Are you planning to set global fee variations that will be applied to all contracts when there is a change from the regulator on what audit coverage is required?

We are hoping that the changes to the scale fee setting arrangements proposed by MHCLG in its consultation will reduce the need for fee variations, and it is possible that ‘global’ changes will be dealt with through consultation.  In theory the scale fee should cover the costs of delivery of a Code of Practice Audit, but this link has been broken by the current requirement on us to issue the scale fee so early.

If auditors are required to do less work as a result of regulatory change, then the scale fee would be reduced accordingly. Regulation 17(2) of the Local Audit (Appointing Person) Regulations 2015 enables us to vary fees up or down based on the work needed to complete a Code compliant audit.