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Introduction: \nThe Arts University Bournemouth (“AUB” or “the University”) wishes to appoint an external auditor to undertake the annual audit of the University and its subsidiary companies. This tender invites proposals from suitably qualified and independent firms to provide a comprehensive external audit service in accordance with current regulatory requirements and best practice in higher education. The audit will cover the University’s consolidated financial statements and those o\tf each subsidiary entity and will include a separate regularity opinion and other audit-related reports as required. \n2. The client: \nAUB is a specialist university providing education in art, design, media and performance. It is a higher education corporation and an exempt charity regulated by the Office for Students (OfS). The University operates from its campus in Poole, Dorset and serves a community of undergraduate, postgraduate and research students. AUB has a number of subsidiary companies, currently including AUB Services Ltd (which is dormant and holds property assets) and AUB Enterprises Ltd, which operates the University’s innovation and business‑incubation facilities. In addition, the University consolidates an associated charity, Arts University Bournemouth Charitable Foundation, whose trustees include members of the University’s Board. Financial statements are prepared on a consolidated basis for the year ending 31 July and must be audited within five months of the year‑end. \n3. Background and scope of the contract: \nThe University periodically retenders its external audit services to ensure probity and value for money. The current contract has reached the end of its agreed term, and the University therefore invites tenders for the appointment of external auditors for a proposed term of three years (financial years 2026/27 to 2028/29) with an option to extend for up to two additional years, subject to satisfactory performance. The contract covers the audit of: \nThe consolidated financial statements of AUB prepared under the Statement of Recommended Practice: Accounting for Further and Higher Education and Financial Reporting Standard (FRS 102) (or any successor) or International Financial Reporting Standards (IFRS) as adopted in the UK. \nThe individual financial statements of AUB Services Ltd and AUB Enterprises Ltd and any new subsidiaries incorporated during the contract period. \nThe financial statements of the Arts University Bournemouth Charitable Foundation. \nAny other returns or statements that require an external audit opinion, including the Teachers’ Pension Scheme return and the Higher Education Statistics Agency (HESA) Finance Record or its successor. \n4. Regulatory environment and audit requirements: \nUnder the Higher Education and Research Act 2017 and the OfS’s regulatory framework, AUB is required to have its financial statements audited by independent external auditors who are registered on the Register of Statutory Auditors. Further more as a Charity the audit firm must also comply with FRC audit standards. \n Key requirements include: \nIndependence – The external auditor must be independent of the University and of the preparers of the accounts and must not carry out work that compromises that independence. The OfS requires that the trial balance is prepared and approved by the University, not by the auditors. The audit firm must confirm that it is listed on the Register of Statutory Auditors. \nAudit opinion – The auditor must report on whether the financial statements give a true and fair view of the University’s financial position and performance and whether they have been properly prepared in accordance with UK GAAP/FRS 102 or IFRS and the OfS Accounts Direction. The auditor’s report must also state whether funds from the OfS, UK Research & Innovation, Education and Skills Funding Agency and other funders have been applied for the purposes provided and in accordance with relevant terms and conditions. \nRegularity opinion – The auditor must provide an opinion on the regularity and propriety of the University’s use of public funds and confirm that OfS requirements (including the accounts direction) have been met. The OfS guidance emphasises that the external auditor’s report must cover all components of the financial statements and be signed by the auditor, the accountable officer and the chair of the governing body. \nManagement letter – The auditor must produce a management letter (or equivalent) highlighting significant accounting and control issues, making recommendations and noting the extent of reliance on the internal audit service. The management letter and management responses must be presented to the Audit & Risk Committee in time to inform its annual report. \nProviders registered with the OfS must publish their audited financial statements within two weeks of being signed and, at the latest, five months after the financial year‑end. The University is accountable for submitting financial returns through the OfS portal in accordance with the Annual Financial Return guidance and the Accounts Direction. \n5. Standards and reporting framework: \nThe audit must be conducted in accordance with International Standards on Auditing (UK) issued by the Financial Reporting Council and take account of: \nThe Statement of Recommended Practice: Accounting for Further and Higher Education (SORP) and any subsequent revisions. \nThe OfS Accounts Direction and related Regulatory Advice 14 (Guidance for the Annual Financial Return), which specify content and disclosure requirements and emphasise auditor independence. \nRelevant legislation, including the Companies Act (where applicable), the Charities Act, and the Teachers’ Pension Regulations. \nThe University’s Financial Framework and Regulations, which set out governance arrangements, the responsibilities of the Board, the Finance & Resources Committee and the Audit & Risk Committee. \n6. Scope of services: \nThe appointed audit firm will be required to: \nPlan and execute the audit of the University and each subsidiary and associated entity to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. \nTest systems of financial control, review accounting policies and evaluate the appropriateness of accounting estimates and judgements. \nProvide an audit report on the consolidated financial statements, separate reports for each subsidiary company and the charity, and any required regularity reports. \nAudit the Teachers’ Pension Scheme return and provide assurance as required by the Teachers’ Pension Agency. \nU.S. Federal (Title IV) audit requirements. Experience delivering audit services that comply with U.S. Federal (Title IV) audit requirements applicable to UK universities enrolling U.S. students receiving federal financial aid. \nAudit the HESA Finance Record or its successor and ensure consistency with the audited financial statements. \nPrepare and present a management letter summarising findings and recommendations, including comments on internal control weaknesses, compliance with regulations and any matters arising from the audit of subsidiary companies. \nAttend meetings of the Audit & Risk Committee, Finance & Resources Committee and Board of Governors where audit matters are considered, including presenting the audit plan and audit findings. \nProvide advice on technical accounting and regulatory developments affecting the higher education sector where such advice does not compromise auditor independence. 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Introduction: \nThe Arts University Bournemouth (“AUB” or “the University”) wishes to appoint an external auditor to undertake the annual audit of the University and its subsidiary companies. This tender invites proposals from suitably qualified and independent firms to provide a comprehensive external audit service in accordance with current regulatory requirements and best practice in higher education. The audit will cover the University’s consolidated financial statements and those o\tf each subsidiary entity and will include a separate regularity opinion and other audit-related reports as required. \n2. The client: \nAUB is a specialist university providing education in art, design, media and performance. It is a higher education corporation and an exempt charity regulated by the Office for Students (OfS). The University operates from its campus in Poole, Dorset and serves a community of undergraduate, postgraduate and research students. AUB has a number of subsidiary companies, currently including AUB Services Ltd (which is dormant and holds property assets) and AUB Enterprises Ltd, which operates the University’s innovation and business‑incubation facilities. In addition, the University consolidates an associated charity, Arts University Bournemouth Charitable Foundation, whose trustees include members of the University’s Board. Financial statements are prepared on a consolidated basis for the year ending 31 July and must be audited within five months of the year‑end. \n3. Background and scope of the contract: \nThe University periodically retenders its external audit services to ensure probity and value for money. The current contract has reached the end of its agreed term, and the University therefore invites tenders for the appointment of external auditors for a proposed term of three years (financial years 2026/27 to 2028/29) with an option to extend for up to two additional years, subject to satisfactory performance. The contract covers the audit of: \nThe consolidated financial statements of AUB prepared under the Statement of Recommended Practice: Accounting for Further and Higher Education and Financial Reporting Standard (FRS 102) (or any successor) or International Financial Reporting Standards (IFRS) as adopted in the UK. \nThe individual financial statements of AUB Services Ltd and AUB Enterprises Ltd and any new subsidiaries incorporated during the contract period. \nThe financial statements of the Arts University Bournemouth Charitable Foundation. \nAny other returns or statements that require an external audit opinion, including the Teachers’ Pension Scheme return and the Higher Education Statistics Agency (HESA) Finance Record or its successor. \n4. Regulatory environment and audit requirements: \nUnder the Higher Education and Research Act 2017 and the OfS’s regulatory framework, AUB is required to have its financial statements audited by independent external auditors who are registered on the Register of Statutory Auditors. Further more as a Charity the audit firm must also comply with FRC audit standards. \n Key requirements include: \nIndependence – The external auditor must be independent of the University and of the preparers of the accounts and must not carry out work that compromises that independence. The OfS requires that the trial balance is prepared and approved by the University, not by the auditors. The audit firm must confirm that it is listed on the Register of Statutory Auditors. \nAudit opinion – The auditor must report on whether the financial statements give a true and fair view of the University’s financial position and performance and whether they have been properly prepared in accordance with UK GAAP/FRS 102 or IFRS and the OfS Accounts Direction. The auditor’s report must also state whether funds from the OfS, UK Research & Innovation, Education and Skills Funding Agency and other funders have been applied for the purposes provided and in accordance with relevant terms and conditions. \nRegularity opinion – The auditor must provide an opinion on the regularity and propriety of the University’s use of public funds and confirm that OfS requirements (including the accounts direction) have been met. The OfS guidance emphasises that the external auditor’s report must cover all components of the financial statements and be signed by the auditor, the accountable officer and the chair of the governing body. \nManagement letter – The auditor must produce a management letter (or equivalent) highlighting significant accounting and control issues, making recommendations and noting the extent of reliance on the internal audit service. The management letter and management responses must be presented to the Audit & Risk Committee in time to inform its annual report. \nProviders registered with the OfS must publish their audited financial statements within two weeks of being signed and, at the latest, five months after the financial year‑end. The University is accountable for submitting financial returns through the OfS portal in accordance with the Annual Financial Return guidance and the Accounts Direction. \n5. Standards and reporting framework: \nThe audit must be conducted in accordance with International Standards on Auditing (UK) issued by the Financial Reporting Council and take account of: \nThe Statement of Recommended Practice: Accounting for Further and Higher Education (SORP) and any subsequent revisions. \nThe OfS Accounts Direction and related Regulatory Advice 14 (Guidance for the Annual Financial Return), which specify content and disclosure requirements and emphasise auditor independence. \nRelevant legislation, including the Companies Act (where applicable), the Charities Act, and the Teachers’ Pension Regulations. \nThe University’s Financial Framework and Regulations, which set out governance arrangements, the responsibilities of the Board, the Finance & Resources Committee and the Audit & Risk Committee. \n6. Scope of services: \nThe appointed audit firm will be required to: \nPlan and execute the audit of the University and each subsidiary and associated entity to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. \nTest systems of financial control, review accounting policies and evaluate the appropriateness of accounting estimates and judgements. \nProvide an audit report on the consolidated financial statements, separate reports for each subsidiary company and the charity, and any required regularity reports. \nAudit the Teachers’ Pension Scheme return and provide assurance as required by the Teachers’ Pension Agency. \nU.S. Federal (Title IV) audit requirements. Experience delivering audit services that comply with U.S. Federal (Title IV) audit requirements applicable to UK universities enrolling U.S. students receiving federal financial aid. \nAudit the HESA Finance Record or its successor and ensure consistency with the audited financial statements. \nPrepare and present a management letter summarising findings and recommendations, including comments on internal control weaknesses, compliance with regulations and any matters arising from the audit of subsidiary companies. \nAttend meetings of the Audit & Risk Committee, Finance & Resources Committee and Board of Governors where audit matters are considered, including presenting the audit plan and audit findings. \nProvide advice on technical accounting and regulatory developments affecting the higher education sector where such advice does not compromise auditor independence. 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