Issue - meetings
Appointment of External Auditor
Meeting: 24/01/2022 - City Council (Item 27)
27 Appointment of External Auditor 
PDF 196 KB
Additional documents:
Minutes:
Councillor Nick Kelly (Leader of the Council) introduced the Appointment of the External Auditor. This was seconded by Councillor Dr John Mahony.
Following a discussion the Council agreed to accept the Public Sector Audit Appointments’ (PSAA) invitation to opt into the sector-led option for the appointment of external auditors to principal local government and police bodies for five financial years from 1 April 2023.
For (45)
Councillors Allen, Mrs Aspinall, Bingley, Mrs Bridgeman, Dr Buchan, Carlyle, Coker, Collins, Corvid, Cresswell, Dann, Derrick, Downie, Drean, Evans OBE, Goslin, Harrison, Hendy, Hulme, James, Jordan, Kelly, Laing, Loveridge, Dr Mahony, McDonald, Murphy, Neil, Nicolson, Partridge, Patel, Penberthy, Mrs Pengelly, Rennie, Riley, Salmon, Singh, Shayer, Smith, Stevens, Stoneman, Tuffin, Wakeham, Ms Watkin and Wheeler.
Against (0)
Abstain /Not present (2) the Lord Mayor and Councillor Churchill.
Meeting: 14/01/2022 - Audit and Governance Committee (Item 55)
55 Appointment of External Auditor PDF 196 KB
Additional documents:
Minutes:
The Service Director for Finance presented the Appointment of External Auditor report to the Committee and advised that there was a national system of procurement for external auditor appointments; this was a system that the Council previously joined and that 2022/23 was the last year of the previously agreed 5 year arrangement. There were three choices available to the committee, namely:
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for authorities to procure external auditor – this was not considered to be a feasible option as there were only nine registered auditors in the country;
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to combine the procurement process with other local authorities – this was not considered viable as a consultation with South West Council’s demonstrated that other councils had elected to run with the national procurement scheme;
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to elect to opt into the national procurement scheme – this was the preferred option. |
The Council was required to join the national scheme by 11 March 2022 – Council’s would then receive notification as to who had won the lot in the area and would then be given an opportunity to suggest an alternative.
Members discussed:
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that the scheme itself seemed very restrictive as the only real option was to go with the national scheme and the Council had no real influence – it was responded that the scheme was put in place nationally after consultation with the LGA and a capable auditors experienced in local government matters and with the technical capability should be appointed;
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that the scheme should be better value for money for the Council as there were so few external auditors in the market that it made sense to opt-in; it was hoped that it would improve the quality of the audit function and cost base;
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would the external auditor offer to looked after children or those leaving care?; in response to the question it was highlighted that the national framework was unlikely to allow for added social value from the procurement exercise as this exercise was designed to be efficient and deliver lower costs. The Council was successful in obtaining social value in other procurement contracts it was involved in;
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what were the mechanisms for performance management and mitigation in terms of dealing with the external auditor?; in response Members were advised that processes were in place for dispute resolution. The Council could also contact the PSAA with concerns if required. |
The Audit and Governance Committee agreed to recommend to Council that Plymouth accepts Public Sector Audit Appointments’ (PSAA) invitation to opt into the sector-led option for the appointment of external auditors to principal local government and police bodies for five financial years from 1 April 2023.
(The Local Audit (Appointing Persons) Regulations 2015 require the decision to opt in to the national scheme to be made by a meeting of the Council).