Provision of limited assurance audit reviews to Smaller Authorities’ Audit Appointments Ltd

Descriptions

Smaller Authorities’ Audit Appointments Limited (SAAA) was incorporated (as a company limited by guarantee and a commercial entity) in 2015 with the express purpose of appointing auditors to provide limited assurance audits in accordance with The Local Audit and Accountability Act 2014 (“the Act”) and The Local Audit (Smaller Authorities) Regulations 2015 (“the Regulations”) The Act closed the Audit Commission in March 2015 and established new arrangements for the accountability and audit of local public bodies in England including smaller authorities such as town and parish councils, parish meetings and internal drainage boards. A smaller authority is an authority that has gross annual income or expenditure (turnover) of £6.5 million or less. The Government’s policy is that smaller authorities’ annual accounts should be subject to a ’limited assurance audit review‘, which involves the auditor reviewing and reporting on an annual return prepared by each authority rather than undertaking a full audit of the authority’s accounts and governance arrangements. SAAA has, under the Regulations, been specified by the Secretary of State for Communities and Local Government as the body responsible for appointing auditors and setting audit fees for smaller authorities. This procurement relates to the appointment of auditors under the Regulations. About 10,000 audited bodies are within the scope of the procurement. SAAA’s objective is to award new contracts so as to maximise value for money by securing the provision of high quality audit services at the best prices possible. The expected total value of auditor appointments within the scope of the procurement is about £1.7 million per year. Auditor appointments normally cover the period from the start of the relevant financial year (1 April) to the date that the audit is certified as being closed. This is normally no later than 30 September after the end of the relevant financial year (31 March) and appointments, therefore, run for longer than one calendar year. It is SAAA’s intention that auditors will be appointed by 30 November 2016 and appointments will take effect from 1 April 2017. Contracts will initially be let for the audit of five financial years’ accounts from 1 April 2017 with options to extend for up to a further three years. SAAA intends to divide the audit work to be provided following this procurement into 17 lots each covering auditor appointments with a value of approximately £100,000. It is SAAA’s intention to make auditor appointments in such a way that, so far as possible, all smaller authorities within the area of the same county council, London borough, metropolitan district or unitary authority share the same auditor and all drainage authorities share the same auditor. SAAA will not require Bidders to resource limited assurance audits from local offices. Audits may be carried out remotely from specialist office centres.