External Audit Tender

Posted on 13th Feb 2025

Lochfield Park Housing Association - External Audit Tender

Lochfield Park Housing Association are seeking to appoint an external auditor to audit and express an opinion on the Associations financial statements in accordance with the applicable law and International Standards on Auditing (UK and Ireland) as issued by the Audit Practices Board The term of appointment will be for a period of up to 7 years, commencing financial year ending 31st March 2026. However, this will be for an initial period of 1 year and will be subject to review by the Management Committee and, ultimately the Associations members at the annual general meeting.

Description - 1.0 INTRODUCTION

Lochfield Park Housing Association was formed in 1993, is registered as a not-for-profit organisation under the Co-operative and Community Benefit Societies Act 2014 and is a registered Scottish Charity (number SC037694). Our registered office is at 37 Drumlanrig Avenue, Glasgow, G34 0JF. We employ 9 staff and anticipate a turnover of approximately £4.2 million in 2025/26 with an anticipated operating surplus of £978,901. The Association has no subsidiary or parent companies. The Association owns 605 properties along with a further 18 in Shared Ownership. The stock is a mixture of new build houses and flats. The Association is not currently developing but has potential for future development in the area. By way of additional background information, the following documents are attached:

  •  Annual Accounts to 31 March 2024
  •  Management Accounts to 31 December 2024
  •  Budget 2025/26
  •  Annual Report 2024

All finance work, including preparation of draft statutory accounts, is prepared by the Association’s staff and Financial Services Consultant. We are seeking to appoint an external auditor to audit and express an opinion on the Associations financial statements in accordance with the applicable law and International Standards on Auditing (UK and Ireland) as issued by the Audit Practices Board. The financial statements will be prepared in accordance with:

  •  The industrial and Provident Societies Acts 1965 to 2002 • The Co-operative and Community Benefits Societies Act 2014
  •  The Housing (Scotland) Act 2010
  •  The Determination of Accounting Requirement 2019
  •  The standards and guidelines of the prevailing SORP

2.0 OUR SERVICE REQUIREMENTS

  • To carry out an annual audit of the accounts in accordance with auditing standards and form an opinion on these.
  • Review and report (where appropriate) on the Management Committee’s statement on internal financial control.
  •  Report key audit findings in relation to any significant weaknesses in accounting and internal control systems identified during the course of the audits in a Management Letter to the Management Committee.
  • Liaising with the internal auditor where applicable.
  • The auditor must comply with all relevant legislative and accounting standards requirements including guidance issued by the Scottish Housing Regulator. The auditor will be expected to be familiar with all such matters and be pro-active in the provision of advice to the Association as a result of relevant changes in these areas.
  • The Association will be responsible for preparing the draft statutory accounts fully supported by relevant schedules and working papers.
  • The auditor will be required to attend the Association’s Management Committee meeting at which the annual accounts are presented for approval. In addition, the auditor will be expected to present the accounts for the Association at the Annual General meeting.
  • Completion of any Corporation Tax Returns (the Association has Charitable Status)
  • Any correspondence with His Majesty’s Revenues and Customs regarding Corporation Tax
  • Any ad hoc financial/tax queries that may arise during the year  The auditors will be required to extract information from the annual financial statements, if required, to enable staff to complete miscellaneous reports for submission to the Scottish Housing Regulator, The Financial Conduct Authority and any other relevant authority as required from time to time throughout the year
  • The auditors will have unrestricted access to all relevant records and personnel to conduct the audit process
  • The auditor will be expected to prepare an annual audit plan and timetable for discussion with the Association’s Financial Services Consultant.
  • The basis of appointment will be a formal letter of engagement.
  • Completed Financial Statements must be finalised and signed off timeously in order to meet the annual submission requirement of the Scottish Housing Regulator and the Financial Conduct Authority.

3.0 GOOD PRACTICE

We require the external auditor to be fully conversant with, and to adhere to, the standards and guidelines issued by Companies House, the Scottish Housing Regulator and the Office of the Scottish Charities Regulator.

4.0 PROCUREMENT PROCESS

The Procurement Process will be on a 60:40 quality: price basis

  • The price element of the assessment will be based on the cost outlined in the tender submitted by 12 noon Thursday 6th March 2025.
  • The quality assessment will mainly be based on information submitted within the tender documentation provided and at interview if required.

5.0 OTHER TERMS AND CONDITIONS

The term of appointment will be for a period of up to 7 years, commencing financial year ending 31st March 2026. However, this will be for an initial period of 1 year and will be subject to review by the Management Committee and, ultimately the Associations members at the annual general meeting. In considering its recommendation to the membership, the Management Committee will consider the company’s performance across several areas. Fees tendered and rates quoted will be expected to be effective for the full period. Any proposed variation in fees over and above an inflationary increase (e.g. as a result of changes in scale, external requirements or audit work content) will require to be fully justified and mutually agreed.

6.0 INFORMATION TO BE INCLUDED IN TENDER SUBMISSIONS

Please ensure you cover the following areas within your tender submission:

  • Full details of your firm and its range of services
  • Experience of providing services to other Registered Social Landlords.
  • How you would aim to ensure the continuity of audit staff involved in carrying out the audit.
  • A list of other RSLs for whom you provide external audit services and the names of two of these for the purposes of providing a formal reference.
  • Details of how your firm ensures the delivery of a quality service by staff.
  • Details, including experience and qualifications of the audit partner and staff who would be responsible for the audit.
  • Details of what would you provide in terms of value added service
  • Details of your proposed fee. Please provide details of expenses and outlays separately. All costs should be provided exclusive of VAT.
  • Provide details of the hours anticipated to be spent on the audit by each individual and the hourly rates applicable for all staff engaged in the audit.
  • Details of how the costs will be reviewed each year, for example Consumer Price Index (CPI). 6.1 Additional Information Required
  • Your company commitment to equality and diversity
  • Details on any contracts that have been terminated early by an RSL in Scotland in the last 5 years
  • A declaration regarding relationships with Connected Persons
  • Confirmation that you have appropriate professional indemnity and public liabilities insurance (we will require the successful company to provide copies of the appropriate insurance schedules prior to any work being undertaken).

The additional information requested at 6.1 will not be including within the scoring process however failure to provide a satisfactory response to these requirements may result in your submission being rejected.

CLOSING DATE

Copies of your tender proposal should reach the Association by 12 noon on Thursday 6th March 2025. Late submissions will not be accepted. All submissions should be received in a plain sealed envelope clearly marked with “Tender for External Audit Services – Confidential”. Copies of your submission should be addressed to:

FAO Elizabeth McEachran Lochfield Park Housing Association Ltd 37 Drumlanrig Avenue Glasgow G34 0JF

Prospective firms of auditors who require clarification on any points should direct their enquiries to: Mr Patrick Long Financial Services Consultant Telephone: 07855 956563 E-Mail Pat.Long@fmdfinance.co.uk

Or

Miss Elizabeth McEachran Interim Director Telephone: 0141 771 2228 or DD; 0141 773 5015 E-Mail LMcEachran@lochfield.co.uk

If applicable, interviews will be held in April 2025 at the Association’s offices. We intend to appoint the successful firm at the AGM in September 2025.

Date Closed - 6th March 2025

Time Closed - Noon

Email For Submissions - LMcEachran@lochfield.co.uk

Telephone Number For Submissions - 01417712228

Url For Submissions - LMcEachran@lochfield.co.uk