One of PSAA’s corporate objectives is to support a smooth transition to the new audit regime established by the Local Audit and Accountability Act 2014.
We keep these answers to frequently asked questions updated as development of the arrangements progresses.
An eligible body that is created following the 9 March 2017 deadline, or that did not accept PSAA’s original invitation can request to join the national scheme at any time.
Public Sector Audit Appointments Limited (PSAA) is an independent company limited by guarantee incorporated by the Local Government Association in August 2014.
The Secretary of State for Communities and Local Government has delegated statutory functions from the Audit Commission Act 1998 to PSAA on a transitional basis by way of a letter of delegation issued under powers contained in the Local Audit and Accountability Act 2014.
Under these transitional arrangements, the company is responsible for appointing auditors to local government, police and local NHS bodies, for setting audit fees and for making arrangements for the certification of housing benefit subsidy claims.
From 2017/18, the transitional arrangements will end for local NHS bodies and smaller authorities, and PSAA will no longer be responsible for appointing their auditors.
The transitional arrangements have been extended by one year for local government and police bodies, so PSAA will continue to be responsible for appointing their auditors for the audit of the accounts for 2017/18.
In July 2016, the Secretary of State for Communities and Local Government specified PSAA as an appointing person under the provisions of the Local Audit and Accountability Act 2014. This means that PSAA will make auditor appointments for audits of the accounts from 2018/19 of principal local government authorities that opt into its arrangements. Further information on PSAA’s new role can be found here.