Office of Public Sector Information
C1Pt. VII (ss. 93-122) modified by S.I. 1975/930, regs. 2, 3 and Water (Scotland) Act 1980 (c. 45), s. 48(1)
Pt. VII (ss. 93-122) extended by Abolition of Domestic Rates Etc. (Scotland) Act 1987 (c. 47, SIF 81:2, 103:2), s. 25(2), Sch. 5 Pt. II para. 22(b)
Pt. VII (ss. 93-122) applied and power to modify conferred (6.3.1992) by Local Government Finance Act 1992 (c. 14), s. 107, Sch. 11 Pt. II para. 23(b).
Pt. VII (ss. 93-122) extended (6.3.1992) by Local Government Act 1992 (c. 19), s. 29(1).
Pt. VII (ss. 93-122) applied (27.5.1997) by 1997 c. 8, ss. 261(3)(4), 278(2)
(1)Every local authority shall have a general fund and, subject to subsection (2) below—
(a)all sums received by or on behalf of the authority shall be paid into that fund;
(b)all fees, commissions, discounts allowed on payment of accounts and expenses payable to or recovered by any officer of a local authority in respect of any business relating to the authority whether by reason of his office or otherwise shall be accounted for and paid into that fund;
and all sums payable by the authority shall be paid out of that fund.
(2)Subsection (1)
above shall not apply to sums received or payable—
(a)which relate to funds or property held by a local authority as trustees for any purpose under any deed of trust or other instrument;
[F1(b)which relate to the common good of the council;]
(c)with respect to which it is otherwise provided in any other provision of this Act or in any other enactment.
[F2(d)with respect to which regulations made by the Scottish Ministers provide that they be paid into or out of a fund (other than the general fund) established by the local authority for the purposes of this paragraph.]
[F3(3)A statutory instrument containing regulations under subsection (2)(d) above shall be subject to annulment in pursuance of a resolution of the Scottish Parliament.]
F1S. 93(2)(b) substituted (1.4.1996) by 1994 c. 39, s. 180(1), Sch. 13 para. 92(23); S.I. 1996/323, art. 4(1)(c)
F2S. 93(2)(d) inserted (1.4.2003) by Local Government in Scotland Act 2003 (asp 1), ss. 41(1)(a), 62(2); S.S.I. 2003/134, art. 2(1), Sch.
F3S. 93(3) inserted (1.4.2003) by Local Government in Scotland Act 2003 (asp 1), ss. 41(1)(b), 62(2); S.S.I. 2003/134, art. 2(1), Sch.
F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1S. 94 repealed (1.4.2004) by Local Government in Scotland Act 2003 (asp 1), ss. 60(1)(b), 62; S.S.I. 2004/28, art. 2(2)
Without prejudice to section 69 of this Act, every local authority shall make arrangements for the proper administration of their financial affairs and shall secure that the proper officer of the authority has responsibility for the administration of those affairs.
C1S. 95 applied (temp. from 6.4.1995 until 1.4.1996) by S.I. 1995/789, art. 2, Sch. para. 3
(1)Every local authority shall keep accounts of all transactions relating to all funds of the authority and, subject to any provision contained in regulations made under section 105 of this Act, the accounts of the general fund of a local authority shall comprise such current, capital and borrowing accounts as may be necessary for the purpose of distinguishing transactions for different purposes.
(2)All accounts of a local authority shall be made up in respect of each financial year.
(3)Every local authority shall, in addition to preparing accounts in respect of any financial year, prepare in duplicate an abstract of the accounts for that year.
(4)The accounts of every local authority in respect of any financial year shall be audited by a professional accountant, who is either [F1a member of the staff of Audit Scotland] or is an approved auditor appointed by the Commission in accordance with the provisions of this Part of this Act.
[F2(5)The financial year of a local authority shall be the period of twelve months ending with 31st March F3. . .; and references in this Act and in any other enactment (whether passed or made before or after the passing of this Act) to the financial year of a local authority shall be construed in accordance with the provisions of this subsection.
(6)The Secretary of State may by order make provision amending, repealing or revoking, with or without savings, any enactment which is inconsistent with or superseded by subsection (5) above; but no order under this subsection shall have effect unless it is approved by a resolution of each House of Parliament.]
F1Words in s. 96(4) substituted (1.4.2000) by 2000 asp 1, s. 26, Sch. 4 para. 3(2); S.S.I. 2000/10, art. 2(3)
F2S. 96(5)(6) substituted for s. 96(5) by Local Government (Scotland) Act 1975 (c. 30), s. 18
F3Words in s. 96(5) repealed (1.4.1995) by 1994 c. 39, s. 180(2), Sch. 14; S.I. 1995/702, art. 3(e), Sch. 1
C1S. 96(1)(2)-(4) applied (6.3.1992) by Local Government Finance Act 1992 (c. 14), s. 107, Sch. 11 Pt. III para. 25.
C2S. 96(2)–(4) extended by Abolition of Domestic Rates Etc. (Scotland) Act 1987 (c. 47, SIF 81:2, 103:2), s. 25(2), Sch. 5 Pt. III para. 24
(1)There shall be established a body, to be known as the [F1Accounts Commission for Scotland] (hereafter in this Part of this Act referred to as “the Commission”), which shall consist of such number of members, not being more than [F2twelve]or less than [F2six], as the Secretary of State may determine, and the members shall be appointed by the Secretary of State after consultation with such associations of local authorities F3. . . as appear to him to be concerned and with such other organisations or persons as he may think appropriate.
(2)The Commission shall have the following functions, that is to say—
(a)securing the audit of all accounts of
[F4(i)]local authorities
[F5F6(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7(iii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5(iv). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5(v). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
in accordance with the provisions of this Part of this Act;]
(b)considering all reports made in accordance with the said provisions and investigating all matters raised by any such report;
(c)making recommendations to the Secretary of State and to local authorities F8. . . in accordance with the said provisions; . . . F9
(d)advising the Secretary of State on any matter relating to the accounting of local authorities F10. . . which he may refer to them for advice [F11and
(e)functions conferred by sections 97A and 97B of this Act.]
[F12 [F12(2AA)Any function of the Commission may be exercised on behalf of the Commission by any person (whether or not a member of the staff of Audit Scotland) authorised by the Commission to do so.
(2AB)Subsection (2AA) above does not apply in relation to the following functions—
(a)considering reports in pursuance of subsection (2)(b) above,
(b)appointing an auditor under subsection (6) below,
(c)deciding who is to audit any account, or class of account, in pursuance of this Part of this Act,
(d)deciding whether to undertake or promote a study under section 97A or 105A of this Act.
(2AC)Subsections (2AA) and (2AB) above do not affect the responsibility of the Commission for the exercise of their functions.]
F13F14(2A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F15(2B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)The Secretary of State may, after consultation with the Commission, with such associations of local authorities F16. . . as appear to him to be concerned and with such other organisations or persons as he may think appropriate, give to the Commission directions of a general character as to the discharge of their functions and the Commission shall give effect to any direction so given.
(4)There shall be a Controller of Audit who shall be appointed by the Commission after consultation with, and subject to the approval of, the Secretary of State F17. . ..
[F18(4AA)The Controller of Audit shall, by virtue of appointment as such, be a member of the staff of Audit Scotland unless that person is also the Auditor General for Scotland.]
F19(4A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F19(4B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F19(4C). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F19(4D). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F20(4E)The Secretary of State may supply to the Commission any information held by him which relates to housing benefit or council tax benefit and which appears to him to be relevant to the exercise of any of the functions of the Commission.]
(5)The provisions of Schedule 8 to this Act shall have effect in relation to the Commission.
(6)In this Part of this Act “auditor” includes [F21(a)] the Controller of Audit, [F21(b)][F22members of the staff of Audit Scotland], being professional accountants, and [F21(c)]F23 . . . auditors appointed by the Commission for the purpose of conducting audits or, as the case may be, a particular audit, under this Part of this Act, F23 . . . F24. . .
F25(6A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F26(7)A person shall not be appointed as auditor by the Commission under subsection (6) above unless–
(a)he is eligible for appointment as a [F27statutory auditor under Part 42 of the Companies Act 2006] ; or
[F28(b)he is a member of a body of accountants established in the United Kingdom or another EEA State.]]]
[F29(7A)In subsection (7) above, “EEA State” means any State which is a Contracting Party to the Agreement on the European Economic Area signed at Oporto on 2nd May 1992, as adjusted by the Protocol signed at Brussels on 17th March 1993.]
F1Words in s. 97(1) substituted (1.12.1994) by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 36(1), Sch. 7 para. 3(2)(a): S.I. 1994/2658, art. 3(d)
F2Words in s. 97(1) substituted (1.4.2000) by 2000 asp 1, s. 26, Sch. 4 para. 3(3)(a); S.S.I. 2000/10 (c.1), art. 2(3)
F3Words in s. 97(1) repealed (1.4.2000) by 2000 asp 1, s. 26, Sch. 4 para. 3(3)(a); S.S.I. 2000/10 (c. 1), art. 2(3)
F4"S. 97(2)(a)(i)" inserted (1.4.1995) by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 36(1), Sch. 7 para. 3(3)(a)(i); S.I. 1994/2658, art. 4(a)
F5S. 97(2)(a)(ii)(iv)(v) repealed (1.4.2000) by 2000 asp 1, s. 26, Sch. 4 para. 3(3)(b); S.S.I. 2000/10 (c. 1), art. 2(3)
F6S. 97(2)(a)(ii)–(v) inserted (1.4.1995) by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 36(1), Sch. 7 para. 3(3)(a)(ii); S.I. 1994/2658, art. 4(a)
F7S. 97(2)(a)(iii) repealed (1.10.1999) by 1999 c. 8, ss. 65, Sch. 5; S.S.I. 1999/90, art. 2 Sch. 2
F8Words in s. 97(2)(c) repealed (1.4.2000) by 2000 asp 1, s. 26, Sch. 4 para. 3(3)(b); S.S.I. 2000/10 (c.1), art. 2(3)(b)
F9Word repealed by Local Government Act 1988 (c. 9, SIF 81:1, 2), s. 35(2)
F10Words in s. 97(2)(d) repealed (1.4.2000) by 2000 asp 1, s. 26, Sch. 4 para. 3(3)(b); S.S.I. 2000/10 (c.1), art. 2(3)
F11Word “and” and s. 97(2)(e) added by Local Government Act 1988 (c. 9, SIF 81:1, 2), s. 35(2)
F12S. 97(2AA-2AC) inserted (1.4.2000) by 2000 asp 1, s. 26, Sch. 4 para. 3(3)(c); S.S.I. 2000/10 (c.1), art. 2(3)
F13S. 97(2A) repealed (1.10.1999) by 1999 c. 8, ss. 65, Sch. 5; S.S.I. 1999/90, art. 2 Sch. 2
F14S. 97(2A)(2B) inserted (1.4.1995) by National Health Service and Community Care Act 1990 (c. 19, SIF 113:2), s. 36(1), Sch. 7 para. 3(4); S.I. 1994/2658, art. 4(a)
F15S. 97(2B) repealed (1.4.2000) by 2000 asp 1, s. 26, Sch. 4 para. 3(3)(d); S.S.I. 2000/10 (c.1), art. 2(3)(d)
F16Words in s. 97(3) repealed (1.4.2000) by 2000 asp 1, s. 26, Sch. 4 para. 3(3)(e); S.S.I. 2000/10 (c.1), art. 2(3)
F17Words in s. 97(4) repealed (1.4.2000) by 2000 asp 1, s. 26, Sch. 4 para. 3(3)(f); S.S.I. 2000/10 (c.1), art. 2(3)
F18S. 97(4AA) inserted (1.4.2000) by 2000 asp 1, s. 26, Sch. 4 para. 3(3)(g); S.S.I. 2000/10 (c.1), art. 2(3)
F19S. 97(4A)-(4D) repealed (1.4.2000) by 2000 asp 1, s. 26, Sch. 4 para. 3(3)(h); S.S.I. 2000/10 (c.1), art. 2(3)
F20S. 97(4E) inserted (1.7.1997) by 1997 c. 47, s. 7(2); S.I. 1997/1577, art. 2, Sch.
F21Word inserted by Local Government (Scotland) Act 1975 (c. 30), Sch. 6 Pt. II para. 48
F22Words in 97(6) substituted (1.4.2000) by 2000 asp 1, s. 26, Sch. 4 para. 3(3)(i); S.S.I. 2000/10 (c.1), art. 2(3)
F23Words in s. 97(6) omitted (1.10.1991) by virtue of S.I. 1991/1997, reg. 2, Sch. para. 23(a) (with reg. 4).
F24Words in S. 97(6) repealed (1.4.2000) by 2000 asp 1, s. 26, Sch. 4 para. 3(3)(i); S.S.I. 2000/10 (c.1), art. 2(3)
F25S. 97(6A) repealed (1.4.2000) by 2000 asp 1, s. 26, Sch. 4 para. 3(3)(j); S.S.I. 2000/10 (c.1), art. 2(3)
F26S. 97(7) substituted (1.10.1991) by S.I. 1991/1997, reg. 2, Sch. para. 23(b) (with reg. 4).
F27Words in s. 97(7)(a) substituted (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), arts. 2(2), 3(1), Sch. 1 para. 1(m) (with arts. 6, 11, 12)
F28S. 97(7)(b) substituted (1.4.2003) by Local Government in Scotland Act 2003 (asp 1), ss. 53(1), 62(2); S.S.I. 2003/134, art. 2(1), Sch.
F29S. 97(7A) inserted (1.4.2003) by Local Government in Scotland Act 2003 (asp 1), ss. 53(2), 62(2); S.S.I. 2003/134, art. 2(1), Sch.
C1S. 97(3) applied by Self-Governing Schools etc. (Scotland) Act 1989 (c. 39, SIF 41:2), s. 77(4)
(1)The Commission shall undertake or promote comparative and other studies designed to enable it to make recommendations for
[F2(a)the securing by local authorities of best value;
(b)]improving economy, efficiency and effectiveness in the provision of services by local authorities or by other bodies whose accounts are required to be audited in accordance with this Part of this Act, and
[F3(c)] improving the financial or other management of such authorities or other bodies.
[F4(1A)In subsection (1)(a) above, the references to best value and the securing of it are references to best value within the meaning of section 1 of the Local Government in Scotland Act 2003 (asp 1) and the securing of it in accordance with that section.]
(2)The Commission shall publish or otherwise make available its recommendations and the results of any studies undertaken or promoted under this section F5. . .
(3)Before undertaking or promoting any study under this section the Commission shall consult such associations of local authorities or other bodies whose accounts are required to be audited in accordance with this Part of this Act as appear to it to be concerned and such associations of employees as appear to it to be appropriate F6. . .
F1Ss. 97A, 97B inserted by Local Government Act 1988 (c. 9, SIF 81:1, 2), s. 35(3)
F2S. 97A(1)(a) and "b" inserted (1.4.2003) by Local Government in Scotland Act 2003 (asp 1), ss. 6(1)(a), 62(2); S.S.I. 2003/134, art. 2(1), Sch.
F3S. 97A(1): "(c)" substituted (1.4.2003) for "for" by virtue of Local Government in Scotland Act 2003 (asp 1), ss. 6(1)(b), 62(2); S.S.I. 2003/134, art. 2(1), Sch.
F4S. 97A(1A) inserted (1.4.2003) by Local Government in Scotland Act 2003 (asp 1), ss. 6(2), 62(2); S.S.I. 2003/134, art. 2(1), Sch.
F5Words in s. 97A(2) repealed (1.4.2000) by 2000 asp 1, s. 26, Sch 4 para. 3(4); S.S.I. 2000/10 art. 2(3)
F6Words in s. 97A(3) repealed (1.4.2000) by 2000 asp 1, s. 26, Sch 4 para. 3(4); S.S.I. 2000/10 art. 2(3)
C1S. 97A(1) extended (6.5.1992) by Local Government Act 1992 (c. 19), ss. 3(3), 30(2).
C2S. 97A(3) excluded (6.5.1992) by Local Government Act 1992 (c. 19), ss. 3(3), 30(2).
(1)Without prejudice to any other provision of this Part of this Act, the Commission may require
[F1(a)] any body whose accounts are required to be audited in accordance with this Part of this Act, and any officer or member of any such body [F2;
(b)any person who, by arrangement or agreement with any such body, is discharging any function of the body,]
to furnish the Commission or any person authorised by it with all such information as the Commission or that person may reasonably require for the discharge of the functions under this Part of this Act of the Commission or of that person, including the carrying out of any study under section 97A of this Act.
(2)Any person who without reasonable excuse fails to comply with a requirement imposed by subsection (1) above shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.]
F1S. 97B(1): "(a)" inserted (1.4.2003) by Local Government in Scotland Act 2003 (asp 1), ss. 54(1)(a), 62(2); S.S.I. 2003/134, art. 2(1), Sch.
F2In s. 97B(1)(b) and preceding word inserted (1.4.2003) by Local Government in Scotland Act 2003 (asp 1), ss. 54(1)(b), 62(2); S.S.I. 2003/134, art. 2(1), Sch.
C1S. 97B applied (temp. from 6.4.1995 until 1.4.1996) by S.I. 1995/789, art. 2, Sch. para. 3
(1)The Commission shall have power to incur such expenses as appear to them to be necessary or expedient for the proper discharge of their functions, and [F1such expenses shall be met by Audit Scotland]—
F2(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Local Government (Scotland) Act 1973