Office of Public Sector Information
PART 2 continued CHAPTER 1 continued
(1) At an audit of accounts under this Chapter an interested person may—
(a) inspect the accounts to be audited and all books, deeds, contracts, bills, vouchers and receipts relating to them;
(b) make a copy of all or any part of the accounts and of any of the other documents mentioned in paragraph (a).
(2) At the request of a local government elector for any area to which accounts to be audited under this Chapter relate, the auditor of those accounts must give the elector or any representative of his an opportunity to question the auditor about the accounts.
(3) But nothing in this section entitles a person—
(a) to inspect any accounts or other document relating to a body to the extent that the accounts contain, or the document contains, personal information;
(b) to require any personal information to be disclosed by a body’s auditor in answer to any question.
(4) In subsection (3) “personal information” means information relating to an individual which is available to the body for reasons connected with either of these—
(a) the fact that the individual holds or has held an office or employment under the body;
(b) the fact that payments or other benefits are or have been made or provided to the individual by the body in respect of an office or employment under another person.
(5) For the purposes of subsection (4) payments made or benefits provided to an individual in respect of an office or employment include any payment made or benefit provided to an individual in respect of his ceasing to hold the office or employment.
(1) At an audit of accounts under this Chapter a local government elector for the area to which the accounts relate, or any representative of his, may make objections before the auditor as to—
(a) any matter in respect of which the auditor has a power to apply for a declaration under section 32;
(b) any other matter in respect of which the auditor has the power to make a report under section 22.
(2) A local government elector proposing to make an objection under subsection (1) must—
(a) give written notice to the auditor of the proposed objection and the grounds on which it is to be made, and
(b) at the same time, send a copy of the notice to the body whose accounts are being audited.
(1) Where it appears to an auditor carrying out an audit under this Chapter that an item of account is contrary to law, the auditor may apply to the court for a declaration that the item is contrary to law.
(2) On an application under this section the court may make or refuse to make the declaration applied for.
(3) If the court makes the declaration applied for it may also order rectification of the accounts.
(4) If an auditor decides not to make an application for a declaration under this section in relation to an item of account, he must notify a person who has made an objection under section 31(1)(a) in relation to the item of account of his decision.
(5) Subsection (4) does not apply if the person who has made the objection has failed to comply with section 31(2).
(6) A person notified under subsection (4) of an auditor’s decision may require the auditor to state in writing the reasons for his decision before the end of the permitted period, which is 14 days starting with the day on which the person is notified of the auditor’s decision.
(7) A person who receives reasons for an auditor’s decision under subsection (6) may appeal to the court against the decision before the end of the permitted period, which is 28 days starting with the day on which he receives the reasons.
(8) On an appeal under subsection (7) the court has the same powers in relation to the item of account as it would have if the auditor had applied to the court for a declaration under subsection (1) in relation to the item of account.
(9) On an application or appeal under this section relating to the accounts of a body, the court may make such order as it thinks fit for the payment by the body of expenses incurred in connection with the application or appeal by—
(a) the auditor;
(b) the person by whom the appeal is brought.
(10) The High Court and the county courts have jurisdiction for the purposes of this section.
(1) An auditor of accounts of a local government body in Wales may issue a notice under this section (an “advisory notice”) if he has reason to believe that one or more of the requirements specified in subsection (2) is met.
(2) The requirements are that—
(a) the body or an officer of the body is about to make or has made a decision which involves or would involve the body incurring expenditure which is unlawful;
(b) the body or an officer of the body is about to take or has begun to take a course of action which, if pursued to its conclusion, would be unlawful and likely to cause a loss or deficiency;
(c) the body or an officer of the body is about to enter an item of account, the entry of which is unlawful.
(3) For the purposes of this section and section 34 the actions of any of these are to be treated as the actions of a body—
(a) a committee or sub-committee of the body;
(b) a person (other than an officer of the body) authorised to act on behalf of the body.
(4) An advisory notice is a notice which meets these requirements—
(a) it is addressed to the body or officer;
(b) it specifies which of the requirements specified in subsection (2) is met and the decision, course of action or item of account to which the notice relates;
(c) it specifies that the notice will take effect on the day a copy of it is served on the person to whom it is addressed;
(d) it requires the body or officer to give the auditor of the body’s accounts not less than the specified period of notice in writing of the intention of the body or officer to—
(i) make or implement the decision to which the notice relates,
(ii) take or continue to take the course of action to which the notice relates, or
(iii) enter the item of account to which the notice relates.
(5) For the purposes of subsection (4)(d) the specified period of notice is the period (not exceeding 21 days) specified in the advisory notice.
(6) A copy of an advisory notice—
(a) must be served on the body to which, or to an officer of which, it is addressed;
(b) if the notice is addressed to an officer, must be served on him;
(c) may be served on any other person considered appropriate by the auditor by whom the notice is issued.
(7) The auditor by whom an advisory notice is issued must before the end of the required period serve a statement of his reasons for the belief referred to in subsection (1) on—
(a) the body, and
(b) if the advisory notice is addressed to an officer of the body, the officer.
(8) The required period for the purposes of subsection (7) is 7 days starting on the day on which a copy of the advisory notice was served on the person to whom it is addressed.
(9) A document to be served on an officer of a body under this section must be served on him by addressing it to him and—
(a) delivering it to him at an office of the body at which he is employed,
(b) leaving it at such an office, or
(c) sending it by post to such an office.
(10) An advisory notice may at any time be withdrawn by the person who for the time being is the auditor of the body to which, or to an officer of which, the notice was addressed.
(11) The auditor by whom an advisory notice is withdrawn must give notice in writing of the withdrawal to any body or person on whom a copy of the advisory notice was served under subsection (6).
(12) If two or more auditors are appointed in relation to a body’s accounts an advisory notice may be issued or withdrawn by the auditors acting jointly or by one of the auditors determined by them.
(1) Subsections (2) to (4) apply while an advisory notice has effect.
(2) If the advisory notice relates to a decision, it is not lawful for the body concerned or an officer of the body to make or implement the decision unless and until the conditions set out in subsection (5) are met.
(3) If the advisory notice relates to a course of action, it is not lawful for the body concerned or an officer of the body to take or continue to take the course of action unless and until the conditions set out in subsection (5) are met.
(4) If the advisory notice relates to an item of account, it is not lawful for the body concerned or an officer of the body to enter the item of account unless and until the conditions set out in subsection (5) are met.
(5) The conditions are—
(a) that the body has considered, in the light of the advisory notice and the statement under section 33(7), the consequences of doing the thing mentioned in whichever of subsections (2) to (4) is applicable;
(b) that the body or officer has given the person who is for the time being the auditor of the body’s accounts the period of notice in writing required by the advisory notice under section 33(4)(d);
(c) that that period has expired.
(6) An advisory notice takes effect on the day on which a copy of the notice is served on the person to whom it is addressed.
(7) An advisory notice ceases to have effect—
(a) if a statement of reasons is not served in accordance with section 33(7), at the end of the period specified in section 33(8);
(b) in any other case, when it is withdrawn under section 33(10).
(8) An auditor may recover from the body concerned any expenses reasonably incurred by him in or in connection with the issue of an advisory notice.
(9) In this section “the body concerned”, in relation to an advisory notice, means the body to which, or to an officer of which, the notice is addressed.
(1) Subsection (2) applies if—
(a) before an advisory notice is served, a body enters into a contract to dispose of or acquire an interest in land, and
(b) before the disposal or acquisition is completed, an advisory notice takes effect as a result of which it is unlawful for the body to complete the disposal or acquisition.
(2) The existence of the advisory notice does not prejudice any remedy in damages which may be available to any person as a result of the body’s failure to complete the contract.
(3) No action lies against an auditor in respect of loss or damage alleged to have been caused as a result of the issue of an advisory notice which was issued in good faith.
(1) An auditor appointed to audit accounts of a localgovernment body in Wales may make a claim for judicial review with respect to a decision of the body or a failure of the body to act, if it is reasonable to believe that the decision or failure to act would have an effect on the body’s accounts.
(2) Subsection (1) is subject to section 31(3) of the Supreme Court Act 1981 (c. 54) (no claim for judicial review without permission of court).
(3) The existence of the powers conferred on an auditor under this Part is not a ground for refusing—
(a) a claim falling within subsection (1), or
(b) an application for permission to make a claim falling within subsection (1).
(4) On a claim by an auditor for judicial review with respect to a decision of a body or a failure of a body to act, the court may make any order it thinks fit for the payment by the body of expenses incurred by the auditor in connection with the claim.
(1) The Auditor General for Wales may direct an auditor to hold an extraordinary audit of the accounts of a local government body in Wales if the condition in subsection (2) or the condition in subsection (3) is met.
(2) The condition is that it appears to the Auditor General for Wales to be desirable to hold an extraordinary audit of the body’s accounts.
(3) The condition is that an application for an extraordinary audit of the body’s accounts is made by a local government elector for the area of the body.
(4) The Assembly may require the Auditor General for Wales to direct an auditor to hold an extraordinary audit of the accounts of a local government body in Wales if it appears to the Assembly to be desirable in the public interest for an extraordinary audit of the body’s accounts to be held.
(5) These provisions apply to an extraordinary audit under this section as they apply to an ordinary audit under this Chapter—
(a) section 15;
(b) sections 17 to 19;
(c) sections 22 to 28;
(d) sections 31 and 32.
(6) An extraordinary audit of a body’s accounts may be held under this section only if 3 clear days' notice in writing of the audit is given to the body.
(7) The expenditure incurred in holding an extraordinary audit of a body’s accounts under this section must be met in the first instance by the Auditor General for Wales.
(8) The Auditor General for Wales may recover all or part of the expenditure from the body.
(1) This section applies if an officer of a local government body in Wales receives money or other property—
(a) on behalf of the body, or
(b) for which he ought to account to the body.
(2) The auditor of the body’s accounts must audit the officer’s accounts.
(3) These provisions apply with the necessary modifications to the accounts and audit—
(a) section 13(1);
(b) sections 17 to 24;
(c) sections 27 to 32;
(d) section 37;
(e) section 39.
(1) The Assembly may by regulations applying to local government bodies in Wales make provision with respect to—
(a) the keeping of accounts;
(b) the form, preparation and certification of accounts and of statements of accounts;
(c) the deposit of the accounts of a body at the offices of the body or at another place;
(d) the publication of information relating to accounts and the publication of statements of accounts;
(e) the exercise of any rights of objection or inspection conferred by section 29, 30 or 31 and the steps to be taken by a body for informing local government electors for the area of the body of those rights.
(2) Before making any regulations under this section 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.
(3) A person commits an offence if—
(a) without reasonable excuse he contravenes a provision of regulations under this section, and
(b) the regulations declare that contravention of the provision is an offence.
(4) A person guilty of an offence under subsection (3) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.
(5) Subsection (6) applies if—
(a) a person is convicted of committing an offence under subsection (3) in relation to a body, and
(b) expenses are incurred by an auditor in connection with proceedings for the offence.
(6) The expenses may be recovered from the convicted person or the body, to the extent that they are not recovered from any other source.
(1) If the Auditor General for Wales receives a copy of a report under section 22(5) or (6) and the report relates to a police authority for a police area in Wales, he must send a copy of the report to the Secretary of State and the Assembly.
(2) If the Auditor General for Wales has sent a document (or a copy of a document) relating to one or more police authorities for police areas in Wales to a police authority for a police area in Wales, he may send a copy of the document to the Secretary of State and the Assembly.
(1) The Auditor General for Wales must for each financial year undertake or promote studies designed to enable himto make recommendations—
(a) for improving economy, efficiency and effectiveness in the discharge of the functions of best value authorities in Wales;
(b) for improving economy, efficiency and effectiveness in the provision of services provided by other localgovernment bodies in Wales;
(c) for improving the financialor other management of local government bodies in Wales.
(2) The studies which the Auditor General for Wales is required to undertake or promote under subsection (1) include in particular—
(a) studies designed to enable the Auditor General for Wales to determine what directions he should give under section 47;
(b) studies of information published in pursuance of section 47 which are designed to enable the Auditor General for Wales to determine, in relation to each financial year, what comparative information to publish himself about the standards of performance achieved by bodies which are relevant bodies for the purposes of that section.
(3) The Auditor General for Wales may undertake or promote other studies relating to the provision of services by local government bodies in Wales.
(4) Where the Auditor General for Wales undertakes or promotes a study under this section, he must publish or otherwise make available—
(a) the results of the study, and
(b) any recommendations made by him.
(5) Before undertaking or promoting a study under this section, other than a study of a kind mentioned in paragraph (a) or (b) of subsection (2), the Auditor General for Wales must consult—
(a) any associations of local government bodies in Wales which appear to him to be concerned, and
(b) any associations of employees which appear to him to be appropriate.
(6) The Auditor General for Wales and the Assembly must co-operate with each other with respect to the exercise of their respective functions under this section and sections 94 and 95 of the Health and Social Care (Community Health and Standards) Act 2003 (c. 43) (reviews, investigations and studies by Assembly).
(1) The Auditor General for Wales must undertake or promote studies designed to enable him to prepare reports as to the impact of —
(a) the operation of any statutory provisions, or
(b) any directions or guidance given by the Assembly (whether or not under a statutory provision),
on economy, efficiency and effectiveness in the discharge of the functions of localgovernment bodies in Wales.
(2) The Auditor General for Wales must from time to time lay before the Assembly a report of any matters which,in his opinion—
(a) arise out of studies under this section, and
(b) ought to be drawn to the attention of the Assembly.
(3) Before undertaking or promoting a study under this section, the Auditor General for Wales must consult—
(a) any associations of local government bodies in Wales which appear to him to be concerned, and
(b) any associations of employees which appear to him to be appropriate.
(4) The Auditor General for Wales and the Assembly must co-operate with each other with respect to the exercise of their respective functions under this section and section 95(2) of the Health and Social Care (Community Health and Standards) Act 2003 (c. 43) (studies by Assembly on impact of statutory provisions).
The Auditor General for Wales must co-operate with the Audit Commission where it seems to him appropriate to do so for the efficient and effective discharge of his functions under sections 41 and 42.
(1) The Auditor General for Wales may, at the request of a local government body in Wales, undertake or promote studies designed to enable him to make recommendations for improving economy, efficiency and effectiveness in the discharge of the functions of the body.
(2) Before making the request the body must consult any associations of employees which appear to it to be appropriate.
(1) The Auditor General for Wales may, at the request of the Secretary of State, conduct,or assist the Secretary of State in conducting, benefit administration studies.
(2) Benefit administration studies are studies designed to enable recommendations to be made for improving economy, efficiency, and effectiveness and quality of performance in the discharge by one or more local authorities in Wales of functions relating to the administration of housing benefit or council tax benefit (or both).
(3) Any information obtained in the course of a benefit administration study may be disclosed by the Auditor General for Wales to the Secretary of State for the purposes of any functions of the Secretary of State which are connected with housing benefit or council tax benefit.
(4) The Auditor General for Wales must send to the Secretary of State a copy of a report of a benefit administration study carried out by the Auditor General for Wales.
(5) The Secretary of State or the Auditor General for Wales may send a copy of a report of a benefit administration study to any local authority to which the study relates.
(6) The Secretary of State may publish a report of a benefit administration study in conjunction with the Auditor General for Wales.
(7) The Auditor General for Wales may conduct, or assist the Secretary of State in conducting, a benefit administration study only if the Secretary of State has made arrangements for the payment to the Auditor General for Wales of a fee in respect of the study.
(8) The amount of the fee must be a reasonable amount agreed between the Secretary of State and the Auditor General for Wales.
(1) Each of these local government bodies in Wales is a relevant body for the purposes of sections 47 to 49—
(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 National Park authority for a National Park in Wales;
(d) a police authority for a police area in Wales;
(e) 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.
(2) The Assembly may by order provide for sections 47 to 49 to have effect as if any other local government body in Wales were a relevant body for the purposes of those sections.
(3) In this section “local authority in Wales” does not include a community council.
(1) The Auditor General for Wales must give any directions which he thinks fit for requiring relevant bodies to publish the information mentioned in subsection (2).
(2) The information is information relating to their activities in a financial year which will, in the opinion of the Auditor General for Wales, facilitate the making of appropriate comparisons—
(a) between the standards of performance achieved by different relevant bodies in the financial year, or
(b) between the standards of performance achieved by relevant bodies in different financial years.
(3) The comparisons are to be made by reference to the criteria of cost, economy, efficiency and effectiveness.
(4) If a relevant body is required by a direction under this section to publish information in relation to a financial year, it must—
(a) make arrangements for collecting and recording the information which 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,
(b) publish the information in accordance with the direction and in a method permitted under section 48 before the end of the period of 9 months starting immediately after the end of the financial year, and
(c) keep a document containing any information published in pursuance of the direction available for inspection by local government electors for its area.
(5) The Assembly may by order vary the period specified in subsection (4)(b).
(6) The period specified in an order under subsection (5) must not be longer than 9 months starting immediately after the end of the financial year in question.
(7) A local government elector for the area of a relevant body may—
(a) at all reasonable times and without payment, inspect and make copies of the whole or any part of a document kept available for inspection by the body under subsection (4)(c);
(b) 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.
(8) A person who has custody of a document kept available for inspection under subsection (4)(c) commits an offence if—
(a) he obstructs a person in the exercise of his rights under subsection (7), or
(b) he refuses to comply with a requirement under subsection (7)(b).
(9) A person guilty of an offence under subsection (8) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.
(1) The permitted methods of publication referred to in section 47(4)(b) are these.
(2) The relevant body may publish the information in a newspaper which is—
(a) printed for sale, and
(b) circulating in its area.
(3) If the relevant body ensures that the distribution condition is met with respect to the information, it may publish the information in a newspaper or periodical publication which—
(a) is produced and distributed by another person (other than a local authority company), and
(b) is free of charge to the recipient.
(4) A relevant body ensures that the distribution condition is met with respect to information if—
(a) in any case, the body takes all reasonable steps to secure that a copy of a publication containing the information is distributed to each dwelling house in its area;
(b) 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 also distributed to business premises in its area.
(5) A local authority company is a company under the control of a local authority.
(6) Section 68(1) of the Local Government and Housing Act 1989 (c. 42) (company under control of local authority) has effect for the purposes of subsection (5) as it has effect for the purposes of Part 5 of that Act.
(1) A direction under section 47 requiring the publication of information must—
(a) identify the financial year or years in relation to which the information is to be published,
(b) specify or describe the activities to which the information is to relate, and
(c) make provision as to the matters to be contained in the information and as to the form in which it is to be published.
(2) A direction under section 47—
(a) may be given so as to apply either to all relevant bodies or to all relevant bodies of a description specified in the direction;
(b) may be varied or revoked by a subsequent direction under that section.
Public Audit (Wales) Act 2004