URL: https://democracy.lichfielddc.gov.uk/ieDecisionDetails.aspx?ID=781

Decision Maker: Cabinet Member Decision

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: Internal Audit serves as an independent and objective assurance and consulting function that supports the Council in achieving its objectives by assessing the effectiveness of risk management, internal controls, and governance processes. It is a statutory requirement and essential in ensuring that public funds are used properly, efficiently, and transparently.   This report recommends awarding a new contract for Internal Audit Services to BDO LLP. The proposal includes formally extending the existing co-sourced arrangement to incorporate the Head of Internal Audit role under a fully outsourced model.   The recommendation follows an options appraisal prompted by the expiration of the current shared service agreement with Tamworth Borough Council and the retirement of the Audit Manager. The Audit Committee reviewed future delivery models on 17 July 2025 and endorsed retaining the co-sourced approach while outsourcing the Head of Internal Audit role. Cabinet approved this on 8 September 2025 and delegated contract award authority to the Cabinet Member for Finance & Commissioning, contingent on budget alignment.   A compliant procurement process was conducted via a direct award under the YPO Framework, identifying BDO LLP as the preferred bidder. The contract will run from 1 October 2025 to 1 April 2028 and remains within the approved budget.

Content: Internal Audit serves as an independent and objective assurance and consulting function that supports the Council in achieving its objectives by assessing the effectiveness of risk management, internal controls, and governance processes. It is a statutory requirement and essential in ensuring that public funds are used properly, efficiently, and transparently.   This report recommends awarding a new contract for Internal Audit Services to BDO LLP. The proposal includes formally extending the existing co-sourced arrangement to incorporate the Head of Internal Audit role under a fully outsourced model.   The recommendation follows an options appraisal prompted by the expiration of the current shared service agreement with Tamworth Borough Council and the retirement of the Audit Manager. The Audit Committee reviewed future delivery models on 17 July 2025 and endorsed retaining the co-sourced approach while outsourcing the Head of Internal Audit role. Cabinet approved this on 8 September 2025 and delegated contract award authority to the Cabinet Member for Finance & Commissioning, contingent on budget alignment.   A compliant procurement process was conducted via a direct award under the YPO Framework, identifying BDO LLP as the preferred bidder. The contract will run from 1 October 2025 to 1 April 2028 and remains within the approved budget. The Cabinet Member for Finance & Commissioning approved the award of the contract for Internal Audit Services to BDO LLP for a period of 30 months (from 1 October 2025 to 1 April 2028), via direct award under the YPO Framework, in line with the approved budget.

Date of Decision: September 26, 2025