This consultation closed on 17 December 2018.
Consultation on the 2019/20 scale of fees
Introduction
This consultation sets out the proposed scale of fees for the work to be undertaken by appointed auditors in respect of the 2019/20 financial statements at authorities that have opted into Public Sector Audit Appointments’ (PSAA) national auditor appointment scheme.
The consultation also provides an indication of the outlook for scale fees for the five years of the current appointing period, covering the audits of accounts from 2018/19 to 2022/23. We review and update our estimates each year, and consult opted-in authorities and other stakeholders annually on our proposals before publishing the confirmed fee scale on our website.
Scale fees are based on the expected work auditors will undertake under the Code of Audit Practice and supporting guidance published by the National Audit Office, the financial reporting requirements set out in the Code of Practice on Local Authority Accounting published by CIPFA/LASAAC, and the professional standards applicable to auditors’ work.
We hope the information set out in this consultation is helpful to opted-in authorities and other stakeholders in considering our proposals for the 2019/20 fee scale, as well as supporting longer-term financial planning.
Background
PSAA is specified by the Secretary of State for Housing, Communities and Local Government under the Local Audit and Accountability Act 2014 and the Local Audit (Appointing Person) Regulations 2015 as the appointing person for principal local government bodies in England, including local police bodies.
PSAA’s responsibilities include appointing auditors to opted-in bodies, setting fees, and monitoring the performance of auditors and the quality of their work. More information about PSAA is available on our website.
At the time of issuing this consultation, there are 495 bodies eligible to opt into PSAA’s national scheme, of which 485 (98%) have opted in for the current appointing period, covering the accounts for five years, from 2018/19 to 2022/23.
Scale fees
PSAA’s approach to setting scale fees for the appointing period, and the specific proposals for scale fees for 2019/20, are set out in the remainder of this document.
PSAA averages firms’ costs, so that all bodies benefit from the same proportionate savings, irrespective of the firm appointed to a particular opted-in body.
PSAA operates on a not-for-profit basis. Fees are therefore set with a view to covering the amounts we need to pay to audit firms and the expected operating costs of PSAA. Any surplus arising from the scale fees set following this consultation will be distributed back to opted-in bodies during the appointing period.
Responding to this consultation
We welcome comments on the proposals contained in this document. Please send comments by email to:
workandfeesconsultation@psaa.co.uk
The consultation closed on Monday 17 December 2018.