(1)This Chapter makes provision for an audit authority to appoint a person to carry out audit functions in relation to a relevant entity in circumstances where it appears to the authority that the entity is or will be a qualifying English or Welsh local authority entity.
(2)For the purposes of this Chapter, each of the following is an “audit authority”—
(a)the Audit Commission;
(b)the Auditor General for Wales.
(3)In this Chapter, “relevant entity” means—
(a)a company,
(b)a limited liability partnership, or
(c)an industrial and provident society.
(4)In this Chapter, “qualifying English local authority entity” means a relevant entity which—
(a)is connected with a local authority in England, and
(b)meets such other conditions as the Secretary of State may by regulations specify.
(5)In this Chapter, “qualifying Welsh local authority entity” means a relevant entity which—
(a)is connected with a local authority in Wales, and
(b)meets such other conditions as the Welsh Ministers may by regulations specify.
(6)In this Chapter, “local authority” means any body which—
(a)is a local authority for the purposes of section 21 of the Local Government Act 2003 (c. 26) (see subsection (6) of that section and section 23 of that Act), and
(b)is required to prepare statements of accounts by regulations made under section 27 of the Audit Commission Act 1998 (c. 18) or section 39 of the Public Audit (Wales) Act 2004 (c. 23).
(1)Where it comes to the attention of a local authority in England that—
(a)a relevant entity which is connected with the authority meets the conditions referred to in section 36(4)(b),
(b)a relevant entity which is connected with the authority has ceased to meet those conditions, or
(c)a relevant entity which meets those conditions has ceased to be connected with the local authority,
the authority must notify the entity and the Audit Commission accordingly.
(2)Where it comes to the attention of a local authority in Wales that—
(a)a relevant entity which is connected with the authority meets the conditions referred to in section 36(5)(b),
(b)a relevant entity which is connected with the authority has ceased to meet those conditions, or
(c)a relevant entity which meets those conditions has ceased to be connected with the local authority,
the authority must notify the entity and the Auditor General for Wales accordingly.
(3)Notification under this section must be within the period of 21 days beginning with the day on which the matter comes to the attention of the local authority.