Retrieved from https://www.parliament.scot/-/media/files/scottish-commission-for-public-audit/2025/20241219-letter-to-ags-budget-follow-up.pdf
In his response of 10 January 2025, the AGS explained that, after “careful thought” Audit Scotland has proposed that these additional costs are covered by the SCF for the following reasons—
clarity, transparency, and accountability,
the degree of uncertainty regarding how much of the additional costs will be funded by the UK Government and on the timing and method of resource transfer, including from the Scottish Government to public sector bodies,
advice from the Scottish Government Finance Directorate that it expects bodies to forecast these costs within budget submissions,
given 29 bodies are non-chargeable bodies for fees, the allocation of the NICS increase to fee paying bodies only “would introduce cross subsidisation across sector”, and
as a consequence of the financial year and audit year covering different timescales, significant additional administrative costs and overheads would be incurred to allocate part year NICs to public bodies’ fees and ensure accurate accounting.7Audit Scotland. (2025, January 10).