The 2025/26 triennial pension valuations show that many bodies are again reporting gross pension asset surpluses. These bodies must consider IFRIC 14, which results in additional audit work. Similar work continued for two years after the 2022/23 valuation. We therefore assess the work as recurring while surplus positions remain and propose including it in the […]
We considered relevant changes in accounting and auditing requirements for 2025/26 and 2026/27. We found insufficient evidence to support a sector-wide scale-fee adjustment for these changes. Some changes, including IFRS 16 and ISA (UK) 600, may affect individual bodies differently and may result in fee variations where additional audit work is required. Once sufficient evidence […]
Not automatically. The firm must show that the additional cost arose from work outside the assumptions underlying the scale fee and that the work was necessary. Costs caused by an auditor not meeting its responsibilities are not eligible for a fee variation. PSAA reviews the evidence and considers the body’s comments before determining the fee.
PSAA reviews fee variation submissions in accordance with the Local Audit (Appointing Person) Regulations. We assess the evidence provided by audit firms, including the reason for the additional or reduced work, the work completed, the hours and staff grades used, and the amount claimed. We consult with bodies, consider their comments and compare similar requests […]
Bodies can reduce the risk by: These actions cannot prevent every fee variation, but they can reduce avoidable additional work and help bodies understand potential costs earlier.
Yes. The scale fee covers the expected recurring audit work based on the information available when fees are set. Fee variations may still be required where additional work is needed because of specific local circumstances, new issues arising during the audit, or where the actual audit work is substantially more or less than envisaged when […]
We welcome responses from bodies and other stakeholders during the consultation period. Bodies should provide any evidence that supports a different amount. This may include evidence that the work is not recurring, that local arrangements have changed, or that a previous fee variation should not form part of the scale fee. All responses will be […]
We include work in the scale fee where evidence shows that it is recurring and can be estimated reliably. We use fee variations where work is temporary, depends on a body’s individual circumstances or cannot be quantified when the scale fee is set. This includes rebuilding assurance work and may include additional work arising from […]
We will write to each opted-in body during the consultation period with its proposed 2026/27 scale fee. The notification will show the proposed fee and any body-specific adjustment included in it. We will publish the final fee scale after considering consultation responses and obtaining Board approval.
Scale fees reflect the audit work expected at each body. Two otherwise similar bodies may have different fees because of differences in group arrangements, pension positions, audit risk, or other local circumstances. PSAA reviews the evidence supporting each body-specific adjustment before including it in the proposed fee.