Dan Peters 03 October 2022

Warning of £75m audit fee increase

Warning of £75m audit fee increase image
Image: chase4concept/Shutterstock.com.

Experts have warned councils could be hit by a £75m increase to their audit fees as details of the next five-year procurement were announced.

Public Sector Audit Appointments (PSAA) said total fees may increase by £75m from £50m in 2022-23 to £125m in 2023-24.

PSAA chair Steve Freer admitted the increase in audit fees was ‘dramatic’ and the body did not have ‘levers to mitigate the very significant increase in audit fees anticipated in 12 months’ time’.

A PSAA spokesperson said: ‘At this stage our advice to bodies is to anticipate a major reset of total fees for 2023-24 involving an increase in the order of 150% on the total fees for 2022-23.

‘We appreciate that the extent of this likely increase in audit fees will pose a significant funding challenge for local bodies already facing a daunting range of financial pressures.’

The increase in the bid prices PSAA received for the work comes after the chair of the Public Accounts Committee, Dame Meg Hillier, raised concerns about the ‘challenges surrounding local audit, including the backlog of unfinished audits, capacity in the local audit market and the slow pace of system reform’.

PSAA said there was ‘limited capacity’ in the market and the ‘challenging backcloth’ had led to a ‘less competitive’ procurement round.

To continue reading visit The MJ (£).

SIGN UP
For your free daily news bulletin
Highways jobs

Early Years Entitlement and Sufficiency Officer

City of York Council
Grade 7 Level 1 - 4 (£29,230 to £31,391 per annum) reduced pro-rata
Are you experienced in Early Years Education Funding and looking for a new challenge? York, North Yorkshire
Recuriter: City of York Council

Administration Apprentice

Essex County Council
Up to £12348 per annum
Administration ApprenticeFixed Term, Full Time£12,348 per annum rising to £22,072 per annum on the second yearLocation
Recuriter: Essex County Council

Head of Finance (Deputy S151 Officer)

Babergh & Mid Suffolk
£60,757 - £73,775 (plus national pay award)
Together we are building a more resilient, sustainable future. Suffolk
Recuriter: Babergh & Mid Suffolk

Community Care Business Unit Assistant

Sandwell Metropolitan Borough Council
Band D, SCP 9 -17 (£25,119 - £28,770 per annum)
An opportunity has become available for four Community Care Business Unit Assistants, based in Finance. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Social Worker

London Borough of Richmond upon Thames and London Borough of Wandsworth
£36,426 - £49,503 per annum

Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.