Business Plan to 31 March 2025

View PDF version(514 KB)

About PSAA

  1. Public Sector Audit Appointments Limited (PSAA) is an independent company limited by guarantee incorporated by the Local Government Association (LGA) in August 2014.
  2. In July 2016 PSAA was specified by the Secretary of State as an appointing person for principal local government and police bodies for audits from 2018/19, under the provisions of the Local Audit and Accountability Act 2014 (the Act) and the Local Audit (Appointing Person) Regulations 2015 (the Regulations), which provide the framework for how we operate.
  3. This business plan sets out our priorities from January 2023 to March 2025. This period spans the final months of the first appointing period which will end with the 2022/23 audit of accounts and the start of the second appointing period which covers the audits for the five financial years 2023/24 to 2027/28.

Strategic objectives and themes

  1. Our responsibilities and aims are expressed through a series of objectives designed in response to our statutory duties, namely to:
    • perform and discharge the remaining functions delegated by the Secretary of State on a transitional basis, up to completion of audits of the accounts for 2017/18;
    • perform and discharge the functions of an appointing person specified by the Secretary of State, including:
      • inviting to all relevant principal authorities to become an opted-in body and publishing a list of opted-in bodies;
      • appointing auditors to opted-in bodies;
      • specifying scales of fees for the audit of accounts of opted-in authorities;
      • overseeing issues of appointed auditor independence, monitor compliance, assist in the resolution of disputes or complaints; and deal with the removal of an appointed auditor;
      • ensuring effective management of contracts with audit firms for the delivery of audit services to opted-in bodies;
    • be financially responsible, efficient and transparently safeguard fees charged to opted-in bodies and ensure that public money is properly protected; and
    • lead our people as a good employer

Opted-in bodies

  1. For the first appointing period over 98% of eligible bodies decided to opt into our scheme of national auditor appointment arrangements, and for the second appointing period 471 of the 476 eligible bodies (99%) opted in covering:
  • 331 of 333 councils (reducing to 315 of 317 from April 2023 following local government review);
  • 101 of 104 police and fire bodies; and
  • 38 of 38 other bodies including national parks, waste disposal authorities, passenger transport executives, conservation boards, the Greater London Authority and its functional bodies and any smaller bodies whose expenditure in any year exceeds £6.5m.
  1. The significant level of eligible bodies opting into our scheme cements our role as an influencer in the wider local audit system and provides a strong platform to continue to call for change to address the problems facing the sector.

Governance and funding

  1. We have a Board of five non-executive directors, an Audit Committee and a Procurement Committee all supported by a Chief Executive and a team of staff who have significant experience and skills in managing contracts for public audit services.
  2. All of our funding comes from our opted-in bodies. The audit fees paid by opted-in bodies include a provision (<5%) to cover our costs to operate the national scheme.

How we work

  1. Our approach to fulfilling the role of an appointing person is underpinned by the following key principles:
  • exercising our statutory functions consistently, proportionately, openly and fairly.
  • observing the highest standards of integrity and professionalism as the appointing person.
  • taking all reasonable action to address market challenges and to support longer-term sustainability within the local audit market.
  • playing our part alongside key stakeholders to maintain the high standards of public audit which are necessary to command public confidence.
  • consulting and collaborating widely; listening to and learning from those with an interest in what we do.
  • communicating with stakeholders before making decisions and explaining our decisions more clearly.
  • taking the time to implement decisions with appropriate stakeholder involvement, developing new initiatives when appropriate.
  • being an agile and flexible organisation, changing course if needed to be responsive, both to stakeholders and to our operating environment.
  • treating people and their information with sensitivity, respect and confidentiality.
  • closely monitoring developments and emerging issues relating to the audit market and actively considering what these might mean for local audit and our role as appointing person.
  1. We operate in a diverse and complex stakeholder landscape so effective communication and engagement are crucial. We recognise that our stakeholders’ requirements and expectations will vary significantly, which means that we need to use a range of ways to communicate and engage.
  2. Our role is primarily to influence others by raising awareness of crucial issues. The breadth of our work – covering almost 100% of eligible bodies – and our unique position with relationships with both auditors and opted-in bodies means that we are often the first to identify emerging issues though not necessarily at the forefront of public commentary. Instead we appropriately share our headline insights with the relevant partners in the local audit systems who have the remit to take action.
  3. We have good working relationships with key stakeholders including Department of Levelling Up, Housing and Communities (DLUHC), the Local Government Association (LGA), the National Audit Office (NAO), the Chartered Institute of Public Finance and Accounting (CIPFA), the Financial Reporting Council (FRC), and the Institute of Chartered Accountants in England and Wales (ICAEW), as well as other organisations with an interest in the local audit system, including relevant sector groups and the media.
  4. Our Advisory Panel meets three times per year; its members come from Treasurers’ societies. Our Local Audit Quality Forum (LAQF) is targeted at Audit Committee Chairs and Directors of Finance. Both are important channels for the exchange of information and views.
  5. We have also continued to support the LGA and CIPFA to provide training and development events and forums for Audit Committee Chairs.

Back to top

Previous Next