Audit fee scale (November 2024)
PSAA has published the 2024/25 audit fee scale following consultation.
The fee scale applies for the audit work to be undertaken by appointed auditors in respect of the 2024/25 financial statements at relevant principal authorities that have opted into PSAA’s national auditor appointment arrangements for the period 2023/24 to 2027/28.
Auditors will undertake their work under the requirements of the Code of Audit Practice and supporting guidance published by the National Audit Office on behalf of the Comptroller and Auditor General, the financial reporting requirements set out in the Code of Practice on Local Authority Accounting published by CIPFA LASAAC, and the professional standards applicable to auditors’ work.
Under the Local Audit (Appointing Person) Regulations, the 2024/25 fee scale must be published before 1 December 2024 and cannot be amended after that date. Any subsequent changes in national requirements or local circumstances relating to the 2024/25 audits will be the subject of fee variations.
2024/25 directory of auditors and scale fees for opted-in bodies.
Consultation summary
PSAA has published the fee scale for 2024/25 audits, following consultation with bodies and other stakeholders. A summary of the consultation outcome is also available.
Our consultation took place during September-October 2024. It set out a proposed increase of 9.5% in total scale fees to cover additional audit work under revised standards and a contractual inflationary increase payable to audit firms.
Responses to the consultation understandably raise concerns about the need for an increase in audit fees given the financial pressures on opted-in bodies. We received 128 substantive responses to the consultation. Of those who expressed a view, 53% agree with the proposed fee scale and 47% do not. Most responses also raise concerns about aspects of the proposed fee scale.
We are acutely aware of the financial pressures facing bodies and understand that increased audit fees are an unwelcome additional budgetary pressure. Our strong view is that work on reforming accounting and auditing frameworks must reduce the volume of local audit work required and focus on the needs of the sector.
We welcome the feedback we received to our consultation and thank all those who took the time to respond. The PSAA Board has reflected carefully on the consultation outcome and takes very seriously the views expressed. We will feed the issues raised in the consultation into the work MHCLG is leading to overhaul the broken local audit system, to ensure the concerns of bodies are understood.