PSAA Advisory Panel Meeting Summary - September 2016
The PSAA Advisory Panel convened on September 30, 2016, to discuss various agenda items including terms of reference, PSAA's new role in the local audit landscape, understanding sector needs, and future meetings. The panel aims to assist in developing arrangements for the national appointing person scheme, provide feedback on proposals, and maintain effective communication channels with the sector. The meeting highlighted the transitional arrangements following the Audit Commission closure and the responsibilities of PSAA as an independent company. Local government bodies were reminded of the need to appoint auditors for the 2018/19 audits by December 31, 2017. Audited bodies were faced with choices such as opting into the appointing person arrangements or setting up an Auditor Panel for local appointments.
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Presentation Transcript
PSAA Advisory Panel 30 September 2016
Agenda Introduction/ Terms of Reference Preparing for PSAA's new role in the local audit landscape Understanding sector needs PSAA timetable/ Future Meetings
Terms of Reference (1) Assist PSAA in developing arrangements for the national appointing person scheme Provide feedback to PSAA on proposals as they develop Help PSAA maintain effective channels of communication with the sector and understand needs
Terms of Reference (2) Frequency of meetings Scheme development and setup? Steady state, post contract award and auditor appointments? Membership Other interested parties?
PSAA Role PSAA was first established to operate the transitional arrangements following closure of the Audit Commission PSAA will continue to operate as an independent company, but there will be changes to reflect the fact that PSAA has been specified as the appointing person. Initially we will have responsibilities for both.
PSAA staff have experience Managing contracts with audit firms Managing the independence of auditors Making auditor appointments and set fees We are well informed about the approach and practices of the Audit Commission but understand the appointing person role is different in a number of important respects.
Local Audit and Accountability Act 2014 Transitional arrangements for local government bodies end on completion of the 2017/18 audits Local government bodies need to appoint an auditor for the 2018/19 audits by 31 December 2017
Choices facing audited bodies Opt in to the appointing person arrangements made by PSAA Set up an Auditor Panel (can do this jointly with other bodies) and make a local appointment If an authority has not appointed an auditor, then the Secretary of State will do so!
Indicative Timetable We plan to: Issue opt-in invitations in November 2016 Invite tenders March 2017 Award contracts June 2017 We have to: Make auditor appointments by December 2017 Set fees by 31 March 2018.
PSAAs Prospectus Set out our initial thinking and explained the benefits that the scheme will provide. http://www.psaa.co.uk/suppo rting-the- transition/appointing-person/
PSAA Prospectus Assure timely auditor appointments Manage independence of auditors Secure highly competitive prices Save on procurement costs Save time and effort needed on auditor panels Focus on audit quality Operate on a not for profit basis and distribute any surplus funds to scheme members
Understanding Sector Needs PSAA needs to understand the key issues for audited bodies to: Help them make informed choices Enable them to feel confident that the national scheme will be a good fit Ensure that the national scheme is chosen by a sufficient number and range of bodies to realise its full potential benefits.
Discussion points Balance of Price vs Quality in tenders Preferred length of contract Setting audit fees on an equitable basis Appointing the same auditor to collaborating bodies Contract monitoring arrangements Maintaining a competitive market
Indicative Timetable Establish an overall strategy for procurement - by 31 October 2016; Achieve sign-up of scheme members - by January/ February 2017; Invite tenders from audit firms - by 31 March 2017; Award contracts - by 30 June 2017; Consult on and make final auditor appointments - by 31 December 2017; and Consult on, propose audit fees and publish fees - by 31 March 2018.
Future Meetings Further meetings: Late October (ahead of opt-in invitations)? Mid January (ahead of invitations to tender)? Early May (emerging financial position)?
