External Audit Requirements - Subcontracting 22-23

Is it this Chris?

ESFA subcontracting standard - GOV.UK (www.gov.uk)

The external certificate is being replaced by the subcontracting standard as of 22/23.

The process will be the same in the sense that you appoint a internal audit firm of your choosing but I can tell you that the criteria is full on and it's not going to be a walk in the park- 10 catergories and 10-15 different types of criteria per catergory.

Fun and games

Yes Steve Hewitt this is it thanks. So basically we need to get an external auditor to check our subcontracting processes?

We had a PFA audit carried out by RSM group on behalf of the ESFA in November 21 for 19-20 data (AEB and 16-19). They checked all out subcontracting agreements and that was about it to be honest. There were no requests to see this certificate. 

Can anyone advise on what they have done themselves?

Many thanks 

Chris 

Hi Chris,

For 21/22, if you are subcontracting more than £100k you have to appoint a audit firm to complete a controls audit (separate from any other audits). They will send you a report and you and the audit firm have to sign a certificate (the certificate template will be given to you by the auditors once the audit is over) - the signed certificate and report must be submitted to the ESFA by 31/07/22

This may help outline the process (which only relates to 21/22), from next year you follow the requirements of the subcontracting standard)

https://www.gov.uk/government/publications/providing-external-assurance-on-subcontracting-controls/providing-external-assurance-on-subcontracting-controls

The below (available within the link Steve provided) confirms the timeframe for the changes between the controls audit and the subcontracting standard

Thanks Kelly Knights this is the first time we have been required to do this so just wanted to be sure. 

Regards

Chris 

Hi,

I have spent some time trying to find this in the link above and the subcontracting funding rules, but cannot see it.

Does the £100K threshold apply in 22/23?  

Thank you

Ruth

Hi Ruth, yes it does. I was at a Subcontracting conference yesterday and this was confirmed. 

Thank you Kelly.