Municipalities, Joint municipal authorities & Churches
Application of the Local Government Act to purchasing auditing services
An auditing firm may be appointed as an auditor for a municipality or a joint municipal authority for a maximum of six financial years at a time. Their term of office for specific calendar years will be determined by the financial years and will continue until the auditor’s report for the last financial year of the term of office has been adopted.
According to the Local Government Act, one of the auditors appointed for a municipal subsidiary must be the municipal auditing firm, unless a deviation from this practice can be justified for a reason related to organising the audits.
Application of the Act on Public Contracts to purchasing auditing services
The Act on Public Contracts applies to purchasing auditing services for public sector bodies. The threshold values are determined according to the estimated total value of the purchase, meaning that the price for auditing services for the entire term of office in accordance with the request for tenders is calculated exclusive of VAT.
The EU procedure will apply if the value of the services to be purchased is more than EUR 209,000. Bids must also be sought for auditing services when the national threshold value of EUR 60,000 is exceeded.
Small purchases that fall below the threshold values must be conducted in line with an open, non-discriminatory procurement process and organisation-specific procurement guidelines for seeking bids for minor purchases.