PSAA (Public Sector Audit Appointments Ltd) has issued it’s formal invitation to the PCC, and Chief Constable to opt into the national scheme to appoint external auditors. This will provide external audit arrangements for five years commencing 1 April 2023.
In relation to appointing it’s external auditors, the PCC and Chief Constable have the option to arrange its own procurement should it not wish to join the national collective scheme administered by PSAA.
PSAA’s first appointing period ran for five years from April 2018. The procurement exercise to appoint firms to deliver audits over this period attracted very competitive bids.
However, soon after this process was completed, a series of financial crises and failures in the private sector gave rise to questions about the role of auditors and the focus and value of their work. At the same time, audit firms were experiencing growing recruitment and retention challenges which have led to delays in the publication of audited financial statements.
PSAA has stated that one of it’s key aims for the next procurement exercise is to encourage market sustainability. Firms will be able to bid for a variety of differently sized contracts so that they can match their available resources and risk appetite to the contract for which they bid. They will be required to meet appropriate quality standards and to reflect realistic market prices in their tenders.
The responsibility for the decision about appointing an auditor for the Chief Constable is reserves to the PCC and therefore it is expected that the PCC will consider the options in conjunction with the Chief Constable.
A PCC who decides to opt into the scheme is required to submit a notice of acceptance of the invitation which also covers the Chief Constable. If the notice does not do this the PSAA are required to make contact to confirm the position. The PSAA will then make separate auditor appointments (of the same audit firm) to the opted in PCC and Chief Constable.
Decision
In summary, given the current challenging market conditions, it appears that opting into the PSAA’s sector-led scheme provides the best chance to receive the best external audit service in futures years.
It is therefore recommended that the PCC:
Agrees to opt into the national scheme for an appointing an external auditor for both the PCC and Chief Constable.