Explanatory note

This Order amends, in relation to Wales, two statutory instruments in order to bring them into accord with the provisions of the Public Audit (Wales) Act 2004 (“the Act”).

The Act confers a number of new functions on the Auditor General for Wales. The most significant effect of the new functions is that the Auditor General will, when the Act is fully in force, exercise most of the functions currently exercised in Wales by the Audit Commission for Local Authorities and the National Health Service in England and Wales (“the Audit Commission”).

The amendments made by this Order are consequential upon that change.

Article 2 amends the Local Authorities (Companies) Order 1995, so as to ensure that local authorities in Wales obtain the consent of the Auditor General for Wales, rather than of the Audit Commission, to the appointment of a person to audit the accounts of companies under their control within the meaning of section 68 Local Government and Housing Act 1989.

Article 3 amends the Construction Contracts (England and Wales) Exclusion Order 1998, in relation to Wales, so as to provide that bodies whose accounts are subject to audit by the Auditor General for Wales fulfil one of the conditions for eligibility to enter into a contract under the private finance initiative.