Issue - meetings

Appointment of External Auditors

Meeting: 06/11/2019 - Cobtree Manor Estate Charity Committee (Item 44)

44 Appointment of External Auditors pdf icon PDF 51 KB

Minutes:

The Senior Finance Manager (Client) introduced his report recommending that UHY Hacker Young be appointed as External Auditors to the Charity for a further two year term covering the financial years 2019/20 and 2020/21.

 

The Senior Finance Manager (Client) advised the Committee that:

 

·  Under the current statutory audit thresholds for Charities, there was no requirement for an external audit; an independent examination would suffice.  However, the Committee had previously taken the decision that an external audit should be undertaken.

 

·  External audit services were currently being provided by UHY Hacker Young who had been appointed for a two year term covering the financial years 2017/18 and 2018/19.

 

·  The Borough Council’s Contract Procedure Rules, which the Charity follows, specify that for contracts of a value of £10k or less, at least one written quote must be obtained.  UHY Hacker Young had been asked to provide a quote and had submitted a figure of £5,410 plus VAT for 2019/20 and £5,545 plus VAT for 2020/21 which represented inflationary increases of around 2.5%.

 

·  UHY Hacker Young had developed a good knowledge and understanding of the Charity and its financial arrangements and a good working relationship with Council Officers.

 

Members indicated that further information was required to enable them to make a decision regarding the appointment of External Auditors for 2019/20 and 2020/21.

 

RESOLVED:  That consideration of the appointment of External Auditors be deferred until the next meeting of the Committee to enable the Officers to provide the following information:

 

·  A breakdown of the quote submitted by UHY Hacker Young for providing 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.