Decision details

Appointment of External Auditors

Decision Maker: Audit, Risk and Governance Committee

Decision status: Recommendations approved

Is Key decision?: No

Decisions:

Neil Kissock presented a report summarising the changes to the arrangements for appointing External Auditors following the closure of the Audit Commission and the end of the transitional arrangements at the conclusion of the 2017/18 audits.

 

The Committee were presented with three options for appointing External Auditors in the future:

 

Option 1: Establish its own independent auditor panel.  The panel to be made up of a majority or of wholly independent members and must be chaired by an independent member.

 

Option 2: Establish a joint independent auditor panel to carry out the function on behalf of two or more Councils

 

Option 3: Opt-in to an approved sector led body (SLB) to be specified by the Department for Communities and Local Government (DCLG) to act as the Appointing Person on behalf of opted-in authorities.

 

It was noted that Option 3 above would require Full Council approval.

 

The Committee was advised that the Council would have until December 2017 to make an appointment, but if Options 1 or 2 were selected then in practical terms, action would be required by the Council almost immediately. Similarly, if the sector led approach described in Option 3 was adopted confirmation would be required by late autumn 2016.

 

In response to concerns raised by the Members, it was agreed that prior to entering into any contract, a further report would be presented to the Audit and Governance Committee setting out details of the contract, including the period of appointment.

 

Following debate and further questions to the officer with regard to the above Options, it was:

 

Resolved:    i) That the Committee recommend Full Council to opt-in to an approved sector led body, specifically Public Sector Audit Appointments Ltd, to act as the Appointing Person for the appointment of External Auditors for the County Council.

 

  ii) That prior to entering into a contract to appoint external auditors, a further report be presented to the Audit and Governance Committee setting out details of the contract, including the period of the appointment.

 

Report author: Khadija Saeed

Date of decision: 26/09/2016

Decided at meeting: 26/09/2016 - Audit, Risk and Governance Committee

Accompanying Documents: