Business Plan to 31 March 2028

Finances and resourcing

Financial Information

  1. PSAA is committed to securing value for money to ensure we deliver our statutory objectives while minimising costs. We achieve this by constantly reviewing and assessing the necessity of all expenditure and our level of resources.
  2. Our latest forecast for the end of 2025/26 shows a surplus of £4.3 million for the financial year. The cumulative surplus at the end of 2025/26 is £23.1 million, made up of £1.7 million generated from transitional arrangements and a projected £21.4 million from Appointing Person arrangements.
  3. Our 2023/24 budgeted income and firm remuneration are as follows:
    • £136.9 million income from audit fees; and
    • £129.7 million remuneration paid to firms.
  1. A significant portion of the 2025/26 forecast running costs is for staff as illustrated in Chart 1.

Chart 1: 2025/26 budgeted indirect costs of £4.0m

  1. Our Medium-Term Financial Plan (MTFP) shows the position on expected surplus, as detailed in Tables 4 and 5. The surplus is based on our current assumptions on expected 2025/26 scale fees and these will be firmed up and published by 30 November 2025. Each year the Board will consider the potential to make a distribution from the surplus and will take into account the latest information on the intention for PSAA’s responsibilities to fold into the LAO.
  2. Our MTFP reflects a healthy financial position. We operate on a not-for-profit basis. The Board has the option of approving a distribution of surplus funds to audited bodies if is satisfied that we have sufficient funds to pay for our operating expenses and manage our cash flow.
  3. The Board reviews the company’s financial position at every Board meeting, including the most up-to-date forecast. We approve our annual accounts following detailed scrutiny by and a recommendation to do so from the Audit Committee. 

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