Directors’ report
The directors present their report and the audited financial statements of the company for the year ended 31 March 2021.
Directors
For the year commencing 1 April 2020 the PSAA Board membership was as set out in the table below:
| Board members | Position | Period of office |
| Steve Freer | Chairman | Member since 1 October 2014 |
| Caroline Gardner | Non-executive director | Member since 1 December 2014 |
| Clive Grace | Non-executive director | Member from 1 December 2014 to 31 March 2021 |
| Stephen Sellers | Non-executive director | Member since 1 December 2014 |
| Keith House | Non-executive director | Member since 1 December 2017 |
In January 2021 the IDeA Board approved our proposals for a PSAA Board succession plan which is designed to refresh the Board membership over time. In March 2021 Clive Grace stepped down from the Board as the first step in implementing the succession plan. Clive has been succeeded by Marta Phillips.
More information on the PSAA Board and individual directors is available on the PSAA website.
Register of interests
Board members are required to notify and register any issues on which they might have a conflict of interest. Declarations of interest are also invited at each Board meeting. A register of members’ interests is maintained and is available on the PSAA website.
Statement of directors’ responsibilities
The directors are responsible for preparing the Strategic Report, Directors’ Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102).
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable United Kingdom Accounting Standards have been followed, including FRS 102, subject to any material departures disclosed in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Future developments
Future developments for the company are covered in the Strategic Report.
Going concern
In June 2016 PSAA was specified by the Secretary of State for Communities and Local Government as an appointing person for relevant principal local government bodies under the provisions of the Local Audit and Accountability Act 2014. This extends the responsibilities of the company beyond the transitional arrangements for which the company was responsible at its inception. In May 2021 MHCLG confirmed that PSAA would remain the appointing person responsible for the next procurement. In that context it is appropriate to prepare PSAA’s accounts on a going concern basis.
COVID-19 – As part of PSAA’s going concern assessment we considered potential uncertainties that may exist in our future cashflow because local authorities’ finances are expected to be under significant pressure over the next 12 months due to the loss of income and additional spend in response to COVID-19. We are of the view that our short-term investments are adequate to cover any impact on our own cash flow over this period.
Subsequent events
We have considered the ongoing impact of COVID-19. Whilst we have included a statement on this unprecedented world-wide event, we note that this has no material impact on the accounting period ending 31 March 2021. We have included an estimate of income and audit costs in relation to fee variations for audit year 2019/20. We will continue to monitor the position as we receive more information from the firms.
There have been no other events affecting the company or the information provided in this annual report and accounts since the year end.
Disclosure of information to auditors
For each of the directors at the time this report was approved, the following applies:
- as far as the directors are aware, there is no relevant audit information of which the company’s auditor is unaware; and
- the directors have taken all steps they ought to have taken as directors to make themselves aware of any relevant audit information and to establish that the company’s auditor is aware of that information.
Independent auditors
The auditors, UHY Hacker Young, have been re-appointed following a competitive process in autumn 2018. A resolution concerning their appointment for three years was approved by the Board in January 2019.
By order of the Board
Steve Freer
Chairman
23 July 2021