Issue - meetings

Report No: CAB/FH/16/046

Portfolio Holder:  Stephen Edwards           Lead Officer: Rachael Mann

Chairman of the Committee: Louis Busuttil

RECOMMENDED TO COUNCIL: (21 December 2016)

That Option 3, to ‘opt-in’ to the sector led body (Public Sector Audit Appointments Limited (PSAA)) for the independent appointment of the Council’s External Auditor, beginning with responsibilities for the financial  year 2018-2019, as set out in Report No PAS/FH/16/023, be approved.

(Report No: CAB/FH/16/046)

Councillor Louis Busuttil, Chairman of the Performance and Audit Scrutiny Committee, presented this report which asked the Cabinet to consider the options available for appointing External Auditors in time to make the first appointment by 31 December 2017, following the closure of the Audit Commission and the end of the transitional arrangements.

The Cabinet were informed that it was the Council’s statutory responsibility to appoint a local auditor to audit its 2018-2019 accounts by 31 December 2017.  In meeting this statutory responsibility, the Council could choose one of the following options:

1.       Establish a stand-alone Auditor Panel to make the appointment on behalf of the Council.

2.       Commence work on exploring the establishment of local joint procurement arrangements with neighbouring authorities.

3.       Use an existing independent panel of the Authority (this would only be applicable where a suitably constituted plan already existed).

The Committee had been provided with the advantages and disadvantages for each of the three options, including risk management and legal/financial implications.

The Council had only to December 2017 to make an appointment, which meant that one of the three options would need to be in place by Spring 2017 in order that the contract negotiation process could be carried out during 2017.

The Committee had been advised that Option 3 would provide for better economies of scale in keeping audit fees down and having a Suffolk Wide auditor.

With the vote being unanimous, it was

RECOMMENDED TO COUNCIL: (21 December 2016)

That Option 3, to ‘opt-in’ to the sector led body (Public Sector Audit Appointments Limited (PSAA)) for the independent appointment of the Council’s External Auditor, beginning with responsibilities for the financial  year 2018-2019, as set out in Report No PAS/FH/16/023, be approved.