The 2023/24 fee scale
PSAA has set the 2023/24 fee scale on the basis of the work required under the Code of Audit Practice 2020 published by the National Audit Office, and associated auditor guidance.
After careful consideration of the issues raised in the feedback to our consultation, we have set the fee scale for 2023/24 based on the following elements:
| 2023/24 fee scale elements |
|---|
| A – The scale fees for 2022/23 Plus: B – Approved fee variations for recurrent additional audit work in prior years not yet included in scale fees, or estimates where audits have been delayed1 C – Changes in local audit requirements2 D – Adjustments at specific bodies for local circumstances E – Adjustment for the procurement outcome |
1 The categories of recurrent additional work consolidated into the fee scale cover: group accounts, pension valuation, PPE valuation, enhanced audit requirements in relation to public interest entities and major local audits, increased FRC challenge, PFI, and investment valuation (pension funds only).
2 The categories of work consolidated into the fee scale include: the VFM arrangements commentary and ISA 540 revised, but not ISA 315 revised (because we do not have a consistent basis yet for estimating the additional fees needed).
We will review any estimated figures consolidated into scale fees and the adjustments for special cases to ensure they remain appropriate.
We have written to each opted-in body to set out the calculation of their scale fee based on these elements. The 2023/24 scale fees for each opted-in body is available from the scale of fees page of our website.
Changes in audit work or audit requirements that are identified or quantified after publication of this fee scale or are not ongoing requirements will continue to be subject to the fee variations process.
Under DLUHC proposals on the audit backlog, we anticipate that we will need to review and determine on a case-by-case basis the final fees for accounting periods covered by any backlog solution. The guiding principle in this assessment will remain that if auditors have worked in good faith to meet the requirements of the Code of Audit Practice in place at the time the work was conducted, then they are due the appropriate fee for the work done, and the body is due to pay the applicable fee. Conversely, if an auditor has collected audit fees in part or in full, and a change in requirements means that the total work done represents less than the fee already collected, then the auditor must return the balance and refund the body the appropriate amount. We will write to opted-in bodies individually when we have information on confirmed backlog measures and their impact on fees.