17.11.16
Trusts urged to learn from FTs in appointing external auditors by the New Year
NHS Improvement (NHSI) has reminded local service providers that they must appoint their own external auditors for the first time by 31 December 2016.
Under the provisions of the Local Audit and Accountability Act 2014, trusts and CCGs will be externally audited starting from the 2017-18 financial year.
This follows in the footsteps of foundation trusts, who already appoint their own auditors, and other bodies have been encouraged to make use of their experience to ensure a smooth transition.
In an email sent to trust chairs, directors and CEOs, NHSI said: “Most NHS trusts should be well advanced in their procurement process by now, but we understand that a sizeable minority remain in the early stages.
“Some of the examples reported to us suggest that audit chairs and senior finance team members have not been sufficiently involved in the procurement process to ensure a high quality exercise is run. Please ensure that you have sufficient oversight of the process for your trust.”
NHSI noted that it would consider any failure to appoint an external auditor by 31 December to be a failing in governance, unless the trust could provide exceptional circumstances.
Should this take place, the 2014 Act would then give NHSI’s director of finance or NHS England’s chief finance officer the power to install an auditor for the trust.
The Local Audit and Accountability Act 2014 effectively abolished the Audit Commission, which was responsible for appointing auditors for a range of public bodies in England. The commission closed at the end of the 2014-15 financial year.
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