Supporting the transition

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 are using our knowledge and experience to assist those with responsibilities under the new audit framework to move as seamlessly as possible from the current arrangements.

For more information on our role in supporting the transition, please see our Corporate plan.

In July 2016, the Secretary of State for Communities and Local Government specified PSAA as an appointing person under regulation 3 of the Local Audit (Appointing Person) Regulations 2015. This means that PSAA can make auditor appointments from 2018/19 to relevant principal authorities that choose to opt into its arrangements. For more information about how we are developing a national collective scheme for local auditor appointment click here.

New legislative framework

The new arrangements for the audit and accountability of local public bodies are set out in the Local Audit and Accountability Act 2014.

The following Regulations have been issued under the Act:

The Accounts and Audit Regulations 2015

The Local Audit (Appointing Person) Regulations 2015

The Local Audit (Smaller Authorities) Regulations 2015

For smaller authorities, the Department for Communities and Local Government has issued Changes to the smaller authorities’ local audit and accountability framework: a guide.

The current audit contracts

The current audit contracts were novated from the Audit Commission to PSAA on 1 April 2015. The contracts were due to expire following conclusion of the audits of 2016/17 accounts, but could be extended for a period of up to three years by PSAA, subject to DCLG amendment of the transitional provisions to extend the period in which the statutory functions are delegated to PSAA.

In October 2015, the Secretary of State confirmed that the transitional provisions would be amended to allow an extension of the contracts for a period of one year for audits of principal local government bodies only. The Local Audit and Accountability Act 2014 Commencement No. 8 and Commencement No. 7, Transitional Provisions and Savings (Amendment)) Order 2016 was made on 27 June 2016, supported by a revised letter of delegation.

The new framework for small bodies (those under the £6.5m threshold) and NHS bodies will therefore commence with the 2017/18 audits, while for principal local government bodies it will commence with the 2018/19 audits.

For information on procurement of audit services and auditor appointments click here.