Source · Select Committees · Public Accounts Committee
Recommendation 14
14
Accepted
UKHSA's corporate governance arrangements deemed unsatisfactory due to absence of non-executive directors.
Conclusion
No additional non-executive directors were appointed until after the 2021–22 financial year. As a result, UKHSA did not comply with the principles of HM Treasury and the Cabinet Office’s Corporate governance in central government departments: code of good practice and UKHSA’s Head of Internal Audit concluded that, in their opinion, UKHSA’s corporate governance arrangements were unsatisfactory.29 The Department acknowledged that this was not normal and that in more ordinary circumstances it would have tried to establish a new entity at the beginning of the financial year with all necessary governance arrangements in place. In the Department’s view, the circumstances of mid- 2021 meant this was not possible.30 25 Report by the Comptroller and Auditor General, UK Health Security Agency Annual Report and Accounts 2021/22, HC 1086, 26 January 2023, p. 91. 26 Qq 14, 27 27 Q 17 28 Q 50 29 C&AG’s Report on UKHSA, p. 92. 30 Q 14 12 Department of Health and Social Care 2021–22 Annual Report and Accounts
Government Response Summary
The government agrees and states UKHSA has established a full suite of corporate governance arrangements, including completing non-executive recruitment by April 2022 and establishing committees by September 2022, with a GIAA review identifying improvements completed by March 2023.
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 3.2 On 1 April 2021, the government announced the establishment of the UK Health Security Agency (UKHSA) as this country’s permanent standing capacity to prepare for, prevent and respond to threats to health. From 1 October 2021, the department and the newly formed UKHSA prioritised significant efforts on the response to the COVID-19 pandemic. The operational focus in winter 2021-22 was the response to the Omicron variant and then the implementation of the Living with Covid Strategy from February 2022. 3.3 As a new organisation, the Chair and CEO of UKHSA were centred on the need for effective governance from UKHSA’s inception. Once the non-executive member recruitment which started in spring 2021 was completed in April 2022, UKHSA swiftly moved to establishing a fully functioning suite of corporate governance, including the advisory board, and holding four distinct committee meetings by September 2022. The Audit and Risk Committee appointed in April 2023 a non-executive as Chair who is a qualified accountant, with the department chairing the appointing panel and facilitating the approvals process. 3.4 The Chair and CEO engaged the Government Internal Audit Agency (GIAA) to assist in a review of the corporate governance, which was completed in May 2022. This helped identify detailed actions to improve the governance framework from the advisory board through the executive line. These were completed by March 2023, which a follow-up GIAA audit confirmed. The department contributed to GIAA’s review and met regularly with UKHSA to support progress and commissioned a GIAA review of sponsorship to better support and oversee UKHSA. UKHSA and the department continue to work closely to further strengthen governance arrangements.