Issue - meetings

To receive a report on the Audit & Standards Committee’s recommendations that have been referred to Council in relation to the provision of external audit services.

The Director for Corporate Services

(a)  submitted a report which set out proposals for appointing the external auditor to the Council for the accounts for the five-year period from 2023/24. During Autumn 2021 all local government bodies needed to make important decisions about their external audit arrangements from 2023/24. There was the option for the Council to arrange its own procurement and make the appointment or in conjunction with other bodies, or there was the option to join and take advantage of the national collective scheme administered by PSAA;

(b)  explained it was considered that the sector-wide procurement conducted by PSAA would produce better outcomes and would be less burdensome for the Council than a procurement undertaken locally and therefore this was the recommended option from the Audit and Standards Committee.

RESOLVED

Council:

(1)  ACCEPTED the Public Sector Audit Appointments’ invitation to opt into the sector led option for the appointment of external auditors to principal local government and police bodies for five financial years from 1 April 2023;

(2)  DELEGATED authority to the Director for Corporate Services to give effect to the appointment.

(Unanimous)

The Director for Corporate Services to submit a report setting out proposals for appointing the external auditor to the Council for the accounts for the five-year period from 2023/24.

David Scott, Corporate Services Manager introduced the report, the purpose of which was to set out proposals for appointing the external auditor to the Council for the accounts for the 5 year period from 2023/24.

Mr. Scott advised that the Council was seeking the Committee’s authority to continue with the ‘opt in’ approach to the sector-led appointment of external auditors process through the Public Sector Audit Authority (PSAA).  Over 90% of council’s opted into this process, as there was a cost saving and time benefit.  The market and associated resources were limited and if the Council undertook the process itself, it would be bidding the same companies for the same work.  In addition, should there be disagreement with auditors on fee setting, the PSAA would help arbitrate the process.

During discussion the following points were noted:

·         If approved, the PSAA would undertake the process to appoint the External Auditor for the Council and would notify the Council each year (within the 5 years) of who had been appointed.  The PSSA may appoint Ernst and Young again or they may appoint a different Auditor.

·         If approved, the PSAA would begin a procurement to the audit market, which it would negotiate and agree a set of fees.  Lower cost fees should result from the collective procurement process, although it was likely that the fees would be higher due to the current market.

·         The Council’s fees would be proportional and reflective of it being a smaller local authority, although any fee increase may be larger than desired.

·         Members noted that in 2019, PSAA returned £3.5million to relevant bodies and in 2021, it returned a further £5.6million.  The Corporate Services Manager would confirm the amount refunded to this Council outside of the meeting.

RESOLVED that the Committee recommended to Council:

1)    Authority to accept the Public Sector Audit Appointments’ invitation to opt into the sector-led option for the appointment of external auditors to principal local government and police bodies for 5 financial years from 1 April 2023;

2)    That the Director for Corporate Services be delegated authority to give effect to the appointment.