Local bodies' audit fees reduced by 18%
Local government and police bodies will have their fees reduced by 18% for audit services, a total aggregate saving of over £6m, following the results of a successful procurement process undertaken by the Public Sector Audit Appointments (PSAA)
31 Jul 2017
The results of the process announced on 20 June 2017 involved the award of the following contracts:
- Lot 1 (value: approx. £14.4 million per audit year) awarded to Grant Thornton LLP;
- Lot 2 (value: approx. £10.9 million per audit year) awarded to EY LLP;
- Lot 3 (value: approx. £6.6 million per audit year) awarded to Mazars LLP;
- Lot 4 (value: approx. £2.2 million per audit year) awarded to BDO LLP;
- Lot 5 (value: approx. £2.2 million per audit year) awarded to Deloitte LLP; and
- Lot 6 (value not pre-determined) awarded to a consortium of Moore Stephens LLP and Scott-Moncrieff LLP.
These contracts will cover a five year period commencing with the audit of accounts for 2018/19. PSAA has the option to extend the contracts for a further two year period, to a total of seven years.
Steve Freer, Chairman of PSAA, said: ‘We are delighted by the results of the tender process and the appointment of six experienced and well respected firms. At the outset our objectives included maintaining high standards of audit quality and attracting very competitive prices. We are extremely pleased by the outcomes on both criteria.
‘The process has also encouraged firms to think creatively about opportunities to achieve social value benefits. As a result it is clear that the contracts awarded will lead to the creation of 400 new finance apprenticeships over the five year period – another terrific outcome.’
In July 2016 PSAA was appointed by the Secretary of State for Communities and Local Government as the appointing person or sector-led body for the independent appointment of auditors to principal local government and police bodies in England.
Membership of the national Appointing Person scheme, developed and led by PSAA, is optional. Of 493 eligible local bodies, 484 have opted into the scheme.
As well as benefitting from tender results, scheme members will save the time and costs associated with establishing and maintaining an independent auditor panel to oversee the procurement and ongoing management of a local auditor appointment.