Local Government Reform Act 2014

“Chapter 2

Position of Chief Executive

Position of chief executive

1. (1) For every county, city and city and county there shall be a chief executive to be known as ‘the Chief Executive of.......’ (followed by the name of the city council, county council or city and county council, as the case may be) who shall hold employment under the council concerned.

2. (2) Subject to section 16 of the Local Government Reform Act 2014, a person who was, immediately before the 2014 establishment day, a county manager or city manager shall, unless he or she was retiring or resigning with effect from the end of that day, continue in office and shall be referred to in accordance with subsection (1).

3. (3)

   • (a) A reference in any enactment, however expressed, to a county manager or city manager shall, with effect to the 2014 establishment day, be read (other than in respect of a provision that was spent before that day or is in the nature of a transitional matter provided for by the Local Government Reform Act 2014) as a corresponding reference to a chief executive and, where the context permits or requires, includes a reference to the chief executive of a city and county council.

   • (b) Paragraph (a) does not apply to—

     • (i) the title of any Act,

     • (ii) the citation of an instrument made under any Act, or

     • (iii) the name of any organisation or body referred to in any enactment.

4. (4) Any function which immediately before the date of the commencement of section 54 of the Local Government Reform Act 2014 was, by virtue of any enactment a function of a city manager or a county manager shall, on and from that date, continue to vest in and be a function of the chief executive of the local authority concerned.

5. (5) The chief executive of a local authority shall by virtue of his or her position be the chief executive for every joint body whose functional area is wholly situated within such county.

6. (6) Where the functional area of a joint body extends into—

   • (a) two or more counties, or

   • (b) a city or a city and county and one or more counties,

   then the chief executive of such county, city or city and county as the Minister shall by order appoint shall also be the chief executive for such joint body.

7. (7) The Minister may prescribe by regulations any body to be a joint body and any body so prescribed shall be a joint body for the purposes of this section.

8. (8) The position of chief executive is, subject to section 145, an office to which the Local Authorities (Officers and Employees) Act 1926, applies.

Appointment of chief executive

1. (1) The following are reserved functions—

   • (a) the appointment by a county council, city council or a city and county council of a chief executive under section 6 of the Local Authorities (Officers and Employees) Act 1926 (in this section referred to as the ‘Act of 1926’) by virtue of a recommendation of the Chief Executive of the Public Appointments Service, and

   • (b) the suspension or removal from employment of a chief executive in accordance with section 146.

2. (2) For the purposes of section 6 of the Act of 1926 a request shall be deemed to have been submitted in respect of the employment of a chief executive—

   • (a) in the case of a chief executive to whom section 147 applies—

     • (i) 6 months in advance of the expiration of the tenure period referred to in section 147(1), or

     • (ii) on the date that chief executive ceases to hold employment,

     whichever is the earlier, and

   • (b) in any other case—

     • (i) 6 months in advance of the date that chief executive would attain the age-limit for his or her employment, or

     • (ii) on the date that chief executive ceases to hold employment,

     whichever is the earlier.

3. (3) Where, as respects a county council, city council or city and county council, including a county council or city council in a group of authorities, a recommendation is made under section 6 of the Act of 1926 of a person for appointment as the chief executive, such council shall—

   • (a) within 3 months of the date of the recommendation meet and decide to appoint or not appoint as chief executive the person so recommended, and

   • (b) in the event of deciding not to approve the appointment, furnish to the recommended person the reasons for such decision.

4. (4)

   • (a) The Minister may make regulations relating to the procedures to be followed by every local authority (including a county council or city council in a group of authorities)—

     • (i) when considering a recommendation made to it to which subsection (1)(a) relates, and

     • (ii) for the purposes of subsection (3),

     and each such local authority shall comply with those regulations.

   • (b) Without prejudice to the generality of paragraph (a), regulations under this subsection may provide for arrangements to be put in place and used in respect of the consideration of a recommendation made under section 6 of the Act of 1926, and for that purpose such arrangements may include—

     • (i) provisions for the purpose of a local authority seeking information from the recommended person in respect of his or her proposed appointment, the time periods within which—

       • (I) such information may be so sought, and

       • (II) further information may be so sought,

       and the manner of the provision of such information to the local authority,

     • (ii) the manner of dealing with information, whether from the recommended person or otherwise, associated with such a recommendation,

     • (iii) the criteria to apply in respect of the consideration of such a recommendation,

     • (iv) the records to be maintained by a local authority in relation to the consideration of such a recommendation,

     • (v) the conducting otherwise than in public of any meeting, or part of a meeting, that considers or otherwise relates to such a recommendation, and

     • (vi) the keeping in a confidential manner of information obtained, whether from the recommended person or otherwise, and records maintained that relate to such a recommendation.

   • (c) In making regulations under paragraph (a), the Minister may have regard to and take account of any code of practice issued by the Commission for Public Service Appointments under section 23 of the Public Service Management (Recruitment and Appointments) Act 2004 in existence at the time of the making of the regulations that would relate (in whole or in part) to the selection process that precedes a recommendation to which subsection (1)(a) applies.

5. (5) Where, as respects a county council, city council or city and county council, including a county council or city council in a group of authorities, such council has decided to not appoint as chief executive the person recommended to which subsection (1)(a) relates, then, for the purposes of section 6 (other than subsection (4) ) of the Act of 1926, and notwithstanding the said subsection (4) or any other provision of this Act or any other enactment, a further request shall be deemed to have been submitted in respect of the employment of a chief executive.

6. (6) Where a position of chief executive becomes vacant the Minister shall appoint a person to be the chief executive temporarily until a permanent appointment to the position is made but such temporary appointment may be terminated by the Minister at any time.

7. (7) Section 5 of the Act of 1926 does not apply to the position of chief executive.

Suspension and removal of chief executive

1. (1) (a) Subject to this section, the elected council of a local authority may by resolution suspend or remove from employment the chief executive for such local authority for stated misbehaviour or if his or her suspension or removal appears to them to be necessary for the effective performance by the local authority of its functions.

   • (b) A copy of any resolution passed under this section shall be sent without delay to the Minister.

2. (2) Notice of the intention to propose a resolution under this section shall—

   • (a) be signed by at least one-third of the total number of members of the local authority concerned,

   • (b) contain a statement of the reasons for the proposed suspension or removal,

   • (c) in the case of a suspension, specify a period not exceeding 2 months for the proposed suspension,

   • (d) specify a day for the holding of a special meeting to consider the proposed suspension or removal being a day which is not less than 21 days after the day on which the notice is delivered under paragraph (e),

   • (e) be delivered to the meetings administrator, and

   • (f) be delivered or sent to the chief executive concerned.

3. (3) The meetings administrator shall on receipt of a notice and without delay send a copy of it to every member of the local authority and convene a special meeting for the date so specified to consider the proposed suspension or removal.

4. (4) The chief executive may prepare a statement of response in relation to the proposed suspension or removal and such statement shall be sent to each member of the local authority concerned.

5. (5) It is necessary for the passing of a resolution under this section that—

   • (a) at least three-quarters of the total number of members of the local authority concerned vote in favour of the resolution, and

   • (b) the members of the council concerned shall have considered any statement prepared by the chief executive under subsection (4).

6. (6) A person who is suspended under this section may subsequently be removed from office in accordance with this section.

7. (7)

   • (a) A chief executive shall not be removed under this section without the sanction of the Minister given under this subsection.

   • (b) The Minister may appoint a panel of 3 persons—

     • (i) to consider the removal of a chief executive the subject of a resolution under this section and the chief executive’s statement of response,

     • (ii) to recommend whether the Minister should give sanction to such removal, and

     • (iii) to make such other recommendations (if any) as the panel may consider appropriate in all the circumstances.

   • (c) A panel shall be independent in the performance of its functions.

   • (d) A panel shall include a chairperson and 2 other persons having knowledge of or experience in local government, human resources or management.

   • (e) A sanction shall not be given under this subsection except by virtue of a recommendation under paragraph (b).

8. (8) The Minister may by regulations prescribe any matter of procedure for the purposes of this section.

Tenure of chief executive

1. (1) Notwithstanding any other enactment, a person appointed to a position of chief executive holds the employment unless he or she earlier dies, resigns or is removed, during whichever of the following tenure periods is the shorter—

   • (a) a period of such length as the Minister specifies by order,

   • (b) the period from the date of the appointment to the date on which he or she attains such age as the Minister specifies by order,

   and on the expiration of that period he or she ceases to hold the employment.

2. (2) Notwithstanding any enactment (including subsection (1) ) or instrument made under such enactment, the tenure period of a chief executive referred to in subsection (1)(a) shall, subject to and in accordance with this section and with regulations made by the Minister for the purposes of this subsection, be extended where notification (in this section referred to as the ‘prescribed notification’)—

   • (a) is given by the chief executive to the Cathaoirleach of the local authority concerned, and

   • (b) is in the form prescribed by regulations made under this section, but in no case shall the tenure period as so extended exceed 10 years.

3. (3) On receipt of a prescribed notification the Cathaoirleach of the local authority concerned shall—

   • (a) inform the members of the local authority of it at the next meeting of that local authority, and

   • (b) transmit a copy of it to the Minister and to the chief executive of the Public Appointments Service.

4. (4) The Minister may make regulations for the purposes of subsection (2)and such regulations may provide for:

   • (a) the form of the prescribed notification;

   • (b) the period (in this section referred to as the ‘notification period’) within which a prescribed notification shall be given;

   • (c) subject to subsection (2), the period by which the tenure period shall be extended;

   • (d) the position of chief executive to which subsection (5) does not apply;

   • (e) the application of different periods for the purposes of paragraphs (b) and (c) to specified classes of chief executive.

5. (5) Subject to regulations made under subsection (4)(d) —

   • (a) a chief executive whose tenure period is extended under subsection (2) shall not apply for appointment to any position of chief executive during the period commencing on the date the chief executive gives a prescribed notification and ending on a date which is 6 months prior to the expiration of the extended tenure period (in this subsection referred to as the ‘exclusion period’), and

   • (b) notwithstanding section 6 of the Local Authorities (Officers Employees) Act 1926, a chief executive who has given a prescribed notification shall not be considered by the Public Appointments Service for selection for any position of chief executive during the exclusion period.

6. (6)

   • (a) A notification period referred to in subsection (4) (b) shall be wholly within the tenure period.

   • (b) A prescribed notification for the purposes of this section which is given outside of the notification period is invalid.

7. (7) Where the tenure period of a chief executive stands extended in accordance with this section, such extended tenure period shall be the tenure period for the purposes of subsection (2) of section 145 and that section shall apply accordingly.

8. (8) The Local Government (Tenure of Office) Order 2000 (S.I. No. 221 of 2000) and the Local Government (Tenure of Office of Managers) Regulations 2000 (S.I. No. 219 of 2000) shall be deemed to have been made under subsections (1) and (4), respectively, and shall continue to have effect and may be amended or revoked accordingly.

9. (9) Nothing in this section operates to interfere with or alter the tenure of a chief executive—

   • (a) whose tenure is governed by an order under section 47 of the Local Government Act 1991 (in this subsection referred to as the ‘Act of 1991’), or

   • (b) whose tenure is governed by such an order and section 47A (inserted by section 1 of the Local Government Act 2000) of the Act of 1991,

   notwithstanding the repeal by this Act of the Act of 1991 and of the Local Government Act 2000.

   Deputy chief executive

   1. (1) (a) A chief executive, following consultation with the Cathaoirleach of the local authority concerned may by order appoint an employee of that authority to be a deputy chief executive for the purposes of subsection (2) and may at any time terminate such appointment.

   2. (b) An order under paragraph (a) may provide that where an appointee specified in the order is not available such other employee as may be so specified shall stand appointed as deputy chief executive for so long as the first-mentioned appointee is unavailable.

   3. (c) An appointment under this subsection may be made by reference to a particular individual or to the holder for the time being of a particular employment.

10. (2) A deputy chief executive shall by virtue of this section act as and be the chief executive for the duration of any period which may arise from time to time (whether by way of vacation, illness or other reason) during which the chief executive is temporarily unable to act.

11. (3)

    • (a) Where a chief executive has for any reason become temporarily unable to act and—

      • (i) has not made an appointment under subsection (1),

      • (ii) there is no subsisting appointment, or

      • (iii) the appointee is incapacitated or otherwise unable to act,

      the Cathaoirleach of the local authority concerned may appoint an employee of the local authority to be deputy chief executive for the remainder of the duration of the inability of the chief executive to act and may at any time terminate such appointment.

    • (b) Notification of an appointment under subsection (1) or (3) shall be sent to the Minister and every member of every local authority concerned as soon as may be after the appointment is made.

12. (4)

    • (a) The Minister may appoint an employee of a local authority to be deputy chief executive if a chief executive is for any reason temporarily unable to act and an appointment under subsection (1)or (3) is not for the time being in force.

    • (b) The Minister may at any time terminate an appointment to which paragraph (a) applies.

13. (5) A deputy chief executive shall act as and be the chief executive during the continuance of the inability of the chief executive to act or until—

    • (a) the appointment is sooner terminated under subsection (1), (3) or (4), or

    • (b) on account of the death, retirement, resignation or inability otherwise to act, of the deputy chief executive.

14. (6) A reference in any enactment including this Act to a chief executive shall be read as including a deputy chief executive acting as chief executive in accordance with this section.

Executive functions

1. (1) In this section—

‘elected council’ includes the members of a joint body;

‘local authority’ includes a joint body.

• (2) In respect of each local authority for which he or she is chief executive, a chief executive is responsible for—

  • (a) the efficient and effective operation of each such local authority, and

  • (b) for ensuring under section 132 the implementation without undue delay of the decisions of the elected council.

• (3) For the purposes of discharging the responsibilities set out under subsection (2), the chief executive shall—

  • (a) exercise and perform in respect of each local authority for which he or she is the chief executive, the executive functions of such local authority (including all functions in relation to the employees of each such local authority), and

  • (b) for that purpose carry on and manage and control generally the administration and business of the authority.

• (4) Every function of a local authority which is not a reserved function is, for the purposes of this Act, an executive function of such local authority.

• (5) All such matters and things, including the making of contracts and the affixing of the official seal, as are necessary for or incidental to the exercise or performance of the executive functions of a local authority shall, subject to this Act or any regulations made under it, be done by the chief executive for such local authority.

• (6) Subject to law, the functions of a chief executive shall be performed in accordance with the policy of the local authority as determined by the elected council in accordance with Chapter 1 of this Part.

• (7) The chief executive, in performing his or her functions in accordance with subsection (6), shall have regard to the views of the elected members of the council, expressed in any of the following ways:

  • (a) at a meeting of the council;

  • (b) at a meeting of the municipal district members;

  • (c) at a meeting of any committee of the council;

  • (d) in responses in writing to any request for input to the development by the local authority of a new policy or an amendment of an existing policy.

• (8) The chief executive shall, when requested by the elected council—

  • (a) report on the actions already taken and planned to be taken in exercise of his or her executive functions,

  • (b) review the implementation of, and any actions planned to implement, any executive function and report to the council in the matter.

  Executive functions and shared services

  149A. (1) In respect of executive functions of a local authority, where 2 or more local authorities agree, or had agreed before the commencement of this section, that, in the interests of efficiency and effectiveness, a specified executive function should be performed by one of them (in this subsection referred to as the ‘nominated local authority’) on behalf of the other local authority or local authorities (as the case may be), then the nominated local authority may perform, and be deemed always to have had the power to perform, the function on behalf of the other local authority or local authorities (as the case may be).

• (2) Nothing in this section shall be read as affecting section 34(1)(aa) (inserted by the Waste Management (Amendment) Act 2001) of the Waste Management Act 1996.”.

• (2) The amendments in Schedules 1 and 2, in so far as they relate to the chief executive, have effect for the purpose of supplementing subsection (1).

55. Amendment of section 151 (chief executive acting by signed order, etc.) of Principal Act

55. Section 151 of the Principal Act is amended by substituting the following for subsection (7):

• “(7) Every document claiming to be certified in writing—

  • (a) by a chief executive to be a true copy of an order made by a chief executive in accordance with this section, or

  • (b) by a delegated employee in accordance with section 154 to be a true copy of an order made by a delegated employee in accordance with that section,

  shall—

  - (i) be received in evidence without proof of the signature of the person claiming so to certify or that such person was such chief executive or such delegated employee, as the case may be, and
  
  - (ii) until the contrary is proved, be deemed to be evidence of the contents of the order of which it claims to be a copy and of the fact that such order was duly made and signed by such chief executive in accordance with this section or by such delegated employee in accordance with section 154, as the case may be, on the date stated in the certified copy.”.
  

56. Local authority associations

56. Section 225 of the Principal Act is amended—

• (a) in subsection (3) by substituting the following for paragraphs (c) and (d):

• “(c) the provision of policy support and other assistance to its constituent authorities as regards any matter relating to or that may relate to local government,

• (d) the assessment of public policy as regards any matter relating to or that may relate to local government, and

• (e) the provision of advice and the making of submissions to the Minister or other public authorities as regards such matters.”,

and

• (b) by inserting the following after subsection (3):

• “(3A)

  • (a) Where an association of local authorities or, in the event that there is a single association, such association requests a meeting with the Minister in relation to activities under subsection (3), the Minister shall meet a delegation from the association, or hold a meeting to which paragraph (b) applies, at least once in every year.

  • (b) Where there is more than one association of local authorities in being at the time of a request or requests for a meeting with the Minister under this subsection is or are received, the Minister may require the meeting for the purposes of paragraph (a) to be a meeting with a joint delegation from those associations.”.

57. Amendment of Schedule 10 (meetings and proceedings of local authorities) to Principal Act

57. Schedule 10 to the Principal Act is amended—

• (a) in paragraph 3 by substituting the following for subparagraphs (1) and (2):

• “(1) In every year in which a local election is held, the annual meeting of a local authority shall be held on the fourteenth day after the polling day or, where the poll is for any reason countermanded, interrupted or adjourned, after the day on which the poll is completed or the fresh poll is held.

• (2) Where the fourteenth day referred to in subparagraph (1) is an excluded day, the meeting shall be held on the next following day which is not an excluded day.”,

• (b) in paragraph 4 by substituting the following for subparagraph (4):

• “(4) In the case of the annual meeting of a local authority in an election year the business to be transacted shall, subject to this paragraph, include—

  • (a) the consideration of the election, appointment or nomination of members of joint bodies or other bodies elected, appointed or nominated by such local authority, and

  • (b) fixing the day or days for the first meetings of the municipal district members for each of the municipal districts within the functional area of the local authority, so long as the day or days so fixed shall not be later than 10 days after that annual meeting of the local authority and not be an excluded day.”,

• (c) by substituting the following for paragraph 5:

“5. A local authority shall hold its budget meeting in accordance with section 103 within the period directed by the Minister for the purposes of that section.”,

• (d) in paragraph 13 by inserting the following after subparagraph (3):

• “(4) Where at a meeting—

  • (a) it has been resolved in accordance with subparagraph (1) that a member leave a meeting and the chair adjourns the meeting under subparagraph (3) because the member refuses to leave, and

  • (b) it has been resolved by further resolution that the member was the cause of the meeting being so adjourned,

  then any remuneration to, and any allowances for expenses incurred, by that member concerned, as provided for by regulations under section 142, shall be reduced for the period of 12 months (irrespective of whether or not a local election is to be held during that period) from the date of the meeting concerned as follows:

  - (i) on the first occasion of it being resolved that the member refused to so leave, 10 per cent;
  
  - (ii) on the next or subsequent occasions of it being so resolved and where paragraph (iii), (iv), (v) or (vi) does not apply, 10 per cent;
  
  - (iii) on the next occasion of it being so resolved within 3 months of it being resolved in circumstances to which paragraph (i)or (ii) relates, 30 per cent;
  
  - (iv) on the next occasion of it being so resolved within 3 months of it being resolved in circumstances to which paragraph (iii)relates, 50 per cent;
  
  - (v) on the next occasion of it being so resolved within 3 months of it being resolved in circumstances to which paragraph (iv)relates, 70 per cent;
  
  - (vi) on the next occasion of it being so resolved within 3 months of it being resolved in circumstances to which paragraph (v)relates, 90 per cent.
  

• (5)

  • (a) Where at a meeting—

    • (i) the resolutions referred to in clauses (a) and (b) of subparagraph (4) have been resolved, and

    • (ii) where, following the chair expressing the further opinion that the member has continued to be disorderly by disregarding the ruling of the chair, or by behaving irregularly, improperly or offensively, or by otherwise obstructing the business of the meeting and the chair has conveyed such further opinion to the members present by naming the member concerned, it has been resolved further by at least two-thirds of those present and voting, on a motion moved by the chair or any member (which motion, if seconded, shall have been put and determined without discussion) that for a specified period ‘the member stand suspended with immediate effect from all meetings of the local authority and any committee of the local authority, and all meetings of municipal district members’ and the period so specified is, subject to clause (c), for at least one month but does not exceed 3 months,

    then the consequences provided for by subparagraph (4) shall not apply to the member concerned in relation to that suspension except and to the extent provided for by clause (g)in respect of any other suspension.

  • (b) Having regard to clause (f), the members of the local authority may, at any subsequent meeting during the period specified in the resolution under clause (a) (ii), pass a further resolution lifting the suspension, and the suspension shall be lifted with immediate effect.

  • (c) If, within a period of 3 months following the ending of a suspension in accordance with clause (a) or (b), further resolutions to which clause (a) relates are proposed to be adopted in respect of that member, then the period provided for in a resolution under clause (a) (ii) shall be at least 3 months but shall not exceed 6 months.

  • (d) Having regard to clause (f), a suspension under this subparagraph shall cease to have effect on the ordinary day of retirement.

  • (e) Where a resolution under clause (a) suspending a member has been passed, the member concerned shall not be entitled to attend, speak at or take any part in any meetings of the local authority and any committee of the local authority, and any meetings of municipal district members, and notwithstanding the provisions of paragraphs 6 and 7, shall not be entitled to present a request to the Cathaoirleach to require a special meeting of the local authority to be convened and shall not be entitled to receive any services in respect of meetings of the local authority or any committee of the local authority, or meetings of municipal district members, including the agenda and papers circulated to members, for the period specified in the resolution while it remains in force.

  • (f) No remuneration to, or allowances for expenses incurred, by the member concerned, as provided by regulations under section 142, shall be paid (irrespective of whether a local election is to be held during the period concerned) for the duration of the suspension to which clause (a) or (c) relates. Notwithstanding any lifting of a suspension in accordance with clause (b), or cessation of a suspension in accordance with clause (d), such lifting or cessation shall not have the effect of reducing the period in respect of which remuneration or allowances for expenses incurred are not to be paid as a consequence of the suspension.

  • (g) The suspension of remuneration or allowances for expenses incurred by virtue of clause (f) shall, during the suspension period specified in the resolution under this paragraph, supersede any reduction in remuneration or allowances for expenses that would, but for this clause, be incurred under subparagraph (4) but shall not affect any such reduction after the suspension period so specified.

• (6) The chief executive, following consultation with the Cathaoirleach, may make such provision for the exclusion or, where necessary, the removal from any meeting of the local authority or any committee of the local authority, or meeting of municipal district members, of the member suspended in accordance with subparagraph (1) or (5) as appear necessary to the chief executive.”,

• (e) in paragraph 15 by substituting “chief executive” for “manager”,

• (f) in paragraph 17(1), by substituting “or, subject to any regulations made under section 44(3), a joint committee” for “or a joint committee”, and

• (g) in paragraph 17, by inserting the following after subparagraph (1):

• “(1A) In the application under subparagraph (1) of paragraph 13, nothing shall be read as enabling a committee of a local authority or a joint committee passing a resolution to suspend a person other than from the committee or joint committee itself.”.

PART 8 Financial Procedures, Audit and Oversight

Chapter 1 Financial Procedures and Audit

58. Amendment to Chapter 1 (financial procedures) of Part 12 of Principal Act

58. Chapter 1 of Part 12 of the Principal Act is amended—

• (a) in section 97 by deleting subsection (2) (a),

• (b) in section 97 by inserting in subsection (3) “(including by or on behalf of a successor authority in respect of a dissolved body to which the successor authority relates)” after “all money received by or on behalf of a local authority”,

• (c) by deleting sections 100 and 101,

• (d) in section 102 by substituting the following for subsection (3):

• “(3) The draft local authority budget shall be prepared under the direction of the chief executive in the manner and in the format that may be prescribed by regulations made by the Minister showing the amounts necessary for the functional programmes of the authority.”,

• (e) in section 102 by inserting the following after subsection (4):

• “(4A)

  • (a) In the case of a county council or a city and county council, the chief executive shall consult the municipal district members for each municipal district in the council’s functional area in the preparation of a draft local authority budget and, for that purpose, a draft budgetary plan for the municipal district shall be prepared under the direction of the chief executive and submitted for consideration by the municipal district members for each municipal district in the manner and in the format that may be prescribed by regulations made by the Minister.

  • (b) In determining the resources to be made available to each municipal district in the draft budgetary plan, the chief executive shall have regard to—

    • (i) the needs of, and the resources available or likely to be available to, the local authority, and

    • (ii) resource needs of each municipal district including, where appropriate, the population of each municipal district.

  • (c) Following consideration of a draft budgetary plan under paragraph (a), the municipal district members shall by resolution adopt the draft budgetary plan with or without amendment.

  • (d) The making of amendments under paragraph (b) by the municipal district members is a reserved function.

  • (e) The chief executive shall take account of any budgetary plan adopted by the municipal district members in preparing the draft local authority budget (in accordance with subsection (2)).”,

• (f) in section 103 by substituting the following for subsection (2) (b):

• “(b) which is held during the period directed by the Minister, and”,

• (g) in section 103 by substituting the following for subsection (7) (b):

• “(b) shall by resolution adopt the draft local authority budget with or without amendment, and—

  • (i) shall—

    • (I) subject to section 10 of the Local Government (Financial Provisions) Act 1978, by resolution determine in accordance with the local authority budget as so adopted, the annual rate on valuation to be levied, and

    • (II) where appropriate, have regard to the base year adjustment determined in accordance with section 29 of the Local Government Reform Act 2014,

    or

  • (ii) where it is a joint body, shall prepare and by resolution adopt, in accordance with the local authority budget as so adopted, the demand by the joint body whereby the money to meet the expenses of the joint body, in the forthcoming local financial year is to be obtained.”,

• (h) in section 103 by substituting the following for subsection (9):

• “(9) Notwithstanding the other provisions of this section and section 102, a local authority budget may be adopted and the annual rate on valuation determined (including, where appropriate, having regard to the base year adjustment determined in accordance with section 29 of the Local Government Reform Act 2014) in the local financial year to which that budget or that rate applies, where this is in accordance with the period directed by the Minister for holding the local authority budget meeting.”,

• (i) by inserting the following new section after section 103:

“Schedule of municipal district works

103A. (1) As soon as may be following the adoption of the local authority budget, a schedule of proposed works of maintenance and repair to be carried out during the financial year in each municipal district shall be prepared under the direction of the chief executive, having regard to the availability of resources, in the manner, format and within the timescale that may be prescribed by regulations made by the Minister.

• (2) A schedule prepared for the purposes of subsection (1) shall be considered by the municipal district members concerned and be adopted by resolution, with or without amendment by it, within such time limit and in accordance with such conditions and requirements as may be prescribed by the regulations made by the Minister.

• (3) In making an amendment under subsection (2) the municipal district members shall have due regard to the local authority budget adopted in accordance with section 103(9).

• (4) If the schedule prepared for the purpose of subsection (1) is not adopted by the municipal district members in accordance with subsection (2) and any regulations made under that subsection, then the local authority concerned shall consider that schedule and by resolution adopt it with or without amendment (having due regard to the local authority budget adopted in accordance with section 103(9) ) within such time limit as may be prescribed by the regulations made by the Minister.”,

• (j) in section 105 by substituting in subsection (2) “local authority” for “county council or city council” in both places where it occurs,

• (k) in section 106 by deleting paragraph (6) (b),

• (l) in section 110 by substituting in subsection (11) “the entire administrative area of a local authority” for “an entire county or city”,

• (m) in section 111 by deleting paragraphs (c), (d) and (e) of subsection (1),

• (n) in section 111 by substituting “local authority” for “county council or city council” in subsection (1) (f),

• (o) in section 112 by inserting the following after subsection (1):

• “(1A) In stating his or her opinion and preparing the report or special report, as the case may be, in accordance with section 120, the local government auditor shall take account of any objection and decision recorded in accordance with subsection (1).”,

and

• (p) in section 112 by deleting subsection (2).

59. Audit committee

59. The Principal Act is amended by substituting the following for section 122:

“122. (1) A local authority shall establish a committee, to be known as an audit committee, within 3 months of—

• (a) the polling day for the election of the incoming members of the local authority or,

• (b) where the poll is for any reason countermanded, interrupted or adjourned, the day on which the poll is completed or the fresh poll is held, and from that establishment any audit committee previously established shall cease to exist.

• (2) The functions of an audit committee are—

  • (a) to review financial and budgetary reporting practices and procedures within the local authority that has established it,

  • (b) to foster the development of best practice in the performance by the local authority of its internal audit function,

  • (c) to review any audited financial statement, auditor’s report or auditor’s special report in relation to the local authority and assess any actions taken within that authority by its chief executive in response to such a statement or report and to report to that authority on its findings,

  • (d) to assess and promote efficiency and value for money with respect to the local authority’s performance of its functions, and

  • (e) to review systems that are operated by the local authority for the management of risks.

• (3) The Minister may prescribe by regulations for all or any of the following matters regarding an audit committee:

  • (a) its membership;

  • (b) the holding by it of meetings, including the frequency of those meetings and the conduct of them;

  • (c) the preparation of reports by it and the furnishing of them to other persons;

  • (d) the performance by it of its functions, whether generally or in particular cases, and the procedures to be followed in relation to that performance;

  • (e) the provision for privilege to attach to statements made to it or made by members of the committee in their capacity as such members;

  • (f) such other matters that are incidental to, or consequential on, any of the matters set out in paragraphs (a) to (e).”.

60. Consideration of annual financial statement and auditor’s report

60. The Principal Act is amended by substituting the following for section 121:

“121. (1) Following receipt by the local authority or joint body (in this section referred to as a ‘relevant authority’) of the audited financial statement, auditor’s report or auditor’s special report, the chief executive of the relevant authority shall provide that statement or report to the audit committee for consideration at the next practicable meeting of the committee.

• (2) The local government auditor who conducted the audit, or who has been appointed in accordance with section 124, shall attend a meeting of the audit committee to present his or her report and clarify such issues as may be necessary in relation to the content of the auditor’s report or special report.

• (3) The audit committee shall report to the relevant authority on its consideration of the audited financial statement, auditor’s report or auditor’s special report at the next practicable meeting of the relevant authority following the audit committee’s consideration.

• (4) At any time within 3 months of the audited financial statement, auditor’s report or auditor’s special report having been submitted to the relevant authority in accordance with section 120, the local government auditor who carried out the audit may notify the local authority or joint body that he or she wishes to discuss it with that authority.

• (5) Following notification under subsection (4), a local government auditor is entitled to attend the next meeting of the relevant authority following the notification to discuss the audited financial statement, auditor’s report or auditor’s special report, as the case may be, or to attend such other meeting of the relevant authority as the local government auditor may specify.

• (6) Subject to any guidelines the Minister may issue from time to time, the matters to be discussed by an audit committee or the relevant authority at a meeting during any period when the local government auditor concerned attends shall be limited to matters directly related to the audited financial statement, the auditor’s report or the auditor’s special report, as the case may be.

• (7) A local government auditor is entitled to qualified privilege in relation to any statements made by him or her at any meeting that he or she attends under this section in his or her capacity as such an auditor.”.

Chapter 2 National Oversight and Audit Commission

61. National Oversight and Audit Commission

61. (1) The Principal Act is amended by inserting the following Part after Part 12: