The 2023/24 fee scale
PSAA has set the 2023/24 fee scale on the basis of the work required under the Code of Audit Practice 2020 published by the National Audit Office and associated auditor guidance, and the regulatory expectations of the Financial Reporting Council (FRC). The 2023/24 scale fees for all bodies have been updated as far as possible to reflect expected audit requirements. The aim is to make expected fees clearer for opted-in bodies much earlier in the audit cycle and reduce where possible the volume of ongoing fee variations.
After careful consideration of the issues raised in the feedback to our consultation, we have set the fee scale for 2023/24 based on the following elements we set out in the consultation:
| 2023/24 fee scale elements |
|---|
| A – The scale fees for 2022/23 Plus: B – Approved fee variations for recurrent additional audit work in prior years not yet included in scale fees, or estimates where audits have been delayed1 C – Changes in local audit requirements2 D – Adjustments at specific bodies for local circumstances E – Adjustment for the procurement outcome (151%, applicable to total fees) |
1 The categories of recurrent additional work consolidated into the fee scale cover: group accounts, pension valuation, PPE valuation, enhanced audit requirements in relation to public interest entities and major local audits, increased FRC challenge, PFI, and investment valuation (pension funds only).
2 The categories of work consolidated into the fee scale include: the VFM arrangements commentary and ISA 540 revised, but not ISA 315 revised (because we do not have a consistent basis yet for estimating the additional fees needed).
The total audit fee for an opted-in body is a combination of:
- the scale fee, which is based on the information available to PSAA at the time of setting the fee scale; and
- fee variations, which are based on our assessment and challenge of the information provided by an auditor as to why they have had to do more/less work than expected.
We are very much aware of the significant financial pressures on all local government bodies and understand that any further cost pressure is unwelcome. The level at which we are setting the 2023/24 fee scale is largely determined by two factors, neither of which PSAA can control: the audit work required to deliver audits compliant with the requirements of the Code of Audit Practice; and the market rates received in our public procurement.