1. PSAA – Update for Society of District Council Treasurers
21 April 2017

2. What we’re going to cover
Opt-in position
Procurement progress
Indicative timetable
Auditor appointment process
Fee Setting process
Audit Quality
Further information

3. ITT Part A - Guidelines for Tenderers Opt-in position
Authority type
(inc. Pension Fund where applicable)
Number
County Council
27 (100%)
London Borough
32 (97%)
Metropolitan Borough
34 (94.4%)
Unitary Authority
53 (94.6%)
District Council
200 (99.5%)
Fire and Rescue Authority
29 (100%)
Police Authorities (Police and Crime Commissioner & Chief Constable)
73 (97.3%)
LG miscellaneous
35 (100%)
TOTAL
483 (98.17%)
Nine authorities decided to make local arrangements:
Essex Police and Crime Commissioner and Chief Constable
East Hampshire District Council
City of London Corporation
3 x Unitary Councils (Cornwall, Isles of Scilly and Northumberland)
2 x Metropolitan Borough Councils (Newcastle and North Tyneside)

4. Procurement progress Selection stage Invitation to tender
16 February to 21 March 2017
10 completed responses
9 potential suppliers invited to tender
feedback from firms and authorities on draft contract
Invitation to tender
tender period from 6 April to 10 May 2017
tenderers’ briefing 12 April
PSAA’s evaluation 11 to 25 May 2017
five contract lots of approx. 40% to 6% of work
plus sixth contingency lot to manage independence
contract award at start of July 2017

5. Auditor appointment process
A separate process that follows the procurement.
Strategy and approach for auditor appointment, allocation and consultation agreed by the Board.
Key principles for allocation of firms to authorities will include:
auditor independence;
meeting contractual commitment of Notional Value minimum;
accommodating joint/shared working arrangements;
ensuring a blend of authority types;
firm location; and
continuity of audit firm, if possible

6. Fee setting process To establish a fair scale of fees as audit fees.
As a not-for-profit company, any surplus funds are returned to scheme members.
Scheme costs are pooled and charged with regard to the size of the body, complexity of the audit and audit risk.
Scale fees are reviewed annually, alongside the requirements of the audit work programme.
Consultation on scale of fees annually and specifically where audit requirements change.

7. Audit Quality
Audit firms must be registered with ICAEW or ICAS and are subject to their scrutiny and that of the Financial Reporting Council (FRC).
PSAA ensures that firms maintain the appropriate registration and liaises closely with RSBs and the FRC to support the early detection and rectification of issues.
International Auditing and Assurance Standards Board (IAASB) Framework for Audit Quality adopted as PSAA’s model for audit quality.
PSAA considers and measures audit quality through:
Adherence to professional standards and guidance;
Compliance with contractual requirements; and
Relationship management including feedback.

8. Indicative timetable Noon, 10 May 2017
Target Date
Activity
Noon, 10 May 2017
Deadline for submission of completed invitations to tender
11 May to 1 June 2017
Tender evaluation
June 2017
Contract award decision made by PSAA Board and Standstill period
Start of July 2017
Contract award
7 – 21 July 2017
Consult firms on proposed schedule of appointments
August to December
Consultation on proposed auditor appointments with opted-in bodies
October 2017 to January 2018
Consultation on proposed scale fees with opted-in bodies
By 31 December 2017
Auditor appointments approved by PSAA Board and confirmed to opted-in bodies
By 31 March 2018
Scale fees approved by PSAA Board and confirmed to opted-in bodies
1 April 2018
Start date for auditor appointments for 2018/19

9. Further information
Jon Hayes, Chief Officer