2018/19 audit fee scale

2018/19 fee scale

32. The Regulations require PSAA to specify, before the start of the financial year to which the fees relate, the scale of fees for the audit of the accounts of opted-in authorities.
33. The scale of fees for 2018/19 reflects the cost of the expected work programme based on the requirements of the Code of Audit Practice, and is based on the scale fees applicable for 2017/18 with a reduction of 23 per cent. The 2017/18 scale fees represent the most accurate reflection available of the auditor’s assessment of audit risk and complexity to complete an audit compliant with the Code of Audit Practice for each opted-in audited body.
34. The scale fee for each opted-in local government and police audited body is available on our website. Paragraphs 35 to 39 below explain the arrangements that apply to the variation of fees in certain circumstances.

Fee variations

35. PSAA has the power to determine the audit fee payable, which may vary from the prescribed scale fee, where it concludes that substantially more or less audit work was required than envisaged by the scale fee. Scale fees are based on the expectation that audited bodies are able to provide the auditor with complete and materially accurate financial statements, with supporting working papers, within agreed timeframes.
36. Where it becomes clear that audit risk or complexity are significantly different from the level identified and reflected in the 2017/18 scale fee, the auditor may request a variation to the scale fee for 2018/19. We would expect such requests to arise only where risk and/or complexity are significantly different from assumptions reflected in the 2017/18 scale fee.
37. Variation requests must be made to PSAA by the auditor using a standard process and cannot be invoiced to an audited body by the auditor until they have been approved by PSAA.
38. PSAA obtains updated fee information, and explanations for any proposed variations from the scale fee, from appointed auditors on a regular basis. We consider the reasonableness of the explanations provided by auditors, and require the auditor to confirm that they have had an appropriate discussion about the reasons for the additional fee with the audited body before we finalise our decision on any variation to the scale fee.
39. PSAA will charge fees for considering objections from the point at which auditors accept an objection as valid, or any special investigations, such as those arising from disclosures under the Public Interest Disclosure Act 1998, as a variation to the scale fee.

Value added tax

40. All the 2018/19 fee scales exclude value added tax (VAT), which will be charged at the prevailing rate of 20 per cent on all work done.

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