The Local Audit (Smaller Authorities) Regulations 2015

PART 2 Specified person

Specification of a person to appoint local auditors

3.—(1) The Secretary of State may, in accordance with regulation 4, specify a person to appoint a local auditor to audit the accounts of an opted in authority.

(2) The Secretary of State may specify different persons in relation to different classes of smaller authorities.

Procedure for specifying a person to appoint local auditors

4.—(1) The specification of a person must be in writing and may, but need not, specify a date when the specification ends.

(2) The Secretary of State must publish the relevant details of any specified person—

(a) on a website;

(b) in the London Gazette.

(3) The relevant details are—

(a) the person’s name;

(b) the person’s registered address (if any);

(c) the person’s address for correspondence; and

(d) details of the class of smaller authorities in relation to which that person is the specified person, if the class is not all smaller authorities.

Ending specification

5.—(1) The Secretary of State may end the specification of a specified person in accordance with this regulation.

(2) Before ending the specification, the Secretary of State must—

(a) consult such smaller authorities as the Secretary of State considers have an interest;

(b) consult such associations of smaller authorities or relevant authorities as appear to the Secretary of State to have an interest.

(3) The Secretary of State must—

(a) give notice to the specified person of the ending of the specification, giving—

(i) the date on which the specification is to end,

(ii) reasons for ending the specification;

(b) publish notice of the ending of the specification—

(i) on a website, and

(ii) in the London Gazette;

(c) make arrangements for notifying opted in authorities of the ending of the specification.

(4) The Secretary of State may make arrangements under paragraph (3)(c) by requiring the specified person to notify opted in authorities.

Consequences of end of specification

6.—(1) If the Secretary of State gives notice to a specified person under regulation 5(3)(a), the Secretary of State may, either before or after (or both before and after) the specification ends—

(a) exercise the functions of the specified person arising by virtue of these Regulations;

(b) transfer rights and liabilities of the specified person arising by virtue of these Regulations to—

(i) the Secretary of State; or

(ii) another specified person.

(2) The Secretary of State may transfer some rights and liabilities under paragraph (1)(b) to the Secretary of State and some to another specified person.

(3) The specified person to whom notice is given under regulation 5(3)(a) must—

(a) disclose all its rights and liabilities arising by virtue of these Regulations to the Secretary of State;

(b) co-operate with the Secretary of State and any other specified person for the purpose of ensuring an audit of an opted in authority is not adversely affected.

Additional functions of specified person

7.  A specified person must—

(a) keep a record of—

(i) authorities which are within the class of authorities to which an invitation under regulation 10 must be issued, and

(ii) newly established authorities to which it must give notice under regulation 16;

(b) publish and keep up to date, on a website—

(i) the records mentioned in sub-paragraph (a), and which of the authorities are opted in authorities;

(ii) the contact details for the auditor appointed to each opted in authority other than an exempt authority;

(c) design and implement appropriate systems to—

(i) oversee issues of independence of any auditor which it has appointed, arising both at the point of appointment and when undertaking audit work;

(ii) monitor compliance by a local auditor against the contractual obligations in an audit contract;

(iii) resolve disputes or complaints from—

(aa) local auditors, opted in authorities and local government electors relating to audit contracts and the carrying out of audit work by auditors it has appointed;

(bb) authorities regarding the refusal of a request to become an opted in authority under regulation 15.