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Schedules

Schedule 2Public Sector Fraud Authority and transfer of functions

Section 73

Part 1Powers to establish the PSFA and transfer functions

Main powers

1 (1)

The Minister may by regulations—

(a)

provide that a body corporate called the Public Sector Fraud Authority (and referred to in this Schedule as “the PSFA”) is established;

(b)

provide for the transfer to the PSFA of all or any of the functions to which this paragraph applies.

(2)

The Minister may by regulations provide for the transfer to a public authority other than the PSFA of all or any of the functions to which this paragraph applies.

(3)

This paragraph applies to the functions initially conferred on the Minister by Chapters 1 to 5 of Part 1 of this Act (including functions conferred by an amendment of another enactment), except any function of making regulations or issuing a code of practice.

(4)

A function transferred under sub-paragraph (2) may subsequently be transferred to the PSFA under sub-paragraph (1)(b).

(5)

But a function transferred to the PSFA under sub-paragraph (1)(b) may not subsequently be transferred to another public authority under sub-paragraph (2).

Authorised officers

2 (1)

The reference in paragraph 1(3) to functions initially conferred on the Minister includes functions initially conferred on authorised officers.

(2)

In relation to a function initially conferred on an authorised officer, references in this Part of this Schedule to the transfer of the function to another body are to be read as references to the transfer of the function to an authorised officer of that body.

(3)

Where—

(a)

a function initially conferred on an authorised officer is transferred by regulations under paragraph 1, and

(b)

as a result of any provision of Chapters 1 to 5 of Part 1 of this Act, that function could be exercised only by an authorised officer of a particular rank, grade or description,

the regulations must provide for the function to be exercised by an authorised officer of the transferee of a corresponding grade, rank or description.

(4)

In this paragraph, “authorised officer” includes “authorised investigator”.

Associated modifications

3 (1)

Where functions are transferred to the PSFA or another public authority under paragraph 1, the Minister may by regulations—

(a)

make provision about the application, with any necessary modifications, of Part 1 of this Act in relation to the PSFA or other authority;

(b)

provide for the Minister to give the PSFA or other authority (or its authorised officers) general or specific directions about the exercise of the transferred functions.

(2)

Where functions are transferred to or from a public authority, other than the Minister or the PSFA, under paragraph 1, the Minister may by regulations—

(a)

make any modifications that the Minister considers appropriate in connection with the transfer to the constitutional arrangements, funding arrangements or the functions of the authority;

(b)

make provision in relation to the authority corresponding to that enabled by paragraph 19 (transfer schemes) in relation to—

(i)

the PSFA, where functions are being transferred to the authority, or

(ii)

a “relevant person”, where functions are being transferred from the authority.

(3)

In sub-paragraph (2)(a), “constitutional arrangements” includes the matters referred to in section 3(2) of the Public Bodies Act 2011.

(4)

Regulations under paragraph 1 or this paragraph may amend—

(a)

Part 1 of this Act, except this Schedule, and

(b)

any provision amended by Part 1 of this Act.

Procedure

4

Regulations under this Part of this Schedule are subject to the affirmative procedure.

Part 2Constitution etc

Introduction and status

5 (1)

This Part applies if regulations are made under paragraph 1(1) establishing the PSFA.

(2)

The PSFA acts on behalf of the Crown.

Constitution

6 (1)

The PSFA is to consist of—

(a)

a chair, who is to be a non-executive member,

(b)

at least 3, but not more than 6, other non-executive members,

(c)

a chief executive, and

(d)

at least 2, but not more than 5, other executive members.

(2)

The members are to be appointed in accordance with paragraphs 7 to 10.

Appointment of non-executive members

7 (1)

The Minister is to appoint the non-executive members.

(2)

A person may not be appointed as a non-executive member if the person is a member of the PSFA’s staff.

Appointment of executive members

8 (1)

The chair is to appoint the chief executive and the other executive members, subject to paragraph 9.

(2)

The executive members are to be members of the PSFA’s staff.

Interim chief executive

9 (1)

The Minister may appoint a person (an “interim chief executive”) to be the PSFA’s chief executive until the appointment of a chief executive by the chair under paragraph 8(1) first takes effect.

(2)

An interim chief executive may incur expenditure and do other things in the name and on behalf of the PSFA until the PSFA is first constituted in accordance with paragraph 6(1).

(3)

In exercising the power in sub-paragraph (2), an interim chief executive must act in accordance with any directions given by the Minister.

(4)

Paragraphs 8, 11 and 13 do not apply to an interim chief executive.

Appointment of members: eligibility

10 (1)

The Minister may by regulations make provision about criteria which must be met by persons in order to be appointed as members of the PSFA.

(2)

The regulations may make provision for a person to cease to be a member of the PSFA if the person no longer meets those criteria.

(3)

Regulations under this paragraph are subject to the negative procedure.

Terms of membership

11 (1)

A member of the PSFA holds and vacates office in accordance with the terms of the member’s appointment, subject to provision made by or under this Schedule.

(2)

A member may resign from office by giving notice to the appropriate person.

(3)

A member may be removed from office by notice given by the appropriate person on the grounds that the member—

(a)

has without reasonable excuse failed to discharge the member’s functions, or

(b)

is, in the opinion of the appropriate person, unable or unfit to carry out the member’s functions.

(4)

A person ceases to be—

(a)

a non-executive member of the PSFA upon becoming a member of its staff;

(b)

an executive member of the PSFA upon ceasing to be a member of its staff.

(5)

In this paragraph, “appropriate person” means—

(a)

in the case of the non-executive members, the Minister;

(b)

in the case of the executive members, the chair.

Non-executive members: payments

12 (1)

The PSFA must pay, or make provision for the payment of, such remuneration, pensions, allowances or gratuities as the Minister determines to or in respect of a person who is or has been a non-executive member.

(2)

Sub-paragraph (3) applies if—

(a)

a person ceases to be a non-executive member, and

(b)

the Minister determines that the person should be compensated because of special circumstances.

(3)

Where this sub-paragraph applies, the PSFA must pay the person compensation of such amount as the Minister may determine.

Staffing

13 (1)

The PSFA may—

(a)

appoint employees, and

(b)

make such other arrangements for the staffing of the PSFA as it determines.

(2)

The PSFA must pay its staff such remuneration as may be determined in accordance with this paragraph.

(3)

The PSFA must pay, or make provision for the payment of, such pensions, allowances, gratuities or compensation as may be determined in accordance with this paragraph to or in respect of any person who is or has been a member of staff of the PSFA.

(4)

Members of staff of the PSFA are to be appointed on such other terms as may be determined in accordance with this paragraph.

(5)

A matter is determined in accordance with this paragraph if—

(a)

in the case of a matter which relates to an executive member, it is determined by the chair;

(b)

in the case of a matter which relates to any other member of staff, it is determined by the PSFA.

(6)

Before making a determination as to remuneration, pensions, allowances, gratuities or compensation for the purposes of sub-paragraph (2) or (3), the PSFA must obtain the approval of the Minister as to its policy on that matter.

Discharge of functions etc

14 (1)

The PSFA must have regard to the need to exercise its functions effectively, efficiently and economically.

(2)

The PSFA may authorise the following to exercise any of its functions—

(a)

a member of the PSFA,

(b)

a member of the PSFA’s staff authorised for that purpose, or

(c)

a committee or sub-committee.

(3)

An authorisation may be to such extent and on such terms as the PSFA determines.

(4)

The PSFA may pay such remuneration and allowances as it may determine to any person who—

(a)

is a member of a committee or a sub-committee, but

(b)

is not a member of staff of the PSFA,

whether or not that person is a non-executive member of the PSFA.

Procedure

15 (1)

The PSFA may determine its own procedure and the procedure of any of its committees or sub-committees.

(2)

The validity of any proceedings of the PSFA, or any committee or sub-committee of the PSFA, is not affected by any vacancy among its members or by any defect in the appointment of such a member.

Annual report

16 (1)

As soon as reasonably practicable after the end of each financial year the PSFA must prepare a report on the exercise of its functions during that financial year.

(2)

The PSFA must send the report to the Minister.

(3)

The Minister must lay the report before Parliament and publish it.

(4)

In this Schedule, “financial year” means—

(a)

the period beginning with the date on which the PSFA is established and ending with 31 March following that date, and

(b)

each successive period of 12 months.

Seal and evidence

17 (1)

The application of the PSFA’s seal must be authenticated by a signature of—

(a)

a member of the PSFA, or

(b)

another person authorised for that purpose by the PSFA.

(2)

A document purporting to be duly executed under the PSFA’s seal or signed on its behalf—

(a)

is to be received in evidence, and

(b)

is to be taken to be executed or signed in that way, unless the contrary is shown.

(3)

But this paragraph does not apply in relation to any document which is, or is to be, signed in accordance with the law of Scotland.

Supplementary powers

18 (1)

Subject to sub-paragraph (2), the PSFA may do anything it thinks necessary or expedient for the purposes of, or in connection with, the exercise of its functions.

(2)

The PSFA may not—

(a)

borrow money;

(b)

accept gifts of money, land or other property.

Transfer schemes

19 (1)

The Minister may make one or more schemes (“transfer schemes”) for the purpose of transferring to the PSFA such property, rights and liabilities of a relevant person as the Minister considers appropriate for the purposes of enabling the PSFA to exercise functions transferred to it by regulations under paragraph 1.

(2)

In this paragraph, “relevant person” means—

(a)

the Secretary of State,

(b)

the Minister, or

(c)

the Chancellor of the Duchy of Lancaster.

(3)

The things that may be transferred under a transfer scheme include—

(a)

property, rights and liabilities that could not otherwise be transferred;

(b)

property acquired, and rights and liabilities arising, after the making of the scheme;

(c)

criminal liabilities.

(4)

A transfer scheme may make supplementary, incidental, transitional or consequential provision and may, in particular—

(a)

create rights, or impose liabilities, in relation to property or rights transferred;

(b)

make provision about the continuing effect of things done by a relevant person in respect of anything transferred;

(c)

make provision about the continuation of things (including legal proceedings) in the process of being done by, on behalf of, or in relation to, a relevant person in respect of anything transferred;

(d)

make provision for the shared ownership or use of property;

(e)

make provision which is the same as or similar to the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246);

(f)

make other supplemental, incidental, transitional or consequential provision.

(5)

A transfer scheme may provide for—

(a)

modifications by agreement;

(b)

modifications to have effect from the date when the original scheme came into effect.

(6)

For the purposes of this paragraph—

(a)

references to rights and liabilities include rights and liabilities relating to a contract of employment;

(b)

references to the transfer of property include the grant of a lease.

(7)

For the purposes of sub-paragraph (6)—

(a)

an individual who holds employment in the civil service is to be treated as employed by virtue of a contract of employment, and

(b)

the terms of the individual’s employment in the civil service are to be regarded as constituting the terms of the contract of employment.

Amendments to other enactments

20

In Part 2 of the table in paragraph 3 of Schedule 1 to the Public Records Act 1958 (definition of public records), at the appropriate place insert—

“Public Sector Fraud Authority.”

21

In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc subject to investigation), at the appropriate place insert—

“Public Sector Fraud Authority.”

22

In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975 (bodies of which all members are disqualified), at the appropriate place insert—

“The Public Sector Fraud Authority.”

23

In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public authorities to which that Act applies), at the appropriate place insert—

“The Public Sector Fraud Authority.”

24

In Part 1 of Schedule 19 to the Equality Act 2010 (authorities subject to the public sector equality duty), after the group of entries under the heading “Environment, housing and development” insert—

“Fraud against the public sector

The Public Sector Fraud Authority.”

Part 3Power to change name

25 (1)

The Minister may by regulations amend section 73 of this Act and this Schedule so as to change the name of the PSFA.

(2)

Regulations under sub-paragraph (1) may not be made after regulations are made under paragraph 1(1)(a).

(3)

Regulations under sub-paragraph (1) are subject to the negative procedure.