Budget Responsibility and National Audit Act 2011

The Office is to consist of— (But see paragraph 3, which makes special provision about the appointment of the initial members of the Office.) A person may be appointed under sub-paragraph (1)(a) or (b) only if the person has knowledge or experience likely to be relevant to the performance of the Office's duty under section 4.

The Chancellor of the Exchequer may determine other terms of an appointment under paragraph 1.

The Office may employ staff. Staff are to be employed on such terms as to remuneration and other matters as the Office may, with the approval of the Minister for the Civil Service, determine. Service as a member of staff of the Office is employment in the civil service of the State. The Office must pay to the Minister for the Civil Service, at such times as the Minister may direct, such sums as the Minister may determine in respect of the increase in the sums payable out of money provided by Parliament that is attributable to the provision of pensions, allowances or gratuities under section 1 of the Superannuation Act 1972 payable to or in respect of persons who are or have been members of staff of the Office.

The Office may delegate functions to— A committee established under paragraph 10 may delegate functions (including functions delegated to it) to a sub-committee. The Budget Responsibility Committee is to perform the duties imposed by section 4(3) and (4). Sub-paragraph (1) does not apply to those duties. The delegation of a function under sub-paragraph (1) or (2) does not prevent the Office or the committee (as the case may be) from carrying out the function itself.

The Office must prepare a report of the performance of its functions in each financial year. The report must include, in particular, an assessment by the Non-executive Committee of the extent to which the Office's duty under section 4 has been performed in accordance with section 5(1) and (2). The report relating to a financial year must be prepared as soon as possible after the end of the financial year. The report must be sent to the Treasury. The Treasury must lay the report before Parliament. The Office must publish the report. “Financial year” means—

The Office must— Each statement of accounts must comply with any directions given by the Treasury as to— The Office must send a copy of each statement of accounts to— before the end of the month of June next following the financial year to which the statement relates. The Comptroller and Auditor General must— The Treasury must lay before Parliament a copy of each such report and certified statement. “Financial year” has the same meaning as in paragraph 15.

In Part 1 of Schedule 19 to the Equality Act 2010 (public authorities: general), under the heading “Industry, business, finance etc.” insert at the appropriate place— “ The Office for Budget Responsibility. ”

NAO is to have 9 members. They are to be—

The appointment of an employee member terminates—

Any document or information which a person is required to provide, or may provide, to the Comptroller and Auditor General, may be provided to NAO (either by that person or the Comptroller and Auditor General). For the purposes of section 3(2) of the Freedom of Information Act 2000 any document or information held by NAO as mentioned in paragraph 2(2)(c) is treated as held by NAO on its own behalf. The documents and information to be held by NAO as mentioned in paragraph 2(2)(c) include documents and information previously held by the National Audit Office established by section 3 of the National Audit Act 1983.

Schedule 5 to GOWA 2006 (Assembly Measures) is amended as follows.

The Office must keep under review whether its internal financial controls secure the proper conduct of its financial affairs.

An employee member may resign by giving written notice to the non-executive members.

Matter 14.1 The following provision relating to the Auditor General— the following aspects of the Auditor General’s terms of appointment— the period of the appointment; salary, allowances and superannuation benefits; pensions and gratuities payable after a person has ceased to be Auditor General; the number of times a person may be appointed as Auditor General; restrictions on the other offices and positions which may be held by the Auditor General; activities of a person who has been (but no longer is) Auditor General; provision requiring the Auditor General— to aim to do things efficiently and cost-effectively; to have regard, as the Auditor General considers appropriate, to the standards and principles that an expert professional provider of accounting or auditing services would be expected to follow; the authorisation of persons to exercise functions of the Auditor General on the Auditor General’s behalf (including during a vacancy in the office); the oversight or supervision of the Auditor General or of the exercise of the Auditor General’s functions; the provision or use of resources for the purposes of the Auditor General’s functions including (in particular)— the employment and use of staff; the procurement and use of services; the holding of documents or information; the keeping of records; the charging of fees or other amounts in relation to functions of— the Auditor General, or auditors appointed by the Auditor General under an enactment; the restatement of any law relating to the Auditor General.

The non-executive members may terminate the appointment of an employee member by giving the member written notice if—

Part 2 (exceptions to matters and general restrictions) is amended as follows. In paragraph 3 (restrictions on modifying enactments other than GOWA 2006)— Sub-paragraph (1) does not apply in relation to any provision to which paragraph 3(3) applies. But, subject to sub-paragraph (6), a provision to which paragraph 3(3) applies cannot modify, or confer power by subordinate legislation to modify, paragraph 3 of Schedule 8. Sub-paragraph (5) does not prevent the conferral of functions on a committee of the Assembly that—

An appointment under paragraph 1(1)(a) or (b) is to be for a period of 5 years (but see paragraph 3(5)). An appointment under paragraph 1(1)(c) is to be for a period of no more than 5 years. A person may not be appointed under paragraph 1 more than twice.

A member of the Office may resign by giving written notice to the Chancellor of the Exchequer. The Chancellor of the Exchequer may terminate the appointment of a member of the Office by giving the member written notice if— But the appointment of a member appointed under paragraph 1(1)(a) or (b) is not to be terminated without the consent of the Treasury Committee of the House of Commons.

The members appointed under paragraph 1(1)(a) and (b) constitute a committee of the Office to be known as the Budget Responsibility Committee. The members appointed under paragraph 1(1)(c) constitute a committee of the Office to be known as the Non-executive Committee.

Office for Budget Responsibility.

Neither NAO nor any of its members or employees is to be regarded— NAO's property is not to be regarded as property of, or held on behalf of, the Crown.

NAO may delegate functions to any of its members, employees or committees. A committee may delegate functions (including functions delegated to it) to a sub-committee. The delegation of a function does not prevent NAO or the committee (as the case may be) from carrying out the function itself. Functions under the following provisions may not be delegated—

This paragraph applies to the person who is the Comptroller and Auditor General immediately before the appointed day. On and after the appointed day the person— The person’s remuneration arrangements under section 13 are to be determined jointly by the Prime Minister and the person who chairs the Committee of Public Accounts before the appointed day (but are not to cover any period before the appointed day). In this paragraph “the appointed day” means the day appointed for the purposes of this paragraph by an order made by the Treasury by statutory instrument.

This paragraph applies until the first rules under paragraph 18 of Schedule 2 are made. It applies in relation to any matter to be decided by NAO for the purpose of preparing or making those rules or for the purposes of paragraph 10 of Schedule 3. The matter is to be decided— But the matter may not be decided unless a majority of the members voting on the matter are non-executive members. If the votes are tied, the person who chairs NAO is to have the casting vote, whether or not that person has already voted on the matter. It is for the person who chairs NAO to call a meeting of NAO by giving written notice to the other members of the date, time and venue of the meeting.

The Office may establish other committees. A committee established by the Office may establish sub-committees. A committee or sub-committee established under this paragraph may consist of or include persons who are neither members of the Office nor members of its staff. Appointment as a member of such a committee or sub-committee of a person who is neither a member of the Office nor a member of its staff is to be on such terms as to remuneration and other matters as the Office may, with the approval of the Treasury, determine.

The consent of the Treasury Committee of the House of Commons is not required for the appointment under paragraph 1(1)(a) of a person who— The period of the person's appointment under paragraph 1(1)(a) is to be taken to have begun with the appointment of that person to chair the non-statutory Office for Budget Responsibility. The consent of the Treasury Committee of the House of Commons is not required for the appointment under paragraph 1(1)(b) of a person who— The period of appointment under paragraph 1(1)(b) of each such person is to be taken to have begun with the appointment of that person as a member of the non-statutory Office for Budget Responsibility. The first 2 appointments under paragraph 1(1)(b) may be for less than 5 years to secure that those appointments and the first appointment under paragraph 1(1)(a) each expire at different times. The first 2 appointments under paragraph 1(1)(c) are to be made by the Chancellor of the Exchequer after consultation with the member appointed under paragraph 1(1)(a).

The Non-executive Committee must keep under review the way in which the Office's duty under section 4 is performed.

The Non-executive Committee must, at least once in every relevant 5-year period, appoint a person or body to review and report on such of the Office's reports as the Committee determines. In sub-paragraph (1) “the Office's reports” means the reports which— The “relevant date” is— A person or body may be appointed under this paragraph only if the person or body has knowledge or experience likely to be relevant to the performance of the Office's duty under section 4. The Office may, with the approval of the Treasury, make payments to the person or body in respect of the performance of the person's or body's functions under this paragraph. The Office must— In this paragraph “relevant 5-year period” means—

The terms of an employee member's appointment are to be determined by the non-executive members. The terms may include remuneration arrangements which— Amounts payable by virtue of sub-paragraph (2) are to be paid by NAO (subject to sub-paragraph (4)). If the employee is a participant in a pension scheme under the terms of the person's employment with NAO, the remuneration arrangements may make provision for the person's service as an employee member to be treated, for the purposes of the scheme, as if it were service as an employee of NAO.

The validity of anything done by NAO, the non-executive members or any committee or sub-committee is not affected by—

NAO must appoint an auditor for NAO for each financial year. The approval of the Public Accounts Commission is required for the appointment (including its terms). The auditor must be eligible for appointment as a statutory auditor by virtue of Chapter 2 of Part 42 of the Companies Act 2006. Section 1214 (independence requirement) and section 1216 (effect of appointment of a partnership) of that Act apply as if the audit of NAO were a statutory audit. The auditor must examine NAO's resource accounts for the financial year. Sections 6(1) and 25(2) of the Government Resources and Accounts Act 2000 apply (with any necessary modifications) in relation to the examination as they apply in relation to an examination by the Comptroller and Auditor General of the resource accounts of a department. On completion of the examination the auditor must— The Commission must lay the accounts and report before the House of Commons.

The terms of the auditor's appointment may require the auditor to carry out economy, efficiency and effectiveness examinations of the use of NAO's resources. On completion of the examinations the auditor must prepare a report and send it to the Public Accounts Commission. The Commission must lay the report before the House of Commons.

The auditor may require access at any reasonable time to any document where the auditor reasonably thinks it necessary for the purposes of the auditor's functions under paragraph 25 or 26. The auditor may also require any person holding or accountable for any document to provide any information or explanation that the auditor reasonably thinks necessary for those purposes.

The Office may, with the approval of the Treasury— Where— the Office may make a payment to the person of such amount as the Treasury may determine.

The functions of the Office are to be exercised on behalf of the Crown. For the purposes of any civil proceedings arising out of those functions— The Office's property is to be regarded as held on behalf of the Crown.

The other non-executive members are to be appointed by the Public Accounts Commission as follows. If there is a vacancy, the person who chairs NAO must recommend a person to the Commission for appointment. The Commission may—

The Public Accounts Commission may determine other terms for an appointment under this Part of this Schedule. These terms may include restrictions on—

The application of NAO's seal is to be authenticated by the signature of— A document purporting to be duly executed under NAO's seal or signed on its behalf— This paragraph does not extend to Scotland.

The Comptroller and Auditor General may provide services that are not within sub-paragraph (2) only with NAO’s approval. The services within this sub-paragraph are services provided by the Comptroller and Auditor General— If NAO approves the provision of any services under sub-paragraph (1), it is for NAO to determine the maximum amount of resources that the Comptroller and Auditor General may require for the services for the purposes of paragraph 2(1). In this Schedule “NAO-approved services” means services provided with NAO’s approval under sub-paragraph (1).

This paragraph applies if the office of Comptroller and Auditor General is vacant. This paragraph also applies if— NAO may, with the agreement of the Public Accounts Commission, authorise an employee of NAO to carry out the Comptroller and Auditor General’s functions during the vacancy or period of ill health. The “period of ill health” means the period— The functions to which sub-paragraph (3) applies include the function of delegating under paragraph 6. In relation to a vacancy or period of ill health of more than 6 months, functions may not be carried out by virtue of sub-paragraph (3) after the end of the first 6 months.

NAO and the Comptroller and Auditor General must jointly prepare a code of practice dealing with the relationship between NAO and the Comptroller and Auditor General. In doing this, they must (in particular) seek to reflect the principle set out in section 17(1) and (2), subject to any limitations on that principle that are agreed between the Public Accounts Commission, NAO and the Comptroller and Auditor General. NAO and the Comptroller and Auditor General must jointly review the code regularly and revise it as appropriate. In preparing or revising the code, they must consult the Treasury. They must also consider any proposals for revisions of the code made by the Commission from time to time. The code (including any revision) must be approved by the Commission. For this purpose, the person who chairs NAO and the Comptroller and Auditor General must jointly submit the code (or revision) to the Commission. If the Commission approves the code (or revision), the Commission must lay it before Parliament (stating the time from which it takes effect). NAO and the Comptroller and Auditor General must each comply with the code.

For the purposes of the application of Part 5 of the Corporation Tax Act 2009 (loan relationships) in relation to a transfer by virtue of paragraph 1(3), the Comptroller and Auditor General and NAO are to be treated as if, at the time of the transfer, they were members of the same group. In sub-paragraph (1) the reference to being members of the same group is to be read in accordance with section 335(6) of that Act.

The Exchequer and Audit Departments Act 1957 is repealed. Sub-paragraph (1) does not affect the position of any person by virtue of section 1(3A) of that Act (computation of salary of former Comptroller and Auditor General for purposes of pension).

The Comptroller and Auditor General.

For the purposes of preparing or revising the code, the NAO must agree to the code (including any revision) in accordance with this paragraph. The agreement must be given at a meeting of NAO. The agreement may be given only if at least one half of the non-executive members present and voting on the matter vote in favour of giving the agreement. The requirements of this paragraph are in addition to any other requirements relating to NAO’s procedure.

For the purposes of Part 8 of the Corporation Tax Act 2009 (intangible fixed assets) a transfer by virtue of paragraph 1(3) of a chargeable intangible asset of the Comptroller and Auditor General is to be treated as a tax-neutral transfer. Part 4 of the Taxation (International and Other Provisions) Act 2010 (transfer pricing) does not apply in relation to a transfer to which sub-paragraph (1) applies. For the purposes of section 882 of the Corporation Tax Act 2009 (application of Part 8 to assets created or acquired on or after 1 April 2002) assets acquired by NAO on a transfer by virtue of paragraph 1(3) are to be treated as if they were acquired from a person who at the time of the acquisition was a related party in relation to NAO. Expressions used in this paragraph and in Part 8 of the Corporation Tax Act 2009 have the same meaning in this paragraph as they have in that Part.

The code must include— The code may also make provision about— This paragraph is not exhaustive as regards the matters that may be covered by the code.

For the purposes of the Taxation of Chargeable Gains Act 1992 a disposal constituted by virtue of a transfer by paragraph 1(3) is to be taken (in relation to both the Comptroller and Auditor General and NAO) to be for a consideration such that no gain or loss accrues to the Comptroller and Auditor General.

The Office may determine— A committee established by paragraph 9 may determine its own procedure.

The application of the Office's seal is to be authenticated by the signature of— A document purporting to be duly executed under the Office's seal or signed on its behalf— This paragraph does not extend to Scotland.

The Treasury may make to the Office such payments out of money provided by Parliament as the Treasury considers appropriate for the purpose of enabling the Office to meet its expenses. Payments are to be made at such times, and subject to any such conditions, as the Treasury considers appropriate.

The validity of anything done by the Office (or a committee or sub-committee of the Office) is not affected by—

In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975 (bodies of which all members are disqualified), insert at the appropriate place— “ The Office for Budget Responsibility. ”

In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification Act 1975 (bodies of which all members are disqualified), insert at the appropriate place— “ The Office for Budget Responsibility. ”

The Office may do anything calculated to facilitate, or conducive or incidental to, the carrying out of any of its functions.

In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments and authorities subject to investigation), insert at the appropriate place— “ Office for Budget Responsibility. ”

In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public authorities to which Act applies), insert at the appropriate place— “ The Office for Budget Responsibility. ”

NAO may do anything calculated to facilitate, or incidental or conducive to, the carrying out of any of its functions.

Resource accounts of the kind mentioned in section 5 of the Government Resources and Accounts Act 2000 must be prepared for NAO for each financial year by the person appointed as accounting officer under this paragraph. The Public Accounts Commission must appoint the Comptroller and Auditor General or some other appropriate person as accounting officer. The person appointed as accounting officer must carry out any other functions determined by the Commission.

In section 26D of the Public Finance and Accountability (Scotland) Act 2000 (asp 1) (disclosure of results of data matching), in subsection (4), for paragraph (a) substitute—.

In Part 2 of Schedule 1A to the Race Relations Act 1976 (bodies and persons subject to general statutory duty), under the heading “Regulatory, audit and inspection” insert at the appropriate place— “ The Office for Budget Responsibility. ” The amendment made by sub-paragraph (1) ceases to have effect when the repeal of that Act by Schedule 27 to the Equality Act 2010 has effect for all purposes.

Any reference in this Schedule to the Treasury Committee of the House of Commons— Any question arising under sub-paragraph (1) is to be determined by the Speaker of the House of Commons.

NAO must, in such manner as it considers appropriate, monitor the carrying out of the Comptroller and Auditor General’s functions.

NAO may charge fees for audits carried out by the Comptroller and Auditor General. Any fees must be charged in accordance with a scheme prepared by NAO. The scheme (including any revision) must be approved by the Public Accounts Commission. The agreement of a Minister of the Crown is required for the charging of a fee if the accounts to be audited are the accounts of a body or other person who acts on behalf of the Crown. Sub-paragraphs (1) to (4) do not apply in relation to an audit carried out as part of any NAO-approved services. The Comptroller and Auditor General may charge fees and other amounts in relation to NAO-approved services, but only in accordance with the agreement or other arrangements under which the services are provided. Fees and other amounts received by the Comptroller and Auditor General must be paid to NAO. Fees and other amounts received by NAO under this paragraph must be paid into the Consolidated Fund.

The liabilities covered by section 24 of this Act include liabilities that— For this purpose section 24(3)(d) covers former members of the staff of the National Audit Office established by section 3 of the National Audit Act 1983.

NAO may provide advice to the Comptroller and Auditor General about the Comptroller and Auditor General’s functions. The Comptroller and Auditor General must have regard to any advice given.

Before the appointed day the Comptroller and Auditor General must— The scheme must be approved by the Public Accounts Commission. On the appointed day the property, rights and liabilities described in the scheme are transferred to NAO. Sub-paragraph (3) operates in relation to property, rights and liabilities— In sub-paragraph (1) the references to rights and liabilities include references to rights and liabilities under or in connection with contracts of employment with staff that were appointed under section 3(2) of the National Audit Act 1983. For any purpose relating to a person who becomes an employee of NAO by virtue of sub-paragraph (3)— Anything done by, on behalf of or in relation to the Comptroller and Auditor General in relation to anything transferred by sub-paragraph (3) has effect as if done by, on behalf of or in relation to NAO, so far as necessary or appropriate for continuing its effect on and after the appointed day. Anything (including legal proceedings) which, immediately before the appointed day, is in the process of being done by, on behalf of or in relation to the Comptroller and Auditor General in relation to anything transferred by sub-paragraph (3) may be continued by, on behalf of or in relation to NAO. So far as necessary or appropriate in consequence of sub-paragraphs (3) to (8), a reference to the Comptroller and Auditor General in any agreement (whether written or not) or instrument or other document is to be treated as a reference to, or as including a reference to, NAO. Before the appointed day a person’s employment under section 3(2) of the National Audit Act 1983 is to be treated for the purposes of paragraph 1(2)(c) and Part 4 of Schedule 2 as if it were employment with NAO. In this paragraph “the appointed day” means the day appointed for the purposes of this paragraph by an order made by the Treasury by statutory instrument.

This paragraph applies in relation to anything done by or on behalf of the Comptroller and Auditor General under a power that ceases to be exercisable upon the coming into force of section 16 of this Act. So far as necessary or appropriate for continuing its effect after the coming into force of section 16, the thing is treated as having been done by or on behalf of the Comptroller and Auditor General under that section.

In the Exchequer and Audit Departments Act 1866, omit sections 3 and 6 (which relate to the tenure of, and vacancies in, the office of Comptroller and Auditor General).

Paragraph 3 of Schedule 3 does not apply in relation to the provision of any services which, at the time that paragraph comes into force, the Comptroller and Auditor General has a contractual duty to provide. But paragraph 8 of that Schedule applies in relation to any such services as if they were NAO-approved services.

In this Schedule “GOWA 2006” means the Government of Wales Act 2006.