Source: http://www.legislation.gov.uk/uksi/2011/817/made/data.xht?view=snippet&wrap=true
Timestamp: 2019-07-22 09:23:22
Document Index: 481998501

Matched Legal Cases: ['art 13', 'ART 4', 'ART 6', 'art 3', 'arts 3', 'art 1', 'art 2', 'art 3', 'art 4', 'art 5', 'art 6', 'art 2', 'art 1']

1.—(1) These Regulations may be cited as the Accounts and Audit (England) Regulations 2011 and come into force on 31st March 2011.
for an established body, meets the qualifying condition for the year concerned, or for either of the two immediately preceding years,
for a newly established body, meets the qualifying condition for its first or second year,
the qualifying condition being that the body’s gross income or gross expenditure (whichever is higher) is not more than £6.5 million;
“working day” means any day other than a Saturday, a Sunday, Christmas Day, Good Friday or a day which is a bank holiday in England under the Banking and Financial Dealings Act 1971(7); and
“year” means the period of 12 months ending with 31st March.
(i)section 151 (financial administration) of the 1972 Act;
(ii)section 17(1) (accounts) of the Norfolk and Suffolk Broads Act 1988(8);
(iii)section 112(1) (financial administration as to certain authorities) of the Local Government Finance Act 1988(9);
(iv)section 6(1) (officer responsible for financial administration of certain authorities) of the 1989 Act;
(v)paragraph 13(6) of Schedule 7 (National Park Authorities) to the Environment Act 1995(10); or
(vi)section 127(2) (proper financial administration and chief finance officer) of the Greater London Authority Act 1999(11);
as the case may be, is responsible for the administration of the financial affairs of a relevant body or, if no person is so responsible, the person who is responsible for keeping the accounts of such a body, or
(b)if the person referred to in sub-paragraph (a) is unable to act owing to absence or illness, such member of that person’s staff as is nominated by that person for the purposes of section 114 (functions of responsible officer as regards reports) of the Local Government Finance Act 1988(12) or, if no nomination is made under that section, such member of staff nominated by the person referred to in sub-paragraph (a) for the purposes of these Regulations.
(3) Any reference in regulations 4 to 28 to a relevant body must, in the case of a parish meeting, be construed as a reference to the chairman of that meeting.
3. The instruments listed in the Schedule to these Regulations are revoked.
4.—(1) The relevant body is responsible for ensuring that the financial management of the body is adequate and effective and that the body has a sound system of internal control which facilitates the effective exercise of that body’s functions and which includes arrangements for the management of risk.
(b)in the case of a smaller relevant body, by the members of the body meeting as a whole, and
following the review, the body or committee must approve an annual governance statement, prepared in accordance with proper practices in relation to internal control.
(4) The relevant body must ensure that the statement referred to in paragraph (3) accompanies—
(a)any statement of accounts it is obliged to prepare in accordance with regulation 7, or
(b)any accounting statement it is obliged to prepare in accordance with regulation 12.
5.—(1) Subject to paragraphs (2) and (4), and, in so far as they are not in conflict with this paragraph, to any instructions given by a relevant body to its responsible financial officer, that officer must determine, on behalf of the body, its—
and such an officer must ensure that the accounting control systems determined by that officer are observed and that the accounting records of the body are kept up to date.
(2) The accounting records determined in accordance with paragraph (1)(a) must be sufficient to show and explain a relevant body’s transactions and to enable the responsible financial officer to ensure that any statement of accounts or accounting statement which are prepared under these Regulations, comply with these Regulations.
(3) The accounting records determined in accordance with paragraph (1)(a) must in particular contain—
(b)a record of the assets and liabilities of the body;
(c)a record of income and expenditure of the body in relation to claims made, or to be made, by them for contribution, grant or subsidy from any Minister of the Crown, a body to whom such a Minister may pay sums out of moneys provided by Parliament or an EU institution; and
(d)a record of any approval given for the purposes of paragraph (4)(c).
(4) The accounting control systems determined in accordance with paragraph (1)(b) must include—
(i)to ensure that the financial transactions of the body are recorded as soon as, and as accurately as, reasonably practicable;
(ii)to enable the prevention and detection of inaccuracies and fraud, and the reconstitution of any lost records; and
(b)identification of the duties of officers dealing with financial transactions and division of responsibilities of those officers in relation to significant transactions; and
(c)procedures to ensure that uncollectable amounts, including bad debts, are not written off except with the approval of the responsible financial officer, or such member of that officer’s staff as is nominated by that officer for this purpose.
6.—(1) A relevant body must undertake an adequate and effective internal audit of its accounting records and of its system of internal control in accordance with the proper practices in relation to internal control.
(2) Any officer or member of a relevant body must, if the body requires—
(a)make available such documents and records as appear to that body to be necessary for the purposes of the audit; and
(4) The findings of the review referred to in paragraph (3) must be considered, as part of the consideration of the system of internal control referred to in regulation 4(3), by the committee or body referred to in that paragraph.
(a)demonstrating whether the Dedicated Schools Grant (made under section 14 (power of Secretary of State to give financial assistance for purposes related to education or children etc) of the Education Act 2002(13)) has been deployed in accordance with regulations made under sections 45A (determination of specified budgets of local authority), 45AA (power to require local authorities to make initial determination of schools budget), 47 (determination of schools’ budget share), 48(1) and (2) (local authorities’ financial schemes) and 138(7) (orders and regulations) of, and paragraph 1(7)(b) of Schedule 14 to, the School Standards and Framework Act 1998(14);
(vi)in relation to relevant police officers, any payments, whether made under the Police Regulations 2003(15) or otherwise, which do not fall within (i) to (v) above.
in relation to contributions to the local government pension scheme established under section 7 of the Superannuation Act 1972(16), the sum of—
the common rate of employer’s contribution specified in a rates and adjustments certificate prepared under regulation 36 (actuarial valuations and certificates) of the Local Government Pension Scheme (Administration) Regulations 2008(17), being the amount appropriate for that body calculated in accordance with the certificate and regulation 39(4) (employer’s contributions) of those Regulations, multiplied by the person’s pensionable pay; and
if applicable, the appropriate sum within the meaning of regulation 40(18) (employer’s payment following resolution to increase membership or award additional pension) of those Regulations;
in relation to contributions to the firefighters’ pension scheme established under the Fire Services Acts 1947 and 1959(19), the percentage of the aggregate of the pensionable pay calculated for the purposes of paragraph G2(3) and (4) of Schedule 2 to the Firemen’s Pension Scheme Order 1992(20), multiplied by the person’s pensionable pay;
in relation to contributions to the firefighters’ pension scheme established under the Fire and Rescue Services Act 2004(21), the percentage of the aggregate of the pensionable pay calculated for the purposes of paragraphs (2) and (3) of Rule 2 of Part 13 of Schedule 1 to the Firefighters’ Pension Scheme (England) Order 2006(22), multiplied by the person’s pensionable pay;
in relation to contributions to police pension schemes established under the Police Pensions Regulations 1987(23) or the Police Pensions Regulations 2006(24), the percentage of pensionable pay specified in regulation 5(1) (police authority contributions) of the Police Pension Fund Regulations 2007(25), multiplied by the person’s pensionable pay;
in relation to a police force maintained under section 2 (maintenance of police forces) of the Police Act 1996(26), the chief constable,
is a statutory chief officer within the meaning of section 2(6)(27) of that Act; or
(5) In the case of a local authority which is required by section 74(28) of the 1989 Act to keep a housing revenue account, the statement of accounts required by paragraph (1) must include also an account in respect of a reserve for major repairs to property of the authority to which section 74(1) of the 1989 Act for the time being applies (to be called a major repairs reserve), showing in particular—
(b)a debit in respect of any capital expenditure, within the meaning of section 16 (“capital expenditure”) of the Local Government Act 2003(29), which was—
(d)the provisions contained in section 15 (inspection of documents and questions at audit)(30) and section 16(31) (right to make objections at audit) of the 1998 Act; and
PART 4Published accounts and audit - smaller relevant bodies
12.—(1) Subject to paragraph (2), a smaller relevant body must prepare for each year either—
(a)an income and expenditure account and a statement of balances in accordance with, and in the form specified in any Annual Return required by, proper practices in relation to accounts; or
(b)a statement of accounts prepared in accordance with regulation 7, as if that regulation applied to smaller relevant bodies.
(2) Where in relation to a smaller relevant body, the gross income or expenditure (whichever is the higher) was not more than £200,000 for the year or for either of the two immediately preceding years, the body may, instead of complying with paragraph (1), prepare in accordance with, and in the form specified in any Annual Return required by, proper practices in relation to accounts, a record of receipts and payments of the body in relation to that year.
13.—(1) A smaller relevant body must ensure that the accounting statements required by regulation 12 are prepared in accordance with these Regulations.
(2) Before the approval referred to in paragraph (3) is given, the responsible financial officer of a relevant body must—
(3) A smaller relevant body must, no later than 30th June—
(4) A smaller relevant body must, no later than 30th September in the year immediately following the end of the year to which the statement relates, either—
(a)publish the accounting statements by means other than solely by reference in the minutes of meetings, together with any certificate, opinion, or report issued, given or made by the auditor under section 9 (general report) of the 1998 Act; or
(5) A smaller relevant body must keep copies of the documents mentioned in paragraph (4)(a) for purchase by any person on payment of a reasonable sum.
14. The procedure for public inspection of accounts for a smaller relevant body, mentioned in regulation 22, is that the body must make the documents mentioned in that regulation available for public inspection on reasonable notice, during a period of 20 working days before the date appointed by the auditor under regulation 21.
15.—(1) The procedure for a smaller relevant body to give notice of public rights, mentioned in regulation 24, is that it must display, in a conspicuous place or places in the area of the body for a period of at least 14 days immediately prior to the period during which the accounts and other documents are made available under regulation 14, a notice containing the matters set out in paragraph (2).
(d)the provisions contained in section 15 (inspection of documents and questions at audit) and section 16 (right to make objections at audit) of the 1998 Act; and
16. As soon as reasonably possible after conclusion of an audit, a smaller relevant body must display a notice in a conspicuous place or places in the area of the body for a period of at least 14 days stating that the audit has been completed and that the relevant accounting statements required by these Regulations are available for inspection by local government electors on reasonable notice and including—
(a)a statement of the rights conferred on local government electors by section 14 (inspection of statements of accounts and auditors’ reports) of the 1998 Act; and
(b)details of the manner in which notice should be given of an intention to exercise the right of inspection.
19. The summary statement of accounts which the Greater London Authority (“ the Authority”) is required to prepare by section 134 (summary of statement of accounts of Authority) of the Greater London Authority Act 1999(32) must be prepared in accordance with proper practices in relation to accounts and must include—
PART 6Audit procedure
21. The auditor must, for the purpose of the exercise of rights under section 15 (right of local government elector to request an opportunity to question the auditor about the accounts) and 16 (right of local government elector to make objections to the auditor) of the 1998 Act, appoint a date on or after which those rights may be exercised, and must notify the relevant body concerned of that date.
22. A relevant body notified under regulation 21 must make the accounts and other documents mentioned in section 15 (inspection of documents and questions at audit) of the 1998 Act available in accordance with the procedure specified for larger relevant bodies in regulation 9, or for smaller relevant bodies in regulation 14, as appropriate.
23. Except with the consent of the auditor, accounts and other documents must not be altered after the date on which they are first made available for inspection in pursuance of either regulations 9 or 14.
24. A relevant body must give notice of public rights in accordance with the procedure specified for larger relevant bodies in regulation 10, or for smaller relevant bodies in regulation 15.
25.—(1) Any written notice of an objection given in pursuance of section 16 of the 1998 Act must state the facts on which the local government elector relies, and contain, so far as possible—
(b)particulars of any matter in respect of which it is proposed that the auditor could make a report under section 8 (immediate and other reports in public interest) of that Act.
(2) In relation to relevant bodies to which Part 3 of the Local Government Act 2000(33) (conduct of local government members and employees) applies, paragraph (1) applies in respect of matters occurring before such a body first adopted a code of conduct under that Act or such a code was first applied to it, with the addition of particulars of any person from whom it is alleged that the auditor should certify under section 18(34) (recovery of amount not accounted for etc.) of the 1998 Act that a sum or amount of loss or deficiency is due and the sum of that amount.
26. A relevant body must give notice of conclusion of audit in accordance with the procedure specified for larger relevant bodies in regulation 11, or for smaller relevant bodies in regulation 16, as appropriate.
27. As soon as reasonably possible after receipt of the annual letter from the auditor, the members of the relevant body meeting as a whole or, in the case of a larger relevant body only, a committee of that body, must meet to consider it and following that consideration must—
28. Where, under section 25 (extraordinary audit) of the 1998 Act, the Commission directs an auditor to hold an extraordinary audit of accounts of a relevant body, the body must—
The Accounts and Audit Regulations 2003 S.I. 2003/533 The whole Regulations
The Accounts and Audit (Amendment) Regulations 2004 S.I. 2004/556 The whole Regulations
The Fire and Rescue Services Act 2004 (Consequential Amendments) (England) Order 2004 S.I. 2004/3168 Regulation 67
The Accounts and Audit (Amendment) (England) Regulations 2006 S.I. 2006/564 The whole Regulations
The Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006 S.I. 2006/2914 Paragraph 4 of Schedule 1 to the Regulations
The Offender Management Act 2007 (Consequential Amendments) Order 2008 S.I. 2008/912 Paragraph 5 of Schedule 2 to the Regulations
The Accounts and Audit (Amendment) (England) Regulations 2009 S.I. 2009/473 The whole Regulations
The Accounts and Audit (Amendment No. 2) (England) Regulations 2009 S.I. 2009/3322 The whole Regulations
These Regulations make provision with respect to the accounts and audit of bodies whose accounts are required to be audited in accordance with section 2 of the 1998 Act other than a NHS body as defined in paragraph 1 of Schedule 15 to the National Health Service Act 2006, a local probation board or a probation trust (‘relevant bodies’, see regulation 2). They also make provision in respect of the summary statement of accounts that the Greater London Authority is required to prepare under section 134 of the Greater London Authority Act 1999.
These Regulations replace the Accounts and Audit Regulations 2003 (as amended) which, together with amending Regulations, are revoked.
These Regulations differ in a number of respects from previous Accounts and Audit Regulations. Of particular note among the changes are the following: the increase in the threshold of gross income or gross expenditure for smaller relevant bodies from less than £1 million per year to not more than £6.5 million (regulation 2); changes to the procedures for approving and publishing accounts (regulations 8 and 13); changes to the requirements for the statement of accounts of a Passenger Transport Executive (regulation 17); the separation of procedures governing published accounts and audit for larger relevant bodies from that for smaller relevant bodies in the structure of the Regulations (see Parts 3 and 4); and it is no longer an offence to fail to comply with any aspect of the Regulations.
Part 1 is introductory. Regulation 1 sets out the citation, commencement date of 31st March 2011 and application of the Regulations to England only. Regulation 2 sets out the defined terms used in the Regulations.
Regulation 3 and the Schedule set out the instruments which are, and the extent to which they are, revoked.
Part 2 concerns financial management and internal control. Regulation 4 requires relevant bodies to be responsible for ensuring that the financial management of the body is adequate and effective and the body has a sound system of internal control which they regularly review. Regulation 5 makes provision in respect of the accounting records which are to be kept, and the control systems that must be maintained, by relevant bodies. Regulation 6 makes provision for relevant bodies to maintain an adequate and effective internal audit of their accounting records and system of internal control.
Part 3 concerns the published accounts and audit for larger relevant bodies. Regulation 7 contains the requirements for the preparation of the statement of accounts for a body, regulation 8 the requirements for signing, approval and publication of the statement of accounts by a body, regulation 9 the procedure for the public to inspect the accounts of a body, regulation 10 the procedure for a body to give notice of the public rights relating to the accounts and audit procedure, and regulation 11 the requirement for a body to give notice as to the conclusion of audit and the availability of its statement of accounts for inspection by local government electors.
Part 4 concerns the published accounts and audit for smaller relevant bodies. Regulation 12 contains the requirements for the preparation of accounting statements for a body, regulation 13 the requirements for signing, approval and publication of accounting statements by a body, regulation 14 the procedure for the public to inspect the accounts of a body, regulation 15 the procedure for a body to give notice of the public rights relating to the accounts and audit procedure, and regulation 16 the requirement for a body to display a notice stating that the audit has concluded and that the relevant accounting statements are available for inspection by local government electors.
Part 5 concerns particular authorities. Regulation 17 contains the requirements for the preparation of the statement of accounts of a Passenger Transport Executive. Regulation 18 makes provision as to the accounting treatment of certain payments and contributions statutorily payable by an internal drainage board. Regulation 19 contains the requirements for the Greater London Authority in preparing its summary statement of accounts. Regulation 20 makes provision in respect of joint committees, joint boards, combined authorities and National Park Authorities regarding the deposit of certain documents relating to their accounts and audit with each constituent authority (being an authority entitled to appoint members to the body, and in relation to a National Park Authority includes the Secretary of State and Natural England).
Part 6 concerns audit procedure. Regulation 21 requires the auditor to appoint a date on or after which the rights of local government electors under sections 15 (right to request an opportunity to question the auditor about the accounts) and 16 (right to make objections to the auditor) of the Audit Commission Act 1998 (‘the 1998 Act’) may be exercised, and to notify the relevant body concerned. Regulation 22 requires a relevant body notified under regulation 21 to make the accounts and documents mentioned in section 15 of the 1998 Act available in accordance with the procedure specified for the type of relevant body (in either Part 2 or 3 of these Regulations). Regulation 23 provides that, except with the consent of the auditor, that accounts and other documents must not be altered after the first date on which they are first made available for inspection. Regulation 24 requires relevant bodies to give notice of public rights in accordance with the procedure specified in these Regulations. Regulation 25 contains the requirements for any written notice of an objection given in pursuance of section 16 of the 1998 Act by a local government elector. Regulation 26 requires a relevant body to give notice of conclusion of audit in accordance with the procedure specified in these Regulations. Regulation 27 requires a relevant body to consider the annual letter from the auditor, publish it and make copies available for purchase. Regulation 28 provides that, where an auditor has been directed by the Audit Commission to hold an extraordinary audit of a relevant body’s accounts under section 25 of the 1998 Act, the body must advertise the right of any local government elector to make objections to any of those accounts.
2006 c. 41. Paragraph 1(3) of Schedule 15 was inserted by article 6 of S.I. 2008/817.
2003 c. 26. Bodies specified in, or in regulations made under, section 23 of the Local Government Act 2003 are local authorities for the purposes of Part 1 of that Act.
Section 114 was amended by section 130 of the Greater London Authority Act 1999 (c. 29), S.I. 2002/2237, paragraph 34 of Schedule 4 to the Police and Magistrates’ Courts Act 1994 (c. 29), paragraph 66 of Schedule 5 to the Local Government and Housing Act 1989 (c. 42), paragraph 28 of Schedule 6 to the Police Act 1997 (c. 50) and paragraph 48 of Schedule 6 to the Criminal Justice and Police Act 2001 (c. 16).
Section 18 was repealed by section 90(3) of the Local Government Act 2000 (c. 22). Regulation 25(2) would apply in the event of an historical audit (to which section 18 applied), which has been completed and closed, being re-opened in the event of financial irregularities coming to light.