About PSAA
Public Sector Audit Appointments Limited (PSAA) is a not-for-profit company limited by guarantee without share capital. The company’s sole member and guarantor is the Improvement and Development Agency (IDeA), which is a subsidiary of the Local Government Association (LGA). PSAA is operationally independent of both organisations. PSAA’s financial statements are not consolidated into the LGA’s as neither the IDeA nor the LGA exercise control over PSAA or benefit from its results and financial performance.
PSAA began operations in April 2015 when the then Secretary of State for Communities and Local Government delegated a number of statutory functions to PSAA on a transitional basis following the closure of the Audit Commission. These responsibilities included appointing auditors and setting audit fees for bodies subject to audit under the provisions of the Local Audit and Accountability Act 2014 (the Act).
PSAA is specified by the Secretary of State as an appointing person under the provisions of The Act. This means that PSAA is responsible for appointing an external auditor to eligible principal authorities (councils, local police bodies, fire authorities and other local government bodies) that have chosen to opt into the national auditor appointment scheme developed by the company. The role also includes setting audit fees for opted-in bodies, overseeing issues of auditor appointment, and monitoring compliance with the contracts awarded to firms to carry out local government audits.
We operate in accordance with the provisions of the Act and the Local Audit (Appointing Person) Regulations 2015 (the Regulations).
PSAA’s changing responsibilities over time
PSAA has two significant business cycles which run in parallel. Firstly, the annual process for managing and reporting on the contracts and auditor compliance, setting the audit fees and fulfilling all the requirements of a Companies Act company. Secondly, the development of the arrangements (at least once every five years) for an appointing period – the national auditor appointment opt-in scheme. This requires a significant and complex procurement of audit contracts and the appointment of auditors with a lengthy intense period of activity leading to the start of a new appointing period.