The proposed 2026/27 scale fee is based on PSAA’s current statutory responsibilities and the audit contracts in place. We will explain any material effect of the Local Audit Office or wider reforms on future fee arrangements when the Government confirms the relevant responsibilities and implementation timetable.
Where the audit requires substantially less work than the scale fee assumes, the auditor or body may identify the need for a negative fee variation. PSAA will assess the evidence before determining any reduction.
We have received firms’ capacity assessments and cost estimates for rebuilding assurance work. The firms used PSAA’s standard templates to estimate the total cost for each affected audit, including the expected work, hours, staff grades and timing. Firms should share their estimates and supporting assumptions with the relevant bodies, and we will share the estimates […]
No. Project costs and body-specific rebuilding assurance work are separate categories of cost. PSAA reviews fee variation proposals to ensure that costs already recovered through the project cost fee variation are not recovered a second time through build-back fee variations.
Yes. MHCLG has announced funding to help eligible bodies cover reasonable additional audit costs related to rebuilding assurance following backstop-related disclaimed or modified opinions. Eligibility and payment arrangements are set by MHCLG and are separate from PSAA’s fee-setting and fee-variation processes because the funding does not cover fee variations that are not related to rebuilding […]
No. The extent of rebuilding assurance work will depend on the circumstances of the individual body, including the nature of previous audit opinions, the availability of audit evidence, and the auditor’s assessment of risk.
Yes. Where auditors undertake additional work to rebuild assurance, any associated costs will continue to be considered through PSAA’s fee variation process. Audit firms must submit evidence to support the work undertaken and PSAA will review the information before determining any fee variation.
Rebuilding assurance work is a consequence of the local audit backlog and the use of statutory backstop arrangements, rather than the recurring annual audit. The amount of work varies significantly between bodies and over time, so it cannot be included reliably in a standard scale fee. PSAA will therefore continue to assess these costs through […]
Rebuilding assurance is additional audit work that may be required following a disclaimed or other modified opinion issued primarily because of the statutory backstop arrangements. The work helps auditors regain assurance over relevant balances and transactions so that they can return to unmodified opinions over time. The scope will depend on each body’s audit history, […]
We have discussed emerging audit developments with audit firms and considered their potential impact on future audits. While recent LGPS reforms may have audit implications, there is currently insufficient evidence to quantify any recurring audit impact and therefore no additional fees are proposed at this stage. We will continue to monitor developments as further information […]