Section 91 New appointment arrangements for non-NHS auditsI1

In the Local Audit and Accountability Act 2014, after Part 2A (inserted by section 90(1)) insert—

“Part 2B

Appointment etc of local auditors: authorities other than health service bodies

Local Audit Office to appoint auditor

6G

(1)

This section applies in relation to a relevant authority other than a health service body.

(2)

The Local Audit Office must, in relation to each financial year—

(a)

decide that it is to audit the accounts of the authority, or

(b)

appoint a registered local audit provider to audit those accounts.

(3)

A decision under subsection (2)(a) is to be treated for the purposes of this Act as the appointment of the Office as a local auditor under this section.

(4)

In the following provisions of this Part, references to an appointment are to an appointment under this section.

Further provision about appointments

6H

(1)

A single appointment may be made for multiple financial years.

(2)

An appointment must be made before the beginning of the financial year (or the first of the financial years) to which it relates.

(3)

The appointment of a registered local audit provider is to be on terms agreed in writing between the Local Audit Office and the provider.

(4)

Two or more local auditors may be appointed—

(a)

to act jointly in relation to some or all parts of the accounts;

(b)

to act separately in relation to different parts of the accounts;

(c)

to carry out different functions in relation to the audit.

(5)

If, as a result of an appointment made in accordance with subsection (4), a function under this Act may be exercised by two or more local auditors—

(a)

it may be exercised by both or all of them acting jointly or by such one or more of them as they may determine, and

(b)

references (however expressed) to the local auditor by whom the function is or has been exercised are to the auditors by whom it is or has been exercised.

(6)

The Local Audit Office must not appoint a person whom it has reason to think will be unable to act because of section 32B (independence requirement).

Procedure for appointment

6I

(1)

Before making an appointment, the Local Audit Office must inform the relevant authority of the person it proposes to appoint and give the authority a reasonable opportunity to make representations.

(2)

As soon as practicable after making an appointment, the Office must send to the relevant authority concerned a notice that—

(a)

states that it has made the appointment,

(b)

identifies the local auditor that has been appointed, and

(c)

specifies the financial year or years for which the local auditor has been appointed.

(3)

A relevant authority must publish a notice under subsection (2) within the period of 28 days beginning with the day on which it receives it.

(4)

The notice must be published—

(a)

if the relevant authority has a website, on its website;

(b)

otherwise, in such manner as the relevant authority thinks is likely to bring the notice to the attention of persons who live in its area.

Resignation and removal

6J

(1)

If the Local Audit Office is appointed, it may resign from the appointment by giving written notice to the relevant authority concerned.

(2)

If a registered local audit provider is appointed, the terms of the appointment must include—

(a)

provision for the resignation of the provider, and

(b)

provision for the removal of the provider by the Local Audit Office.

(3)

If the appointed local auditor resigns or is removed, section 6G(2) applies again in relation to the relevant authority concerned.

(4)

But if the timing of the resignation or removal makes it impracticable for section 6H(2) to be complied with, the new appointment must instead be made as soon as practicable.

Audit fees

6K

(1)

The Local Audit Office must charge a relevant authority a fee in respect of the carrying out of an audit by a local auditor appointed by the Office.

(2)

The amount of the fee may be revised (even after it has been paid or the audit concerned has been completed).

(3)

The payment terms are to be determined by the Office and notified in writing to the relevant authority.

(4)

The Office must publish a table of indicative fees, from which each relevant authority (other than a health service body) can, in respect of each financial year, ascertain the amount the Office would ordinarily expect to charge it for that year.

(5)

The Office must give reasons if it—

(a)

revises a fee upwards, or

(b)

charges a relevant authority a higher amount than that indicated in the table of indicative fees.”