the report and make a copy of it or any part of it between such times and at such place or places as are specified in the notice;

notify any person he thinks fit of the fact that he has made the report, and

supply a copy of it or of any part of it to any person he thinks fit.

obstructs a person in the exercise of a right conferred by subsection (2)(a) or (b), or

refuses to supply a copy of the report or of part of it (as the case may be) to a person entitled to the copy by virtue of subsection (2)(c),

notify any person he thinks fit of the fact that he has made the report,

publish the report in any way he thinks fit, and

supply a copy of the report, or of any part of it, to any person he thinks fit.

any member of the public may require the auditor to supply him with a copy of the report, or of any part of it, on payment of a reasonable sum.

cease to be his obligations, but

become obligations of the Commission instead.

inspect and make copies of any statement of accounts prepared by the body pursuant to regulations under section 27;

inspect and make copies of any report, other than an immediate report, made to the body by an auditor; and

require copies of any such statement or report to be delivered to him on payment of a reasonable sum for each copy.

obstructs a person in the exercise of a right under this section to inspect or make copies of the document, or

refuses to give copies of the document to a person entitled under this section to obtain them,

inspect the accounts to be audited and all books, deeds, contracts, bills, vouchers and receipts relating to them, and

make copies of all or any part of the accounts and those other documents.

to inspect so much of any accounts or other document as contains personal information about a member of the staff of the body whose accounts are being audited; or

to require any such information to be disclosed in answer to any question.

that that individual holds or has held an office or employment under that body; or

that payments or other benefits in respect of an office or employment under any other person are or have been made or provided to that individual by that body.

as to any matter in respect of which the auditor could take action under section 17 F28or 18; or

as to any other matter in respect of which the auditor could make a report under section 8.

it appears to the auditor carrying out an audit under this Act, other than an audit of accounts of a health service body, that an item of account is contrary to law, F29and

the item is not sanctioned by the Secretary of State,

order that any person responsible for incurring or authorising expenditure declared unlawful shall repay it in whole or in part to the body in question and, where there are two or more such persons, that they shall be jointly and severally liable to do so;

if the expenditure declared unlawful exceeds £2,000 and the person responsible for incurring or authorising it is, or was at the time of his conduct in question, a member of a local authority, order him to be disqualified for being a member of a local authority for a specified period; and

order rectification of the accounts.

not later than six weeks after being notified of the decision, require the auditor to state in writing the reasons for his decision, and

appeal against the decision to the court;

the auditor,

the person to whom the application or appeal relates, or

the person by whom the appeal is brought.

the Greater London Authority;

the Common Council;

the Council of the Isles of Scilly;

the Broads Authority;

the Navigation Committee of the Broads Authority;

a National Park authority;

the Metropolitan Police Authority;

a police authority established under section 3 of the M8Police Act 1996;F37. . .

F37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

that any person has failed to bring into account a sum which should have been brought into account and that the failure has not been sanctioned by the Secretary of State, or

that a loss has been incurred or deficiency caused by the wilful misconduct of any person,

not later than six weeks after being notified of the decision, require the auditor to state in writing the reasons for his decision, and

appeal against the decision to the court.

confirm, vary or quash the decision, and

give any certificate which the auditor could have given.

not later than six weeks after being notified of the decision, require the auditor to state in writing the reasons for his decision, and

appeal against the decision to the court.

confirm or quash the decision, and

give any certificate which the auditor could have given.

on the ordinary date on which the period for bringing an appeal against a decision to give the certificate expires, or

if such an appeal is brought, on the date on which the appeal is finally disposed of or abandoned or fails for non-prosecution.

a certificate signed by an auditor appointed by the Commission stating that the sum or amount is due from a person specified in the certificate to a body specified there is conclusive evidence of that fact; and

a certificate purporting to be so signed shall be taken to have been so signed unless the contrary is proved.

the auditor,

the person to whom the appeal relates, or

the person by whom the appeal is brought.

is about to make or has made a decision which involves or would involve the body incurring expenditure which is unlawful;

is about to take or has taken a course of action which, if pursued to its conclusion, would be unlawful and likely to cause a loss or deficiency; or

is about to enter an item of account, the entry of which is unlawful.

a committee or sub-committee of a body, or

any other person (other than an officer) authorised to act on behalf of the body,

is addressed to the body or officer concerned;

specifies the paragraph of subsection (1) which is relevant and the decision, course of action or item of account to which the order relates;

specifies the date on which (subject to subsection (6)) the order is to take effect, which must not be earlier than the date of service of a copy of the order in accordance with paragraph (a) or (as the case may be) paragraphs (a) and (b) of subsection (5); and

requires the body or officer concerned to desist from making or implementing the decision, taking or continuing to take the course of action or entering the item of account in question (as the case may be).

the power to issue a prohibition order may be exercised by the auditors acting jointly or by such one of them as they may determine; and

in relation to such an order, references in subsections (5) and (6) to the auditor are references to the auditor or auditors by whom the order is issued.

shall be served on the body to which, or to an officer of which, it is addressed;

in the case of an order addressed to an officer, shall also be served on him; and

may be served on such other person or persons as the auditor considers appropriate.

a report is made under section 114(2) of the M9Local Government Finance Act 1988 (“the 1988 Act”) (chief finance officer’s report on unlawful expenditure etc.), and

copies of the report are sent in accordance with section 114(4) of the 1988 Act,

beginning with the day on which copies of the report are sent, and

ending with the day (if any) on which the body’s consideration of the report under section 115(2) of the 1988 Act begins.

takes effect, subject to subsection (6) of section 20, on the date specified in the order in accordance with subsection (3)(c) of that section; and

continues to have effect, subject to any order or decision of the High Court on an appeal under subsection (3) below, until revoked under section 20(8).

before a prohibition order is issued, a body enters into a contract to dispose of or acquire an interest in land, and

before the disposal or acquisition is completed, a prohibition order takes effect as a result of which it is unlawful for the body to complete the disposal or acquisition,

any decision of that body, or

any failure by that body to act,

if it appears to the Commission to be desirable to do so in consequence of a report made under this Act by an auditor or for any other reason; or

where the accounts are not those of a health service body, if an application for such an audit is made by a local government elector for the area of the body in question.

in relation to the accounts of a body other than a health service body, sections 3, 5, 6, 8 to 13 and 16 to 18; and

in relation to the accounts of a health service body, sections 3, 5, 6 and 8 to 10.

shall be defrayed in the first instance by the Commission, but

may be recovered by the Commission, if it thinks fit, in whole or part from the body concerned.

on behalf of that body, or

for which he ought to account to that body,

in the case of an officer of a health service body, sections 2(1), 5 to 10 and 25;

in any other case, sections 2(1), 5 to 10, 13 to 18, 25 and 27.

the keeping of accounts;

the form, preparation and certification of accounts and of statements of accounts;

the deposit of the accounts of any body at the offices of the body or at any other place;

the publication of information relating to accounts and the publication of statements of accounts;

the exercise of any rights of objection or inspection conferred by section 14, 15 or 16 and the steps to be taken by any body for informing local government electors for the area of that body of those rights.

the Commission,

such associations of local authorities as appear to him to be concerned, and

such bodies of accountants as appear to him to be appropriate.

for certifying claims and returns in respect of grants or subsidies made or paid by any Minister of the Crown or public authority to any body subject to audit;

for certifying any account submitted by any such body to any such Minister with a view to obtaining payment under a contract between that body and the Minister;

for certifying the body’s calculation under paragraph 5(6)(a) of Schedule 8 to the M11Local Government Finance Act 1988 of the amount of its non-domestic rating contribution for a financial year, and for certifying the amount calculated; or

for certifying any return by the body which, by or under any enactment, is required or authorised to be certified by the body’s auditor or under arrangements made by the Commission;

appears to the Secretary of State to be connected with local government or the National Health Service; and

is not a body subject to audit.

under section 3(3) the Commission shall consult the relevant authority instead of the Executive;

in sections 14(1), 15(2), 16(1), 25(1)(b) and 27(1)(e) references to a local government elector for an area such as is mentioned there are to be read as references to a local government elector for the area of the relevant authority;

in section 10, subsections (1) and (3) apply in relation to the relevant authority as well as the Executive, and subsections (4) to (6) apply only to the relevant authority;

in section 13, subsections (2) and (3) apply in relation to the relevant authority as well as the Executive, but the reference in subsection (3) to one or more local newspapers circulating in the area of the body is to be read as a reference to one or more such newspapers circulating in the area of the relevant authority;

the notice required to be given by section 25(4) shall be given to the relevant authority as well as the Executive.

are approved by the Commission for appointment as the subsidiary’s auditors, and

are qualified for the appointment in accordance with section 25 of the M13Companies Act 1989.

subsection (1) does not apply, but

it is the joint duty of the Executive and the other body or bodies concerned to exercise such control over the company as the Executive are required by subsection (1) to exercise over a subsidiary of theirs.

a police authority established under section 3 of the M15Police Act 1996, or

the Service Authority for the National Crime Squad.

relates to one or more police authorities established under section 3 of the Police Act 1996 and has been sent (or a copy of which has been sent) by the Commission to such an authority,F47. . .

F47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

for improving economy, efficiency and effectiveness in F49the exercise of the functions of best value authorities and the provision of services provided by other bodies subject to audit; and

for improving the financial or other management of bodies subject to audit.

studies designed to enable the Commission to determine what directions it should give under section 44; and

studies of information published in pursuance of directions under that section which are designed to enable the Commission to determine, in relation to each financial year, what comparative information to publish itself about the standards of performance achieved by bodies which are relevant bodies for the purposes of that section.

any particular statutory provision or provisions, and

any directions or guidance given by the Secretary of State (whether pursuant to any such provision or otherwise);

consult such associations of F50best value authorities or other bodies subject to audit as appear to it to be concerned;

consult such associations of employees as appear to it to be appropriate; and

in the case of any health service bodies, also consult the Secretary of State F51, the Commission for Health Improvement and the Comptroller and Auditor General.

in the case of a study which has a connection with English local authority social services (within the meaning of Part 2 of the Health and Social Care (Community Health and Standards) Act 2003), also consult the Commission for Social Care Inspection; and

in the case of a study which has a connection with Welsh local authority social services (within the meaning of that Part of that Act), also consult the National Assembly for Wales;

subsection (1)(a);

subsection (1)(b), so far as relating to management other than financial management;

subsection (4).

any Primary Care Trust;

any Strategic Health Authority;

any NHS trust (within the meaning of the National Health Service Act 1977) all or most of whose hospitals, establishments and facilities are situated in England.

of the operation of any particular statutory provision or provisions, or

of any directions or guidance given by a Minister of the Crown (whether pursuant to any such provision or otherwise),

the Comptroller and Auditor General;

any Minister of the Crown who appears to it to be concerned;

in the case of a study which has a connection with any English local authority social service (within the meaning of Part 2 of the Health and Social Care (Community Health and Standards) Act 2003), the Commission for Social Care Inspection;

in the case of a study which has a connection with any Welsh local authority social service (within the meaning of that Part of that Act), the National Assembly for Wales;

such associations of local authorities or other bodies subject to audit as appear to it to be concerned; and

such associations of employees as appear to it to be appropriate.

such associations of employees, or

in the case of a health service body, such other organisations,

the body concerned;

the London Assembly; and

such associations of employees as appear to him to be appropriate.

advise them in connection with the appointment of persons to audit their accounts; and

arrange for their accounts for any financial year to be audited by such of the Commission’s officers as the corporation F64. . . may appoint.

“higher education corporation” and “further education corporation” have the same meaning as in the M19Further and Higher Education Act 1992, and

references to the accounts of a higher education corporation include references to any statement of accounts prepared by the corporation under paragraph 18 of Schedule 7 to the Education Reform Act 1988.

a local authority included in a study, or

an officer or member of such an authority,

require a registered social landlord, or any officer or member of a registered social landlord, to supply such information as the Commission may require for the purposes of any study under section 40; and

require a registered social landlord included in any such study to make available for inspection such documents as are reasonably required for the purposes of the study.

the quality of services provided by a registered social landlord;

a registered social landlord’s arrangements for securing continuous improvement in the efficiency, effectiveness and economy with which it provides services.

shall send a copy of a report under subsection (2) to the registered social landlord concerned and to the Relevant Authority;

may publish a report under subsection (2) and any information in respect of a report.

provision authorising the Commission to prescribe a scale or scales of fees in respect of inspections;

provision governing the prescribing of scales;

provision requiring a registered social landlord inspected under section 41A(1) to pay to the Commission any fee applicable to the inspection in accordance with a scale prescribed under provision of the kind mentioned in paragraph (a);

such incidental, consequential or supplementary provision as the appropriate person thinks necessary or expedient.

in relation to registered social landlords for which the Housing Corporation is the Relevant Authority, the Secretary of State, and

in relation to registered social landlords for which the National Assembly for Wales is the Relevant Authority, the Assembly.

the Commission and the Housing Corporation, and

persons appearing to the Secretary of State to represent registered social landlords affected by his proposals.

the Commission, and

persons appearing to the Assembly to represent registered social landlords affected by its proposals.

the Secretary of State and the Housing Corporation, and

persons appearing to the Commission to represent registered social landlords affected by its proposals.

the Assembly, and

persons appearing to the Commission to represent registered social landlords affected by its proposals.

the standards of performance achieved by different relevant bodies in that financial year; and

the standards of performance achieved by such bodies in different financial years.

make such arrangements for collecting and recording the information as secure that the information is available for publication and, so far as practicable, that everything published in pursuance of the direction is accurate and complete;

within the period of nine months F74or, in the case of a relevant body in England, seven months beginning with the end of that financial year, publish the information in accordance with the direction and by one of the methods permitted by section 45; and

keep a document containing any information published in pursuance of the direction available for inspection by local government electors for its area.

at all reasonable times and without payment, inspect and make copies of the whole or any part of a document kept available for inspection under subsection (2)(c) by the body; and

require copies of the whole or part of any such document to be delivered to him on payment of a reasonable sum for each copy.

obstructs a person in the exercise of his rights under subsection (4), or

refuses to comply with a requirement under subsection (4)(b),

parish and community councils and any parish meeting of a parish not having a separate parish council;

charter trustees constituted under section 246 of the 1972 Act;

health service bodies;

port health authorities;

licensing planning committees;

internal drainage boards;

probation committees; and

Passenger Transport Executives.

the body takes all reasonable steps to secure that a copy of a publication containing the information is distributed to each dwelling in its area; and

in a case where the body considers that the information is of concern to persons carrying on business in its area, the body takes such steps as it considers reasonable and practicable to secure that a copy of a publication containing the information is distributed to business premises in its area.

identify the financial year or years in relation to which the information is to be published;

specify or describe the activities to which the information is to relate; and

make provision as to the matters to be contained in the information and as to the form in which it is to be published.

may be given so as to apply either to all relevant bodies or to all such bodies as are of a description specified in the direction; and

may be varied or revoked by any subsequent direction under that section.

publish the direction in such manner as it considers appropriate for bringing it to the attention of members of the public; and

send a copy of the direction to every relevant body on whom duties are imposed by virtue of the direction.

the imposition of any requirement by the first direction under section 44 to apply to that body; or

parish and community councils in England and Wales, and

charter trustees constituted under section 246 of the 1972 Act,

to make such incidental, consequential, transitional or supplementary provision as the Secretary of State thinks necessary or expedient; and

to make different provision for different cases, including different provision for different localities and for different bodies.

any body subject to audit, and

any officer or member of such a body,

the accounts concerned; and

such other documents relating to the body as might reasonably be required by an auditor for the purposes of the audit.

to a fine not exceeding level 3 on the standard scale, and

to an additional fine not exceeding £20 for each day on which the offence continues after conviction for that offence.

with the consent of the body or person to whom the information relates;

for the purposes of any functions of the Commission or an auditor under this Act F76or under Part I of the 1999 Act;

to the Commission for Social Care Inspection for the purposes of its functions under Chapter 5 of Part 2 of the Health and Social Care (Community Health and Standards) Act 2003;

to the National Assembly for Wales for the purposes of its functions under Chapter 4 of that Part of that Act;

in the case of a health service body, for those purposes or for the purposes of the functions of the Secretary of State and the Comptroller and Auditor General under the M23National Health Service Act 1977 F78 or for the purposes of the functions of the Commission for Healthcare Audit and Inspection under Chapter 3 of Part 2 of the Health and Social Care (Community Health and Standards) Act 2003 ;

for the purposes of the functions of the Secretary of State relating to social security;

to the Mayor of London, where the information relates to the Greater London Authority or a functional body;

for the purposes of the functions of an ethical standards officer or a Local Commissioner in Wales under Part III of the Local Government Act 2000

in accordance with section 37(6) or 41(4); or

for the purposes of any criminal proceedings.

on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding the statutory maximum or to both; or

on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both.

a contravention by a body subject to audit of any obligation imposed on that body by virtue of section 44(2);

the making by an auditor of a report under section 8 to any such body, the subject-matter of any such report and the decision made and other action taken by any such body in response to the receipt of any such report or to anything contained in it;

a contravention by any such body of regulations made under section 27.

information with respect to a report made to a health service body or to any decision or other action by such a body; or

information excluded under subsection (3)(a) of section 12 from any notice published for the purposes of subsection (2)(b) of that section.

the conduct or decisions of a body subject to audit, or

a report made to such a body,

in relation to the Common Council is a reference to the accounts mentioned in paragraph 2(a) and (b) of Schedule 2; F86. . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

in relation to the Broads Authority, is a reference to a local government elector for the area of any participating authority (as defined by section 25 of the M26Norfolk and Suffolk Broads Act 1988); and

in relation to a National Park authority which is the local planning authority for a National Park, is a reference to a local government elector for any area the whole or any part of which is comprised in that Park.