About PSAA
Public Sector Audit Appointments Limited (PSAA) is a not-for-profit company limited by guarantee without share capital. The company is a subsidiary of the Improvement and Development Agency (IDeA), which is a subsidiary of the Local Government Association (LGA). However, it is operationally independent of both organisations.
PSAA began operations on 1 April 2015 when the then Secretary of State for Communities and Local Government delegated a number of statutory functions to PSAA on a transitional basis following the closure of the Audit Commission. These responsibilities included appointing auditors and setting audit fees for bodies subject to audit under the provisions of the Local Audit and Accountability Act 2014 (the Act). While most of these transitional responsibilities have come to an end, PSAA is still responsible for two principal authority audits under these arrangements. Formal certificates of audit closure remain outstanding at 15 authorities.
During 2016 PSAA was specified by the Secretary of State as an appointing person under the provisions of The Act. This means that for audits of accounts from 2018/19 PSAA appoints an auditor to eligible principal authorities (councils, local police bodies, fire authorities and other local government bodies) that have chosen to opt into the national auditor appointment scheme developed by the company. The role also includes setting audit fees for opted-in bodies, procurement and contract management. The scheme commenced in April 2018. The duration of the first appointing period was set at five years and therefore runs until 31 March 2023, covering audits of the accounts for the financial years 2018/19 to 2022/23.
In May 2021 the Government confirmed that PSAA would continue as the appointing person for local government, fire and police audits.
Eligible bodies were invited to notify us whether they wished to join the national scheme for the second appointing period. In the event, over 99% of eligible bodies chose to join the national scheme for the appointment of their external auditor for the audit of accounts from 2023/24 to 2027/28. Bodies remain in the scheme for the duration of the specified appointing period.
PSAA’s changing responsibilities over time
PSAA has two significant business cycles which run in parallel. Firstly, the development of the arrangements (at least once every five years) for an appointing period – the national auditor appointment opt-in scheme. This requires a significant and complex procurement of audit contracts with an intense period of activity during the 18-24 months leading to the start of a new appointing period. Secondly, the annual process for managing and reporting on the contracts and auditor compliance and fulfilling all the requirements of a Companies Act company. Having completed the procurement for the second appointing period in late 2022, the main focus now turns to developing and embedding a robust contract management framework for the new contracts.