Local Audit and Accountability Act 2014
2014 c. 2 · Enacted 30 January 2014 · Extends to United Kingdom
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—C1C2C3C4C5C6C7C8C9C10C11C12C13
Annotations to the whole text
Modifications
- C1
Act applied (10.2.2015) by The Local Audit (Appointing Person) Regulations 2015 (S.I. 2015/192), Sch. Pts. 1, 2 (with reg. 1(2))
- C2
Act applied (31.3.2017) by The Weymouth Port Health Authority Order 2017 (S.I. 2017/558), art. 11
- C3
Act modified (25.5.2018) by The East Suffolk (Local Government Changes) Order 2018 (S.I. 2018/640), art. 17(2)(a)
- C4
Act modified (25.5.2018) by The West Suffolk (Local Government Changes) Order 2018 (S.I. 2018/639), art. 17(2)(a)
- C5
Act modified (26.5.2018) by The Bournemouth, Dorset and Poole (Structural Changes) Order 2018 (S.I. 2018/648), art. 36(2)(a)
- C6
Act modified (26.5.2018) by The Somerset West and Taunton (Local Government Changes) Order 2018 (S.I. 2018/649), art. 17(2)(a)
- C7
Act modified (26.5.2018) by The Bournemouth, Dorset and Poole (Structural Changes) Order 2018 (S.I. 2018/648), art. 21(2)(a)
- C8
Act modified (23.5.2019) by The Buckinghamshire (Structural Changes) Order 2019 (S.I. 2019/957), arts. 1, 15(2)
- C9
Act modified (14.2.2020) by The Northamptonshire (Structural Changes) Order 2020 (S.I. 2020/156), arts. 1, 17(2)(a)
- C10
Act applied (with modifications) (10.5.2021) by The West Yorkshire Combined Authority (Election of Mayor and Functions) Order 2021 (S.I. 2021/112), arts. 1(4), 35(1)(2), Sch. 5 para. 37
- C11
Act applied (18.3.2022) by The Cumbria (Structural Changes) Order 2022 (S.I. 2022/331), arts. 1(1), 18(2)(a)
- C12
Act applied (with modifications) (21.3.2024) by The South Yorkshire Mayoral Combined Authority (Election of Mayor and Transfer of Police and Crime Commissioner Functions) Order 2024 (S.I. 2024/414), arts. 1(2), 5, Sch. 1 para. 37
- C13
Act modified (10.3.2026) by The Surrey (Structural Changes) Order 2026 (S.I. 2026/264), arts. 1(1), 28(2)(a), 40(2)(a)
Contents
- Part 1: Abolition of existing audit regime
- 1Abolition of existing audit regime
- Part 1A: The Local Audit Office
- 1AEstablishment and constitution
- 1BMain objective
- 1CFinancial matters
- 1DOversight and intervention by Secretary of State
- Part 2: Basic concepts and requirements
- 2Relevant authorities
- 3General requirements for accounts
- 4General requirements for audit
- 5Modification of Act in relation to category 2 authorities
- 6Meaning of “category 2 authority”
- Part 2A: Providers of audit services
- 6ALocal audit register
- 6BExternal registration bodies
- 6CEligibility and regulation of registered providers
- 6DProfessional qualifications
- 6EPowers of Local Audit Office to facilitate provision by firms
- 6FScrutiny of Local Audit Office as audit provider
- Part 3: Appointment etc of local auditors
- 7Appointment of local auditor
- 8Procedure for appointment
- 9Requirement to have auditor panel
- 10Functions of auditor panel
- 11Relationship with relevant authority
- 12Failure to appoint local auditor
- 13Failure of health service bodies to appoint local auditor
- 14Limitation of local auditor's liability
- 15Further provisions about liability limitation agreements
- 16Resignation and removal of local auditor
- 17Appointment of auditor by specified person
- Part 4: Eligibility and regulation of local auditors
- 18Eligibility and regulation of local auditors
- Part 5: Conduct of local audit
- Codes of practice and guidance
- 19Codes of audit practice and guidance
- General powers and duties of auditors
- 20General duties of auditors
- 21General duties of auditors of accounts of health service bodies
- 22Auditors' right to documents and information
- 23Offences relating to section 22
- Reports and recommendations
- 24Reports and recommendations
- Public inspection etc and action by auditor
- 25Inspection of statements of accounts etc
- 26Inspection of documents etc
- 27Right to make objections at audit
- 28Declaration that item of account is unlawful
- Prevention of unlawful expenditure etc
- 29Advisory notices
- 30Unlawful expenditure or activity of health service bodies
- 31Power of auditor to apply for judicial review
- Accounts and audit regulations
- 32Accounts and audit regulations
- Part 5A: Local audit: further provision
- Independence of auditors
- 32BIndependence requirement
- 32CLack of independence arising after appointment
- Second audits
- 32DSecond audits where first auditor ineligible
- Partnerships
- 32EEffect of appointing a partnership
- Miscellaneous powers and duties
- 32FPower of Local Audit Office to obtain information from relevant authorities
- 32GInspection of accounts by persons exercising regulatory functions
- 32HDuty of Local Audit Office to publish summaries of inspections
- Offences of deception etc
- 32IFalse or misleading information
- 32JWrongful holding out
- Part 6: Data matching
- 33Data matching
- Part 7: Miscellaneous and supplementary
- Miscellaneous
- 33AAudit committees
- 34Best value inspections Not yet in force
- 35Examinations by the Comptroller and Auditor General Not yet in force
- 36Disclosure of information
- 37Social security references and reports
- 38Duty of smaller authorities to publish information
- 39Code of practice on local authority publicity
- 40Access to local government meetings and documents
- 41Council tax referendums
- 42Parish meetings: parish polls Not yet in force
- Supplementary
- 43Orders and regulations
- 43AConnected entities
- 44Interpretation of Act
- 45Related amendments
- 46Power to make consequential provision
- 47Application to NHS trusts and trustees for NHS trusts Repealed
- 48Extent
- 49Commencement
- 50Short title
- Schedule 1: Abolition of Audit Commission: supplementary provision
- Part 1: Arrangements in connection with abolition of Audit Commission
- Transfer of property, rights and liabilities
- 1Paragraph 1
- Reduction in membership pending abolition
- 2Paragraph 2
- Final accounts
- 3Paragraph 3
- Final annual report
- 4Paragraph 4
- Payments in respect of pension liabilities
- 5Paragraph 5
- Meaning of “the abolition date”
- 6Paragraph 6
- 2Repeal of Audit Commission Act 1998: consequential repeals and revocations
- Schedule 1A: Local Audit Office: constitution, proceedings etc
- 1Composition
- 2Non-executive members: appointment and tenure
- 3Non-executive members: remuneration
- 4Controller of Local Audit
- 5Other executive members
- 6Staff
- 7Committees
- 8Delegation
- 9Procedure
- 10General power
- 11Status
- 12Seal and evidence
- 13Accounts
- 14Business planning
- 15Annual report
- Schedule 1B: External registration bodies
- 1Provision of information to the Local Audit Office
- 2Directions to secure compliance
- 3Financial penalties
- 4Directions and penalties: procedure etc
- 5Directions and penalties: appeals
- 6Compliance orders by the court
- 7Directions with respect to international obligations
- 8Exemption from liability in damages
- Schedule 1C: Eligibility and regulation of registered providers
- 1Introduction
- 2Eligibility criteria and procedures
- 3Registration rules
- 4Professional qualifications
- 5Professional integrity and independence
- 6Lead partners
- 7Complaints procedures
- 8Meeting of claims
- 9Monitoring and inspections
- 10Enforcement
- 11Provision and publication of information
- Schedule 1D: Professional qualifications
- Part 1: Requirements for registered providers
- 1Qualification requirement for individuals
- 2Qualified control requirement for firms
- 3“Appropriate qualification”
- 4Cases in which an individual need not hold appropriate qualification: domestic cases
- 5Cases in which an individual need not hold appropriate qualification: overseas cases
- Part 2: Recognised qualifying bodies
- 6“Recognised qualifying body”
- 7Fees
- 8Directions to secure compliance with international obligations
- 9Delegation of functions
- Schedule 2: Relevant authorities
- 1Paragraph 1
- 2Paragraph 2
- 3Paragraph 3
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- 7Paragraph 7
- 8Paragraph 8
- 9Paragraph 9
- 10Paragraph 10
- 11Paragraph 11
- 12Paragraph 12
- 13Paragraph 13
- 14Paragraph 14
- 15Paragraph 15
- 16Paragraph 16
- 17Paragraph 17
- 18Paragraph 18
- 19Paragraph 19
- 20Paragraph 20
- 21Paragraph 21
- 22Paragraph 22
- 22AParagraph 22A
- 23Paragraph 23
- 23AParagraph 23A
- 24Paragraph 24 Repealed
- 25Paragraph 25 Repealed
- 26Paragraph 26
- 27Paragraph 27
- 28Paragraph 28
- 28ZAParagraph 28ZA
- 28AParagraph 28A
- 29Paragraph 29
- Schedule 3: Further provisions about appointment of local auditors
- Provisions applying to certain local authorities
- 1Paragraph 1
- Provisions applying to chief constables
- 2Paragraph 2
- Provisions applying to the Commissioner of Police of the Metropolis
- 3Paragraph 3
- Provisions applying to other authorities
- 4Paragraph 4
- Schedule 4: Further provisions about auditor panels
- Options for auditor panels
- 1Paragraph 1
- Constitution of auditor panels
- 2Paragraph 2
- Constitution of auditor panels: health service bodies
- 3Paragraph 3
- Power to make further provision about constitution of auditor panels
- 4Paragraph 4
- Application of local authority enactments to auditor panels
- 5Paragraph 5
- Status of auditor panels
- 6Paragraph 6
- Expenses of auditor panels
- 7Paragraph 7
- Connected entities
- 8Paragraph 8
- Schedule 5: Eligibility and regulation of local auditors
- 1Paragraph 1
- 2Paragraph 2
- 3Paragraph 3
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- 7Paragraph 7
- 8Paragraph 8
- 9Paragraph 9
- 10Paragraph 10
- 11Paragraph 11
- 12Paragraph 12
- 13Paragraph 13
- 14Paragraph 14
- 15Paragraph 15
- 16Paragraph 16
- 17Paragraph 17
- 18Paragraph 18
- 19Paragraph 19
- 20Paragraph 20
- 21Paragraph 21
- 22Paragraph 22
- 23Paragraph 23
- 24Paragraph 24
- 25Paragraph 25
- 26Paragraph 26
- 27Paragraph 27
- 28Paragraph 28
- 29Paragraph 29
- Schedule 6: Codes of audit practice and guidance
- Duty to prepare code
- 1Paragraph 1
- Procedure for code
- 2Paragraph 2
- Duty to keep code under review
- 3Paragraph 3
- Alteration of code
- 4Paragraph 4
- Replacement of code
- 5Paragraph 5
- Publication of code
- 6Paragraph 6
- Assistance from relevant authority
- 7Paragraph 7
- Saving for codes of practice under Audit Commission Act 1998
- 8Paragraph 8
- Guidance
- 9Paragraph 9
- Application to auditors of NHS foundation trusts
- 10Paragraph 10
- Meaning of “40-day period”
- 11Paragraph 11
- Schedule 7: Reports and recommendations
- Public interest reports
- 1Paragraph 1
- Written recommendations
- 2Paragraph 2
- Supply of public interest reports
- 3Paragraph 3
- Publicity for public interest reports
- 4Paragraph 4
- Consideration of report or recommendation
- 5Paragraph 5
- Consideration of report or recommendation: Greater London Authority
- 6Paragraph 6
- Bar on delegation of functions relating to meetings
- 7Paragraph 7
- Publicity for meetings
- 8Paragraph 8
- Access to meetings and documents
- 9Paragraph 9
- Publicity for decisions under paragraph 5 or 6
- 10Paragraph 10
- Schedule 8: Advisory notices
- Power to issue advisory notice
- 1Paragraph 1
- Service and withdrawal of notice
- 2Paragraph 2
- Effect of an advisory notice
- 3Paragraph 3
- Further provisions about advisory notices
- 4Paragraph 4
- Schedule 9: Data matching
- Power to conduct data matching exercises
- 1Paragraph 1
- Mandatory provision of data
- 2Paragraph 2
- Voluntary provision of data
- 3Paragraph 3
- Disclosure of results of data matching etc
- 4Paragraph 4
- Publication
- 5Paragraph 5
- Fees for data matching
- 6Paragraph 6
- Code of data matching practice
- 7Paragraph 7
- Powers to amend this Schedule
- 8Paragraph 8
- Schedule 10: Best value inspections Not yet in force
- 1Paragraph 1 Not yet in force
- 2Paragraph 2 Not yet in force
- 3Paragraph 3 Not yet in force
- 4Paragraph 4 Not yet in force
- 5Paragraph 5 Not yet in force
- 6Paragraph 6 Not yet in force
- 7Paragraph 7 Not yet in force
- 8Paragraph 8 Not yet in force
- 9Paragraph 9 Not yet in force
- 10Paragraph 10 Not yet in force
- 11Paragraph 11 Not yet in force
- Schedule 11: Disclosure of information
- Information to which this Schedule applies
- 1Paragraph 1
- General bar on disclosure and exceptions
- 2Paragraph 2
- Further exceptions
- 3Paragraph 3
- Disclosure with consent of local auditor
- 4Paragraph 4
- Offence of wrongful disclosure
- 5Paragraph 5
- Meaning of “enactment”
- 6Paragraph 6
- Schedule 12: Related amendments
- Public Health Act 1875 (c. 55)
- 1Paragraph 1
- Prison Act 1952 (c. 52)
- 2Paragraph 2
- Transport Act 1968 (c. 73)
- 3Paragraph 3
- Local Government Act 1972 (c. 70)
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- 7Paragraph 7
- 8Paragraph 8
- House of Commons Disqualification Act 1975 (c. 24)
- 9Paragraph 9
- Local Government, Planning and Land Act 1980 (c. 65)
- 10Paragraph 10
- Building Act 1984 (c. 55)
- 11Paragraph 11
- Further Education Act 1985 (c. 47)
- 12Paragraph 12
- Transport Act 1985 (c. 67)
- 13Paragraph 13
- Housing Associations Act 1985 (c. 69)
- 14Paragraph 14
- Local Government Act 1986 (c. 10)
- 15Paragraph 15
- Airports Act 1986 (c. 31)
- 16Paragraph 16
- 17Paragraph 17
- 18Paragraph 18
- Norfolk and Suffolk Broads Act 1988 (c. 4)
- 19Paragraph 19
- Education Reform Act 1988 (c. 40)
- 20Paragraph 20
- 21Paragraph 21
- 22Paragraph 22
- Local Government and Housing Act 1989 (c. 42)
- 23Paragraph 23
- 24Paragraph 24
- Town and Country Planning Act 1990 (c. 8)
- 25Paragraph 25
- Environmental Protection Act 1990 (c. 43)
- 26Paragraph 26
- Social Security Administration Act 1992 (c. 5)
- 27Paragraph 27
- 28Paragraph 28
- 29Paragraph 29
- Social Security Administration (Northern Ireland) Act 1992 (c. 8)
- 30Paragraph 30
- Police Act 1996 (c. 16)
- 31Paragraph 31
- Noise Act 1996 (c. 37)
- 32Paragraph 32
- 33Paragraph 33
- 34Paragraph 34
- Local Government (Contracts) Act 1997 (c. 65)
- 35Paragraph 35
- Local Government Act 1999 (c. 27)
- 36Paragraph 36
- Greater London Authority Act 1999 (c. 29)
- 37Paragraph 37
- 38Paragraph 38
- 39Paragraph 39
- 40Paragraph 40
- 41Paragraph 41
- 42Paragraph 42
- 43Paragraph 43
- Crown Prosecution Service Inspectorate Act 2000 (c. 10)
- 44Paragraph 44
- Freedom of Information Act 2000 (c. 36)
- 45Paragraph 45
- Criminal Justice and Court Services Act 2000 (c. 43)
- 46Paragraph 46
- Public Finance and Accountability (Scotland) Act 2000 (ASP 1)
- 47Paragraph 47
- Anti-terrorism, Crime and Security Act 2001 (c. 24)
- 48Paragraph 48
- Local Government Act 2003 (c. 26)
- 49Paragraph 49
- 50Paragraph 50
- 51Paragraph 51
- 52Paragraph 52
- 53Paragraph 53
- 54Paragraph 54
- Health and Social Care (Community Health and Standards) Act 2003 (c. 43)
- 55Paragraph 55
- 56Paragraph 56
- 57Paragraph 57
- Audit and Accountability (Northern Ireland) Order 2003 (SI 2003/418 (NI 5))
- 58Paragraph 58
- Public Audit (Wales) Act 2004 (c. 23)
- 59Paragraph 59
- 60Paragraph 60
- 61Paragraph 61
- 62Paragraph 62
- 63Paragraph 63
- 64Paragraph 64
- 65Paragraph 65
- 66Paragraph 66
- Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27)
- 67Paragraph 67
- Children Act 2004 (c. 31)
- 68Paragraph 68
- Education and Inspections Act 2006 (c. 40)
- 69Paragraph 69
- National Health Service Act 2006 (c. 41)
- 70Paragraph 70
- 71Paragraph 71
- 72Paragraph 72
- 73Paragraph 73
- 74Paragraph 74
- 75Paragraph 75
- 76Paragraph 76
- National Health Service (Wales) Act 2006 (c. 42)
- 77Paragraph 77
- Companies Act 2006 (c. 46)
- 78Paragraph 78
- Serious Crime Act 2007 (c. 27)
- 79Paragraph 79
- Local Government and Public Involvement in Health Act 2007 (c. 28)
- 80Paragraph 80
- 81Paragraph 81
- 82Paragraph 82
- 83Paragraph 83
- 84Paragraph 84
- 85Paragraph 85
- Health and Social Care Act 2008 (c. 14)
- 86Paragraph 86
- 87Paragraph 87
- 88Paragraph 88
- Housing and Regeneration Act 2008 (c. 17)
- 89Paragraph 89
- 90Paragraph 90
- 91Paragraph 91
- 92Paragraph 92
- 93Paragraph 93
- 94Paragraph 94
- 95Paragraph 95
- 96Paragraph 96
- Local Democracy, Economic Development and Construction Act 2009 (c. 20)
- 97Paragraph 97
- 98Paragraph 98
- 99Paragraph 99
- 100Paragraph 100
- 101Paragraph 101
- 102Paragraph 102
- 103Paragraph 103
- 104Paragraph 104
- 105Paragraph 105
- 106Paragraph 106
- 107Paragraph 107
- 108Paragraph 108
- 109Paragraph 109
- 110Paragraph 110
- 111Paragraph 111
- 112Paragraph 112
- 113Paragraph 113
- Equality Act 2010 (c. 15)
- 114Paragraph 114
- Police Reform and Social Responsibility Act 2011 (c. 13)
- 115Paragraph 115
- 116Paragraph 116
- 117Paragraph 117
- Charities Act 2011 (c. 25)
- 118Paragraph 118
- 119Paragraph 119
- 120Paragraph 120
- 121Paragraph 121
- 122Paragraph 122
- Repeals and revocations in consequence of this Schedule
- 123Paragraph 123
- Schedule 13: NHS trusts and trustees for NHS trusts: transitory and saving provision
- Operation of this Schedule
- 1Paragraph 1
- 2Paragraph 2
- “Relevant authorities”, “health service bodies” and “accounts”
- 3Paragraph 3
- 4Paragraph 4
- 5Paragraph 5
- Notice of appointment of local auditor
- 6Paragraph 6
- Functions of auditor panel
- 7Paragraph 7
- Failure to appoint local auditor
- 8Paragraph 8
- 9Paragraph 9
- General duties of auditors
- 10Paragraph 10
- Independence requirement: directors of NHS trusts
- 11Paragraph 11
- Public interest reports and written recommendations
- 12Paragraph 12
- Unlawful expenditure or activity
- 13Paragraph 13