Office of Public Sector Information
(1) In this Part “local government body in Wales” means any of these—
(a) a local authority in Wales;
(b) a committee of a local authority in Wales (including a joint committee of two or more local authorities in Wales);
(c) a port health authority for a port health district wholly in Wales;
(d) a National Park authority for a National Park in Wales;
(e) a conservation board established by order of the Assembly under section 86 of the Countryside and Rights of Way Act 2000 (c. 37);
(f) a police authority for a police area in Wales;
(g) a fire and rescue authority in Wales constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 (c. 21) or a scheme to which section 4 of that Act applies;
(h) an internal drainage board for an internal drainage district wholly in Wales;
(i) a local probation board established under section 4 of the Criminal Justice and Court Services Act 2000 (c. 43) for an area in Wales.
(2) The Assembly may by order amend subsection (1) by—
(a) adding a public body whose functions relate exclusively to Wales or an area of Wales;
(b) omitting a body;
(c) altering the description of a body.
(3) In subsection (2) “public body” means a body which—
(a) exercises functions of a public nature, or
(b) is entirely or substantially funded from public money.
(1) A local government body in Wales—
(a) must make up its accounts each year to 31 March or such other date as the Assembly may generally or in any special case direct;
(b) must ensure that its accounts are audited in accordance with this Chapter by one or more auditors appointed by the Auditor General for Wales.
(2) The Auditor General for Wales must appoint auditors to audit the accounts of local government bodies in Wales.
(1) This section applies in relation to the appointment of persons as auditors under section 13.
(2) The Auditor General for Wales may appoint a person only if the person is eligible for appointment under this section.
(3) But the Auditor General for Wales may not appoint himself.
(4) A person is eligible for appointment under this section only if the person—
(a) is eligible for appointment as a company auditor under section 25 of the Companies Act 1989 (c. 40), or
(b) is a member of a body of accountants, established in the United Kingdom or another EEA State, which is for the time being approved by the Assembly for the purposes of this subsection.
(5) If two or more auditors are appointed to audit the accounts of a body they may be appointed—
(a) to act jointly;
(b) to act separately in relation to different parts of the accounts;
(c) to discharge different functions in relation to the audit.
(6) Before appointing an auditor to audit the accounts of a body the Auditor General for Wales must consult the body.
(7) The Auditor General for Wales may require a body to make available for inspection by him or on his behalf any documents which he reasonably requires for the purpose of assisting him to decide on the appointment of auditors to audit the body’s accounts.
(8) The appointment of an auditor who is not a member of the staff of the Auditor General for Wales must be on the terms, and for the period, determined by the Auditor General for Wales.
(9) In this section “EEA State” means any State which is a Contracting Party to the Agreement on the European Economic Area signed at Oporto on 2nd May 1992, as adjusted by the Protocol signed at Brussels on 17th March 1993.
(1) The Auditor General for Wales may approve arrangements for one or more persons to assist an auditor appointed under section 13 by carrying out the functions of the auditor under this Part which are specified in the arrangements.
(2) Arrangements may be approved under subsection (1) either generally or for a particular case or cases.
(3) References in the following provisions of this Part to an auditor include, in relation to a function of an auditor, a person carrying out the function under arrangements approved under subsection (1).
(1) The Auditor General for Wales may issue a code of audit practice prescribing the way in which auditors are to carry out their functions under this Chapter.
(2) A code issued under this section must embody what appears to the Auditor General for Wales to be the best professional practice with respect to the standards, procedures and techniques to be adopted by auditors.
(3) A code issued under this section may make different provision for different cases.
(4) The Auditor General for Wales must not issue a code under this section unless a draft of the code has been laid before, and approved by a resolution of, the Assembly.
(5) In preparing a draft of a code under this section the Auditor General for Wales must consult any associations of local authorities in Wales which appear to him to be concerned.
(6) The Auditor General for Wales must arrange for any code issued by him under this section to be published in such manner as he thinks appropriate.
(7) A code issued under this section is subject to annulment in pursuance of a resolution of either House of Parliament in the same way as a statutory instrument; and section 5 of the Statutory Instruments Act 1946 (c. 36) applies accordingly.
(8) The Auditor General for Wales may from time to time revise a code previously issued under this section; and subsections (2) to (7) apply to a revised code as they apply to a code as first prepared.
(9) The Assembly may not delegate the function of approving a draft of a code under this section.
(1) This section applies in relation to the audit of a body’s accounts under this Chapter.
(2) An auditor must, by examination of the accounts and otherwise, satisfy himself of these things—
(a) that the accounts are prepared in accordance with regulations under section 39;
(b) that they comply with the requirements of all other statutory provisions applicable to the accounts;
(c) that proper practices have been observed in the compilation of the accounts;
(d) that the body has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources;
(e) that the body, if required to publish information in pursuance of a direction under section 47 (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.
(3) An auditor must comply with any provisions of a code of audit practice issued under section 16 which—
(a) are applicable to the audit of the accounts being audited, and
(b) are in force.
(4) At any time before there are provisions of a code of audit practice with which an auditor is required to comply under subsection (3), the auditor must comply with any provisions of a code of audit practice issued under section 4 of the Audit Commission Act 1998 (c. 18) which—
(a) are applicable to the audit under that Act of the accounts of bodies of a corresponding description to the body, and
(b) are in force.
(1) An auditor has a right of access at all reasonable times to every document relating to a local government body in Wales which appears to him necessary for the purposes of his functions under this Chapter.
(2) The documents relating to a body to which the right conferred by subsection (1) applies may include in particular—
(a) a document which is held or controlled by a person who has received financial assistance from the body by means of a grant, loan or guarantee or as a result of the taking of an interest in any property or body corporate;
(b) a document which is held or controlled by a person who has supplied goods or services to the body in pursuance of a contract to which the body was party or who has supplied goods or services in pursuance of a relevant sub-contract;
(c) a document of a description specified in an order made by the Assembly.
(3) For the purposes of subsection (2)(b) a contract is a relevant sub-contract if its performance fulfils, or contributes to the fulfilment of, an obligation to supply goods or services to the body in another contract.
(4) An auditor may require a person whom he thinks has information of the kind mentioned in subsection (5)—
(a) to give him any assistance, information and explanation which the auditor thinks necessary for the purposes of his functions under this Chapter;
(b) to attend before him in person to—
(i) give the assistance, information or explanation, or
(ii) produce any document which is held or controlled by the person and to which the right conferred by subsection (1) applies.
(5) The information is information which relates to—
(a) a local government body in Wales in relation to which the auditor has functions under this Chapter;
(b) a document to which the right conferred by subsection (1) applies;
(c) a person who holds or controls such a document.
(6) Every local government body in Wales must provide an auditor with every facility and all information which he may reasonably need for the purposes of his functions under this Chapter.
(7) Before making an order under subsection (2)(c) the Assembly must consult—
(a) the Auditor General for Wales, and
(b) any associations of local authorities in Wales which appear to it to be concerned.
(1) A person commits an offence if without reasonable excuse he fails to comply with a requirement imposed by an auditor under section 18(4).
(2) A person guilty of an offence under subsection (1) is liable on summary conviction—
(a) to a fine not exceeding level 3 on the standard scale, and
(b) to an additional fine not exceeding £20 for each day on which the offence continues after he has been convicted of it.
(3) Subsection (4) applies if—
(a) a person is convicted of an offence under subsection (1), and
(b) expenses are incurred by an auditor in connection with proceedings for the offence.
(4) The expenses may be recovered from the convicted person or an appropriate person, to the extent that they are not recovered from any other source.
(5) An appropriate person is a person who controlled the document referred to in section 18(5) at the time the requirement was imposed.
(1) The Auditor General for Wales must prescribe a scale or scales of fees payable for one or more financial years in respect of the audit of accounts of local government bodies in Wales under this Chapter.
(2) Before prescribing a scale of fees under subsection (1) the Auditor General for Wales must consult—
(a) any associations of local authorities in Wales which appear to the Auditor General for Wales to be concerned, and
(b) any bodies of accountants which appear to the Auditor General for Wales to be appropriate.
(3) In prescribing a scale of fees under subsection (1) for a financial year the Auditor General for Wales may take account of the expenses he expects to incur in the financial year in undertaking or promoting studies under sections 41 and 42.
(4) A local government body in Wales must, subject to subsection (5), pay to the Auditor General for Wales the fee payable in respect of the audit in accordance with the appropriate scale.
(5) If it appears to the Auditor General for Wales that the work involved in a particular audit differed substantially from that envisaged by him when prescribing the appropriate scale, the Auditor General for Wales may charge a fee which differs from that referred to in subsection (4).
(6) The fee payable in respect of an audit under this Chapter is the same whether or not the auditor is a member of the staff of the Auditor General for Wales.
(1) The Assembly may, if it considers it necessary or desirable to do so, prescribe by regulations a scale or scales of fees to have effect in place of a scale or scales prescribed by the Auditor General for Wales under section 20(1).
(2) A scale of fees prescribed under subsection (1) has effect for the period specified in relation to it in the regulations.
(3) Subsection (4) applies if—
(a) a scale of fees is prescribed under subsection (1) in place of a scale prescribed by the Auditor General for Wales, and
(b) the scale prescribed by the Auditor General for Wales would otherwise be the appropriate scale for the purposes of section 20(4) and (5).
(4) The references to the appropriate scale in section 20(4) and (5) are to be read as references to the appropriate scale prescribed under subsection (1) of this section.
(5) Before making regulations under subsection (1) the Assembly must consult—
(a) the Auditor General for Wales,
(b) any associations of local authorities in Wales which appear to it to be concerned, and
(c) any bodies of accountants which appear to it to be appropriate.
(1) In auditing accounts of a body under this Chapter, an auditor must consider whether, in the public interest, he should make a report on any matter which comes to his notice in the course of the audit, in order for it to be—
(a) considered by the body, or
(b) brought to the attention of the public.
(2) If the auditor considers that, in the public interest, he should make a report such as is mentioned in subsection (1), he must consider whether the public interest requires the matter to be made the subject of an immediate report.
(3) If the auditor considers that the public interest requires the matter to be made the subject of an immediate report, he must make the report immediately.
(4) If the auditor considers that the public interest does not require the matter to be made the subject of an immediate report, he must make the report at the conclusion of the audit.
(5) In a case within subsection (3), the auditor must send the report to the body, and a copy of the report to the Auditor General for Wales, immediately after making it.
(6) In a case within subsection (4), the auditor must send the report to the body, and a copy of the report to the Auditor General for Wales, before the end of the period of 14 days starting with the day on which he concludes the audit.
(1) This section applies if an auditor has concluded his audit of a body’s accounts under this Chapter.
(2) If a statement of accounts is required to be prepared by regulations under section 39, the auditor must enter on the statement—
(a) a certificate that he has completed the audit in accordance with this Chapter, and
(b) his opinion on the statement.
(3) In any other case, the auditor must enter on the accounts—
(a) a certificate that he has completed the audit in accordance with this Chapter, and
(b) his opinion on the accounts.
(4) But if an auditor makes a report under section 22 at the conclusion of the audit, he may include the certificate and opinion referred to in subsections (2) and (3) in the report instead of making an entry on the statement or accounts.
(1) This section applies if an auditor makes a report under section 22 on a matter which comes to his notice in the course of the audit of the accounts of a body.
(2) The body must take the report into consideration—
(a) as soon as practicable after receiving it, if the body is a body mentioned in subsection (3);
(b) in accordance with section 25, in any other case.
(3) The bodies referred to in subsection (2)(a) are—
(a) a port health authority;
(b) a conservation board;
(c) an internal drainage board;
(d) a local probation board.
(4) The agenda supplied to members of the body for the meeting of the body at which the report is to be considered must be accompanied by the report.
(5) Subsection (6) applies to these powers—
(a) the power under section 1(4)(b) of the Public Bodies (Admission to Meetings) Act 1960 (c. 67) to exclude items from the matter supplied under that section (supply of agenda etc. to newspapers);
(b) the power under section 100B(2) of the Local Government Act 1972 (c. 70) to—
(i) exclude documents from the documents open to inspection under section 100B(1) of that Act, or
(ii) exclude items from the matter supplied under section 100B(7) of that Act (public access to agenda and reports before meetings and supply of agenda etc. to newspapers).
(6) The powers mentioned in subsection (5) do not include power to exclude the report.
(7) Part 5A of the Local Government Act 1972 has effect in relation to the report as if section 100C(1)(d) of that Act (public access to copies of reports for 6 years after meeting) were not limited to so much of the report as relates to an item during which the meeting was open to the public.
(1) This section applies if a body is required under section 24(2)(b) to take a report into consideration in accordance with this section.
(2) This section also applies if an auditor of any accounts of a local government body in Wales—
(a) sends to the body a written recommendation, and
(b) states in the document containing the recommendation that in his opinion the recommendation should be considered in accordance with this section.
(3) But subsection (2) does not apply if the body is—
(a) a port health authority;
(b) a conservation board;
(c) an internal drainage board;
(d) a local probation board.
(4) If this section applies, the body must consider the report or recommendation at a meeting held by it before the end of the period of one month starting with the day on which the auditor sends the report or recommendation to it.
(5) At the meeting the body must decide—
(a) if a report under section 22 is considered at the meeting, whether the report requires it to take any action;
(b) if a recommendation within subsection (2) is considered at the meeting, whether the recommendation is to be accepted;
(c) what action (if any) to take in response to the report or recommendation.
(6) An auditor may extend the period of one month mentioned in subsection (4) in relation to a report or recommendation if he is satisfied that it is reasonable to allow the body more time to comply with its duties under subsections (4) and (5) in relation to the report or recommendation.
(7) A period may be extended under subsection (6) more than once.
(8) Nothing in section 101 of the Local Government Act 1972 (c. 70) (delegation of functions) applies to a duty imposed on a body by this section.
(9) This section does not affect any duties (so far as they relate to the subject-matter of a report or recommendation) imposed by or under—
(a) this Act;
(b) sections 114 to 116 of the Local Government Finance Act 1988 (c. 41) (reports by chief finance officers);
(c) section 5 of the Local Government and Housing Act 1989 (c. 42) (functions of monitoring officers);
(d) any other enactment.
(1) This section applies if a body is required under section 25(4) to hold a meeting.
(2) The meeting may be held on a particular day only if, at least seven clear days before that day, a notice complying with subsection (3) has been published in a newspaper circulating in the area of the body.
(3) A notice complies with this subsection if it—
(a) states the time and place of the meeting,
(b) indicates that the meeting is to be held to consider an auditor’s report or recommendation (as the case may be), and
(c) describes the subject-matter of the report or recommendation.
(4) As soon as practicable after the meeting the body must—
(a) ensure that the auditor is notified of the decisions made by the body under section 25(5),
(b) obtain the approval of the auditor to a written summary of those decisions (“the approved summary”), and
(c) ensure that a notice containing the approved summary is published in one or more newspapers circulating in the area of the body.
(5) The approved summary need not summarise any decision made at the meeting while the public were excluded—
(a) under section 100A(2) of the Local Government Act 1972 (confidential information);
(b) in pursuance of a resolution under section 100A(4) of that Act (exempt information);
(c) in pursuance of a resolution under section 1(2) of the Public Bodies (Admission to Meetings) Act 1960 (c. 67) (protection of public interest).
(6) But if sections 100C and 100D of the Local Government Act 1972 (c. 70) (availability for inspection after meeting of minutes, background papers and other documents) apply in relation to the meeting the approved summary must indicate the documents in relation to the meeting which are open for inspection under those sections.
(7) This section does not affect any provisions made in relation to meetings of a body by section 24(4) to (7) or by or under—
(a) the Local Government Act 1972;
(b) the Public Bodies (Admission to Meetings) Act 1960;
(c) any other enactment.
(1) This section applies where under section 22(5) an auditor has sent a report made under section 22(3) to a body.
(2) From the time when the report is received by the body any member of the public may—
(a) inspect the report at all reasonable times without payment;
(b) make a copy of the report or any part of it at all reasonable times without payment;
(c) require the body to supply him on payment of a reasonable sum with a copy of the report or any part of it.
(3) On receiving a report sent to it under section 22(5) a body must immediately—
(a) ensure that a notice is published in one or more newspapers circulating in the area of the body, and
(b) supply a copy of the report to every member of the body.
(4) The notice published under subsection (3) must—
(a) identify the subject-matter of the report, and
(b) state 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.
(5) An auditor who has made a report under section 22(3) may—
(a) notify any person that he has made the report;
(b) supply a copy of the report or of any part of it to any person.
(6) A person who has custody of a report made under section 22(3) commits an offence if—
(a) he obstructs a person in the exercise of a right conferred by subsection (2)(a) or (b), or
(b) he refuses to comply with a requirement under subsection (2)(c).
(7) A person guilty of an offence under subsection (6) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.
(8) A body commits an offence if it fails to comply with a requirement of subsection (3).
(9) A body guilty of an offence under subsection (8) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.
(10) Nothing in this section affects the operation of section 24(4) to (7).
(1) This section applies where under section 22(6) an auditor has sent a report made under section 22(4) to a body.
(2) The auditor may—
(a) notify any person that he has made the report;
(b) publish the report;
(c) supply a copy of the report or any part of it to any person.
(3) From the time when the report is sent to the body—
(a) the auditor must ensure that any member of the public may—
(i) inspect the report at all reasonable times without payment;
(ii) make a copy of the report or any part of it at all reasonable times without payment;
(b) any member of the public may require the auditor to supply him on payment of a reasonable sum with a copy of the report or any part of it.
(4) From the end of the period of one year starting with the day on which the report is sent to the body, the obligations of the auditor under subsection (3)—
(a) cease to be his obligations, but
(b) become obligations of the Auditor General for Wales instead.
(1) A local government elector for the area of a local government body in Wales may—
(a) at all reasonable times and without payment inspect and make a copy of any statement of accounts prepared by the body under regulations made under section 39;
(b) at all reasonable times and without payment inspect and make a copy of any report (other than a report under section 22(3)) made to the body by an auditor;
(c) require a copy of a statement or report falling within paragraph (a) or (b) to be delivered to him on payment of a reasonable sum for each copy.
(2) A person who has custody of a document falling within paragraph (a) or (b) of subsection (1) commits an offence if—
(a) he obstructs a person in the exercise of a right under this section to inspect or make a copy of the document, or
(b) he refuses to supply a copy of the document to a person entitled to the copy under subsection (1)(c).
(3) A person guilty of an offence under subsection (2) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.
(4) In this section references to a copy of a document include a copy of any part of it.
Public Audit (Wales) Act 2004