In April 2025 MHCLG announced reforms to the local audit system backed by £49 million to help bodies clear their backlogs and restore audit assurance. The arrangements for distribution of this funding are due to be confirmed soon.
We have chosen not to determine fee variations related to the issuing of a disclaimed opinion until the funding position is resolved. Until that process is complete, we are reviewing all fee variation proposals we receive from auditors but will only determine those not related to the production of a disclaimed opinion. We explained this process in our email of 17 December 2024, sent to all bodies and copied to the firms.
We will communicate the final fee position for each body once we have determined it. When we determine a fee, it becomes statutorily payable.