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Council audit contracts up for grabs

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The Audit Commission has launched the process for outsourcing all its local government audit work, inviting suppliers to tender for contracts with an annual value of £89.4m.  

A raft of suppliers including the Big Four accountancy firms, the new mutual being set up by Audit Commission staff and some new private sector entrants, are expected to bid for the work.  

Companies will be able to bid for a raft of contracts but limits will be placed on the number awarded to any one supplier in any one region.

The move follows communities secretary Eric Pickles announcing in August 2010 plans to disband the Audit Commission.

At the same time, he indicated his intention to transfer the Commission’s in-house audit practice to the private sector, and in due course, to abolish the residual element of the Commission.

Estimated size of contracts per region  
£m

Northern

North West 12.5
North East and North Yorkshire 5
Humberside and Yorkshire 6.9 
Central
West Midlands 8.9
East Midlands 7.8
Eastern 8.6
London
London (North) 8.4
London (South), Surrey and Kent 11.7
Southern
South East 11.4
South West 8.2

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