External Audit

Description

1.1. Loreburn Housing Association (LHA), a Registered Social Landlord, is looking for a firm of registered Auditors to carry out its External Audit services for a period of three years from Financial Years 2026/30 onwards, with a potential to extend this for a further 2 years. 1.2. The External Audit service will provide the LHA Management Committee with an independent and objective opinion on the financial statements in accordance with the relevant legal and regulatory requirements and International Standards of Auditing. The audit will also provide the Management Committee with a view on internal controls, governance arrangements, and risk management by measuring and evaluating their effectiveness in supporting LHA’s corporate objectives. In addition, the successful Auditor may be engaged from time to time by LHA to perform ad hoc assignments. 1.3. The external audit firm may also be invited to provide certain management consultancy services as agreed. Applicable daily rates for specialist consultancy staff should be provided. To avoid potential conflicts of interest, the Association wishes to specifically exclude the successful external audit firm from undertaking certain consultancy assignments on their behalf, for example internal audit. 1.4. LHA forms part of the Loreburn Group. There is one associated company of LHA – Dumfries and Galloway Home Limited (DGH) – SC304439. The board of this company also requires the services of a firm of registered Auditors to carry out its External Audit services and Corporate Tax services for a period of three years from Financial Years 2025/26 onwards, with a potential to extend this for a further 2 years and this also forms part of this tender. It is envisaged that the same firm of Auditors will act for both entities. Lot 1: 3.1.6. The external audit and tax service will include, but not be limited to: - The planning, management, and efficient execution of the annual external audit of financial statements - Preparation of an annual audit plan for each business to be made available to each board in line with the timetable below - Formal reporting to the Audit and Compliance committee, the Management Committee, and any other Board meetings where the members require clarification of the accounts. - Meetings with the Executive management team pre and post audit to discuss audit plan and audit report respectively in advance of Committee/Board meetings - Review of the final financial statements on behalf of the group companies for accuracy, in terms of technical and numerical. The draft accounts will be prepared by the LHA Group Head of Finance. - The Auditor will prepare an annual audit finding report for the financial year for presentation at a meeting of the Audit & Compliance Committee on completion of their audit by the agreed dates in the table below - The report will include; - Summary of activity against plan. - Main recommendations, responses and outcomes. - Limitations on audit. - Overall assessment of internal controls. - Recommendations for changes, improvements, etc. to the External Audit Service, with costings if necessary. - Audit field work on site for up to 5 days for the final audit. Regular progress updates to management to be provided during the field work, concluding with a clearance meeting encompassing all audit issues. Therefore, all works must be based on a total of 10 days for the pricing schedule. - Attendance at LHA’s Annual General Meeting with a report presentation - Provision of timely and accurate advice and guidance on technical accounting and finance issues. Owing to the time critical nature of the process of preparation of annual financial statements it is expected that the principal external audit contacts will be readily available by telephone/email and will provide a full response to requests within 2 working days. - Preparation and submission of the Corporation Tax Return for DGH. - Timely provision of relevant technical accounting updates, including relevant Financial Reporting Standards, Statements of Recommended Practice and Accounting Orders. - Excellent and timely communication between auditor and client on all matters, including feedback on information supplied and immediate feedback on any predicted cost over-runs. - The provision of added value and innovation to the audit process. - The supplier is expected to use their skill, knowledge and expertise to identify any gaps in this scope and address them in their submission. - Co-operation with LHA’s internal auditors where you wish to rely on their assurance work when planning the statutory audit. (This service is being tendered at the same time to separate organisation in line with our Financial Regulations) - Submission of accounts to company’s house for DGH. 3.1.7. In addition, we may require the external auditor to provide expert professional advice and guidance on: - Corporation Tax issues affecting the Association and the Subsidiary. - VAT issues. - Other relevant taxation issues, for example, PAYE/NI, Capital Gains Tax etc.