Schedule 2: National Audit Office Part 2: Non-executive members
147.Paragraph 3 provides for the NAO to have a non-executive chair. The appointment process follows that for the C&AG in section 11. The chair is appointed by Her Majesty by Letters Patent following an address of the House of Commons. The motion for the address has to be moved by the Prime Minister with the agreement of the Chair of the Committee of Public Accounts. The Queen may extend the appointment on the recommendation of the Prime Minister with the agreement of the Chair of the Committee of Public Accounts. In the case of an extension, there is no requirement for a motion in the Commons or an address to the Queen but an extension counts towards the two-term limit (see paragraph 5) so the chair can serve a maximum of six years in total.
148.Paragraph 4 provides that the other non-executive members of the NAO are to be appointed by the Public Accounts Commission, following a recommendation by the NAO chair. In the event that the Commission chooses not to appoint a recommended individual, the Public Accounts Commission may require the chair to recommend another person until an appointment is made.
149.Paragraph 5 provides that NAO non-executive members are appointed for a period of up to three years. They may be appointed for a second term of up to three years.
150.Paragraph 6 deals with the remuneration of non-executive members.
151.Under sub-paragraph (1) the chair’s remuneration arrangements are to be jointly determined by the Prime Minister and the chair of the Committee of Public Accounts. Sub-paragraph (2) provides for the NAO chair’s remuneration to be paid from the Consolidated Fund rather than annually voted resources. Sub-paragraph (3) provides for the Public Accounts Commission to determine the remuneration arrangements for the other non-executives. Under sub-paragraph (4) that remuneration is to be paid for by the NAO from voted resources. Sub-paragraph (5) provides that the remuneration payable to a non-executive member may include an annual salary, allowances and other benefits, but not a pension.
152.Paragraph 7 states that the Commission may determine terms of appointment for non-executive members that are not specifically provided for in the Act. Those terms may include restrictions on the offices and other positions that non-executive members can hold during and after their terms of appointment. Restrictions can also be imposed in respect of other agreements and arrangements to which non-executives can be a party during and after their appointment. Those agreements might include, for example, arrangements which fall short of holding office or employment but which share similar characteristics, such as consultancy agreements.
153.Paragraph 8 requires the Commission to consult an appropriate person who has oversight of public appointments before setting remuneration or other terms under paragraphs 6 and 7.
154.Paragraph 9 deals with the resignation of non-executive members. Under sub-paragraph (1), the chair may resign by giving written notice to the Prime Minister. The other non-executive members may resign by giving written notice to the Commission.
155.Paragraph 10 provides for the termination of the appointments of non-executive members of the NAO. Sub-paragraph (1) provides that the NAO chair’s appointment may be terminated following an address of each House of Parliament. This is the same process that applies to the C&AG.
156.Sub-paragraph (2) sets out the grounds on which the Commission may terminate the appointment of the other non-executive members of the NAO. In all cases, the Commission must give the member written notice.