Overview of the Structure of the Act
12.The Act consists of seven Parts and 13 Schedules. The main provisions are as follows:
The repeal of legislation under which the Audit Commission operates (the Audit Commission Act 1998) and provision to transfer assets, liabilities and continuing functions to other bodies.
A requirement for relevant authorities other than health service bodies in England to keep accounting records and to prepare an annual statement of accounts, which must be audited. The equivalent provisions for health service bodies exist within the National Health Service Act 2006 and these continue to apply.
A requirement on relevant authorities to appoint an external and independent auditor on the advice of an independent auditor panel and to publish information about the appointment within 28 days of appointment.
A requirement that an audit of a relevant authority (referred to in the Act as a “local audit”) must include a value for money element (replicating the definition set out in existing legislation).
The creation of a regulatory framework for local audit which applies, with modifications, Part 42 of the Companies Act 2006, whereby the Financial Reporting Council and professional accountancy bodies regulate the provision of local audit services.
The transfer of responsibility for setting the code of audit practice and supporting guidance to the National Audit Office, and provisions for how the code should be approved by Parliament.
The transfer of the Audit Commission’s data matching powers for the purposes of assisting in the prevention and detection of fraud to the Secretary of State or the Minister for the Cabinet Office. It was announced on 15 July 2013 that the data matching powers would transfer to the Cabinet Office.
A power for the Secretary of State to commission an inspection of a best value authority, mirroring powers in other legislation.
The Act amends the National Audit Act 1983 to broaden the powers of the Comptroller and Auditor General to enable the National Audit Office to undertake examinations of thematic value for money issues relating to groups of relevant authorities (with some exclusions), and to access information held by the latter where the National Audit Office needs it to fulfil its responsibilities. Health service bodies are not included within the provision because they are within the remit of the National Audit Office for value for money considerations.
The Act also extends existing powers for the Secretary of State to issue codes of practice concerning the publication of information by certain authorities, so that such codes may apply to relevant authorities classified as ‘smaller authorities’ for the purposes of the Act, and to require those authorities to publish that information.
The Act amends the Local Government Act 1986 to ensure that local authorities comply with some or all of a code of recommended practice on local authority publicity.
The Act amends the council tax referendums provisions in Chapter 4ZA of Part 1 of the Local Government Finance Act 1992 so that levies are included in a local authority’s calculation of whether its council tax is excessive for the purpose of determining whether it is required to hold a council tax referendum
The Act allows the Secretary of State to make regulations to allow the public to film, blog and tweet at the public meetings of local government bodies, and to require written records to be kept of certain decisions taken by officers of these bodies.
The Act also allows for the Secretary of State to make regulations about the conduct of parish polls.