Recommendations & Conclusions
24 items
2
Conclusion
Thirty-First Report - Department of Hea…
Accepted
The Department’s continued failure to deliver its accounts to an earlier timetable hampers effective and timely accountability of taxpayers’ money. Weaknesses in basic financial accounting at UKHSA, together with delays in the completion of local NHS audits, and a lack of resilience in the local audit market, meant the Department …
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The Department’s continued failure to deliver its accounts to an earlier timetable hampers effective and timely accountability of taxpayers’ money. Weaknesses in basic financial accounting at UKHSA, together with delays in the completion of local NHS audits, and a lack of resilience in the local audit market, meant the Department could not publish its 2022–23 group accounts until 25 January 2024, 10 months after the financial year-end. The Department set a deadline of 30 June 2023 for the completion of the financial audits of 212 NHS providers and 148 NHS commissioners. Almost a quarter (23%) of NHS providers and more than a fifth (21%) of NHS commissioners missed the 30 June 2023 deadline. By the end of October 2023, 4.2% of NHS provider and 9.5% of NHS commissioner audits were still ongoing. Timely production of accounts is essential to understanding public finances and supporting accountability. The Department’s plans to return to a pre- summer recess timetable are becoming less and less ambitious. It has committed to advancing its timetable by one month each year, one month per year slower than when we examined its 2021–22 accounts. This would mean it would take until 2029 to achieve a pre-summer recess publication of its accounts, compared to the 2025– 26 financial year it previously committed to. Recommendation 2: The Department must return to publishing its accounts to a pre-summer recess deadline and set out a timetable to achieve this. To do this, the Department must: • support and hold to account group bodies to ensure timely accounts production; • work effectively with the auditors of local NHS bodies to ensure audit deadlines are met; and 6 Department of Health and Social Care2022–23 Annual Report and Accounts • work across government, to build resilience in the local audit system.
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Government response AI summary
The government agrees and targets a return to pre-summer recess laying for its Annual Report and Accounts by the 2026-27 financial year, with a specific plan to lay the 2023-24 accounts by early December 2024. It is also actively engaging with stakeholders to address local …
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HM Treasury
3
Conclusion
Thirty-First Report - Department of Hea…
Accepted
We are concerned that the Department has still not put in place adequate oversight to ensure strong financial management and reporting across its group which are fundamental to the effective delivery of its policy and operational work. The Department is responsible for ensuring there is an adequate and robust system …
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We are concerned that the Department has still not put in place adequate oversight to ensure strong financial management and reporting across its group which are fundamental to the effective delivery of its policy and operational work. The Department is responsible for ensuring there is an adequate and robust system of financial control across its group and the organisations that form part of this. Yet its accounts have been qualified for the last four years owing to a variety of reasons relating to basic financial controls, the accuracy of financial statements and whether money has been spent in the way that Parliament intended. As an executive agency UKHSA is formally part of the Department, and the Department says that it has provided it with additional support and oversight, but UKHSA’s accounts have nonetheless been disclaimed for a second consecutive year. The Department also pushed additional responsibility on to this new and struggling organisation when it transferred responsibility for the Covid Vaccine Unit to UKHSA in October 2022. We are not convinced by the Department’s assertion that it has little control over the issues relating to the audit of local NHS bodies that have repeatedly resulted in its accounts being delayed, nor that it does not have the levers needed to address them. We have previously recognised that over the last few years the Department has had to produce its accounts in exceptional circumstances, but these issues cannot be allowed to continue post-pandemic. Recommendation 3: The Department urgently needs to grip and address the problems with financial management across its Departmental Group and set out a clear plan to improve financial management and oversight of its group bodies.
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Government response AI summary
The government agrees and states the recommendation is implemented, detailing that it is working closely with UKHSA and NAO, providing strong financial oversight including regular governance and assurance meetings. It also reports £75 million recovered from PPE fraud and anticipates further matters settled before Autumn …
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HM Treasury
5
Conclusion
Thirty-First Report - Department of Hea…
Accepted
We are disappointed that the Department lacks adequate controls over its inventory and, four years after the COVID-19 pandemic began, still does not have a plan for stockpiling for future pandemics. The Department does not know how much inventory it currently holds as it did not undertake inventory counting Department …
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We are disappointed that the Department lacks adequate controls over its inventory and, four years after the COVID-19 pandemic began, still does not have a plan for stockpiling for future pandemics. The Department does not know how much inventory it currently holds as it did not undertake inventory counting Department of Health and Social Care2022–23 Annual Report and Accounts 7 procedures for its 2022–23 accounts. The Department plans to dispose of COVID-19 inventory that it considers unusable or excess to requirements, including nearly all of its Personal Protective Equipment (PPE) stock. The Department procured £13.6 billion of PPE to respond to the COVID-19 pandemic. Since 2020, the Department has reduced the value of this (‘written off’) by £9.9 billion, which is over 70% of the price it paid. By accelerating its disposal programme, the Department has saved £130 million in storage costs. However, the absence of stocktakes means it has not verified the volume and condition of stock that it is disposing of. Additionally, the Department has not actioned our previous recommendations – that it should work out what items and quantity of PPE it needs to hold as a stockpile, and to develop and implement a clear, cost-effective plan for such a stockpile – to prepare for future pandemics. This means it risks disposing of items that could form part of the nation’s strategic stockpile for future pandemics. Recommendation 5a): The Department must, within six months, set out the lessons learnt from its COVID-19 procurement processes, including reporting: • the overall losses arising from procuring, storing, and disposing of over- priced, unusable, and excess inventories; and • the outcome of its work on procurement fraud and associated recoveries. b): The Department must, within the next six months, develop, and implement, a clear and cost-effective plan, including adequate controls, for stockpiling items required to plan for a future pandemic. This should not be delayed unt
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Government response AI summary
The government agrees and commits to implementing dynamic stockpiling for excess COVID-19 stock from autumn 2024 to reduce costs and improve value-for-money. It will also work with UKHSA to maintain existing medical countermeasure stockpiles and provide an update to the Committee on progress by the …
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HM Treasury
1
Conclusion
Thirty-First Report - Department of Hea…
Accepted
On the basis of a report by the Comptroller and Auditor General (C&AG)2, we took evidence from the Department of Health and Social Care (the Department), the UK Health Security Agency (UKHSA) and NHS England on the Department’s Annual Report and Accounts for 2022–23.
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On the basis of a report by the Comptroller and Auditor General (C&AG)2, we took evidence from the Department of Health and Social Care (the Department), the UK Health Security Agency (UKHSA) and NHS England on the Department’s Annual Report and Accounts for 2022–23.
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Government response AI summary
The government has established a Finance and Control Improvement Programme and is actively working to produce auditable accounts for 2023-24 with NAO certification by November, targeting an unqualified opinion for the 2024-25 accounts. They have a comprehensive audit plan and engaged PWC for external support.
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HM Treasury
22
Recommendation
Thirty-First Report - Department of Hea…
Accepted
As part of our examination of the Department’s 2021–22 accounts, we recommended that UKHSA should urgently ensure that it had in place robust financial controls and processes and there was a clear plan to deliver unqualified accounts. Government agreed with our recommendation, and in its response told us the UKHSA …
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As part of our examination of the Department’s 2021–22 accounts, we recommended that UKHSA should urgently ensure that it had in place robust financial controls and processes and there was a clear plan to deliver unqualified accounts. Government agreed with our recommendation, and in its response told us the UKHSA was working to urgently improve and strengthen its existing financial control, to evidence compliance with government functional standards and best practice. It explained that UKHSA had established a Finance and Control Improvement Programme to inform the production of auditable accounts of 2022–23, with the aim of achieving a fully clean, unqualified audit opinion at the “earliest feasible opportunity”.7
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Government response AI summary
The government agrees and is implementing a Finance and Control Improvement Programme, engaging PwC, and has an audit plan with the NAO, targeting an improved audit opinion for the 2023-24 accounts by January 2025.
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HM Treasury
7
Conclusion
Thirty-First Report - Department of Hea…
Accepted
We asked UKHSA whether it had sufficient organisational understanding and acceptance of the level of cultural change and process improvement required to fix these issues with its accounts. UKHSA responded that it understood and accepted this. It drew a distinction between the issues which had resulted in its 2022–23 accounts …
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We asked UKHSA whether it had sufficient organisational understanding and acceptance of the level of cultural change and process improvement required to fix these issues with its accounts. UKHSA responded that it understood and accepted this. It drew a distinction between the issues which had resulted in its 2022–23 accounts being disclaimed, and those which had resulted in its 2021–22 accounts being disclaimed, which it asserted were “quite different”. It stressed that, in 2021–22, it was a new organisation and had “inherited a number of issues on coming into being” and that it had made “very good progress” in trying to address the issues that had led to its 2021–22 accounts being disclaimed. It also told us that one of the issues it had encountered in its 2022–23 accounts was that it had “very little headroom because of the disclaimed accounts last year”, as well as a separate issue with its covid vaccine model. It explained that it had set up a Finance Control and Improvement Board, chaired by the Accounting Officer, and set up required governance arrangements that were not in place in the prior year.9
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Government response AI summary
The government agrees with the committee's observation and commits to achieving an improved (though qualified) audit opinion for UKHSA's 2023-24 accounts by November. It details a comprehensive audit plan, external support from PWC, and an ongoing Finance and Control Improvement Programme.
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HM Treasury
8
Conclusion
Thirty-First Report - Department of Hea…
Accepted
The C&AG confirmed that UKHSA had introduced “quite a lot of important governance arrangements” following its 2021–22 accounts, and that it had made progress on being able to present a more manageable set of financial data for the NAO to audit. But he stressed that there was still a long …
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The C&AG confirmed that UKHSA had introduced “quite a lot of important governance arrangements” following its 2021–22 accounts, and that it had made progress on being able to present a more manageable set of financial data for the NAO to audit. But he stressed that there was still a long way to go. The C&AG told us that UKHSA remained in a challenging position, and that it was vital that UKHSA did not underestimate the scale of what remained to be done to implement normal accounting processes.10 We asked UKHSA whether it was confident that it could produce accounts for 2023–24 that would not receive another disclaimer. UKHSA told us that it expected that its 2023–24 accounts “absolutely will be qualified” but that it was working hard to avoid the accounts being disclaimed for a third year. The Department and UKHSA noted that the decision was for the C&AG, but UKHSA reiterated that it had plans in place to ensure that it could produce auditable accounts and “hope and anticipate that we will be able to avoid another disclaimer”.11
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Government response AI summary
The government agrees with the committee's observations and commits to achieving an improved (though qualified) audit opinion for UKHSA's 2023-24 accounts by November. It outlines a comprehensive audit plan, external support, and an ongoing Finance and Control Improvement Programme to resolve audit issues.
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HM Treasury
9
Conclusion
Thirty-First Report - Department of Hea…
Accepted
We asked UKHSA what lessons could be learned from the setup of a complex new government body and the issues reported by the C&AG in 2021–22 and 2022–23.12 UKHSA responded that if setting up a similar new body it would go about it ”in exactly the same way” and that …
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We asked UKHSA what lessons could be learned from the setup of a complex new government body and the issues reported by the C&AG in 2021–22 and 2022–23.12 UKHSA responded that if setting up a similar new body it would go about it ”in exactly the same way” and that the control issues that led to two consecutive disclaimers were a consequence of the operational challenges arising from the pandemic.13 The Department’s view, shared by UKHSA, was that it would take decisions on health protection issues first and then “do our best about the rest”. UKSHA stated that, if another significant health protection issue were to arise, it might expect to see further lapses in financial management and accountability. UKHSA told us that there was a balance point about recognising “exactly what we must do in terms of financial governance and control” and dealing with large health protection issues.14 The Department told us that it defended the decisions it had taken about the organisation based on health protection but recognised that it had made mistakes in some areas. We noted that UKHSA had encountered challenges in setting up a new organisation and responding to the pandemic, but that this was not an excuse 9 Q 47 10 Q 49 11 Qq 59–60 12 Q 61; C&AG’s Report, UKHSA 2022–23, pages 133–140; Report by the Comptroller & Auditor General, UKHSA Annual Report and Accounts 2021–22, HC 1086, 26 January 2023, pages 91–96 13 Q 61 14 Q 62 Department of Health and Social Care2022–23 Annual Report and Accounts 11 not to have proper financial controls. We observed that these were the “bread and butter” of what government departments should be doing, including when making sure that organisations are set up with the proper arrangements.15
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Government response AI summary
The government has accepted the implicit recommendation to improve UKHSA's financial controls, detailing an ongoing Finance and Control Improvement Programme. UKHSA aims for an improved 2023-24 audit opinion with certification in November and subsequent pre-summer recess laying without qualifications, supported by a comprehensive audit plan …
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HM Treasury
10
Conclusion
Thirty-First Report - Department of Hea…
Accepted
We asked UKHSA how it was going to fix the issue with the covid vaccine demand model that was one of the causes of the C&AG disclaiming his opinions on its 2022–23 accounts. The Department confirmed it had made a mistake in failing to communicate the detail of the model …
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We asked UKHSA how it was going to fix the issue with the covid vaccine demand model that was one of the causes of the C&AG disclaiming his opinions on its 2022–23 accounts. The Department confirmed it had made a mistake in failing to communicate the detail of the model it was using to the NAO on a timely basis, and that this resulted in the NAO being unable to audit significant amounts in UKHSA’s accounts. UKHSA described the steps it had taken to produce auditable figures in 2023–24. It explained that it had identified the vaccine demand model as business critical and resourced the quality assurance framework for the model. However, UKHSA told us that its priority was delivering vaccines in the immediate term, with the impact on financial reporting and accountability coming second.16
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Government response AI summary
The government agrees and is implementing a Finance and Control Improvement Programme, engaging PwC, and has an audit plan with the NAO, targeting an improved audit opinion for the 2023-24 accounts by January 2025.
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HM Treasury
11
Conclusion
Thirty-First Report - Department of Hea…
Accepted
We questioned the Department on why it decided to transfer the CVU to UKHSA in October 2022, pushing additional responsibility on to a new and struggling organisation. The Department stated that, as an organisation of health protection experts who hold responsibility for established vaccination programmes, UKHSA was best placed to …
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We questioned the Department on why it decided to transfer the CVU to UKHSA in October 2022, pushing additional responsibility on to a new and struggling organisation. The Department stated that, as an organisation of health protection experts who hold responsibility for established vaccination programmes, UKHSA was best placed to host the CVU. The Department told us that it thought that financial and accounting officer responsibilities had to be transferred alongside the operational responsibilities. It explained that it was aware of the systems and control issues at UKHSA that led to the disclaimer but considered that transferring the CVU would prioritise public health protection, leaving UKHSA time to “deal with the other issues” at a later date.17 The timeliness of the Department’s accounts
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Government response AI summary
The government has accepted the implicit recommendation concerning UKHSA's financial controls, outlining the ongoing Finance and Control Improvement Programme, targets for an improved 2023-24 audit opinion with November certification, and engagement of PWC for external support.
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HM Treasury
12
Recommendation
Thirty-First Report - Department of Hea…
Accepted
As part of our inquiry in the Department’s 2021–22 Annual Report and Accounts, we found that the Department had prepared its accounts in exceptional circumstances for the previous two years but noted that it was imperative that it got back on track with the delivery of its accounts ahead of …
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As part of our inquiry in the Department’s 2021–22 Annual Report and Accounts, we found that the Department had prepared its accounts in exceptional circumstances for the previous two years but noted that it was imperative that it got back on track with the delivery of its accounts ahead of the Parliamentary summer recess. The Department laid its 2021–22 accounts on 26 January 2023, five days ahead of the statutory deadline, but planned to bring forward laying of its 2022–23 accounts to before the 2023 Christmas recess. We recommended that the Department must develop and implement a plan to restore timely financial reporting and support laying of the Department’s accounts to a pre-summer recess timetable. In its response to our report, the Department confirmed that it was committed to returning to a pre-summer recess timetable and told us that it was working to a multi-year plan which aimed to bring the timetable forward by approximately two months every year. At the time of its response in September 2023, it explained that it aimed to lay its 2022–23 accounts in November 2023 and to return to a pre-summer recess timetable for the 2025–26 financial year.18
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Government response AI summary
The government has accepted and is implementing a multi-year plan to publish its Annual Report and Accounts by at least one month earlier each year, targeting a return to pre-summer recess laying by Summer 2027. For 2023-24, certification is planned for November 2024 and laying …
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HM Treasury
14
Conclusion
Thirty-First Report - Department of Hea…
Accepted
The delays to the accounts were the combined result of issues with the accounts of a key arm’s-length body (UKHSA) and delays in completion of local NHS audits. The accounts for UKHSA, NHS England and the Consolidated NHS Provider Accounts all need to be complete before the Department’s group accounts …
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The delays to the accounts were the combined result of issues with the accounts of a key arm’s-length body (UKHSA) and delays in completion of local NHS audits. The accounts for UKHSA, NHS England and the Consolidated NHS Provider Accounts all need to be complete before the Department’s group accounts can be finalised. NHS England and the Consolidated NHS Provider Accounts in turn rely on the individual audits of 148 NHS commissioners and 212 NHS providers, which are incorporated into their own group accounts. The Department set a deadline of 30 June 2023 for the completion of the financial audits of NHS providers and NHS commissioners. Almost a quarter (23%) of NHS providers and more than a fifth (21%) of NHS commissioners missed the 30 June 2023 deadline. A significant number of NHS provider (4.2%) and NHS commissioner (9.5%) audits were not complete at 31 October 2023.21 This was the latest practical date that NHS commissioners’ and NHS providers’ audits had to be completed to enable the Department to publish its accounts by 30 November 2023; the date the Department originally committed to Parliament that its 2022–23 accounts would be published. This prevented the certification of the Consolidated NHS Provider Accounts, the NHS England group accounts, and delayed the finalisation of the Department’s accounts.22
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Government response AI summary
The government has accepted the implicit recommendation and implemented a multi-year plan to publish its Annual Report and Accounts by at least one month earlier each year, targeting a pre-summer recess laying by Summer 2027. For 2023-24, certification is planned for November 2024 and laying …
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HM Treasury
15
Conclusion
Thirty-First Report - Department of Hea…
Accepted
We asked the Department about its plans to certify its accounts earlier in future. The Department advised us that producing its accounts is a difficult task and the expenditure included represents approximately 8% of the UK economy. It told us that every year it faced a new challenge that was …
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We asked the Department about its plans to certify its accounts earlier in future. The Department advised us that producing its accounts is a difficult task and the expenditure included represents approximately 8% of the UK economy. It told us that every year it faced a new challenge that was not predicted. The Department told us that it was “confident that we are doing the right things” and that it expected to be able to produce its 2023–24 accounts more quickly. It confirmed that it was working to a November 2024 deadline for the laying UKHSA’s accounts, and it would then lay its own accounts. The Department’s aim is to lay its accounts in Parliament at least a month earlier each year. It emphasised, however, that moving towards pre-summer recess certification would require a sizable change in the capacity of the local audit market.23 Lack of departmental grip over its group bodies
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Government response AI summary
The government has accepted the implicit recommendation to accelerate account certification, stating its multi-year plan to publish Annual Report and Accounts earlier, targeting a pre-summer recess laying by Summer 2027, and aiming for 2023-24 certification in November 2024.
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HM Treasury
16
Conclusion
Thirty-First Report - Department of Hea…
Accepted
The C&AG disclaiming his audit opinion is very rare. The fact that this has happened two years in a row for UKHSA gives us great cause for concern. While UKHSA has its own Chief Finance Officer, the Department has taken steps for its Director General Finance to undertake a formal …
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The C&AG disclaiming his audit opinion is very rare. The fact that this has happened two years in a row for UKHSA gives us great cause for concern. While UKHSA has its own Chief Finance Officer, the Department has taken steps for its Director General Finance to undertake a formal role within the UKHSA finance function. No other organisations within the Department have this degree of involvement in their day to day running. We questioned how long this arrangement would be in place. The Department did not consider 19 HM Treasury, Dear Accounting Officer letter – Accounts Directions 2022–23, 15 December 2022 20 Department of Health and Social Care, Annual Report and Accounts 2022–23, HC 33, 25 January 2024, pages 128–131 21 NHS England, Consolidated NHS Provider Accounts 2022–23, HC 469, 25 January 2024; NHS England, Annual Report and Accounts 2022–23, HC 468, 25 January 2024 22 C&AG’s Report, DHSC Annual Report and Accounts 2022–23, pages 224–225 23 Qq 79–81, 104 Department of Health and Social Care2022–23 Annual Report and Accounts 13 the arrangement as unusual for a complex organisation in its set-up phase. Whilst no specific timeframe was provided, it conceded that if this arrangement was still in place in two to three years’ time then this would indicate “something will have gone badly wrong”.24
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Government response AI summary
The government states the recommendation is implemented, highlighting its robust financial management framework and ongoing close work with UKHSA and the NAO through governance meetings and an audit plan to address disclaimed opinions.
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HM Treasury
17
Conclusion
Thirty-First Report - Department of Hea…
Accepted
A large proportion of the Departmental Group expenditure flows through from NHS commissioning bodies into NHS England and NHS providers into the Consolidated Provider Accounts, both of which are prepared by NHS England. Given their impact on the timeliness of the Department’s accounts, we asked the Department and NHS England …
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A large proportion of the Departmental Group expenditure flows through from NHS commissioning bodies into NHS England and NHS providers into the Consolidated Provider Accounts, both of which are prepared by NHS England. Given their impact on the timeliness of the Department’s accounts, we asked the Department and NHS England what they were doing to ensure a more timely audit of NHS commissioners and NHS providers. The Department explained that the issues faced last year were in part because more audits needed to be completed owing to the in-year establishment of Integrated Care Boards (ICBs), combined with particular issues with a small number of firms within the local audit market. It explained that it was working with NHS England to address these issues, including engaging the market to try to build capacity within local audit.25 We therefore asked what steps the Department was taking to ensure that there were sufficient numbers of local auditors and sufficient people in the firms to be able to undertake local audits. The Department told us that it “does not have all the levers under its control on the local audit” but that it was working to ensure that local audit issues “as they refer to the Department and the NHS” were managed and mitigated.26 The Department recognised that the audit of local NHS bodies was a serious issue, but explained that most of the frontline work would be done by NHS England. It told us that this would require “considerable effort” by NHS England and that the Department’s role would be to “do the supporting, national stuff we can do over the top of this”.27
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Government response AI summary
The government has accepted the implicit recommendation to improve the timeliness of audits for NHS bodies, outlining its multi-year plan to accelerate the publication of its Annual Report and Accounts and its engagement with stakeholders to address local audit capacity issues.
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HM Treasury
18
Conclusion
Thirty-First Report - Department of Hea…
Accepted
We observed that the Department appeared to be “slightly skating over the problem” in saying that it did not have the levers needed to address the local audit issues affecting its accounts. Whilst we accepted that the Department did not have responsibility for issues with the audit of local government, …
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We observed that the Department appeared to be “slightly skating over the problem” in saying that it did not have the levers needed to address the local audit issues affecting its accounts. Whilst we accepted that the Department did not have responsibility for issues with the audit of local government, we note that it is responsible for the audits of a significant number of local bodies across NHS providers and ICBs.28 We therefore asked what it was doing to ensure that there were sufficient auditors to undertake the work needed. The Department explained that although it could incentivise firms to enter the market, it could not make them, and that the barriers to entry included audit complexity and regulatory risk. NHS England confirmed that going into the 2023–24 year end, every NHS provider and NHS commissioner had an auditor appointed. NHS England advised that this put it in a better position than in 2022–23. In addition, it explained that fewer audits were being undertaken by one particular audit firm which had significant difficulties in delivering timely audits in 2022–23. For 2023–24 there are only 42 NHS commissioners to audit, given Clinical Commissioning Groups were all closed down during 2022–23.29
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Government response AI summary
The government has accepted the implicit recommendation to address local audit capacity issues affecting NHS accounts, outlining its multi-year plan to accelerate Annual Report and Accounts publication and its engagement with stakeholders to address these challenges.
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HM Treasury
21
Conclusion
Thirty-First Report - Department of Hea…
Accepted
NHS Resolution’s 2022–23 accounts include a liability of £69.3 billion to cover the potential costs of clinical negligence. Of this, £45 billion, some 65% of the £69.3 billion total, related to maternity and neonatal liabilities. The Department told us that this was not unusual across international comparators and reflected the …
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NHS Resolution’s 2022–23 accounts include a liability of £69.3 billion to cover the potential costs of clinical negligence. Of this, £45 billion, some 65% of the £69.3 billion total, related to maternity and neonatal liabilities. The Department told us that this was not unusual across international comparators and reflected the severe and lifelong impact of such events on those affected.36 The cash payments made annually in relation to obstetric negligence cases by NHS Resolution are nonetheless equivalent to roughly a third of the total NHS spend on maternity services, which was £3 billion in 2021–22. In March 2023, NHS England published its three-year delivery plan for maternity and neonatal services.37 As part of this plan, NHS England told us that it had invested £180 million in 2023–24 supporting NHS providers to put additional staff in place, which it said had enabled 1,000 additional midwives and more than 100 additional obstetricians to be employed.38
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Government response AI summary
The government agrees with the committee's findings and commits to prioritizing patient safety, writing to the new Committee by the end of 2024 to outline specific actions taken with NHS England and partners to reduce patient harm.
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HM Treasury
23
Conclusion
Thirty-First Report - Department of Hea…
Accepted
When we examined the Department’s 2021–22 Annual Report and Accounts, we found that it had written off £14.9 billion of public money as a result of overpaying and over ordering significant volumes of Personal Protective Equipment (PPE), COVID-19 medicines and vaccines. We noted that the Department was paying large amounts …
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When we examined the Department’s 2021–22 Annual Report and Accounts, we found that it had written off £14.9 billion of public money as a result of overpaying and over ordering significant volumes of Personal Protective Equipment (PPE), COVID-19 medicines and vaccines. We noted that the Department was paying large amounts of money to store the equipment, but would never use a significant proportion of the PPE it had purchased.42 The Department is undergoing a programme to dispose of, primarily by incineration, nearly all of its remaining PPE stock as it will not be used by the NHS. The Department procured £13.6 billion of PPE as part of its response to the COVID-19 pandemic, but has reduced its value by £9.9 billion since 2020–21 in its accounts. This write off of over 70% of the value followed the Department’s assessments of market price changes (when prices returned to normal levels following the surge in prices during the pandemic) and whether the stock was unusable or held in excess amounts that could never be used.43
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Government response AI summary
The government agrees with the committee's findings, noting past reviews and a future PPE strategy, and commits to ceasing storage costs for excess PPE by January 2025, providing an update by the end of January 2025.
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HM Treasury
24
Conclusion
Thirty-First Report - Department of Hea…
Accepted
In 2023, we found that the Department did not have adequate controls over its PPE inventory and was unable to perform proper stocktakes to confirm what it held and the condition of these items. The Department did not perform full and complete stock counts on the PPE inventory it held …
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In 2023, we found that the Department did not have adequate controls over its PPE inventory and was unable to perform proper stocktakes to confirm what it held and the condition of these items. The Department did not perform full and complete stock counts on the PPE inventory it held at 31 March 2023, stating that a full stock-count would cost £70 million. We questioned the Department on how it could know which equipment was usable, what could be given away, and what could be sold, if a stock take has not been undertaken. The Department asserted that it knew what PPE inventory it had and where it is, although it admitted that it did not have access to some items held in warehouses and stacked in containers. In our report on the Department’s 2021–22 Annual Report and Accounts, we recommended that the Department should set out how it would ensure that adequate inventory controls were put in place over its PPE and report to us on its progress, which the Department has failed to implement. The Department accepted our recommendation and in its response to our report, it told us that as part of its strategy 39 The Royal College of Midwives, The contribution of continuity of midwifery care to high quality maternity care, Professor Jane Sandall CBE, RCM09150, October 2017, page 6; National Maternity Review, Better Births: Improving outcomes of maternity services in England, A Five Year Forward View for maternity care, 22 February 2016, page 9. 40 Qq 112, 114 41 Letter from Julian Kelly, Chief Finance Officer, NHS England, to Dame Meg Hillier, Chair, Committee of Public Accounts, Re: Public Accounts Committee: DHSC Annual Report and Accounts 2022–23, 26 March 2024 42 Committee of Public Accounts, Sixty-Second Report of Session 2022–23, Department of Health and Social Care 2021–22 Annual Report and Accounts, HC 997, 5 July 2023, para 1 43 C&AG’s Report, Department of Health and Social Care Annual Report and Accounts 2022–23, HC 33, 25 January 2024, pages 223–224 Department of
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Government response AI summary
The government agrees with the committee's findings, has replenished pandemic preparedness PPE stockpiles using excess stock, and will begin dynamic stockpiling from autumn 2024, committing to update the committee by the end of 2024.
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HM Treasury
25
Conclusion
Thirty-First Report - Department of Hea…
Accepted
In 2023, the Department estimated that it would cost £319 million to store and dispose of unusable or unneeded PPE. The Department told us that it had accelerated its disposal programme, to save £130 million in storage costs that it would otherwise incur. We asked the Department what consideration had …
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In 2023, the Department estimated that it would cost £319 million to store and dispose of unusable or unneeded PPE. The Department told us that it had accelerated its disposal programme, to save £130 million in storage costs that it would otherwise incur. We asked the Department what consideration had been given to giving equipment away to others rather than disposing of it. The Department stated that it had undertaken an extensive international engagement programme to determine whether PPE could be reused within the NHS and in health and social care settings, or could be donated, including to other countries. It explained that it explored both of these options before seeking to incinerate waste for energy, and that its final option, which it sought to avoid, was landfill.45
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Government response AI summary
The government has accepted the implicit recommendation, confirming that storage costs for excess PPE will cease by January 2025. It also committed to continue examining lessons learned from the pandemic, including engagement with the Covid-19 inquiry, with an update to the Committee by January 2025.
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HM Treasury
27
Conclusion
Thirty-First Report - Department of Hea…
Accepted
We recommended in our reports on the Department’s 2020–21 and 2021–22 Annual Reports and Accounts that the Department should develop a clear plan for a stockpile for a future pandemic. In response to our report on the 2021–22 Annual Report and Accounts, in September 2023 the Department told us that …
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We recommended in our reports on the Department’s 2020–21 and 2021–22 Annual Reports and Accounts that the Department should develop a clear plan for a stockpile for a future pandemic. In response to our report on the 2021–22 Annual Report and Accounts, in September 2023 the Department told us that it was working closely with SCCL on the necessary volumes of PPE that were needed to provide resilience to future pandemics and was preparing advice on both short-term procurements and longer-term resilience. It committed to continuing to refine its approach over time based on the latest information available.48 When we asked for an update the Department reported that it was still deciding what stockpiles it needs for a future pandemic, and will also update 44 Qq 18–19; C&AG’s Report, Department of Health and Social Care Annual Report and Accounts 2022–23, HC 33, 25 January 2024, page 224; Committee of Public Accounts, Sixty-Second Report of Session 2022–23, Department of Health and Social Care 2021–22 Annual Report and Accounts, HC 997, 5 July 2023, para 1; HM Treasury, Treasury Minutes – Government Response to the Committee of Public Accounts on the Sixty-first to the Sixty- seventh reports from Session 2022–23, CP 941, September 2023, para 1.3 45 Qq 16–18; Committee of Public Accounts, Sixty-Second Report of Session 2022–23, Department of Health and Social Care 2021–22 Annual Report and Accounts, HC 997, 5 July 2023 46 Qq 24–25, 27, 32 47 Letter from Andy Brittain, Director General Finance, DHSC, to Dame Meg Hillier, Chair, Committee of Public Accounts, Re: Public Accounts Committee: DHSC Annual Report and Accounts 2022–23, dated 27 March 2024 48 Committee of Public Accounts, Sixty-Second Report of Session 2022–23, Department of Health and Social Care 2021–22 Annual Report and Accounts, HC 997, 5 July 2023, para 2; HM Treasury, Treasury Minutes – Government Response to the Committee of Public Accounts on the Sixty-first to the Sixty-seventh reports from Session 2022–23
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Government response AI summary
The government agrees with the committee's findings, has replenished pandemic preparedness PPE stockpiles using excess stock, and will begin dynamic stockpiling from autumn 2024, committing to update the committee by the end of 2024.
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HM Treasury
28
Conclusion
Thirty-First Report - Department of Hea…
Accepted
We asked the Department how many contracts relating to COVID-19 procurement were still in dispute. The Department stated that 45 contracts were in dispute at 31 March 2023, and that the number at the time of the evidence session was below 20. Most of the contracts under review are not …
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We asked the Department how many contracts relating to COVID-19 procurement were still in dispute. The Department stated that 45 contracts were in dispute at 31 March 2023, and that the number at the time of the evidence session was below 20. Most of the contracts under review are not under review due to fraud. Due to the sensitive nature of the issue, the Department said that it was not able to comment on the number of contracts pursued due to fraud, but it committed to hold a private session with the Committee to discuss the matter further.50 Overall level of fraud in PPE purchases was 1.5% of the £13.6 billion, which equated to £202 million.51 The Department considered that there were no new lessons arising from its work on disputed contracts to apply to procurement for future pandemics. The Department committed to reporting to Parliament on the total level of fraud in COVID-19 procurement, which it expected to do in the coming months.52 Overpayments to suspended medical practitioners
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Government response AI summary
The government agrees, providing updated estimates of COVID-19 PPE fraud at £324 million, with £75 million recovered and £163 million prevented, and anticipates settlement of all matters by Autumn 2025 with a target implementation date for the recommendation of December 2025.
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HM Treasury
29
Conclusion
Thirty-First Report - Department of Hea…
Accepted
NHS England can make payments to medical practitioners who have been suspended, in accordance with the relevant statutory regulations and conditions. The C&AG qualified his opinion on NHS England’s accounts for the second time, as a result of it making ineligible suspension payments to medical practitioners. NHS England made payments …
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NHS England can make payments to medical practitioners who have been suspended, in accordance with the relevant statutory regulations and conditions. The C&AG qualified his opinion on NHS England’s accounts for the second time, as a result of it making ineligible suspension payments to medical practitioners. NHS England made payments to 12 medical practitioners who did not meet the eligibility conditions, worth £1.3 million between 2017–18 and 2022–23. NHS England has not recovered most of the payments it made. Only two of the 12 overpayments had been recovered in full by NHS England by the time the 2022–23 audit was finalised, amounting to £32,747, meaning the remaining £1,302,879 had not been recovered. The C&AG reported that NHS England had failed to establish a system of controls to ensure suspension payments were only made to medical practitioners who met the qualifying criteria and to ensure that these suspension payments were stopped promptly once the qualifying period ended.53
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Government response AI summary
The government has accepted the implicit recommendation, implementing a new national process with additional checks for suspended practitioner payments from April 2024 and requesting a review of eligibility determinations. For overpayments, work is underway to recover amounts where there is a legal basis, with NHS …
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HM Treasury
30
Conclusion
Thirty-First Report - Department of Hea…
Accepted
We asked NHS England why it did not have adequate controls in place to prevent ineligible payments of this nature and what controls it was putting in place to ensure that this does not happen again. NHS England confirmed that following two cases that were identified in late 2022 as …
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We asked NHS England why it did not have adequate controls in place to prevent ineligible payments of this nature and what controls it was putting in place to ensure that this does not happen again. NHS England confirmed that following two cases that were identified in late 2022 as part of the audit of its 2021–22 accounts, it commissioned internal audit to review the cases of all those who were on the suspension list. NHS England explained that this review had identified the 12 cases referred to above, but that it had not found any others. NHS England told us that given the complexity of some of the caselaw involved, it was going back through the list again and had created a single national team to administer the payments, as opposed to control being dispersed through seven regional teams. By having one team processing the system, NHS England felt it had 49 Qq 19, 23 50 Qq 36–39 51 Qq 36, 38–42; Department of Health and Social Care, Department of Health and Social Care Annual Report and Accounts 2022–23, HC 33, 25 January 202, pages 138 52 Qq 40–42 53 Q 73; NHS England, Annual Report and Accounts 2022–23, HC 468, 25 January 2024, pages 83; C&AG’s Report, NHS England Annual Report and Accounts 2022–23, pages 131–133 Department of Health and Social Care2022–23 Annual Report and Accounts 19 better oversight and could ensure better controls so it did not find itself in this position in future. It told us that the new approach meant that it could do checks every month and streamline the process.54
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Government response AI summary
The government has accepted the implicit recommendation to improve controls for suspended practitioner payments, confirming a new national process with additional verification and central oversight was implemented from April 2024, and a submission made to DHSC to review and simplify eligibility determinations.
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HM Treasury