This edition of our quarterly e-bulletin includes an update on the local audit backlog situation, details of our consultation on the fee scale for 2024/25, and a summary of local audit news from elsewhere.
We hope that you continue to find our e-bulletin to be useful. We welcome your thoughts on future topics that you would like us to cover (contact the team).
Content:
- An update on the local audit backlog situation
- Consultation on the fee scale for 2024/25 audits
- PSAA’s Advisory Panel meeting
- Contract Monitoring Data Pack: Quarter 1 for 2024/25
- Local audit news from elsewhere
An update on the local audit backlog situation
Jim McMahon, Minister of State (Housing Communities and Local Government) issued a written statement on the local audit backlog on 30 July, proposing secondary legislation (including setting a series of backstop dates) that alongside a new Code of Audit Practice would aim to facilitate a return to timely, purposeful audits of local body accounts. Both measures are subject to parliamentary time.
Our press release welcomed the announcement, and the intention to update in the Autumn on the longer term plans to fix local audit.
We provided S151 Officers and Audit Committee Chairs with a copy of the Minister’s letter to local bodies and local audit firm partners.
Consultation on the fee scale for 2024/25 audits
We will be consulting on the 2024/25 fee scale for audits of opted-in bodies from Thursday 12 September 2024. The consultation will run for four weeks, closing at 5pm on Thursday 10 October. We will run a webinar on 1 October to explain our proposed changes and provide the opportunity for Q&As.
The PSAA Board will carefully consider all feedback before confirming the fee scale. We will publish the final fee scale with a summary of our consultation response on our website on Thursday 28 November (ahead of the statutory deadline of 30 November), and email opted-in bodies and other stakeholders to confirm the fee scale.
We will issue an email at the launch of the consultation with details of the proposed fee scale, a reminder of the closing date, and an invitation to our webinar. Details of the consultation will also be available on our website.
PSAA’s Advisory Panel meeting
Our Advisory Panel of Treasurers’ Societies members met on 12 June.
Neil Harris (Director of Local Audit) and Zaina Steityeh (Deputy Director of Local Audit) of the FRC were key speakers. They provided an update and facilitated a discussion on the position of the previous Government’s proposals consulted upon to address local audit delays, and how the system should act in a period of pre-election sensitivity following the announcement of the general election. Bevis Ingram also shared the LGA’s response on the same topic.
The meeting also considered how arrangements for determining audit fees would be impacted by the different scenarios if a backstop date were to be introduced, a look ahead at the 2024/25 scale fee timeline, and audit delivery information as of 31 May 2024.
The next Advisory Panel meeting is scheduled for 6 November.
Contract Monitoring Data Pack: Quarter 1 for 2024/25
We have published our Contract Monitoring Data Pack: Quarter 1 for 2024/25. We produce quarterly reports on our contracted firms, building up information as the year progresses. The data pack covers audit opinions, approved fee variations and electors’ objections as of 30 June 2024.
Contract monitoring data packs for previous quarters are available to view on our website.
Local audit news from elsewhere
On 26 April Gareth Davies, C&AG of the NAO, responded to Clive Betts, Chair of the Levelling Up, Housing and Communities Committee, with a letter outlining his views on the future of local government audit. This references the impact of devolution on the assurance to local people that their money is being well spent.
In April the LGA published 10 key questions for audit committees to ask of management, internal and external auditors, and themselves. The guide provides information and guidance as well as good practice.
On the 1 June 2024 Mazars, the international audit, tax and advisory firm, and FORVIS, the top ranking public accounting firm in the United States, launched Forvis Mazars, a new global accounting network. The network will operate under a single brand worldwide.
On 14 June Audit Scotland published their Quality of public audit in Scotland: Annual Report 2023/24.
Grant Thornton published a report on Value for money audits: lessons for local authorities on 11 July. The report shares findings from recent Auditors’ Annual Reports.
In July the FRC issued its Annual Report and Accounts for 2023/24 and its Annual Review of Audit Quality that focuses on large corporate sector clients (its equivalent for local audit was published in December 2023).
The ICAEW alongside the CIPFA-affiliated journal Public Money & Management are calling for papers describing ways in which local government accounts can be better used to improve accountability and effectiveness. The deadline for submitting a paper is 3 September 2024.
The UK Public Sector Internal Audit Standard Advisory Board (IASAB) issued an update in April on its progress with the new Global Internal Audit Standards. These will become effective from 9 January 2025. Development of the IASAB material will be progressed through consultation, due to be launched by September 2024.
The Procurement Bill, which will reform the existing Procurement Rules, received Royal Assent last year. The Procurement Act will come into effect on Monday 28 October 2024. The Government has published a series of guidance documents to cover all aspects of the Procurement Act 2023, to help with interpretation and understanding.