URL: https://democracy.croydon.gov.uk/ieDecisionDetails.aspx?ID=2597

Decision Maker: Cabinet Member for Finance

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: The provision of an effective internal audit service is a statutory requirement for local authorities under the Accounts and Audit Regulations 2015.  Croydon Council has worked with an external service provider to deliver this service since the early 1990s.  Since 2008, Croydon Council has held a single provider framework contract for the provision of Internal Audit & Anti-Fraud services.  The current provision was awarded to Forvis Mazars LLP and commenced on 1 April 2018 for eight years (initially for six years then extended for two years).  This expires on 31 March 2026. Approval is being sought to seek tenders to re-let the framework for a new term.   

Content: The provision of an effective internal audit service is a statutory requirement for local authorities under the Accounts and Audit Regulations 2015.  Croydon Council has worked with an external service provider to deliver this service since the early 1990s.  Since 2008, Croydon Council has held a single provider framework contract for the provision of Internal Audit & Anti-Fraud services.  The current provision was awarded to Forvis Mazars LLP and commenced on 1 April 2018 for eight years (initially for six years then extended for two years).  This expires on 31 March 2026. Approval is being sought to seek tenders to re-let the framework for a new term.    For the reasons set out in the report and its appendix, the Lead Member for Finance AGREED:     To approve the procurement strategy which is in line with Croydon’s CSOs and the Procurement Act 2023, detailed in this report, for the recommissioning of Croydon’s Audit & Anti-Fraud services single supplier framework for a period of 4 years for a maximum estimated total contract value of £13,500,000 (£1,500,000 for Croydon). This is an annual value of £375,000 for Croydon).   The Audit & Anti-Fraud services single supplier framework with Mazars expires on 31 March 2026. There is no further option to extend this contract which is in its final extension period.  The performance of the contractor has been of a good standard and the service is still required.   Of the options available, the preferred option is to reprocure the framework, as this option provides access to the different necessary skills, while providing soft benefits.   Insource the provision – The internal audit team for a single council is inevitably small and this makes it difficult to ensure that there is the up-to-date range of skills needed by such complex organisations.  Furthermore, liaison with other London Boroughs has highlighted a skills shortage of internal auditors, with other London Boroughs having difficulty filling vacant internal auditor posts.   Enter into a Shared Service - The internal audit team for multiple councils is inevitably larger and this avoids the difficulties faced by single councils in having the up-to-date range of skills needed.  Liaison with other London Boroughs has; however, highlighted a skills shortage of internal auditors, with other London Boroughs having difficulty filling vacant internal auditor posts. For this reason, the option was discounted.   Let a contract for Croydon Council only – if let to a reasonably sized contractor then the above issues would be mitigated.  However, it is more difficult to obtain good prices when procuring for a single organisation and to maintain a position of priority with the contractor once the contract is let. For this reason, the option was discounted.   Re-procure a single supplier framework – By following this option Croydon Council: ·         avoids the problems of maintaining the breadth and depth of skills needed for the task ·         obtains pricing that reflects the likely volumes that will be purchased ·         as the leader of the framework, remains a priority for the Contractor throughout the term of the contract   In addition to the above the Council has found there to be significant ‘soft’ benefits from working in collaboration with a number of other organisations.    The options considered to deliver the procurement/contract/project, including the respective costs & benefits of these are included in Appendix 1, Gateway 1 Business Case, Section 2 part of this report. The potential tendering routes to then procure the recommended option are included in Gateway 2 Route to Market, Section 2, of Appendix1.  

Date of Decision: November 12, 2025