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Commencement Orders bringing legislation that affects this Act into force:
(1)On and after the commencement day the person having responsibility for the administration of the financial affairs of a relevant authority under section 151 of the 1972 Act, section 73 of the 1985 Act [F1 section 127 of the 1999 Act] or section 112 above shall have the duties mentioned in this section, without prejudice to any other functions; and in this section he is referred to as the chief finance officer of the authority.
(2)[F2Subject to subsection (2A),]the chief finance officer of a relevant authority shall make a report under this section if it appears to him that the authority, a committee [F3of the authority, a person holding any office or employment under the authority, a member of a police force maintained by the authority,], or a joint committee on which the authority is represented—
(a)has made or is about to make a decision which involves or would involve the authority incurring expenditure which is unlawful,
(b)has taken or is about to take a course of action which, if pursued to its conclusion, would be unlawful and likely to cause a loss or deficiency on the part of the authority, or
(c)is about to enter an item of account the entry of which is unlawful.
[F4(2A)Where a relevant authority is operating executive arrangements, the chief finance officer of the relevant authority shall not make a report under subsection (2) in respect of any action referred to in paragraph (a), (b) or (c) of that subsection unless it is action taken otherwise than by or on behalf of the relevant authority’s executive.]
(3)The chief finance officer of a relevant authority shall make a report under this section if it appears to him that the expenditure of the authority incurred (including expenditure it proposes to incur) in a financial year is likely to exceed the resources (including sums borrowed) available to it to meet that expenditure.
[F5(3A)It shall be the duty of the chief finance officer of a relevant authority, in preparing a report in pursuance of subsection (2) above, to consult so far as practicable—
(a)with the person who is for the time being designated as the head of the authority’s paid service under section 4 of the Local Government and Housing Act 1989; and
(b)with the person who is for the time being responsible for performing the duties of the authority’s monitoring officer under section 5 of that Act.]
[F6(3B)Subsection (3A) above shall have effect in relation to the London Development Agency with the substitution for paragraphs (a) and (b) of the words “with the person who is for the time being appointed under paragraph 4(2) of Schedule 2 to the M1Regional Development Agencies Act 1998 as the chief executive of the London Development Agency”.
F6(3C)Subsection (3A) above shall have effect in relation to Transport for London with the substitution for paragraphs (a) and (b) of the words “with the person who is for the time being designated for the purpose under subsection (3D) below”.
F6(3D)Transport for London shall designate a member of Transport for London, or a member of the staff of Transport for London, as the person who is to be consulted under subsection (3A) above.]
(4)Where a chief finance officer of a relevant authority has made a report under this section he shall send a copy of it to—
(a)the person who at the time the report is made has the duty to audit the authority’s accounts, and
(b)each person who at that time is a member of the authority [F7; and
F7(c)in a case where the relevant authority has a mayor and council manager executive, the person who at the time the report is made is the council manager of that authority]
[F8(4A)The duty under subsection (4)(b) above—
(a)in a case where the relevant authority is the Greater London Authority, is to send a copy of the report to the Mayor of London and to each member of the London Assembly; and
(b)in a case where the relevant authority is a functional body, within the meaning of the 1999 Act, includes a duty to send a copy of the report to the Mayor of London and to the Chair of the Assembly, within the meaning of that Act.]
(5)Subject to subsection (6) below, the duties of a chief finance officer of a relevant authority under subsections (2) and (3) above shall be performed by him personally.
(6)If the chief finance officer is unable to act owing to absence or illness his duties under subsections (2) and (3) above shall be performed—
(a)by such member of his staff as is a member of one or more of the bodies mentioned in section 113(3) above and is for the time being nominated by the chief finance officer for the purposes of this section, or
(b)if no member of his staff is a member of one or more of those bodies, by such member of his staff as is for the time being nominated by the chief finance officer for the purposes of this section.
(7)A relevant authority shall provide its chief finance officer with such staff, accommodation and other resources as are in his opinion sufficient to allow his duties under this section to be performed.
(8)In this section—
(a)references to a joint committee are to a committee on which two or more relevant authorities are represented, and
(b)references to a committee (joint or otherwise) include references to a sub-committee.
F9(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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