Part 7: Other matters
168.This Part deals with a number of miscellaneous provisions for the carrying out of NAO functions.
169.Paragraph 21 is an incidental power which permits the NAO to do anything which is calculated to facilitate, or which is incidental or conducive to, the carrying out of its functions.
170.Paragraph 22 provides that a vacancy or a defective appointment does not affect the validity of anything done by the NAO, its non-executive members, its committees or its sub-committees.
171.Paragraph 23 deals with the powers of the NAO to delegate its functions. The NAO is permitted to delegate functions to members, employees or committees. Its committees may delegate functions to sub-committees. In either case, a delegation does not prevent the NAO or one of its committees from carrying out a delegated function itself.
172.Under sub-paragraph (4) the following exceptions to the general power of delegation apply:
the preparation of resource estimates under section 23(2);
making rules for regulating NAO procedure under paragraph 18 of Schedule 2;
the appointment of the NAO’s auditor under paragraph 25(1) of Schedule 2;
the preparation and review of NAO strategy under paragraph 1(1) of Schedule 3;
approving the provision of services by the C&AG, and the determination of resources to be provided for those services, under paragraph 3(1) or (3) of Schedule 3;
authorising (with the Commission’s agreement) an employee to carry out C&AG functions in the event of a vacancy or period of ill health under paragraph 7(3) of Schedule 3;
the preparation of an annual report under paragraph 9(1) of Schedule 3; and
with the C&AG, the responsibility under paragraph 10(1) to (5) of Schedule 3 to prepare, review and revise the code of practice.
173.Paragraph 24 requires resource to be prepared for NAO for each financial year. Those accounts must be of the type described in section 5 of the Government Resources and Accounts Act 2000. That is, they must be resource accounts which detail the resources acquired, held or disposed during that year by the NAO and the use by the NAO of those resources. By sub-paragraph (2), the Public Accounts Commission must appoint the C&AG or another appropriate person to be the accounting officer who is to be responsible for preparing the NAO’s resource accounts. Sub-paragraph (3) provides that the accounting officer must also carry out any other functions determined by the Public Accounts Commission.
174.Paragraph 25 sets out the arrangements for the audit of NAO’s resource accounts. Sub-paragraph (1) requires the NAO to appoint an auditor for each financial year. Sub-paragraph (2) makes the appointment of the auditor and the terms of the auditor’s appointment subject to the approval of the Commission. Under sub-paragraph (3), the auditor must be eligible to audit companies under Chapter 2 of Part 42 of the Companies Act 2006. Sub-paragraph (5) requires the auditor to examine the NAO’s resource accounts for each financial year.
175.Sub-paragraph (6) provides that the provisions of sections 6(1) and 25(2) of the Government Resources and Accounts Act 2000 apply to the NAO’s auditors in their examination of the NAO accounts as if it was the C&AG carrying out the examination. This means that the auditor must operate to professional standards and that it must examine the accounts with a view to being satisfied that:
the accounts present a true and fair view;
money provided by Parliament has been expended for the purposes approved by Parliament;
resources authorised by Parliament to be used have been used for the purposes for which the resources were authorised; and
the NAO’s financial transactions are in accordance with any relevant authority.
176.Sub-paragraphs (7) and (8) require that, once the accounts have been examined, the auditor must certify them and send them, together with the auditor’s report on the accounts, to the Commission. The Commission must then lay the accounts and the report before the House of Commons.
177.Paragraph 26 provides that the NAO’s auditor may be required to carry out value for money examinations on the use of NAO resources and send its report to the Commission. This power is a parallel one to the C&AG’s own power to carry out value for money examinations on other bodies under Part 2 of the National Audit Act 1983. The Commission must lay any value for money reports prepared by the NAO’s auditor before Parliament. This allows the Commission to satisfy itself that the NAO is operating professionally and acceptably.
178.Paragraph 27 gives the auditor information and access powers to carry out its functions of audit under paragraph 25 and value for money examinations under paragraph 26. The auditor may require access to any document which the auditor considers is necessary to carry out its functions. Any person holding or who is accountable for any document may be required to provide any information or explanation that the auditor thinks necessary.
179.Paragraph 28 provides that the NAO seal may be authenticated by a member of the NAO or any person authorised for that purpose by a member of the NAO. Sub-paragraph (2) provides that a document executed under NAO seal or signed on its behalf is to be received in evidence and is taken to be executed or signed in that way, unless the contrary is proven.
