(Special Case of the Audit in accordance with Paragraph 7 of Article 199)
Article 252-42.
If bylaws of the ordinary local public body concerned provide that an audit based on a contract may be substituted for an audit by the audit commissioners with regard to audit involving a demand under paragraph 7 of Article 199 (regarding revenues and expenditures of items receiving financial support from the ordinary local public body or other items concerning the said financial support: revenues and expenditures of items specified by Cabinet Order in accordance with the same paragraph in which the said ordinary local public body has investments or other items relating to the said investment: revenues and expenditures of items in which the said ordinary local public body has guaranteed the payment of the principal or interest on a debt, or other items relating to the said guarantee: revenues and expenditures of the trustee(s) of a trust specified by Cabinet Order, of which the said ordinary local public body is a beneficiary, or other items relating to the said trust; revenues and expenditures of public institutions the administration of which is entrusted by the said ordinary local public body in accordance with paragraph 3 of Article 244-2, or other items relating to the said entrustment), when the chief executive of the said ordinary local public body makes a demand under the same paragraph, he or she may demand audit based on an individual external audit contract instead of audit by the audit commissioners, attaching reasons if this is considered particularly necessary.
2.
With regard to a demand under paragraph 7 of Article 199 seeking audit based on an individual external audit contract under the preceding paragraph (hereinafter referred to in this article as the "demand for individual external audit of subsidised items etc."), the audit commissioners shall not carry out an audit of the matters relating to the said demand for individual external audit of subsidised items etc., notwithstanding the stipulations of the same paragraph.
3.
When a demand for individual external audit of subsidised items etc., has been made, the audit commissioners shall immediately inform the chief executive of the said ordinary local public body of their opinion regarding the substitution of audit based on an individual external audit contract for audit by the audit commissioners.
4.
The provisions of paragraphs 4 to 11 of Article 252-39 shall apply mutatis mutandis when notification has been made in accordance with the preceding paragraph. In such case, "the preceding paragraph" in paragraph 4 of the same article shall read "paragraph 3 of Article 252-42": "the chief executive of the ordinary local public body concerned shall summon the assembly within twenty days from the day of the said notification and" shall read "the chief executive"; "the demand for individual external audit involving a demand for general audit" shall read "the demand for individual external audit of subsidised items etc., under paragraph 2 of the same article": and the final sentence of paragraph 4 of Article 252-39 shall be omitted. For "in response to the demand for individual external audit involving a demand for general audit" in paragraph 5 of the same article shall be read "in response to the demand for individual external audit of subsidised items etc., under paragraph 2 of Article 252-42": "relating to the matters involved in the said demand" shall read "relating to the demand for individual external audit of subsidised items etc., under the same paragraph": for "paragraph 3" in paragraph 7 of the same article shall be read "paragraph 3 of Article 252-42": and "the demand for individual external audit involving a demand for general audit" in item 1 of paragraph 8 of the same article shall read "the demand for individual external audit of subsidised items etc., under paragraph 2 of Article 252-42".
