The Regulatory Reform (National Health Service Charitable and Non-Charitable Trust Accounts and Audit) Order 2005
| Jurisdiction | UK Non-devolved |
2005 No. 1074
REGULATORY REFORM
NATIONAL HEALTH SERVICE, ENGLAND AND WALES
The Regulatory Reform (National Health Service Charitable and Non-Charitable Trust Accounts and Audit) Order 2005
Made 29th March 2005
Whereas—
(a) the Secretary of State for Health (“the Secretary of State”) consulted—
such organisations as appeared to him to be representative of interests substantially affected by his proposals for this Order,
the National Assembly for Wales, and
such other persons as he considered appropriate;
(b) as a result of that consultation it appeared to the Secretary of State that it was appropriate to vary his proposals, and he undertook such further consultation with respect to the variations as appeared to him appropriate;
(c) following the consultation mentioned in recitals (a) and (b) the Secretary of State considered it appropriate to proceed with the making of this Order;
(d) a document containing the Secretary of State’s proposals was laid before Parliament as required by section 6 of the Regulatory Reform Act 20011and the period for Parliamentary consideration under section 8 of that Act expired;
(e) the Secretary of State had regard to the representations made during that period and in particular to the House of Lords Delegated Powers and Regulatory Reform Committee’s Eleventh Report of Session 2003-04 and the House of Commons Regulatory Reform Committee’s Fifth Report of Session 2003-04;
(f) a draft of this Order was laid before Parliament with a statement giving details of those representations and the changes to the Secretary of State’s proposals in the light of them;
(g) the draft was approved by resolution of each House of Parliament;
(h) this Order removes a function of the National Assembly for Wales, and the Assembly has agreed that it be made;
(i) the Secretary of State is of the opinion that this Order does not remove any necessary protection or prevent any person from continuing to exercise any right or freedom he might reasonably expect to continue to exercise; and
(j) this Order creates burdens affecting persons in the carrying on of certain activities, and the Secretary of State is of the opinion that—
the provisions of this Order, taken as a whole, strike a fair balance between the public interest and the interests of the persons affected by the burdens being created, and
the extent to which this Order removes or reduces one or more burdens, or has other beneficial effects for persons affected by the burdens imposed by the existing law, makes it desirable for this Order to be made;
Now therefore the Secretary of State, in exercise of the powers conferred by sections 1 and 4(3) of the Regulatory Reform Act 2001, hereby makes the following Order:
Citation, commencement and extent
1.—(1) This Order may be cited as the Regulatory Reform (National Health Service Charitable and Non-Charitable Trust Accounts and Audit) Order 2005.
(2) This Order comes into force on 31st March 2005 and has effect in relation to the financial year of a trust starting on or after 1st April 2004.
(3) This Order extends to England and Wales only.
Amendments to the National Health Service Act 1977
2.—(1) Section 98 (accounts and audit) of the National Health Service Act 19772is amended as follows.
(2) After subsection (6), there is inserted—
S-7 “7 In a case where a body referred to in subsection (1)(za) and (bb) to (ddd) is a trustee of a charitable trust, the references in subsections (1), (2) and (4) to accounts do not include accounts relating to the charitable trust.
S-8 8 In a case where a body referred to in subsection (1)(za) and (bb) to (ddd) is a trustee of an English non-charitable trust, the references in subsections (2) and (4) to accounts do not include accounts relating to the non-charitable trust.
S-9 9 In a case where a body referred to in subsection (1)(za) and (bb) to (ddd) is a trustee of a Welsh non-charitable trust, the references in subsection (4) to accounts do not include accounts relating to the non-charitable trust.
S-10 10 In this section—
“English non-charitable trust” means a non-charitable trust, the trustees of which are—
(a) a Strategic Health Authority;
(b) a Primary Care Trust;
(c) a National Health Service trust all or most of whose hospitals, establishments and facilities are situated in England;
(d) trustees appointed in pursuance of section 11 of the National Health Service and Community Care Act 1990 (c. 19), or special trustees appointed in pursuance of section 29(1) of the National Health Service Reorganisation Act 1973 (c. 32)and section 95(1) of the National Health Service Act 1977 (c. 49), for a National Health Service trust falling within paragraph (c); or
(e) trustees for a Primary Care Trust appointed in pursuance of section 96B of the National Health Service Act 1977; and
“Welsh non-charitable trust” means a non-charitable trust, the trustees of which are—
(a) a Local Health Board;
(b) a National Health Service trust all or most of whose hospitals, establishments and facilities are situated in Wales; or
(c) trustees appointed in pursuance of section 11 of the National Health Service and Community Care Act 1990 (c. 19), or special trustees appointed in pursuance of section 29(1) of the National Health Service Reorganisation Act 1973 (c. 32)and section 95(1) of the National Health Service Act 1977 (c. 49), for a National Health Service trust falling within paragraph (b).”.
Amendments to the Charities Act 1993
3.—(1) The Charities Act 19933is amended as follows.
(2) In section 43 (annual audit or examination of charity accounts) after subsection (9), there is inserted—
S-10 “10 Nothing in this section applies in relation to a financial year of a charity where, at any time in the year, a charity is an English National Health Service charity or Welsh National Health Service charity (as defined in sections 43A and 43B respectively).”.
(3) After section 43 there is inserted—
S-43A “Annual audit or examination of English National Health Service charity accounts
43A.—(1) This section applies in relation to a financial year of a charity where, at any time in the year, the charity is an English National Health Service charity.
(2) In any case where the criterion set out in subsection (1) of section 43 is met in respect of a financial year of an English National Health Service charity, the accounts of the charity for that financial year shall be audited by a person appointed by the Audit Commission.
(3) In any other case, the accounts of the charity for that financial year shall, at the election of the Audit Commission, be—
(a)
(a) audited by a person appointed by the Audit Commission; or
(b)
(b) examined by a person so appointed.
(4) Section 3 of the Audit Commission Act 1998 (c. 18)applies in relation to any appointment under subsection (2) or (3)(a).
(5) The Commissioners may give such directions as they...
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