Financial Audit and Assurance Services Contract Modification

This is a modification notice for existing Financial Audit and Assurance Services contracts (reference GEN_20_22). The contract value is being increased by £9.6 million to extend and continue current arrangements. The modification ensures continuity of statutory audit services and supports the National Audit Office in meeting its legal responsibilities. The original contracts cover audit and assurance services for major public sector pension schemes, including the Pension Protection Fund, which require specialized actuarial and pensions audit expertise. These pension schemes represent the largest liabilities in the Whole of Government Account and face significant scrutiny regarding their valuations for government fiscal policy purposes. The nature, scope, and objectives of the contracts remain unchanged. The modification is necessary because additional audit and assurance services are required from the existing contractors to maintain continuity of statutory audit delivery. Changing contractors at this stage would create significant operational inconvenience, unnecessary cost duplication, and disrupt audit planning, delivery, and quality assurance processes. The contract increase remains below 50% of the original contract value.