Frequently Asked Questions

Work on VFM arrangements comprises two elements:

• the core work to consider the arrangements in place included in the scale fee. The auditor needed to do this to be able to come to the binary conclusion that was in place up to 2019/20; and 
• the additional work required to produce the commentary, which is a Code of Audit Practice requirement from 2020/21 and is included in the scale fee from 2023/24.

The VFM arrangements commentary fee variation in the statement may be higher than determined for other audit years because it includes the scale fee element for core VFM work.

For bodies where the auditor has only completed the VFM arrangements work and the work to issue a disclaimer opinion, there is no separate scale fee charge.

Fees for new recurring audit requirements are only consolidated into the scale fee once we have sufficiently reliable information on the level of ongoing audit work needed. The audit work for ISA (UK) 315 (risks of material misstatement) and linked work on ISA (UK) 240 (fraud) has been included in the 2024/25 scale fees, but we process it as fee variations for 2022/23 and 2023/24 because the Regulations do not allow us to update those scale fees once set, i.e. after 30 November 2022 and 2023 respectively. 

The independence requirements for all auditors in the local public audit regime are the same, whether locally appointed or part of the appointing person regime. These requirements are specified by the Financial Reporting Council in the Ethical Standard and applied to local public audit as determined by the NAO.

The services that an auditor can provide are the same whether appointed by PSAA or through local arrangements.

As the Appointing Person, PSAA performs the role otherwise required of an Independent Auditor Panel to advise the body on ensuring the independence of the auditor (Local Audit and Accountability Act 2014 section 10(1)).

Across all audited bodies, the proposed average scale fee increase was 4%.  Where there were no confirmed changes in the level of audit work required, the increase will be 2.8%. Any increase above 2.8% reflects a confirmed additional requirement, such as the inclusion of a new group in the audit scope. Taken together, these adjustments result in an overall average increase.

As part of the Scale fee setting process we reviewed all proposed increases and we wrote to all audited bodies with the proposed 2025/26 Scale Fee. Each letter included an explanation of any specific changes applicable to that organisation. Consultation letters were sent to the Section 151 officer or equivalent at each audited body. Amendments throughout this process resulted in an average increase of 3.08% (2.8% inflation plus 0.28% specific increases). We publish the final scale fees and consultation outcome on our website.