With this it will be convenient to discuss the following:
New clause 2—Transparency of audit
‘(1) A local auditor has a right of access at all reasonable times to audit documents from private companies to whom the local authority has contracted significant services during the last financial year.
(2) Local auditors only have a right of access to audit documents from private companies, under subsection (1), that relate to the service provided to the local authority by that company.
(3) A local auditor must make available on request any audit documents, obtained under subsection (1), subject to the provisions of the Freedom of Information Act 2000.
(4) In this section “private company” shall be interpreted to mean any legal entity, including joint ventures, not-for-profit organisations, mutually-held organisations and charities.
(5) Five years after the coming into force of this section, the Secretary of State must commission and publish a review of the effectiveness of subsections (1) to (3) and of the costs to local auditors, private companies and local authorities arising from it.
(6) The meaning of “significant” and “terms of qualification” shall be set out by regulations.’.
New clause 4—Scrutiny
‘Before section 1 of this Act is brought into force, the Secretary of State shall prepare and lay before each House of Parliament a report on the effectiveness, efficiency and economy of the structures and procedures put in place by relevant local authorities, under section 21 of the Local Government Act 2000 (Overview and scrutiny committees), to review the decisions made, or other action taken, by the executives of such local authorities.’.
New clause 5—Fraud investigation
‘Before section 1 of this Act is brought into force, the Secretary of State shall prepare and lay before each House of Parliament a report on the adequacy of the resources, staffing, structures and procedures put in place by authorities to detect and investigate fraud within the authority effectively.’.
New clause 6—Compromise agreements
‘Before section 1 of this Act is brought into force, the Secretary of State shall prepare and lay before each House of Parliament a report into the extent and appropriateness of the use of compromise agreements, incorporating confidentiality clauses, as provided for by section 203 of the Employment Rights Act 1996, to effect the exit of members of staff from employment by local authorities.’.
Government amendment 1.
Amendment 13, in clause 20, page 15, line 24, at end insert—
‘(7) A person providing commercial or consultancy services to an authority may not audit those services.
(8) The audit of any commercial or consultancy services provided by a person appointed as a local auditor must be subcontracted to a different local auditor.’.
Government amendments 2 and 3.
Amendment 12, in schedule 2, page 43, line 8, at end insert—
30 A Local Enterprise Partnership.’.
Government amendments 4 and 5.