Contract management

  1. Does PSAA require its contracted audit firms to demonstrate how they will minimise environmental impact/address climate change issues?

    9 May 2023

    PSAA’s audit services contracts covering the audits from 2018/19 to 2022/23 include a clause in relation to ‘Co-operation with PSAA on environmental issues’. This states that “Throughout the Contract the Supplier shall co-operate with PSAA in seeking reasonable and practical ways to improve the sustainability of the delivery of the Services”. There is a requirement […]

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  2. Is there an issue with the contract management being at one step removed under the PSAA regime, which is perhaps the price for the benefits of centralised procurement?

    9 May 2023

    The local audit framework, the respective roles of the different players, e.g. the FRC, the NAO, ICAEW, CIPFA, DLUHC and PSAA, and the nature of public audit means that any contract for the delivery of a code-compliant local audit will be different to a normal services contract.  PSAA (or local bodies) cannot specify the audit […]

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  4. How do you measure quality?

    22 June 2023

    Our current arrangements for measuring the quality of the delivery of audit services are published. Our approach to tender evaluation for the 2022 audit services procurement reflected those areas which opted-in bodies told us are important to them. We sought input from the FRC in developing our approach. The themes and their weightings are as […]

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  5. What metrics will be in the contract to ensure that the promised quality is delivered in practice? Will there be financial penalties if it isn’t delivered?

    22 June 2023

    Technical audit quality is a measure for the FRC as regulator. The Ethical Standard precludes contracts that contain fees that vary according to a pre-determined measure (for example specifying a date by which an audit opinion must be given). We monitor the quality of audit services using a package of measures. We work with firms […]

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  6. What is your response to concerns around the timeliness of audit opinion delivery?

    22 June 2023

    Issues with the timeliness of audit opinion delivery are caused by a variety of factors. In common with all stakeholders in the local audit system, we want to see the earliest possible return to a position in which virtually all local bodies can publish their audited accounts by the target date specified in the Accounts […]

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  7. How can PSAA get the message out to all councils about the issues faced by local audit and support both councils and the audit partners in explaining this story?

    15 June 2023

    We have spoken and written often of the systemic issues facing the local audit system in the communications sent to S151 officers and Audit Committee Chairs, and we will continue to do so. We are also an active member of the Local Audit Liaison Committee, chaired by the FRC from May 2023 and attended by […]

    Read more of: How can PSAA get the message out to all councils about the issues faced by local audit and support both councils and the audit partners in explaining this story?

  8. Auditors used to employ valuers. Has PSAA considered allowing councils to pay more for specific requirements (valuers) within the contract?

    15 February 2024

    We recognise that as part of the drive to improve audit quality the FRC is encouraging use of experts such as valuers, and audit firms can claim additional fees for appropriate use via the fee variations process.

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  9. The fee variation process takes a long time. What is PSAA proposing to do to improve this?

    15 February 2024

    PSAA has a robust process to review all fee variations submitted. The process is carried out diligently in line with the expectations of the Local Audit (Appointing Person) Regulations 2015 (Regulation 17(2)). PSAA is conscious that when a determination is made it is legally binding on both an auditor and the audited body, and that it is public […]

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  10. Are you able to apply global changes to fees for all contracts when there is a change from the Regulator on what audit coverage is required?

    15 February 2024

    DLUHC previously consulted on fee variation arrangements for changes in audit requirements that relate to the conduct of all or most audits and where a standard cost can reasonably be estimated across groupings of bodies. Based on the positive response to that consultation, DLUHC enabled the changes by updating the Local Audit (Appointing Person) Regulations […]

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