Part 8

Charity accounts, reports and returns
CHAPTER 3

Audit or examination of accounts

Audit or examination of individual accounts

Audit or examination of English NHS charity accounts
149
1
This section applies in relation to a financial year of a charity where, at any time in the year, it is an English NHS charity.
2
If section 144(1)(a) or (b) is satisfied in relation to that financial year of the charity, the accounts of the charity for that year must be audited by a person who—
a
is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006,
b
is eligible for appointment as a local auditor (see Part 4 of the Local Audit and Accountability Act 2014), or
c
is a member of a body for the time being specified in regulations under section 154 and is under the rules of that body eligible for appointment as auditor of the charity.
3
In any other case, the accounts of the charity for that financial year must, at the election of the charity trustees, be—
a
audited by a person who is within subsection (2)(a), (b) or (c), or
b
examined by a person who is qualified to be an independent examiner.
3A
For the purposes of subsection (3)(b), a person is qualified to be an independent examiner if (and only if)—
a
the person is independent,
b
the charity trustees reasonably believe that the person has the requisite ability and practical experience to carry out a competent examination of the accounts, and
c
the person—
i
falls within a description of person for the time being included in the list in section 145(3), or
ii
is eligible for appointment as a local auditor (see Part 4 of the Local Audit and Accountability Act 2014).
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
The Commission may—
a
give guidance to charity trustees of an English
NHS
charity in connection with the selection of a person for appointment as an independent examiner;
b
give such directions as it thinks appropriate with respect to the carrying out of an examination in pursuance of subsection (3)(b);
and any such guidance or directions may either be of general application or apply to a particular charity only.
6
The Comptroller and Auditor General may at any time examine and inspect—
a
the accounts of the charity for the financial year,
b
any records relating to those accounts, and
c
any report of a person appointed under subsection (2) or (3) to audit or examine those accounts.
7
In this section, “English NHS charity” means a charitable trust, the trustees of which are—
a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ba
NHS England,
bb
an integrated care board,
bc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
bd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
a National Health Service trust all or most of whose hospitals, establishments and facilities are situated in England,
d
trustees appointed in pursuance of paragraph 10 of Schedule 4 to the National Health Service Act 2006 for a National Health Service trust falling within paragraph (c),
e
special trustees appointed in pursuance of section 29(1) of the National Health Service Reorganisation Act 1973, section 95(1) of the National Health Service Act 1977 and section 212(1) of the National Health Service Act 2006 for such a National Health Service trust, or
f. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S. 149(7)(ba)-(bd) inserted (1.10.2012) by Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 5 para. 184(c); S.I. 2012/1831, art. 2(2)
Pt. 8 applied (with modifications) (2.1.2013) by The Charitable Incorporated Organisations (Insolvency and Dissolution) Regulations 2012 (S.I. 2012/3013), regs. 1, 41
S. 149(7)(a) omitted (1.4.2013) by virtue of Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 5 para. 184(a); S.I. 2013/160, art. 2(2) (with arts. 7-10 Sch. para. 1 Sch. para. 6 Sch. para. 16)
S. 149(7)(b) omitted (1.4.2013) by virtue of Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 5 para. 184(b); S.I. 2013/160, art. 2(2) (with arts. 7-10 Sch. para. 1 Sch. para. 6 Sch. para. 16)
S. 149(7)(f) omitted (1.4.2013) by virtue of Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 5 para. 184(d); S.I. 2013/160, art. 2(2) (with arts. 7-10 Sch. para. 1 Sch. para. 6 Sch. para. 16)
S. 149(3A) inserted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(4); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
S. 149(4) omitted (1.4.2017) by virtue of Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(5); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
Words in s. 149(3) substituted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(3)(a); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
Words in s. 149(3)(a) substituted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(3)(b); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
Words in s. 149(3)(b) substituted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(3)(c); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
S. 149(5) substituted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(6); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
S. 149(8) omitted (1.4.2017) by virtue of Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(7); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
S. 149(2)(a)-(c) substituted (1.4.2017) by Local Audit and Accountability Act 2014 (c. 2), s. 49(1), Sch. 12 para. 119(2); S.I. 2015/841, art. 4 (with Sch. para. 11) (as amended (27.6.2016) by S.I. 2016/675, art. 2)
S. 149(7)(bc)(bd) omitted (17.6.2021) by virtue of NHS (Charitable Trusts Etc) Act 2016 (c. 10), s. 5(1), Sch. 1 para. 15; S.I. 2021/712, reg. 3(c)
Words in s. 149 substituted (1.7.2022) by Health and Care Act 2022 (c. 31), s. 186(6), Sch. 1 para. 1(1)(2); S.I. 2022/734, reg. 2(a), Sch. (with regs. 13, 29, 30)
S. 149(7)(bb) substituted (1.7.2022) by Health and Care Act 2022 (c. 31), s. 186(6), Sch. 4 para. 174; S.I. 2022/734, reg. 2(a), Sch. (with regs. 13, 29, 30)