Audit and certification fees
The duty to prescribe scales of fees is a statutory function delegated to PSAA by the Secretary of State for Communities and Local Government. Before prescribing any scale of fees, we have a statutory duty to consult with associations of local authorities and organisations connected with the NHS and the accountancy profession. We provide other stakeholders and audited bodies with copies of our proposals to ensure that our consultation is genuine and as productive as possible. Following consultation, we publish the work programme on our website each year with the scale fee for each audited body.
The scale fees for individual audited bodies are normally based on the scale fee for the previous year, reflecting the auditor’s assessment of audit risk and complexity. We would only expect variations from the scale fee to occur where these factors are significantly different from those identified and reflected in the fee for the previous year.
PSAA can approve proposed variations to the scale fee for an individual audited body, to reflect changes in circumstances. We obtain updated fee information from appointed auditors, and explanations for any proposed variations from the scale fee, on a regular basis. We consider the reasonableness of the explanations provided by auditors before agreeing to any variation to 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.
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.
Links to more detailed pages on audit fees are provided to the left of this page. Information on scale fees prior to 2014/15 is available here.
Under the transitional arrangements made by DCLG, PSAA currently has a statutory duty to make arrangements for certification by appointed auditors of annual housing benefit subsidy claims from local authorities to the Department for Work and Pensions. This requires us to charge fees for certification that cover the full cost of the work needed.
We set an indicative fee for certification work at each relevant audited body each year. The indicative fee is based on the latest actual certification fees available. Because the amount of work needed for certification varies at individual bodies each year, we review and reset certification fees annually.
The indicative fees for certification work are based on the expectation that audited bodies are able to provide the auditor with complete and materially accurate claims and returns, with supporting working papers, within agreed timeframes.