Issue - meetings

At its meeting on 14 December 2016 the Audit Committee considered a report on the appointment of External Auditors for 2018/19 and RECOMMENDED TO COUNCIL that it opt-in to the Public Sector Audit Appointments Ltd (PSAA) as the Sector Led Body (SLB) for the appointment of the Council’s External Auditors from 2018/19.

86.1           At its meeting on 14 December 2016, the Audit Committee had considered a report which set out details in respect of the appointment of the Council’s External Auditors from 2018/19. The Audit Committee had recommended to Council that it should opt-in to the Public Sector Audit Appointments Ltd (PSAA) as the Sector Led Body (SLB) for the appointment of the Council’s external auditors from 2018/19.

86.2           The report which was considered by the Audit Committee had been circulated with the Agenda for the current meeting at Pages No. 251-256.

86.3           In proposing the recommendation from the Audit Committee, the Chair of the Committee advised that, following the cessation of the Audit Commission, transitional arrangements had been put into place to provide local authorities and NHS bodies with external audit contracts up to, and including, the audit of the 2017/18 accounts. The Council now had a responsibility to ensure that an auditor was appointed for future years. The relevant legislation allowed local authorities three routes to making the necessary appointment and, having considered the benefits and risks of each approach, the Audit Committee had recommended to Council that the option to opt-in to the Public Sector Audit Appointments Ltd as the Sector Led Body for the appointment of the Council’s external auditors from 2018/18 be approved.

86.4           Accordingly, it was seconded and

                  RESOLVED          That the Council opt-in to the Public Sector Audit Appointments                              Ltd (PSAA) as the Sector Led Body (SLB) for the appointment                                of the Council’s external auditors from 2018/19.

To recommend to Council the option to opt-in to the Public Sector Audit Appointments Ltd as the Sector Led Body for the appointment of the Council’s External Auditors from 2018/19.

34.1           The report of the Head of Finance and Asset Management, circulated at Pages No. 48- 53, set out a proposal for the appointment of the Council’s external auditors from 2018/19.  Members were asked to recommend to Council the option to opt-in to the Public Sector Audit Appointments Ltd (PSAA) as the Sector Led Body for the appointment of the Council’s external auditors from 2018/19.

34.2           The Head of Finance and Asset Management explained that the appointment of the Council’s current auditor, Grant Thornton UK LLP, had been made under a contract led by the Audit Commission which had been closed under the Local Audit and Accountability Act 2014.  The transitional arrangements for local government bodies had been extended by one year to include the audit of the accounts for 2017/18 and, when those arrangements came to an end on 31 March 2018, the Council would be able to move to local appointment of the auditor.  There were three broad options open to the Council: to set-up an auditor panel to oversee the process for making a stand-alone appointment; to join with other local authorities to establish a joint auditor panel and make a joint appointment; or to opt-in to a Sector Led Body which would have the ability to negotiate contracts with firms nationally.  Public Sector Audit Appointments, the transitional body set up by the Local Government Association to manage the current contract, had been approved as the Sector Led Body for the independent appointment of auditors for principal authorities in England from 2018/19 and 270 Councils and local bodies had expressed their interest in a national scheme.  Officers believed that this would be the most cost effective and efficient route and the Audit Committee was asked to recommend to Council that Tewkesbury Borough Council opt-in to the Sector Led Body arrangement and give formal notification before the March 2017 deadline.

34.3           In response to a Member query, clarification was provided that a report would be taken to the Council meeting on 24 January 2017 and, if the recommended option was approved, regular updates would be brought to the Audit Committee throughout the year.  A Member questioned whether there would be implications in terms of staff workload and the Head of Finance and Asset Management confirmed that the recommended option would be the least resource intensive for staff and would secure the best value for money via economies of scale.  Having considered the information provided, it was

RESOLVED          That it be RECOMMENDED TO COUNCIL that it opt-in to the Public Sector Audit Appointments Ltd. as the Sector Led Body for the appointment of the Council’s external auditors from 2018/19.