Select Committee on Delegated Powers and Deregulation Eleventh Report



PART III
Accounting Requirements for Registered Parties

CLAUSE 38 - STATEMENTS OF ACCOUNTS

Clause 38 requires the treasurer of a registered party to prepare a statement of accounts in respect of each financial year of the party. The statement of accounts must comply with such requirements as to its form and contents as may be prescribed by regulations made by the Commission (subsection (2)(a)). The form and contents of the account are likely to be detailed and technical and for that reason have been left to delegated legislation. They may change over time as accounting practices change. Failure to comply with regulations under clause 38 is a criminal offence by virtue of clause 43. The regulations are to be made by the Commission because it has the functions of monitoring compliance with the provisions of this Bill and is non-partisan and so best placed to undertake this role. The regulations will only apply to the accounts of registered political parties and it is not thought necessary for them to be subject to any parliamentary scrutiny.

CLAUSE 39 - ANNUAL AUDITS

Clause 39 makes provision for the auditing of accounts of registered parties. Under subsection (6) the Commission may, by regulations, make provision with respect to (a) the appointment of auditors, (b) the duty of auditors and (c) the removal and resignation of auditors. The regulation may also make provision as to delivery of documents in respect of the removal or resignation of an auditor to the Commission. It is an offence not to comply with such requirements. This matter has been left to regulations made by the Commission because it affects only registered political parties. It is not thought necessary for the regulations to be subject to any parliamentary scrutiny.

CLAUSE 44 - REVISION OF DEFECTIVE STATEMENTS OF ACCOUNT

Clause 44 makes provision for revision of defective statements of account. Under subsection (9) the Commission may by regulations make provision with respect to the application of provisions of Part III of the Bill to the preparation and auditing of revised statements of account, in particular any matter for which provision has been made by regulations under clause 39(6). This matter has been left to delegated legislation, as it will apply the existing provisions of Part III. Since the Commission is limited to applying the provisions of Part III it is not thought necessary for the regulations to be subject to any parliamentary scrutiny.


 
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