The Senior Finance Manager (Client) reminded Members that at the last meeting of the Committee consideration of the appointment of External Auditors had been deferred pending the receipt of further information to include a breakdown of the quote submitted by UHY Hacker Young (UHY) (the previous External Auditors) to provide external audit services for 2019/20 and 2020/21; clarification from the Procurement Team as to whether three written quotes in advance are required; and the current statutory audit thresholds for Charities and whether an independent examination would be appropriate for the Charity.

The Senior Finance Manager (Client) then introduced his report addressing these issues.  It was noted that:

·  UHY had previously quoted fees of £5,410 plus Vat for 2019/20 and £5,545 plus VAT for 2020/21.  UHY had provided an indicative breakdown of the estimated costs for the various phases of the audit and whilst the total costs shown were more than the fees quoted, UHY had advised that they do not generally recharge the full cost of the audit to the Charity.

·  The Borough Council’s Contract Procedure Rules, which the Charity follows, require three written quotes in advance where the cost of the works/service is greater than £10K.  In this case, as the total of the fees cumulatively is in excess of 10K, three quotes should be sought but the Director of Finance and Business Improvement had indicated that he would be prepared to sign a contract waiver form as the total sum was not significantly in excess of 10k.  This would enable UHY to be reappointed for a further period if considered appropriate by the Committee.

·  As the Charity had gross income of £0.462m and gross assets of £5.47m on the 2018/19 balance sheet, then the thresholds for independent examination had been exceeded and an external audit was required.

The Committee felt that UHY should be reappointed as External Auditors to the Charity for 2019/20 and 2020/21 and that quotes be sought in line with the Borough Council’s procurement rules for the provision of External Audit services in subsequent years in due course.

RESOLVED:  That UHY Hacker Young be reappointed as External Auditors to the Charity for 2019/20 and 2020/21 and that quotes be sought in line with the Borough Council’s procurement rules for the provision of External Audit services in subsequent years in due course.