This edition of our quarterly e-bulletin includes an update on the local audit backlog situation, our client survey for 2023/24 audits, 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
- Client survey for 2023/24 audits
- Consultation on the fee scale for 2024/25 audits
- Additional information for 2023/24 audit fees
- PSAA Non-Executive Director role
- Latest Annual Report and Accounts published
- Local audit news from elsewhere
An update on the local audit backlog situation
On 30 July, the Minister of State for Housing, Communities and Local Government (MHCLG), Jim McMahon MP, laid a written ministerial statement in Parliament setting out proposals to tackle the local audit backlog in England, and that there would be an update in the Autumn to Parliament on Government’s longer-term plans to fix local audit.
The measures proposed setting a statutory ‘backstop’ date of 13 December 2024 to clear the backlog of unaudited accounts up to and including Financial Year 2022/23, and for five further backstop dates up to and including financial year 2027/28, to allow assurance to be rebuilt over several audit cycles.
On 9 September the Government laid in Parliament two pieces of legislation which would give effect to these proposals: the Accounts and Audit (Amendment) Regulations 2024 and a draft Code of Audit Practice 2024 on behalf of the Comptroller & Auditor General of the National Audit Office. The Accounts and Audit Regulations came into effect on 30 September 2024.
The FRC issued a guide on the Local Audit Backlog Rebuilding Assurance on 23 September. It explains how rebuilding assurance after a disclaimed opinion may work in practice on local government audits.
The NAO has issued Local Audit Reset and Recovery Guidance (LARRIGs) that was developed with the FRC to support auditors during the reset and recovery phase of the backstop arrangements.
Client survey for 2023/24 audits
Our client survey seeks to obtain your views on the delivery of your audit. This feedback is important to us as it informs our discussions with the firms and other key stakeholders involved in local audit in England. We ask the LGA’s Research and Information Team to administer the survey for us for independence and transparency, including analysing and reporting on the feedback.
For the 2023/24 audits (the start of the second appointing period) we will be issuing the survey shortly after your auditor has given their opinion. If you receive your audit opinion in September or October 2024 you will receive a survey during November. We encourage you to provide open and frank feedback; all responses are treated confidentially unless you give us your permission to share this with your auditor.
Further details can be found on our website or please email our team with any queries.
Consultation on the fee scale for 2024/25 audits
Our consultation on the fee scale for 2024/25 audits closed on 10 October. We invited all opted-in bodies, our contracted firms, and key stakeholders to provide feedback on the consultation proposals. We also informed opted-in bodies of the calculation for their 2024/25 scale audit fee based on the elements set out in the fee scale consultation.
We held a webinar for opted-in bodies on 1 October to support our consultation process. The slides, a recording of the main part of the event, and a set of questions and answers are available on our website.
We would like to thank everyone who took the time to respond to the consultation and share their views. Our Board will consider all consultation responses carefully before publishing the final 2024/25 fee scale on our website by 30 November 2024, and writing to all those who were consulted.
Additional information for 2023/24 audit fees
In September we published our draft information paper for the 2023/24 audits with the consultation. The information paper identifies the impact on fees of changes in standards and provides information on how opted-in bodies and auditors can work together to mitigate the amount of additional audit work needed.
We will update the paper in November with the consultation survey results and the final 2024/25 fee scale.
PSAA Non-Executive Director role
We are looking to appoint a Non-Executive Director to join our Board. The deadline for applications is midday on 6 November 2024. For more details and to apply please go to: Non-Executive Director or email talent@wig.co.uk.
Latest Annual Report and Accounts published
We have published our Annual Report and Accounts for 2023/24, covering our ninth full year of operation.
Local audit news from elsewhere
Grant Thornton published a report on Local government reorganisation: Lessons from new unitaries that provides a reflection on how local government reorganisation will develop as an option for the sector.
The Cabinet Office announced that the implementation of the Procurement Act 2023 has been delayed from 28 October 2024 to 24 February 2025. All procurement commencing prior to 28 October 2024 should comply with the Public Contracts Regulations 2015, as amended.