28 Options for Appointment of External Auditor PDF 173 KB
The Head of Internal Audit introduced a report the purpose of which was to set out the options for the appointment of an external auditor
The Local Audit and Accountability Act 2014 (the Act) at Section 7 states that a “relevant authority must appoint a local auditor to audit its accounts for a financial year not later than 31 December in the preceding financial year.” The current external auditor contract for Grant Thornton was extended for a further 12 months to include the accounts for 2017/18. Therefore for the Council the appointment of an auditor must be completed by 31 December 2017 for the audit year 2018/19.
The report set out the three broad options through which the appointment of an external auditor may be achieved.
The Committee was advised that the preferred option across the Greater Manchester Councils was to opt into the sector-led body, Public Sector Audit Appointments Ltd as detailed in Option 3 in the submitted report. This approach would allow for economies of scale and would avoid the costs, and associated administrative effort of the Council running its own procurement and management of contracts and also would avoid the requirement to set up an auditor panel with independent members.
DECIDED – that the proposal for opting into the sector-led body, Public Sector Auditor Appointments Limited (PSAA), for the appointment of external audit services from 2017/18, as set out within Option 3 of the submitted report, subject to final agreement by the Greater Manchester Association of Metropolitan Treasurers (GMAMT) and subsequent approval by RBC Full Council be supported.