Summary
3.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 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. Thus there will be a single public audit body for Wales, headed by the Auditor General. It is intended that the Auditor General and his staff will be known collectively as "the Wales Audit Office" in English and "y Swyddfa Archwilio Cymru" in Welsh. The Wales Audit Office will have responsibility for the financial and performance audit of the Assembly; its sponsored bodies and a number of other publicly funded bodies; health bodies (primarily NHS Trusts and Local Health Boards) and local government bodies in Wales. The Act includes provisions intended to safeguard the constitutional independence and democratic accountability of local government.
4.The Act does not impact on audit arrangements for cross-border bodies. With regard to cross-border studies – that is, studies into the provision of particular services, the exercise of particular functions or the quality of financial or other management by local government or health bodies throughout England and Wales - the Act requires the Auditor General to co-operate with the Audit Commission in relation to local government and with the Audit Commission, the Commission for Healthcare Audit and Inspection, and the Assembly (in practice, its arm known as Healthcare Inspection Wales) in relation to health bodies in Wales. The Act confers powers and imposes duties on the Auditor General and these other bodies, enabling or requiring co-operation and consultation between them. The intention is that such co-operation will minimise the day-to-day impact on the work of the bodies, which are subject to the studies, of the carrying out of the studies.
5.The Act contains 75 sections and 4 Schedules. It is organised in four Parts. Part 1 deals with provisions relating to the functions of the Auditor General (an office established under section 90 of the GOWA: the Auditor General is appointed by Her Majesty and is a corporation sole). Part 1 deals with how that office is to be funded and also addresses staffing and other administrative matters and makes provision for additional functions of the Auditor General. Part 2 of the Act deals with local government bodies in Wales in the context of the new arrangements proposed by the Act. Under the provisions of the ACA, the Audit Commission is currently responsible for appointing the auditors of the accounts of these bodies. In relation to local government bodies in Wales, the Act transfers that responsibility to the Auditor General. The provisions in Part 2 largely parallel provisions consolidated into the ACA (and, before that, the Local Government Finance Act 1982). Part 3 adds the financial audit responsibilities for Welsh NHS bodies to the remit of the Auditor General. The GOWA already gives the Auditor General authority to undertake examinations into the economy, efficiency and effectiveness with which the major Welsh NHS bodies have used their resources. Part 4 of the Act contains miscellaneous, transitional and general provisions. Schedule 1 deals with an amendment to the audit of Best Value arrangements under the Local Government Act 1999. Schedule 2 deals with minor and consequential amendments made necessary by the Act. Schedule 3 sets out arrangements for detailed statutory transfer schemes required by the Act and Schedule 4 sets out relevant repeals.