15 October 2014
The Audit Commission has lowered audit fees for local public bodies for the time period between 2015 and 2017.
Fees have been reduced by £30 million, which puts the audit fees at its lowest level since taking on the NHS audit in 1990, according to the Audit Commission.
The auditing organisation has retendered public audit contracts in March 2014 for the 2015/16 financial year, which will see a 25% drop in fees. This drop is in addition to the 40% reduction to the fees that the Audit Commission secured in 2012.
According to the organisation, if the government chooses to extend both the 2012 and 2014 contracts to 2020, to lock in these low fees, the saving to audited bodies from 2012 would be £440 million.
Chairman of the Audit Commission, Jeremy Newman says: ‘We have driven down prices for audit services, showing again that bulk procurement is the best way to maintain a competitive market and provide taxpayers with value for money.
‘The resulting savings are part of the legacy the Commission will leave after March 2015, and will be enjoyed by local authorities and NHS bodies for years after our closure. Fees should be preserved at this level for 2016/17 and we hope the government will take the opportunity we have secured to lock in and extend the savings we have achieved up to 2020.’
At the same time, the Audit Commission is returning a further £6 million to its audited bodies in rebates, as a result of efficient management of the organisation’s closure, which will come in March 2015.