This edition of our quarterly e-bulletin includes an update on local audit reform, 2024/25 audit opinion data following the February backstop, and a summary of local audit news from elsewhere.
We hope you continue to find this bulletin useful, and we welcome your suggestions for future topics (contact the team). You can also stay up to date with our news by following us on LinkedIn.
Content:
- Update on local audit reform
- Audit opinion data following the February backstop
- Contract Monitoring Data Pack: Quarter 3 for 2025/26
- Client survey for 2024/25 audits
- PSAA’s Advisory Panel meeting
- Contacting the PSAA team
- Local audit news from elsewhere
Update on local audit reform
On 29 April the English Devolution and Community Empowerment Bill became law after receiving Royal Assent. The Bill includes the establishment of the Local Audit Office (LAO) to oversee and coordinate the local audit system in England, as part of the Government’s local audit reform strategy. MHCLG issued this press release. We remain very supportive of the overhaul and our team is expected to transfer to the LAO by April 2027.
In late March MHCLG published an updated non-compliance list of bodies yet to publish all audited accounts as of 9 March 2026, for financial years up to and including 2024/25.
Audit opinion data following the February backstop
We issued a press release on the local government audit opinion position as at 27 February backstop date for the 2024/25 audits. By 31 March there were 433 audit opinions delivered, including 185 unmodified opinions, 240 disclaimed or qualified opinions due to the backstop, and eight disclaimed or qualified opinions not related to the backstop. In addition, 24 opinions remain outstanding.
We publish data on audit opinion delivery on a monthly basis, covering opinion delivery for the audits from 2018/19 onwards.
Contract Monitoring Data Pack: Quarter 3 for 2025/26
We have published our Contract Monitoring Data Pack: Quarter 3 for 2025/26. The data pack covers audit opinions, approved fee variations and the number of electors’ objections up to 31 December 2025.
We will publish the Quarter 4 2025/26 data pack in June, and it will be available on our website alongside data packs from previous quarters.
Client survey for 2024/25 audits
Our client survey seeks your views on the delivery of your audit. Your feedback is important as it informs our discussions with the firms and other stakeholders. The LGA’s Research and Information Team administers the survey for us, including analysis and reporting, to ensure independence and transparency.
If your audit opinion was delivered in February or March, you should have received an invitation to complete the survey in April. We encourage you to provide open and frank feedback; all responses are treated confidentially unless you give us your permission to share them with your auditor.
The LGA also invited those bodies that had not received an audit opinion by 31 March to complete a tailored survey on our behalf, as we are keen to gather views from all bodies.
Further details can be found on our website or please email our team with any queries.
PSAA’s Advisory Panel meeting
Our Advisory Panel of Treasurers’ Societies members met on 2 March and focused on the latest developments in local audit reform, including the transition to the new system and legislative changes introduced through the English Devolution and Community Empowerment Bill. Rosie Seymour, Deputy Director of Local Audit Reform at MHCLG, was the key speaker. The Panel will meet again on 8 July, and we expect the agenda to focus 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 scheme.
- procurement@psaa.co.uk if you have any procurement queries.
- generalenquiries@psaa.co.uk for all other enquiries including information about us and our work.
You may also find the FAQs section on our website helpful.
Local audit news from elsewhere
CIPFA published the Code of Practice on Local Authority Accounting in the United Kingdom 2026/27 in March. It applies to financial years commencing on or after 1 April 2026.
The NAO published Audit Insights: lessons and findings from the National Audit Office’s financial audits 2024/25, which brings together thematic insights from their financial audits and wider assurance work. The report highlights opportunities to strengthen financial management and reporting in government to help improve productivity and resilience in public service delivery.
On 30 March the FRC published guidance for audit firms on using generative and agentic AI tools in audit engagements. The guidance explains how firms can mitigate risks to audit quality posed by these tools, while highlighting the significant benefits, including improvements in the quality and efficiency of audit work.