The Local Audit (Smaller Authorities) Regulations 2015

EXPLANATORY NOTE

(This note is not part of the Regulations)

The Local Audit and Accountability Act 2014 (c. 2) makes provision about the accounts of local and certain other public authorities and the auditing of those accounts. These Regulations make provision for the appointment of a local auditor by a person specified by the Secretary of State to audit the accounts of smaller authorities that choose to opt in to such arrangements. They also make provision for authorities that are exempt from local audit.

Regulations 3 to 7 provide for the specification of a person to appoint local auditors (“specified person”) and that person’s functions. A specified person may be appointed in relation to all smaller authorities or specified classes of such authorities.

Regulations 8 and 9 define “full audit authorities” and “exempt authorities”.

Regulations 10 to 13 provide for the specified person to issue an invitation to all smaller authorities for which it is specified to opt in to the arrangements for the period specified in the invitation (“the compulsory appointing period”). An invitation may not relate to a financial year which commences before 1st April 2017.

Regulations 14 to 17 deal with cases where an authority wishes to opt in to arrangements during the compulsory appointing period and where an authority ceases to qualify during that period.

Regulations 18 to 20 make provision for the appointment of a local auditor by the specified person, as well as the resignation and removal of the auditor.

Regulations 21 to 23 provide for audit fees. Regulation 24 provides that certain functions are to be exercised by the full authority. Regulation 25 imposes a duty on a smaller authority or local auditor to provide the appointing person with information relevant to the performance of that person’s functions. Regulation 28 and the Schedule make consequential modifications to the Local Audit and Accountability Act 2014, Part 42 of the Companies Act 2006 and other Acts.

An impact assessment of the effect that the Local Audit and Accountability Act 2014, which this instrument helps implement, will have on the costs of business is available from https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/349418/2014_FINAL_Local_Audit_IA.pdf. No separate assessment was carried out for this instrument.