Local Audit and Accountability Act 2014

[F1 33A Audit committees E+W

(1) A relevant authority other than a health service body must—

(a) have an audit committee, and

(b) arrange for its audit committee to exercise the functions set out in subsection (3).

(2) The audit committee is to be—

(a) in the case of a relevant authority that has a general power under an enactment to appoint committees, a committee of the authority designated by the authority as its audit committee, or

(b) in any other case, a group of individuals appointed by the relevant authority.

(3) The functions referred to in subsection (1)(b) are—

(a) reviewing and scrutinising the authority’s financial affairs,

(b) reviewing and assessing the authority’s risk management, internal control and governance arrangements,

(c) reviewing and assessing the economy, efficiency and effectiveness with which resources have been used in discharging the authority’s functions, and

(d) making reports and recommendations to the authority in relation to reviews conducted under paragraphs (a), (b) and (c).

(4) The Secretary of State may by regulations provide for an enactment that applies in relation to a relevant authority, or a committee of a relevant authority, to apply, with or without modification, in relation to a group of individuals appointed under subsection (2)(b).

(5) The Secretary of State may by regulations make provision about—

(a) the membership of an audit committee;

(b) the appointment of the members;

(c) payment to the members of allowances, expenses, gratuities or pensions.

(6) Provision must be made under subsection (5) so as to ensure that at least one member of an audit committee is an independent person, as defined by the regulations.

(7) Regulations under subsection (5)(c) may, in particular, make provision applying provision made, or corresponding to any provision that could be made, under section 18 of the Local Government and Housing Act 1989 or section 100 of the Local Government Act 2000.

(8) Subsection (5)(c) does not affect the application of the enactments referred to in subsection (7), or provision made under them, in relation to members of an audit committee.

(9) In the case of a relevant authority within subsection (2)(a), the powers of the authority in relation to its committees are to be taken to include (so far as they would otherwise not)—

(a) the powers necessary to give effect to regulations under subsection (5), and

(b) the power to appoint to its audit committee persons who are not members of the authority (even where not required by regulations under subsection (5)).

(10) A relevant authority must have regard to any guidance issued by the Secretary of State in relation to audit committees.

(11) References in this section to a committee of a relevant authority include a sub-committee of such a committee.]

Textual Amendments

F1 S. 33A inserted (29.4.2026 for specified purposes) by English Devolution and Community Empowerment Act 2026 (c. 23), ss. 94, 108(1)(6)