We recommended in 2021 that the Department ensured PSAA’s procurement exercise for the next round of audit contracts covering 2023–24 to 2027–28 financial years bring fees into line with the costs of work and be appropriately funded. The procurement completed in October 2022, and the Department told us that the new contracts made involvement in local audit ‘much more financially viable’ than it had previously been.43 PSAA’s procurement strategy for the next round prioritised quality over price, and on announcing the outcome of the process told local government to expect fee increases of 150% in the first year of the new contracts.44 Local audit provider Grant Thornton described the more sustainable fee levels as a cause for optimism, while Ernst and Young saw it as a ‘starting point’ for additional recruitment and specialist training.45