Agenda item

The Executive was informed that the Council was required to have an external audit, which must be conducted by one of the firms approved by the Government.

As part of disbanding the Audit Commission, the Government had novated external audit contracts to Public Sector Audit Appointments (PSAA) on 1 April 2015. The audits had been due to expire following conclusion of the audits of the 2016/17 accounts, but could be extended for a period of up to three years by PSAA, subject to approval from the Department for Communities and Local Government. 

In October 2015 the Secretary of State had confirmed that the transitional provisions would be amended to allow an extension of the contracts for a period of one year. This meant that, for the audit of the 2018/19 accounts, it would be necessary for authorities to either undertake their own procurements or to opt into the appointed person regime.

It was likely that a sector wide procurement conducted by PSAA would produce better outcomes for the Council than any procurement it undertook by itself or with a limited number of partners. Use of the PSAA would also be less resource intensive than establishing an auditor panel and conducting its own procurement. The approach was supported by the Local Government Association and over 200 Councils had signified their interest.

RECOMMENDED to Full Council that the Council opts into the appointing person arrangements made by Public Sector Audit Appointments for the appointment of external auditors.