Procurement Strategy

On 31 January 2022, we published a revised strategy for the procurement of the audit services contracts for the second appointing period. This revision version contained a small number of changes to reflect the recent change to the appointing person regulations and the finalisation of our procurement approach in areas such as the lotting structure and bidding rules. The original version of the procurement strategy was approved by the PSAA Board on 15 September 2021 and published on 22 September 2021.

Our primary aim is to secure the delivery of an audit service of the required quality for every opted-in body at a realistic market price and to support the drive towards a long term competitive and more sustainable market for local public audit services.

The objectives of the procurement are to maximise value for local public bodies by:

  • securing the delivery of independent audit services of the required quality;
  • awarding long term contracts to a sufficient number of firms to enable the deployment of an appropriately qualified auditing team to every participating body;
  • encouraging existing suppliers to remain active participants in local audit and creating opportunities for new suppliers to enter the market;
  • encouraging audit suppliers to submit prices which are realistic in the context of the current market;
  • enabling auditor appointments which facilitate the efficient use of audit resources;
  • supporting and contributing to the efforts of audited bodies and auditors to improve the timeliness of audit opinion delivery; and
  • establishing arrangements that are able to evolve in response to changes to the local audit framework.

It is necessary to enter into contracts with a number of audit suppliers to provide sufficient capacity for all of the audits required, enable PSAA to manage auditor independence issues and, if possible, grow the number of active suppliers in the local audit market.

The procurement will cover the audits of the accounts of all eligible bodies that opt into the appointing person scheme. Eligible bodies include local authorities, combined authorities, police and crime commissioners including PFCCs, chief constables, fire and rescue authorities, waste authorities, passenger transport executives and national park authorities.

Following the completion of the opt-in invitation process for the five-year appointing period from April 2023, 470 (99%) of the 475 eligible bodies decided to become opted-in bodies.

Details of the procurement are available on our procurement update page.

If you have a specific enquiry about the 2022 procurement strategy, please contact us at [email protected].