Correspondents continued to welcome the Auditor General’s voluntary adoption of the Assembly’s targets for efficiency savings, and the constructive role played by audit and inspection in promoting improvement. There was general appreciation that he had again restricted the fee scale increase at below market levels, and that this year’s 2.7% increase was over half a percent lower than last years.

Respondents noted that the promised earlier consultation on fee scale proposals had been delivered, also that the intended review of grant certification fee arrangements was welcome. There was a continued call for constraint in agreeing fees locally and that improvements in performance should be reflected in overall fee levels.

The Auditor General has now confirmed his proposal as contained in the consultation paper. He remains very much aware of the cost pressures on local government bodies, but also that he must balance that against the need to set fee scales at a level that will generate sufficient funds to maintain and regulate the public sector audit and inspection market for which he is responsible.

It is important to note that the fee scale is a tool that the Auditor General uses to regulate fees and to challenge those that appear either too high or too low. An increase in the fee scale does not therefore mean that an individual body’s fee will rise by the same amount. Fees should be agreed locally and should be sufficient to fund the work required considering risk and local circumstances, and the statutory and other requirements placed upon the Auditor General and his appointed auditors.