For the committee to consider the options available to them in relation to the retender of the external audit contract and to recommend to Council their preferred option.

The committee considered the options available in relation to the retender of the external audit contract in order to recommend a preferred option to Council.

The head of corporate finance introduced the report, the principal points included: the appointing period would cover the audits of the five financial years commencing 1 April 2023; the council currently used the Public Sector Audit Appointments Limited (PSAA) national arrangement, as did 98% of eligible bodies; neighbouring authorities had not indicated any appetite to establish a regional procurement arrangement; and, for the reasons detailed in the report, opting into the national arrangement was considered a sensible option to meet the requirements for an external audit service.

Responses were provided to questions from committee members, the key points included:

·             The potential downsides of a local appointment regime included the administrative burden, the lack of capacity in the audit market, and the risks associated with not being able to procure an external auditor to comply with the statutory requirements.

·             Issues with the current external auditor had been resolved efficiently.  It was noted that, if the national arrangement was the preferred option, PSAA would be responsible for appointing an auditor.

·             The national scheme arrangement had driven costs down but additional pressures were likely to increase audit fees in the next billing round.

The committee discussed the preferred method for re-procuring external audit services through the PSAA, comments included: the audit profession had been subject to high profile reviews in recent years and this arrangement should provide assurance about the quality of the appointed auditor; there was a lack of alternative options available currently; and this would provide an additional safeguard to protect the public purse.

RESOLVED:   That the PSSA national arrangement be recommended to Council as the preferred method for re-procuring external audit services.