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by the Secretary of State under section 13(5) of the M1Local Government Finance Act 1982, and the approval has not been withdrawn.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, F3 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, F4 the Commission for Social Care Inspection and such associations of local authorities as appear to the Commission to be concerned; and

in any case, F5 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 F7paragraph 3(1) of Schedule 15 to the National Health Service Act 2006;

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

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

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.

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;

may require a person within subsection (4C) to afford him such reasonable assistance as he may require for that purpose.

the person by whom or on whose behalf the computer is or has been used; or

a person having charge of, or otherwise concerned with the operation of, the computer, apparatus or material.

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, F15the 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 F19, 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 M2Public 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

probation trusts;

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 M3Regional 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) F35or 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 F37within the meaning of subsection (3A) or (4); or

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

it identifies a particular individual or enables a particular individual to be identified; and

the auditor considers that it should not be inspected or disclosed.

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 F41or 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, F43and

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 M7Police Act 1996;F51. . .

F51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 M8Local 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 M10Local 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 F62, a local government body in Wales or a Welsh NHS body.

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.

a consent that he has given for the purposes of subsection (1);

any matter related to the consent.

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 F66eligible for the appointment under Part 42 of the Companies Act 2006.

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.

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,F68. . .

F68. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

for improving economy, efficiency and effectiveness in F71the exercise of the functions of best value authorities F72which are bodies subject to audit and the provision of services provided by other bodies subject to audit F73and by local government bodies in Wales; and

for improving the financial or other management of bodies subject to audit F74and local government bodies in Wales.

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 the Secretary of State;

consult such associations of F79best value authorities which are bodies subject to audit, other bodies subject to audit and local government bodies in Wales as appear to it to be concerned;

consult such associations of employees as appear to it to be appropriate; F80...

in the case of any health service bodies, also consult F81... F82the F83Commission for Healthcare Audit and Inspection and the Comptroller and Auditor General.

in the case of a study relating to a local government body in Wales, also consult F85the Welsh Ministers and the Auditor General for Wales and take into account any relevant work done or being done by the Auditor General for Wales.

in the case of a study which has a connection with anything which may be inspected under Chapter 4 of Part 8 of the Education and Inspections Act 2006, also consult Her Majesty's Chief Inspector of Education, Children's Services and Skills;

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; F88...

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 WalesF89; and

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.

a study into the exercise throughout England and Wales of particular functions of all local government bodies or a description of local government body;

a study into the provision throughout England and Wales of particular services provided by all local government bodies or a description of local government body;

a study into the financial or other management throughout England and Wales of all local government bodies or a description of local government body.

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 F92the National Health Service Act 2006 ) 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;

the Secretary of State;

in the case of a study which has a connection with anything which may be inspected under Chapter 4 of Part 8 of the Education and Inspections Act 2006, Her Majesty's Chief Inspector of Education, Children's Services and Skills;

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; F99...

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

in the case of a study relating to a local government body in Wales, also consult F101the Welsh Ministers and the Auditor General for Wales and take account of any relevant work done or being done by the Auditor General for Wales.

a study into the impact of anything mentioned in paragraph (a) or (b) of subsection (1) on economy, efficiency and effectiveness in the provision of local authority services throughout England and Wales by all local government bodies or a description of local government body;

a study into the impact of anything mentioned in paragraph (a) or (b) of subsection (1) on economy, efficiency and effectiveness in the provision of other services throughout England and Wales by all local government bodies or a description of local government body;

a study into the impact of anything mentioned in paragraph (a) or (b) of subsection (1) on the financial management throughout England and Wales of all local government bodies or a description of local government body.

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 F120. . . may appoint.

“higher education corporation” and “further education corporation” have the same meaning as in the M15Further 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 F135Housing Corporation ;

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 F137Secretary of State thinks necessary or expedient.

the Commission and the Housing Corporation, and

persons appearing to the Secretary of State to represent registered social landlords affected by his 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 risk that authorities may fail to perform their functions or fail to perform their functions adequately;

the rate at which authorities' performance is improving;

the economy, efficiency and effectiveness of authorities' use of resources.

all English local authorities;

any particular English local authority or authorities; or

particular descriptions of English local authority.

a county council in England;

a district council;

a London borough council;

the Council of the Isles of Scilly;

the Common Council of the City of London in its capacity as a local authority;

a metropolitan fire and civil defence authority;

the London Fire and Emergency Planning Authority; or

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.

an authority or body which is a Welsh best value authority for the purposes of Part 1 of the Local Government Act 1999;

a police authority for a police area in Wales.

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 F151or 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 F153the National Health Service Act 2006 F154 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 ;

to Her Majesty's Chief Inspector of Education, Children's Services and Skills for the purposes of his functions under Chapter 4 of Part 8 of the Education and Inspections Act 2006;

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

for the purposes of any function of the Auditor General for Wales under the Public Audit (Wales) Act 2004 or (in relation to a health service body) under the Government of Wales Act 1998;

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 the Public Services Ombudsman for Wales under Part 3 of the Local Government Act 2000;

for the purposes of the functions of a monitoring officer under that Part or regulations made under that Part;

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

for the purposes of any criminal proceedings.

in accordance with section 41(4); or

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.

on summary conviction, F164... to a fine not exceeding the statutory maximum F164...

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

is in writing,

states the name of the applicant and an address for correspondence,

describes the information in relation to which consent is requested, and

identifies the person to whom the information will be disclosed.

in relation to the Common Council is a reference to the accounts mentioned in paragraph 2(a) and (b) of Schedule 2; F181. . .

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

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 M18Norfolk 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.