§ Mr. CohenTo ask the Chairman of the Public Accounts Commission what arrangements are in hand to audit non-departmental public bodies; and what improvements to those arrangements are currently being considered.
§ Sir Peter HordernThe Comptroller and Auditor General is the auditor of two-thirds of non-departmental public bodies. The auditor of the remaining bodies is appointed by the responsible Secretary of State, usually from the private sector, and accounts are laid before Parliament.
In addition, as the auditor of all central Government Departments and agencies the C and AG checks the payment of grants to all public bodies funded by central Government. In most cases he has a right of access to the body receiving the money both so that he can check that the Department is supervising the spending of public money effectively and also to check that the body spends the money properly.
The recent report by the Public Accounts Committee on the proper conduct of public business suggested that the National Audit Office be enabled to examine and inspect all non-departmental public bodies and other organisations which receive the greater part of their income from central Government funds. The Government have agreed to consider the need for the C and AG to examine bodies to which he currently does not have access on a case by case basis.