Process to join
Higher Education Institutions (HEIs) can apply to become a Member institution of the KCG Consortium.
Applications for admission are considered by the KCG Consortium Board of Management (KCG Board) after a period of discussion with interested institutions. Before admission, the KCG Consortium will deliver a detailed Audit Needs Assessment at no cost to determine the number of audit days to be delivered and included within the Consortium’s shared cost model. The shared cost model drives the composite daily rate at the breakeven point, which is applied for all Member institutions and is determined in July each year effective from 1 August.
The KCG Consortium does not offer an outsourcing solution for the provision of internal audit services. Alternatively, it offers a shared services solution. As a consequence, the Consortium does not normally engage in tender exercises. The KCG Consortium offers institutions an opportunity to ‘bring in-house’ their internal audit arrangements, on a shared service and shared cost basis. The process from enquiry to admission can take several months to negotiate.
Institutions that wish to join the KCG Consortium need not instigate a formal tender process. This is because of the ‘Teckal in-house exemption‘, which means that under English law, in certain circumstances a contract let by a public body will not be deemed to be a contract for the purposes of the public procurement regime. The KCG Consortium arrangement fulfils the circumstances for the Teckal in-house exemption to apply.
Membership is regulated through a Consortium Agreement and Deed of Adherence, signed by each of the Member institutions on the admission of any additional institutions. The Consortium Agreement provides the framework for the Consortium’s governance arrangements, including the Members’ shared ownership of the Consortium’s assets and liabilities, costs and benefits.
Each Member institution is expected to provide senior representation on the KCG Board.
The KCG Consortium offers its Members only the very highest quality of staff. On admission, Member institutions are required to subscribe to the concept of high quality professional internal audit and management assurance services, delivered at reasonable cost that is sufficient to deliver ‘added value’, and to make a positive contribution to the achievement of the Member institutions’ strategic aims and objectives. All costs are shared equitably amongst the KCG Consortium Member institutions in proportion to the number of audit days received per annum and in accordance with the Consortium Agreement.
The KCG Consortium is not profit-making from the Membership. Additional income streams from non-Member institutions are costed and priced on a commercial basis and intended to generate surpluses which are utilised and invested to develop the Consortium and equip it for the longer term. Savings are also achieved for the Consortium membership on VAT, either as a full exemption from membership of the Cost Sharing Group (ie HE institutions must demonstrate compliance with HMRC CSG tests) or partial savings that are related to the staff pay costs element of services delivered (ie driven by joint employment of staff).