Future position regarding external auditors
To receive a verbal update from the Internal Audit Team Leader regarding the timetable and procedure needed to appoint future external auditors.
Minutes:
The Internal Audit Team Leader provided the Committee with information regarding the process and timetable involved in appointing new external auditors.
The relevant dates and processes were summarised as follows:
· Transitional arrangements were in place until 31/3/2017 after which Audit Committee’s needed a panel with an independent Chair to appoint external auditors, unless the current arrangements are extended for a maximum of 3 more years, Members of the Council were not considered to be independent. The Local Government Association’s preference was that a collective procurement exercise be conducted by a Sector led Body.
· If new external auditors were to complete the 2018 audit they would need to be in place by 31 March 2017. Given the shortness of time, the extension seemed likely although it hadn’t yet been announced. It was explained that 86% of Councils responding to a LGA survey had indicated that they were in favour of extending the current arrangements, the main reason being cost savings and economies of scale. The Internal Audit Team Leader informed the Committee that the LGA had estimated that the 3 year extension would save £24m pa.