112.—(1) Where a proposal is made at a meeting of a local authority or a joint body to do or effect any act, matter or thing—

(a) which constitutes a reserved function or is mentioned in a resolution under section 140, and

(b) in consequence of which an illegal payment is to be made out of the funds of the local authority or joint body, or a deficiency or loss is likely to result in or to such funds,

the F136[chief executive] (or, in his or her absence, such other employee as may be nominated by the F136[chief executive]) shall object and state the grounds of his or her objection, and, if a decision is taken on the proposal, the names of the members present and voting for and against the decision and abstaining from voting on the decision shall be recorded in the minutes of the meeting.

F137[(1A) In stating his or her opinion and preparing the report or special report, as the case may be, in accordance with section 120, the local government auditor shall take account of any objection and decision recorded in accordance with subsection (1).]

(2) F138[…]