Appendix 1 – Weightings to calculate overall quality score
The QRP uses a composite weighted average for calculating overall quality scores.
| Element of QRP | Percentage allocated |
| Financial statements | 60 |
| VFM arrangements conclusion | 30 |
| Housing benefit | 10 |
| Total | 100 |
RAG rating methodology for QRP elements of financial statements, VFM conclusion and housing benefit work.
| Rating | Firm level: Overall Audit Quality score | Firm level: Individual QRP element | Regime level |
| Green | Firm audit quality score ≥2 and no scores of ‘0’ at file review level | Average element score ≥2 and no scores of ‘0’ at file review level | No more than one firm at amber and none at red |
| Amber | Firm audit quality score ≥1 with up to two scores of ‘0’ at file review level | Average element score ≥1 with up to one score of ‘0’ at file review level | No more than one firm at red |
| Red | Firm audit quality score <1, or Firm audit quality score ≥1 but three or more scores of ‘0’ at file review level | Average element score <1, or Average element score ≥1 but two or more scores of ‘0’ at file review level | Two or more firms at red |
Terms of Appointment compliance RAG rating based on quarterly monitoring indicators
| Rating | Overall firm level score- indicators |
| Green | Four or more indicators at red. |
| Red | Four or more indicators at red. |
| Amber | Neither green nor red. |
| Regime | Green – no more than one firm at amber and none at red; Amber – no more than one firm at red; Red – two or more at red. |
Combined audit quality and Terms of Appointment compliance RAG
| QRP RAG | ||||
| Red | Amber | Green | ||
| Terms of Appointment compliance RAG | Red | R | R | A |
| Amber | R | A | A | |
| Green | A | A | G | |
RAG rating the results of satisfaction survey results
| Firm 0-10 assessment (average) | Firm unsatisfactory – satisfactory assessment (average) | PSAA RAG rating |
| 0-3 | very dissatisfied / dissatisfied / unsatisfactory | R |
| 4-6 | reasonable / good / satisfied | A |
| 7-10 | very good / very satisfied / outstanding | G |