wiltshire & swindon training partnership (slcc & walc) clerks forum / training day accounts...
TRANSCRIPT
Wiltshire & Swindon Training Partnership (SLCC & WALC)
Clerks Forum / Training Day
Accounts and Audit Regulations 2003
“Changes”
Friday 10 February 2006
Alan Fairchild
External Affairs Officer
Society of Local Council Clerks
Headlines
Audit regime declared ‘fit for purpose’ and will stay
No increase for majority of councils for next five years
‘No fee’ band extended
Two new income bands
Thresholds for basic and intermediate audit doubled
Overall rise in fees is 5%
Proposals for change to fee bandings
Increase the ‘no fee’ banding from £0 - £500 to £0 - £1,000
No change to the £50 fee banding from £1,001 - £5,000
Introduce a new band fee from £5,001 - £10,000
Introduce a new band fee from £10,001 - £25,000
Proposals for change to thresholds
Increase the upper threshold for the ‘basic’ audit from £100,000 to £200,000
Increase the upper threshold for the ‘intermediate’ audit from £500,000 to £1million and introduce two new fee bands at £500,000 - £750,000 and £750,001 - £1million
Recommend changes to accounting requirements in A & A Regulations to harmonise with new audit limits
Basic Audits
Band in £ turnover
0-0.5k
0.5k – 1k
1k – 5k
5k – 10k
10k – 25k
25k – 50k
50k – 100k
100k – 200k
Old total fee
0
45
50
120
120
250
350
650
New total fee
0
0
50
120
135
285
400
550
Intermediate Audits
Band in £ turnover
200k – 300k
300k – 400k
400k – 500k
500k – 750k
750k – 1,000k
Old total fee
750
900
1,250
N/A
N/A
New total fee
875
1,050
1,450
1,950
2,500
Audit Fee Scale 2006-2011 (1)
Income/expenditure band (£)
(Fees payable on whichever is higher)
Type of audit
Fixed audit fee (£)
Commission fee (£)
Total fee charged to local council (£)
Change from current fee (%)
0 – 1,000 Basic No fee
payable
No fee
payable
No fee payable
Nil
1,001 – 5,000 Basic 50 No fee
payable
50 Nil
5,001 – 10,000 Basic 110 10 120 Nil
10,0001 – 25,000 Basic 125 10 135 12.5
25,001 – 50,000 Basic 260 25 285 14.0
50,001 – 100,000 Basic 370 30 400 14.3
100,001 – 200,000 Basic 500 50 550 15.4
Audit Fee Scale 2006-2011 (2)
Income/expenditure band (£)
(Fees payable on whichever is higher)
Type of audit
Fixed audit fee (£)
Commission fee (£)
Total fee charged to local council (£)
Change from current fee (%)
200,001 – 300,000 Intermediate 800 75 875 16.7
300,001 – 400,000 Intermediate 960 90 1,050 16.7
400,001 – 500,000 Intermediate 1,310 140 1,450 16.0
500,001 – 750,000 Intermediate 1,775 175 1,950 *
750,001 – 1 million Intermediate 2,275 225 2,500 *
The SORP “Hokey Cokey!”
Band B councils with expenditure over £500,000 and under £1million for the second year at 31.3.2006 need do nothing further in connection with SORP accounting
Band B councils over £500,000 and under £1million for the third year at 31.3.2006 will not be required to prepare year end accounts in accordance with the SORP
Existing councils already complying with the SORP whose expenditure is under £1million at 31.3.2006 AND FOR THE PREVIOUS TWO FINANCIAL YEARS will report using the Annual Return for 2005/2006
For Band B councils approaching the new SORP accounting threshold of £1 million the same “three year in – three year out” rule applies
For the 41 Best Value councils – no change at present but watch this space!