5. The contract expiry dates will have been reached by the summer of 2007, and Waverley will either need to re-tender or to re-appoint the current contractors. Under different circumstances a tendering exercise would represent the optimum course of action. However, given that Waverley is in the midst of its restructuring initiative, your officers consider that it would be better to wait until that is complete and the future direction of services and service provision is known before any re-tendering is undertaken.
6. By waiting until the restructuring is complete, if the future direction is to remain with a partially out-sourced internal audit service then a longer-term contract can be considered which would enable a partnership approach to be sought. This would enable Waverley to benefit from the contractors’ experience and from a more assured level of service. A longer-term contract should also have a beneficial impact upon the tendered fees and would allow the development of integrated working practices and protocols.
7. Both contractors have indicated that they would be prepared to extend their contracts and have also indicated that they would hold to their current fees. An extension of the two contracts, without a tendering exercise, would require a waiver of CPRs, under the provisions of CPR W101. Neither contract contains an extension clause. Therefore the Executive’s approval is necessary to approve an extension.
8. The extension of the two contracts for audit services represents the most pragmatic solution to secure the necessary internal audit resources for 2007/08. It would also allow a more appropriate, longer-term contract to be tendered once the restructuring is complete (if that were to remain one of the means of service delivery).
9. A waiver of CPRs (CPR A108 and all ensuing appropriate CPRs) is necessary to achieve an extension, and therefore the following recommendation is made.
It is recommended that approval be given to waive CPRs, using the powers delegated to the Executive in CPR W101, and award an extension to the contracts with Deloitte & Touche Public Sector Internal Audit Ltd and Corporate Governance Risk Management Ltd to allow for the completion of internal audit reviews as will be contained in the Council’s 2007/08 Internal Audit Plan.
Background Papers (DoF)
There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.
Name: Mr M Hill Telephone: 01483 523240