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Local Audit and Accountability Act 2014

  • Explanatory Notes Table of contents

Please note:

All reference to 'Parts' and 'sections' are from the Local Audit and Accountability Act 2014. For other versions of these Explanatory Notes, see More Resources.

  1. Introduction

  2. Summary and Background

    1. Summary

    2. Background

  3. Overview of the Structure of the Act

  4. Territorial Extent and Application

  5. Commentary

    1. Part 1 - Abolition of Existing Audit Regime

      1. Section 1: Abolition of Audit Regime and Schedule 1: Abolition of Audit Commission: supplementary provision

    2. Part 2 – Basic Requirements and Concepts

      1. Section 2 and Schedule 2: Relevant authorities

      2. Section 3: General requirements for accounts

      3. Section 4: General requirements for audit

      4. Section 5: Modification of Act in relation to smaller authorities

      5. Section 6: Meaning of “smaller authority”

    3. Part 3 – Appointment Etc of Local Auditors

      1. Section 7: Appointment of local auditor

      2. Schedule 3, Paragraph 1: Provisions applying to certain local authorities

      3. Paragraph 4: Provisions applying to other authorities

      4. Section 8: Procedure for appointment

      5. Section 9: Requirement to have auditor panel

      6. Schedule 4, Paragraph 1: Options for auditor panels

      7. Paragraph 2: Constitution of auditor panels

      8. Paragraph 3: Constitution of auditor panels: health service bodies

      9. Paragraph 5: Application of local authority enactments to auditor panels

      10. Paragraph 8: Meaning of “connected entity”

      11. Section 10: Functions of auditor panel

      12. Section 11: Relationship with relevant authority

      13. Section 12: Failure to appoint local auditor

      14. Section 13: Failure of clinical commissioning group to appoint local auditor

      15. Section 14: Limitation of auditor’s liability

      16. Section 15: Further provisions about liability limitation agreements

      17. Section 16: Resignation and removal of auditor

      18. Section 17: Appointment of auditor by specified person

    4. Part 4– Eligibility and Regulation of Local Auditors

      1. Section 18 and Schedule 5: Eligibility and regulation of local auditors

      2. Paragraphs 1-4: Modifications to the Companies Act 2006

      3. Paragraph 5: Independence requirement

      4. Paragraph 6: Effect of lack of independence

      5. Paragraph 9: Appropriate qualifications

      6. Paragraph 10: Provision of documents to the Secretary of State

      7. Paragraph 11: Enforcement: general

      8. Paragraph 14: The register of auditors

      9. Paragraph 16: The Secretary of State’s power to require second audit

      10. Paragraph 21: Delegation of the Secretary of State’s functions

      11. Paragraph 28: Recognised supervisory bodies

    5. Part 5 – Conduct of Local Audit

      1. Section 19 and Schedule 6: Codes of audit practice and guidance

      2. Paragraph 1: Duty to prepare code

      3. Paragraph 2: Procedure for code

      4. Paragraph 3: Duty to keep code under review

      5. Paragraph 4: Alteration of code

      6. Paragraph 5: Replacement of code

      7. Paragraph 6: Publication of code

      8. Paragraph 7: Assistance from relevant authority

      9. Paragraph 8: Savings for codes of practice under the Audit Commission Act 1998

      10. Paragraph 9: Guidance

      11. Paragraph 10: Application to auditors of foundation trusts

      12. Paragraph 11: Meaning of 40-day period

      13. Section 20: General duties of auditors

      14. Section 21: General duties of auditors of accounts of health service bodies

      15. Sections 22 and 23: Auditors’ right to documents and information; and offences relating to section 22

      16. Section 24 and Schedule 7: Reports and recommendations

      17. Paragraphs 1 to 3: Public interest reports, written recommendations and supply of public interest reports

      18. Paragraph 4: Publicity for public interest reports

      19. Paragraph 5: Consideration of report or recommendation

      20. Paragraph 6: Consideration of report or recommendation: Greater London Authority

      21. Paragraph 7: Bar on delegation of functions relating to meetings

      22. Paragraph 8: Publicity for meetings

      23. Paragraph 9: Access to meetings and documents

      24. Paragraph 10: Publicity for decisions under paragraph 5 or 6

      25. Section 25: Inspection of statements of accounts

      26. Section 26: Inspection of documents

      27. Section 27: Right to make objections at audit

      28. Section 28: Declaration that item of account is unlawful

      29. Section 29 and Schedule 8: Advisory notices

      30. Paragraph 1: Power to issue advisory notice

      31. Paragraph 2: Service and withdrawal of notice

      32. Paragraph 3: Effect of an advisory notice

      33. Paragraph 4: Further provisions about advisory notices

      34. Section 30: Unlawful expenditure or activity of health service bodies

      35. Section 31: Power of auditor to apply for judicial review

      36. Section 32: Accounts and audit regulations

    6. Part 6 – Data Matching

      1. Section 33 and Schedule 9: Data matching

      2. Paragraph 1: Power to conduct data matching exercises

      3. Paragraph 2: Mandatory provision of data

      4. Paragraph 3: Voluntary provision of data

      5. Paragraph 4: Disclosure of results of data matching

      6. Paragraph 5: Publication

      7. Paragraph 6: Fees for data matching

      8. Paragraph 7: Code of Data matching practice

      9. Paragraph 8: Powers to amend this Schedule

    7. Part 7 – Miscellaneous and Supplementary

      1. Section 34 and Schedule 10: Amendments consequential on transfer of role of inspector

      2. Section 35: Examinations by the Comptroller and Auditor General

      3. Section 36 and Schedule 11: Disclosure of information

      4. Section 37: Social security references and reports

      5. Section 38: Duty of smaller authorities to publish information

      6. Section 39: Code of practice on local authority publicity

      7. Section 40: Access to local government meetings and documents

      8. Section 41: Council tax referendums

      9. Section 42: Parish meetings: parish polls

      10. Section 45 and Schedule 12: Related amendments

        1. charities

      11. Section 47 and Schedule 13: trusts and trustees for trusts

  6. Commencement

  7. Hansard References

  • Explanatory Notes Table of contents

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Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

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