This edition of our quarterly e-bulletin includes an update on local audit reform, details of our consultation on the 2025/26 fees, and a summary of local audit news from elsewhere.
We would like to thank all the Directors of Finance and Audit Committee Chairs (over 325) who took the time to complete our client survey for the 2023/24 audits. We will publish the survey results this autumn.
We hope that you continue to find our e-bulletin to be useful. We welcome your thoughts on future topics that you would like us to cover (contact the team).
Content:
- Update on local audit reform
- Consultation on the 2025/26 audit fees
- Audit opinion data
- PSAA’s Advisory Panel meeting
- Contacting the PSAA team
- Local audit news from elsewhere
Update on local audit reform
On 10 July the government laid in Parliament the English Devolution and Community Empowerment Bill, and Part 4 of it sets out the local audit aspects. The link provides access to explanatory notes that help to explain the clauses.
Also on 10 July MHCLG published a technical note for local bodies with disclaimed opinions due to the backstop dates as set out in the Audit and Accounting Regulations 2024. This followed on from MHCLG sending a letter on 24 June to bodies to provide information on funding the additional audit costs of the backlog solution and making the first stage funding payments on 27 and 28 June.
They also published a non-compliance list in early July of bodies yet to publish all audited accounts for financial years up to and including 2023/24 as of 20 May 2025. They have engaged with the listed bodies and their auditors to support the timely publication of outstanding audits.
The NAO issued its Local Audit Reset and Recovery Implementation Guidance (LARRIG) 06. This relates to special considerations for rebuilding assurance for specified balances following backstop-related disclaimed audit opinions. The LARRIGs are intended to support the reset and recovery of local audit in England.
Consultation on the 2025/26 audit fees
We will consult on the 2025/26 audit scale fees for opted-in bodies from 17 September 2025. The consultation will run for four weeks, closing at 5pm on 13 October 2025. We will run a webinar that will include explaining our proposed changes and will provide an opportunity for Q&As.
We will issue an email at the launch of the consultation with details of the proposed fee scale, a reminder of the closing date, and an invitation to our webinar. Details of the consultation will also be available on our website.
The PSAA Board will consider all feedback before confirming the scale fees. We will publish the final fee scale with a summary of our consideration of the consultation responses on our website by the statutory deadline of 30 November and notify all opted-in bodies and other stakeholders by email.
Audit opinion data
We have published the number of audit opinions delivered up to 30 June 2025 on our website. A reminder that we publish data on audit opinion delivery each month, covering opinion delivery for the audits from 2018/19 onwards.
PSAA’s Advisory Panel meeting
Our Advisory Panel of Treasurers’ Societies members met on 5 June and focused on the latest developments in local audit reform, including an overview of the Local Audit Office. Rosie Seymour, Deputy Director of Local Audit Reform at MHCLG, was the key speaker. The Panel is due to meet again on 13 November, and we expect that the agenda will again be focused on the latest position on the reforms.
Contacting the PSAA team
We welcome your enquiries and are committed to responding as promptly as possible. To help you direct your message to the right team, please use the appropriate email address as follows:
- feevariations@psaa.co.uk for all enquiries related to fee variations.
- auditorappointments@psaa.co.uk if you are a newly created body and would like us to appoint your auditor or would like to find out more about joining our schemes.
- generalenquiries@psaa.co.uk for all other enquiries including information about us and our work.
Local audit news from elsewhere
The FRC provided an update on how they will support the local audit system following the government’s local audit reform strategy. They stated they will not perform routine inspections of local government major local audits (MLAs) for audits up to 31 March 2025, unless there is a clear case in the public interest to do so. They will still perform six inspections of NHS MLAs.
The ICAEW’s updated Code of Ethics came into effect on 1 July 2025. Ahead of its introduction, the ICAEW shared guidance on the changes that focus on the provisions related to independence.
On 25 June the NAO published their Accountability in small government bodies report. The report considers how a proportionate approach to compliance with requirements can improve efficiency and effectiveness, while delivering accountability across small bodies.
On 18 June the Public Accounts Committee issued a report on Local Government Financial Sustainability.