Audit Commission Act 1998 (repealed)

Part IIIE+W Studies, Performance Standards and Other Functions

Studies and related functionsE+W

33 Studies for improving economy etc. in services.E+W

(1)The Commission shall undertake or promote comparative and other studies designed to enable it to make recommendations—

(a)for improving economy, efficiency and effectiveness in [F1the exercise of the functions of best value authorities [F2which are bodies subject to audit] and the provision of services provided by other bodies subject to audit] [F3and by local government bodies in Wales]; and

(b)for improving the financial or other management of bodies subject to audit [F4and local government bodies in Wales].

F5(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)In undertaking or promoting studies under subsection (1) relating to a health service body (services of which are excluded from studies under section 34) the Commission may take into account the implementation by the body of—

(a)any particular statutory provision or provisions, and

(b)any directions or guidance given by the Secretary of State (whether pursuant to any such provision or otherwise);

but this subsection does not entitle the Commission to question the merits of the policy objectives of the Secretary of State.

(4)The Commission may undertake or promote other studies relating to the provision by bodies subject to audit [F6and by local government bodies in Wales] of their services besides the studies referred to in subsection (1) and section 34.

(5)The Commission shall publish or otherwise make available its recommendations and the result of any studies under this section and, in the case of studies relating to a health service body, shall, on request, provide the Comptroller and Auditor General with all material relevant to the studies.

(6)Before undertaking or promoting any study under this section F7... the Commission shall—

[F8(za)consult the Secretary of State;]

(a)consult such associations of [F9best value authorities which are bodies subject to audit, other bodies subject to audit and local government bodies in Wales] as appear to it to be concerned;

(b)consult such associations of employees as appear to it to be appropriate; F10...

(c)in the case of any health service bodies, also consult F11... [F12the [F13Commission for Healthcare Audit and Inspection]] and the Comptroller and Auditor General.

[F14(ca)in the case of a study relating to a local government body in Wales, also consult [F15the Welsh Ministers and] the Auditor General for Wales and take into account any relevant work done or being done by the Auditor General for Wales.]

[F16(cb)in the case of a study which has a connection with anything which may be inspected under Chapter 4 of Part 8 of the Education and Inspections Act 2006, also consult Her Majesty's Chief Inspector of Education, Children's Services and Skills;]

[F17(d)in the case of a study which has a connection with English local authority social services (within the meaning of Part 2 of the Health and Social Care (Community Health and Standards) Act 2003), also consult the Commission for Social Care Inspection; F18...

(e)in the case of a study which has a connection with Welsh local authority social services (within the meaning of that Part of that Act), also consult the National Assembly for Wales][F19; and

(f)in the case of any other study relating to a body in respect of which the Welsh Ministers may exercise functions, consult the Welsh Ministers.]

[F20(6A)The Commission may undertake or promote studies under this section relating to a local government body in Wales only if the Commission considers it necessary or desirable to do so for the purposes of any of these—

(a)a study into the exercise throughout England and Wales of particular functions of all local government bodies or a description of local government body;

(b)a study into the provision throughout England and Wales of particular services provided by all local government bodies or a description of local government body;

(c)a study into the financial or other management throughout England and Wales of all local government bodies or a description of local government body.]

[F21(7)The following provisions of this section do not apply in relation to the bodies specified in subsection (8)—

(a)subsection (1)(a);

(b)subsection (1)(b), so far as relating to management other than financial management;

(c)subsection (4).

(8)Those bodies are—

(a)any Primary Care Trust;

(b)any Strategic Health Authority;

(c)any NHS trust (within the meaning of [F22the National Health Service Act 2006] ) all or most of whose hospitals, establishments and facilities are situated in England.]

34 Reports on impact of statutory provisions etc.E+W

(1)In addition to the studies referred to in section 33(1), the Commission shall undertake or promote studies designed to enable it to prepare reports as to the impact—

(a)of the operation of any particular statutory provision or provisions, or

(b)of any directions or guidance given by a Minister of the Crown (whether pursuant to any such provision or otherwise),

on economy, efficiency and effectiveness in the provision of local authority services [F23by bodies subject to audit and local government bodies in Wales] and of other services provided by bodies subject to audit other than health service bodies [F24and by local government bodies in Wales], or on the financial management of [F25bodies subject to audit and local government bodies in Wales].

(2)The Commission shall publish or otherwise make available its report of the results of any study under this section, and shall send a copy of any such report to the Comptroller and Auditor General.

(3)Where the Comptroller and Auditor General has received a copy of any such report he may, subject to subsection (4), require the Commission to provide him with any information obtained by it in connection with the preparation of the report, and for that purpose the Commission shall permit any person authorised by him to inspect and make copies of any documents containing such information.

(4)No information shall be required by the Comptroller and Auditor General under this section in respect of any particular body.

(5)The Comptroller and Auditor General shall from time to time lay before the House of Commons a report of any matters which, in his opinion, arise out of studies of the Commission under this section and ought to be drawn to the attention of that House.

(6)Before undertaking or promoting any study under this section the Commission shall consult—

(a)the Comptroller and Auditor General;

[F26(b)the Secretary of State;]

[F27(bza)in the case of a study which has a connection with anything which may be inspected under Chapter 4 of Part 8 of the Education and Inspections Act 2006, Her Majesty's Chief Inspector of Education, Children's Services and Skills;]

[F28(ba)in the case of a study which has a connection with any English local authority social service (within the meaning of Part 2 of the Health and Social Care (Community Health and Standards) Act 2003), the Commission for Social Care Inspection;

(bb)in the case of a study which has a connection with any Welsh local authority social service (within the meaning of that Part of that Act), the National Assembly for Wales;]

(c)such associations of local authorities or other bodies subject to audit as appear to it to be concerned; F29...

(d)such associations of employees as appear to it to be appropriate.

[F30(da)in the case of a study relating to a local government body in Wales, also consult [F31the Welsh Ministers and] the Auditor General for Wales and take account of any relevant work done or being done by the Auditor General for Wales.]

[F32(6A)The Commission may undertake or promote studies under this section relating to a local government body in Wales only if the Commission considers it necessary or desirable to do so for the purposes of any of these—

(a)a study into the impact of anything mentioned in paragraph (a) or (b) of subsection (1) on economy, efficiency and effectiveness in the provision of local authority services throughout England and Wales by all local government bodies or a description of local government body;

(b)a study into the impact of anything mentioned in paragraph (a) or (b) of subsection (1) on economy, efficiency and effectiveness in the provision of other services throughout England and Wales by all local government bodies or a description of local government body;

(c)a study into the impact of anything mentioned in paragraph (a) or (b) of subsection (1) on the financial management throughout England and Wales of all local government bodies or a description of local government body.]

F3335 Studies at request of bodies subject to audit.E+W

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F3435A Studies for functional bodies at request of Greater London Authority.E+W

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36 Studies at request of educational bodies.E+W

(1)The Commission may promote or undertake studies designed to improve economy, efficiency and effectiveness in the management or operations of a body in the first column in the Table below if requested to do so by the body (or one of the bodies) specified in relation to it in the second column—

(2)The Commission may, at the request of [F46the Higher Education Funding Council for England] F47. . . , give the council advice in connection with the discharge of the council’s functions under section 124B(2)(b) of the M1Education Reform Act 1988 or paragraph 18(2)(b) of Schedule 7 to that Act.

(3)The Commission may, at the request of a higher education [F48corporation or further education corporation [F49in England]] —

(a)advise them in connection with the appointment of persons to audit their accounts; and

(b)arrange for their accounts for any financial year to be audited by such of the Commission’s officers as the corporation F50. . . may appoint.

(4)In subsection (3)—

(a)“higher education corporation” and “further education corporation” have the same meaning as in the M2Further and Higher Education Act 1992, and

(b)references to the accounts of a higher education corporation include references to any statement of accounts prepared by the corporation under paragraph 18 of Schedule 7 to the Education Reform Act 1988.

(5)The Commission shall charge the body at whose request any services are provided under this section such fees as will cover the full cost of providing them.

(6)This section shall be construed as one with the M3Education Act 1996; and references in any enactment to the Education Acts include a reference to this section.

F5237 Assistance to [F51other bodies and persons] E+W

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38 Benefit administration studies for Secretary of State.E+W

(1)The Secretary of State may request the Commission to conduct or assist the Secretary of State in conducting studies designed to improve economy, efficiency, effectiveness and quality of performance in the discharge by local authorities of functions relating to the administration of housing benefit and council tax benefit.

[F53(1A)The Secretary of State may not exercise the power conferred by subsection (1) in relation to a county council, county borough council or community council in Wales.]

(2)In the following provisions of this section “study” means a study which the Commission is requested to conduct, or assist the Secretary of State in conducting, under subsection (1).

(3)If the Commission requires—

(a)a local authority included in a study, or

(b)an officer or member of such an authority,

to supply the Commission or an authorised person with such information as is needed for the purposes of the study, the authority or officer or member shall supply the information.

(4)If the Commission requires a local authority included in a study to make available for inspection by the Commission or an authorised person documents which relate to the authority and are needed for the purposes of the study, the authority shall make the documents available.

(5)Any information obtained under a requirement under subsection (3) or (4) may be disclosed by the Commission to the Secretary of State for the purposes of any functions of his which are connected with housing benefit or council tax benefit.

(6)In subsections (3) and (4) “authorised person” means a person authorised by the Commission for the purposes of this section.

(7)The Commission shall send to the Secretary of State a copy of any report of a study; and the Secretary of State or the Commission may send a copy of a report of a study to any local authority to which the study relates.

(8)Any report of a study may be published by the Secretary of State in conjunction with the Commission.

(9)The Commission shall not conduct, or assist the Secretary of State in conducting, a study unless before it does so the Secretary of State has made arrangements for the payment of such reasonable amount as may be agreed between him and the Commission in respect of the study.

39 Social security references and reports to Secretary of State.E+W

(1)The Commission or an auditor may refer to the Secretary of State any matter arising from an audit or study under 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.

(2)The Commission may send to the Secretary of State a copy of any report of which a copy is sent to the Commission under section 10(2) and which contains observations on the administration by a local authority of housing benefit or council tax benefit.

40 Studies relating to registered social landlords.E+W

(1)The [F54Housing Corporation] and the Commission may agree one or more programmes of comparative studies designed to enable the Commission to make recommendations for improving economy, efficiency and effectiveness of registered social landlords F55... .

(2)Where the [F56Housing Corporation] and the Commission fail to agree a programme proposed by either of them, either of them may refer the matter to the Secretary of State who may direct that the programme be carried out either without modifications or with modifications specified in the direction.

F57(2A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)Where a programme is agreed or is directed to be carried out, the Commission shall ensure that studies giving effect to the programme are carried out by it or on its behalf.

(4)It shall be a term of every such programme that the [F58Housing Corporation] make good to the Commission the full costs incurred by the Commission in carrying out the programme.

(5)The Commission shall publish reports on the studies carried out under this section.

(6)Before publishing any such report the Commission shall show a draft of it to the [F59Housing Corporation] and shall consider whether to revise the draft in the light of the comments made by the [F59Housing Corporation] .

41 Provisions supplementary to section 40.E+W

(1)The Commission may, if authorised to do so by the [F60Housing Corporation]—

(a)require a registered social landlord, or any officer or member of a registered social landlord, to supply such information as the Commission may require for the purposes of any study under section 40; and

(b)require a registered social landlord included in any such study to make available for inspection such documents as are reasonably required for the purposes of the study.

(2)The Commission may require the information to be supplied, or the documents to be made available, to the Commission or to a person authorised by the Commission for the purposes of this section.

(3)A person who without reasonable excuse fails to comply with a requirement under this section commits an offence and is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(4)Information obtained by the Commission, or by a person acting on behalf of the Commission, in the course of a study under section 40 may be disclosed by the Commission to the [F61Housing Corporation].

[F6241AInspections of registered social landlordsE+W

(1)The Commission may carry out an inspection of—

(a)the quality of services provided by a registered social landlord;

(b)a registered social landlord’s arrangements for securing continuous improvement in the efficiency, effectiveness and economy with which it provides services.

F63(1A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)Where the Commission has carried out an inspection under subsection (1) it shall issue a report.

(3)A report under subsection (2) shall mention any matter that, as a result of the inspection, the Commission considers should be drawn specifically to the attention of the [F64Housing Corporation] .

(4)The Commission—

(a)shall send a copy of a report under subsection (2) to the registered social landlord concerned and to the [F65Housing Corporation] ;

(b)may publish a report under subsection (2) and any information in respect of a report.

(5)Section 11 of the Local Government Act 1999 (best value inspections under section 10: inspectors' powers and duties, and offences) shall apply for the purposes of an inspection of a registered social landlord under subsection (1) of this section as it applies for the purposes of an inspection of a best value authority under section 10 of that Act.

(6)The Commission shall, when drawing up any programme of inspections under subsection (1), consult the [F66Housing Corporation] .

41BFees for inspections under section 41AE+W

(1)The [F67Secretary of State] may by order make provision of any of the following kinds in relation to the charging of fees by the Commission in respect of inspections under section 41A(1)—

(a)provision authorising the Commission to prescribe a scale or scales of fees in respect of inspections;

(b)provision governing the prescribing of scales;

(c)provision requiring a registered social landlord inspected under section 41A(1) to pay to the Commission any fee applicable to the inspection in accordance with a scale prescribed under provision of the kind mentioned in paragraph (a);

(d)such incidental, consequential or supplementary provision as the [F67Secretary of State] thinks necessary or expedient.

F68(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)The Secretary of State shall, before making an order under subsection (1), consult—

(a)the Commission and the Housing Corporation, and

(b)persons appearing to the Secretary of State to represent registered social landlords affected by his proposals.

F69(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)The Commission shall, before prescribing a scale of fees that it is authorised to prescribe by an order under subsection (1) F70..., consult—

(a)the Secretary of State and the Housing Corporation, and

(b)persons appearing to the Commission to represent registered social landlords affected by its proposals.

F71(6)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F7241CAdvice and assistance for registered social landlordsE+W

(1)The Commission may, if it thinks it appropriate to do so, provide advice or assistance to a registered social landlord for the purpose of the exercise by the registered social landlord of its functions.

(2)Advice or assistance under this section may be provided on such terms, including terms as to payment, as the Commission thinks fit.]

F7342 Consultancy services relating to audit of accounts of registered social landlords.E+W

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[F7443 Meaning of “registered social landlord”E+W

In sections 40 to 41C, “registered social landlord” means a body registered as a social landlord under Part 1 of the Housing Act 1996, other than a body mentioned in any of paragraphs (a) to (c) of section 56(2) of that Act (bodies registered in Wales).]

Performance standards of local authorities etc.E+W

F7544 Publication of information as to standards of performance.E+W

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F7545 Permitted methods of publishing information under section 44.E+W

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F7546 Directions under section 44.E+W

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F7547 [F76Application to parish councils and charter trustees.]E+W

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[F77Reports on performanceE+W

“47AReports relating to performance of English local authoritiesE+W

(1)The Commission may produce comparative and other reports in relation to one or more of the following aspects of the performance of English local authorities in exercising their functions—

(a)the risk that authorities may fail to perform their functions or fail to perform their functions adequately;

(b)the rate at which authorities' performance is improving;

(c)the economy, efficiency and effectiveness of authorities' use of resources.

(2)A report under subsection (1) may relate to—

(a)all English local authorities;

(b)any particular English local authority or authorities; or

(c)particular descriptions of English local authority.

(3)A report under subsection (1) may relate to particular functions of authorities.

(4)In this section, “English local authority” means—

(a)a county council in England;

(b)a district council;

(c)a London borough council;

(d)the Council of the Isles of Scilly;

(e)the Common Council of the City of London in its capacity as a local authority;

(f)a metropolitan fire and civil defence authority;

(g)the London Fire and Emergency Planning Authority; or

(h)a fire and rescue authority constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies.

(5)The Secretary of State may by order amend the definition of “English local authority” in subsection (4) by adding any authority or body which is a best value authority, other than—

(a)an authority or body which is a Welsh best value authority for the purposes of Part 1 of the Local Government Act 1999;

(b)a police authority for a police area in Wales.

(6)The Secretary of State may by order remove from that definition any authority or body for the time being mentioned in it.

(7)The powers in subsections (5) and (6) may be exercised to add or remove an authority or body to the extent that it acts in a capacity, or exercises functions, specified in the order.

(8)Before making an order under subsection (5) or (6) the Secretary of State must consult the best value authorities concerned or persons appearing to him to represent the best value authorities concerned.]