Following the closure of the Audit Commission on 31 March 2015 an independent company created by the Local Government Association, called Public Sector Audit Appointments Limited (PSAA)
The PSAA is responsible for overseeing the Audit Commission’s current external audit contracts with audit firms from 1 April 2015 until December 2017 or up to 2020.
It manages the contracts and exercises statutory powers to appoint auditors and set and determine fees.
The PSAA has confirmed the extension of the Mazars LLP contract with the Chief Constable and PCC for one year. This enables them to audit the accounts for 2017/18. At the end of this audit, the contract with Mazars will finish.
External auditor appointments must be made for the 2018/19 audit of accounts by 31 December 2017. This is a requirement of Section 7 of the Local Audit and Accountability Act 2014.
The audited body itself can make appointments. Groups of audited bodies, or a specified appointing person, can also make appointments.
The relevant regulations require that the decision on which option to take is made by the corporation sole.
PSAA involvement
The Secretary of State for Communities and Local Government has specified the PSAA as the appointing person. This is for principal local government bodies under the provisions of the 2014 Act.
This means that PSAA will make auditor appointments to relevant principal local government bodies that choose to opt into the national appointment arrangements PSAA is developing.
The PSAA has invited the Chief Constable and PCC to opt in, along with all others. This is so it can procure a number of contracts with appropriately qualified audit firms and appoint a suitable firm to be the Council/Authority’s auditor.
The timetable for appointing auditors under the scheme means the PSAA has now issued a formal invitation to opt into these arrangements.
Formal notification of ‘opt in’ needs to be received by PSAA by 9 March 2017.
Recommendation
The Audit Committee advises the PCC and Chief Constable of Cleveland Police on the appointment of external auditors.
The committee considered a report at their meeting in December 2016. It outlined the changes to arrangements for appointing external auditors and the options available. The report also gave the PCC Chief Finance Officer and the Chief Constable’s Chief Finance Officer’s joint recommendation to the Police and Crime Commissioner and Chief Constable.
The recommendation of the Committee is reflective of the decision that the PCC is being asked to make.
Decision 20356. External Auditors appointment (application, 139kB)