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Consultations & legislation
07 May 2003
1. The Treasury carried out a consultation process on the Government’s intention, announced in March 20021, to propose draft Orders to Parliament under the Government Resources and Accounts Act 2000. The draft Orders are intended to:
(a) make the Comptroller and Auditor General (C&AG) the auditor of those Non-Departmental Public Bodies (NDPBs) – other than companies – which are required, by or under statute, to be audited by auditors appointed either by the Minister or by the NDPB itself;
(b) extend the C&AG’s statutory right of access to documents held by third-party bodies in connection with his financial audit of all departments and NDPBs.
2. A consultation document on these matters was issued in July 2002 to more than 60 representative bodies. The bodies are listed in Annex F of the consultation document. The consultation document was also posted on the Treasury’s website. The closing date for comments was 24 October 2002.
3. Six bodies submitted comments to the Treasury. The main concern raised by these respondents was the need to minimise any additional burdens arising from the C&AG’s increased powers.
5. The need to minimise any such burdens has been a key concern for the Government in its consideration of the C&AG’s proposed new powers. In response to such concerns the C&AG has given assurances, as set out in Section 3 of the Government’s Response, that he will use his new powers in a way which minimises any new burdens. sector 3 also sets out the enhanced procedures established by the National Audit Office in support of the C&AG for responding to any concerns which clients and stakeholders may have in this area or more generally.
7. The Government believes that these steps will ensure that there is little if any extra burden arising from the C&AG’s new powers.
8. Other points made by respondents included a call for adequate guidance and advice to those affected; concern about the adverse impact of the change on private sector firms of auditors; and proposals to extend the C&AG's powers beyond what the Government announced in its response to Lord Sharman’s report. On the first point, the NAO published guidance in May 2002 on how the C&AG's new powers would be used. On the second point, the C&AG has indicated his intention to contract out an equal number of additional audits as are currently awarded by departments to private sector firms of auditors. On the third point, the Government's views on further powers for the C&AG were set out in its response to Lord Sharman.
8. The Government has concluded that the main concerns of the bodies who responded are adequately addressed under the new arrangements referred to above, and has therefore proceeded with the introduction in Parliament of the necessary draft Orders on audit and access as indicated in paragraph 1. At the same time the Government has amended the Regulatory Impact Assessment (RIA) accompanying these Orders in the light of the comments made by the respondents. A copy of the RIA is attached to this note.
