Public Audit (Wales) Act 2004

Part 1 — Auditor General for Wales

New functions of the Auditor General for Wales

Disclosure of information by or on behalf of public authorities

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After section 146 of the Government of Wales Act 1998 (c. 38) insert—

(146A) (1) The Assembly may, with the consent of the Auditor General for Wales, by order provide for any of its supervisory functions in respect of a public body or a registered social landlord in Wales— (a) to be exercised on its behalf by the Auditor General for Wales, or (b) to be transferred to the Auditor General for Wales. (2) In this section— - “public body” means— 1. a body exercising functions of a public nature, or 2. a body entirely or substantially funded from public money, - “registered social landlord in Wales” means a body which is— 1. registered as a social landlord under Chapter 1 of Part 1 of the Housing Act 1996, and 2. mentioned in any of paragraphs (a) to (c) of section 56(2) of that Act; - “supervisory functions”, in respect of a public body or a registered social landlord in Wales, means functions of examining, inspecting, reviewing or studying the financial or other management of the public body or registered social landlord or the way in which it discharges any of its functions. (3) The Assembly may direct the Auditor General for Wales to prepare a report on his exercise, generally or in respect of a specific body or matter, of any function transferred to him by an order under subsection (1)(b). (4) The Auditor General for Wales must lay before the Assembly any report prepared by him in accordance with a direction under subsection (3). (5) An order under subsection (1) may contain any appropriate consequential, incidental, supplementary or transitional provisions or savings (including provisions in the form of amendments or repeals of enactments).

Additional functions of Auditor General

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Accountability of certain public bodies in Wales

Studies for improving economy etc in services

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After section 145 of the Government of Wales Act 1998 (c. 38) insert—

(145A) (1) The Auditor General for Wales may undertake or promote studies designed to enable him to make recommendations for improving economy, efficiency and effectiveness in the discharge of the functions of any relevant body or bodies. (2) The Auditor General for Wales may also undertake or promote other studies relating to the provision of services by any relevant body or bodies. (3) Subsections (1) and (2) do not entitle the Auditor General for Wales to question the merits of the policy objectives of any relevant body. (4) In determining how to exercise his functions under this section, the Auditor General for Wales shall take into account the views of the Audit Committee as to the studies which he should undertake or promote under this section. (5) For the purposes of this section each of the following is a “relevant body”— (a) a person who prepares auditable accounts within the meaning given in section 95(7); (b) any other person (other than a local government body in Wales) in relation to whom, by virtue of provision made by or under this or any other Act, the Auditor General for Wales carries out examinations or studies relating to the economy, efficiency and effectiveness with which that person has used his resources in discharging his functions; (c) a person (other than a registered social landlord in Wales) in respect of whom the Auditor General for Wales has functions by virtue of provision made under section 146A. (6) Where the Auditor General for Wales undertakes or promotes a study under this section he may arrange for a report containing— (a) the results of the study, and (b) his recommendations (if any), to be laid before the Assembly. (7) In this section— - “local government body in Wales” has the meaning given in section 12(1) of the Public Audit (Wales) Act 2004; and - “registered social landlord in Wales” has the meaning given in section 146A(2).

Studies at request of educational bodies

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After section 145A of the Government of Wales Act 1998 (c. 38) (inserted by section 3) insert—

(145B) (1) The Auditor General for Wales may undertake studies designed to enable him to make recommendations for improving economy, efficiency and effectiveness in the discharge of the functions of a body specified in the first column of the Table, if requested to do so by the body (or one of the bodies) specified in relation to it in the second column of the Table.

Subject of study	Requesting body
The governing body of an institution in Wales within the higher education sector.	The governing body or the Higher Education Funding Council for Wales.
The governing body of an institution in Wales receiving financial support under Part 1 of the Education Act 1994.	The governing body or the appropriate funding agency.
The governing body of an institution in Wales within the further education sector.	The governing body or the National Council for Education and Training for Wales.

(2) Subsection (1) does not entitle the Auditor General for Wales to question the merits of the policy objectives of a body. (3) Where the Auditor General for Wales undertakes a study under subsection (1) he may, with the consent of the body that requested the study, arrange for a report containing— (a) the results of the study, and (b) his recommendations (if any), to be laid before the Assembly. (4) The Auditor General for Wales may, at the request of the Higher Education Funding Council for Wales, give the council advice in connection with the discharge of the council’s functions under section 124B(2)(b) of the Education Reform Act 1988 or paragraph 18(2)(b) of Schedule 7 to that Act. (5) The Auditor General for Wales may, at the request of a higher education corporation or further education corporation in Wales— (a) advise them in connection with the appointment of persons to audit their accounts; (b) arrange for their accounts for a financial year to be audited by one or more members of the staff of the Auditor General for Wales appointed by the corporation. (6) In subsection (5)— (a) “higher education corporation” and “further education corporation” have the same meaning as in the Further and Higher Education Act 1992; (b) references to the accounts of a higher education corporation include references to a statement of accounts prepared by the corporation under section 124B of the Education Reform Act 1988 or paragraph 18 of Schedule 7 to that Act. (7) This section must be construed as one with the Education Act 1996; and references in any enactment to the Education Acts include this section.

Studies relating to registered social landlords

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After section 145B of the Government of Wales Act 1998 (c. 38) (inserted by section 4) insert—

(145C) (1) The Assembly and the Auditor General for Wales may agree on one or more programmes of studies designed to enable the Auditor General for Wales to make recommendations for improving economy, efficiency and effectiveness in the discharge of the functions of registered social landlords in Wales. (2) If a programme is agreed, the Auditor General for Wales shall ensure that studies giving effect to the programme are undertaken by him or on his behalf. (3) It shall be a term of every such programme that the Assembly make good to the Auditor General for Wales the full costs incurred by him in undertaking the programme. (4) This section does not entitle the Auditor General for Wales to question the merits of the policy objectives of a registered social landlord in Wales. (5) Where a study is undertaken under this section by the Auditor General for Wales or on his behalf, he may arrange for a report containing— (a) the results of the study, and (b) his recommendations (if any), to be laid before the Assembly. (6) A person commits an offence if without reasonable excuse he fails to comply with a requirement imposed under section 95(3)(a) or (b) in relation to a study under this section. (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) The Auditor General for Wales may disclose to the Assembly information obtained by him or a person acting on his behalf in the course of a study under this section. (9) “Registered social landlord in Wales” means a body which is— (a) registered as a social landlord under Chapter 1 of Part 1 of the Housing Act 1996, and (b) mentioned in any of paragraphs (a) to (c) of section 56(2) of that Act.

Funding of Auditor General

Expenses and accounts

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Fees

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Administrative matters

Auditor General’s seal

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Staff etc of the Auditor General

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Accounting officer

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Access to information, etc by Auditor General

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Part 2 — Local government bodies in Wales

Chapter 1 — Accounts and audit

Local government bodies in Wales

Local government bodies in Wales

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• (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);

• (ba) a corporate joint committee;

• (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 and crime commissioner for a police area in Wales;

• (fa) a chief constable of a police force maintained under section 2 of the Police Act 1996 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;

• (j) a Welsh probation trust (as defined by paragraph 13(6) of Schedule 1 to the Offender Management Act 2007).

• (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.

Audit of accounts

Audit of accounts of local government bodies in Wales

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• (1) A local government body in Wales—

• (a) must make up its accounts each year to 31 March or such other date as the Welsh Ministers may generally or in any special case direct;

• (b) must ensure that its accounts are audited in accordance with this Chapter.

• (2) The Auditor General for Wales must audit the accounts of local government bodies in Wales.

Appointment of auditors

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Persons to assist auditors

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Code of audit practice

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General duties of auditors

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• (1) This section applies in relation to the audit of a body’s accounts under this Chapter.

• (2) The Auditor General for Wales 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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Auditors' rights to documents and information

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Auditors' rights to documents and information: offences

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Fees for audit

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• (A1) The Wales Audit Office must, in accordance with a scheme for charging fees prepared under section 24 of the Public Audit (Wales) Act 2013, charge a fee in respect of functions exercised by the Auditor General for Wales—

• (a) in auditing the accounts of local government bodies in Wales under this Chapter, and

• (b) in undertaking studies at the request of a local government body under section 44.

• (1) The Wales Audit Office 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 Wales Audit Office must consult—

• (a) any associations of local government bodies in Wales which appear to the Wales Audit Office to be concerned, and

• (b) such other persons as the Wales Audit Office thinks fit.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) A local government body in Wales must, subject to subsection (5), pay to the Wales Audit Office the fee payable in respect of the audit in accordance with the appropriate scale.

• (5) If it appears to the Wales Audit Office that the work involved in a particular audit differed substantially from that envisaged by ... the appropriate scale, the Wales Audit Office may charge a fee which differs from that referred to in subsection (4).

• (5A) But a fee charged under this section may not exceed the full cost of exercising the function to which it relates.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fees prescribed by Assembly

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Auditors' reports and recommendations

Immediate and other reports in public interest

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• (1) In auditing accounts of a body under this Chapter, the Auditor General for Wales 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 General for Wales 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 General for Wales 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 General for Wales 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 General for Wales must send the report to the body... immediately after making it.

• (6) In a case within subsection (4), the Auditor General for Wales must send the report to the body... before the end of the period of 14 days starting with the day on which he concludes the audit.

General report

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• (1) This section applies if the Auditor General for Wales 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 General for Wales 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 General for Wales 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 the Auditor General for Wales 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.

Consideration of reports in public interest

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• (1) This section applies if the Auditor General for Wales 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;

• (e) a probation trust.