Office of Public Sector Information

F2(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

99 General duties of auditors

[F1(1)]In auditing the accounts of any local authority F2. . .under this Part of this Act, an auditor shall, by examination of the accounts and otherwise, satisfy himself that—

(a)the accounts have been prepared in accordance with regulations made under section 105 of this Act F3. . . and comply with the requirements of all other enactments and instruments applicable to the accounts; and comply with the requirements of all other enactments and instruments applicable to the accounts;

(b)proper accounting practices have been observed in the preparation of the accounts.

[F4(c)that the local authority F2. . . has made proper arrangements for securing [F5best value and is complying with its duties under sections 15 to 17 (community planning) of the Local Government in Scotland Act 2003 (asp 1).]][F6and

F6(d)in a case where that body are required to publish information in pursuance of a direction under section 1 of the Local Government Act 1992 (publication of performance information), that body have made such arrangements for collecting and recording the information, and for publishing it, as are required for the performance of their duties under that section.]

[F7(2)In subsection (1) above, the references to best value and arrangements for securing it are references to best value within the meaning of section 1 of the Local Government in Scotland Act 2003 (asp 1) and the arrangements for securing it which are to be made under that section.]

100 Auditor’s right of access to documents

(1)An auditor shall have a right of access at all reasonable times to all such documents relating to the accounts of a local authority F1. . . as it appears to him to be necessary to examine for the purpose of auditing those accounts under this Part of this Act and shall be entitled to require from any officer of that authority F1. . .or any other person holding or accountable for any such document such information and explanation as he thinks necessary for the said purpose and, if he thinks it necessary for providing any such information or explanation, to require any such officer or other person to attend before him in person and produce any such documents.

[F2(1A)In the case of a recognised fund-holding practice, the reference in subsection (1) above to documents includes a reference to documents relating to all the accounts and records of the members of the practice, whether or not relating to an allotted sum.]

[F3(1B)Without prejudice to subsection (1) above, the auditor shall be entitled to require any officer, former officer, member or former member of an authority F4. . .whose accounts are required to be audited in accordance with this Part of this Act [F5and any person who, by arrangement or agreement with the authority or body, is discharging any function of the authority or body] to give him such information or explanation as he thinks necessary for the purposes of the audit and, if he thinks it necessary, to require any of the persons mentioned above to attend before him in person to give the information or explanation [F6or, where that person is a body corporate, to require that person to appoint a representative to attend before the auditor for that purpose.]]

(2)Without prejudice to [F7subsections (1) and (1B)] above, every local authority F8. . .shall provide an auditor with every facility and all information which he may reasonably require for the purpose of auditing their accounts [F9and every person who, by arrangement or agreement with a local authority, is discharging any function of the authority shall make that provision for the purpose of the auditing of the authority’s accounts.]

(3)If any person wilfully or negligently fails to comply with any requirement of an auditor under subsection (1) [F10or (1B)] above, he shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding [F11level 3 on the standard scale]F12. . ..

101 Right of interested person to inspect and object to accounts: completion of audit

[F1(1)At each audit under this Part of this Act of a local authority’s accounts, any persons interested may inspect the accounts to be audited and all books, deeds, contracts, bills, vouchers and receipts relating thereto and make copies of all or any part of the accounts and those other documents.]

(2)Any person interested may object to the accounts of a local authority or to any part of those accounts by—

(a)sending his objection in writing, together with a statement of the grounds thereof, to the auditor, and

(b)sending a copy of that objection and statement to the authority and to any officer of the authority who may be concerned.

(3)Where any person objects under subsection (2)

above to the accounts of a local authority, the auditor shall, if so requested by that person or authority or by any officer of the authority who may be concerned, afford to that person or authority or officer, as the case may be, an opportunity of appearing before and being heard by the auditor with respect to that objection; and any such person or officer may so appear and be heard either personally or by a representative.

(4)Within fourteen days of the completion of the audit of the accounts of a local authority the auditor shall place on each duplicate abstract of those accounts prepared by the authority under section 96(3) of this Act a certificate, in such form as the Commission may direct, to the effect that he has audited the accounts in accordance with the provisions of this Part of this Act; and the auditor shall, on so certifying, forthwith send one duplicate abstract of the accounts to the Commission and the other duplicate abstract to the local authority.

F2(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F1101A Reference of social security matters to Secretary of State

The Commission or an auditor may refer to the Secretary of State any matter arising from an audit or study under this Part of this Act if it appears that it may be relevant for the purposes of any of the functions of the Secretary of State relating to social security.]

102 Reports to Commission by Controller of Audit

[F1(1)The Controller of Audit may and, if so required by the Commission, shall make reports to the Commission with respect to—

(a)the accounts of local authorities audited under this Part of this Act;

(b)any matters arising from the accounts of any of those authorities or from the auditing of those accounts being matters that the Controller considers should be considered by the local authority or brought to the attention of the public;

(c)the performance by a local authority of their duties under Part 1 (best value and accountability) and Part 2 (community planning) of the Local Government in Scotland Act 2003 (asp 1).

(2)The Controller of Audit shall send a copy of a report made under subsection (1) above to—

(a)any local authority named in the report; and

(b)any other person the Controller thinks fit.]

[F2(2A)A local authority shall, forthwith upon their receiving a copy of a report sent to them under subsection (1) or (2) above, supply a copy of that copy report to each member of the authority and make additional copies available for public inspection.]

(3)Without prejudice to subsection (1)

above, if the Controller of Audit, having considered [F3any matter arising out of the auditing] under this Part of this Act of the accounts of any local authority and having made such further inquiries (if any) as he may think fit—

(a)is of the opinion—

(i)that any item of account is contrary to law, or

(ii)that there has been a failure on the part of any person to bring into account any sum which ought to have been brought into account, or

(iii)that any loss has been incurred or deficiency caused by the negligence or misconduct of any person or by the failure of the authority to carry out any duty imposed on them by any enactment; or

(b)is of the opinion that any sum which ought to have been credited or debited to one account of the authority has been credited or, as the case may be, debited to another account of the authority; and

(c)is not satisfied that the authority has taken or is taking such steps as may be necessary to remedy the matter;

he [F4may] make to the Commission a special report with respect to the said accounts, setting forth his opinion as aforesaid and the grounds thereof.

[F5(3A)No such special report shall, however, be so made unless—

(a)the authority; and

(b)any person named or referred to in the report—

(i)as being to blame in connection with an item of account being contrary to law; or

(ii)whose failure, negligence or misconduct is a subject of the report,

has been given a copy of the proposed report and an opportunity to make representations to the Controller on the proposed report and on any of the matters dealt with in it.]

(4)The Controller of Audit shall, on making a special report under subsection (3) above with respect to the accounts of any local authority, forthwith send a copy of that special report—

(a)to that authority;

(b)to any officer of the authority who may be concerned;

(c)if the matter raised by the special report has been made the subject of objection under section 101 of this Act, to the person making that objection;

(d)to any other person who in his opinion may be affected thereby.

F6(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

103 Action by Commission on reports by Controller of Audit

(1)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F1103A Publication of special reports

The Commission may publish a special report made to it under section 102(3) of this Act, and may do so in whatever way and send it to whomever it thinks fit.]

[F1103B Action by Commission on receipt of special reports

(1)On receiving a special report under section 102(3) of this Act from the Controller of Audit, the Commission may—

(a)direct the Controller to carry out further investigations;

(b)hold a hearing;

(c)state a case on any question of law arising on the special report for the opinion of the Court of Session;

(d)subject to subsections (2) and (3) below, do none of the above.

(2)The Commission shall hold a hearing if requested to so in writing by—

(a)the local authority which was sent a copy of the report under section 102(3A) of this Act;

(b)any person, named or referred to in the report—

(i)as being to blame in connection with an item of account being contrary to law;

(ii)whose failure, negligence or misconduct is a subject of the report; or

(iii)who was sent a copy of the report under section 102(3A) of this Act.

(3)The Commission shall state a case under subsection (1)(c) above if directed to do so by the Court of Session.]

[F1103C Hearings on special reports

(1)Subject to subsections (2) to (12) below, the procedure at a hearing held under section 103B(1)(b) of this Act shall be such as the Commission determines.

(2)The Commission may, at any one hearing, consider—

(a)allegations of blame, in connection with an item of account being contrary to law, against; and

(b)failures, negligence or misconduct by,

more than one officer or member of a local authority.

(3)A hearing shall be conducted by not fewer than three members of the Commission selected by the chairman of the Commission.

(4)Notwithstanding paragraph 4(1) of Schedule 8 to this Act, for the purposes of this section, the quorum for a meeting of the Commission shall be three.

(5)The following—

(a)an officer or member—

(i)as to whom the question of blame in connection with an item of account being contrary to law is; or

(ii)whose alleged failure, negligence or misconduct is being considered by a hearing, is; and

(b)the local authority are,

entitled to be heard at the hearing.

(6)An officer or member entitled to be heard at a hearing shall be entitled to be heard either in person or represented by counsel or a solicitor or any other person.

(7)The members of the Commission conducting a hearing may—

(a)require any person, including officers or members or former officers or members of any local authority, to attend the hearing, give evidence and produce documents;

(b)administer oaths.

(8)A person shall not, however, be compelled to give any evidence or produce any documents which that person could not be compelled to give or produce in civil proceedings in the Court of Session.

(9)A person who, without reasonable excuse, fails to comply with a requirement imposed under subsection (7)(a) above is guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(10)The Commission may pay persons appearing at a hearing or attending it for the purpose of giving evidence or producing documents such expenses or allowances as it thinks fit.

(11)A hearing shall be held in public unless the members of the Commission conducting it determine that it is in the public interest that it, or such part of it as they specify for the purposes of this subsection, be not so held.

(12)In this section, “documents” includes information held by means of a computer or in any other electronic form.]

[F1103D Findings of hearings

The members of the Commission conducting a hearing under section 103B(1)(b) of this Act shall state their findings in writing and give a copy to—

(a)any officer or member of the local authority who is or was blamed in connection with an item of account being contrary to law or whose failure, negligence or misconduct, or alleged failure, negligence or misconduct, was a subject of the hearing;

(b)the local authority;

(c)any other person the Commission considers should, under this paragraph, receive such a copy; and

(d)any other person seeking a copy of those findings who has paid the Commission’s reasonable charge for providing such a copy.]