Have you considered the minimum fee approach as not just a monetary figure but setting a maximum percentage change from the existing fee structure?

As set out in its scheme prospectus, PSAA will implement a minimum scale fee level payable by opted-in bodies at the start of the next appointing period, for the audit of the 2023/24 accounts. Our independent research has indicated that based on the 2020/21 scope of audit work a minimum scale fee level of £31,000 should apply to any opted-in body (a police and crime commissioner and a chief constable are treated as one body for this purpose). The minimum fee level could increase or reduce before or during the next appointing period depending on factors such as changes in audit scope or audit quality requirements, or the direction for local audit with the introduction of FRC/ARGA as the system leader from 2023.

PSAA has a duty to consult each year on the fee scale payable by opted-in bodies. We will consult in the Summer of 2023 on the 2023/24 scale fees including on our proposal for the minimum level. We cannot indicate the possible scale fees at this stage because they will depend on the prices achieved in the procurement and any changes in audit requirements. However, subject to consultation, where any increases in fees as a result of these factors mean that the scale fee for an opted-in body does not reach the floor set by the minimum scale fee, the fee payable by that opted-in body would be set at the minimum scale fee level.