Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Accepted
Staffing difficulties and transitory workforce compromised UKHSA's ability to provide audit evidence and explanations.
Conclusion
UKHSA also experienced significant difficulties with staffing which compromised its ability to provide evidence and explanations to support the figures reflected in the accounts. The C&AG reported that one barrier to his ability to obtain evidence to allow him to give an audit opinion was the transitory nature of UKHSA’s workforce. This meant that officials who had prepared figures for the financial statements had left the organisation by the time of the audit and were not able to provide explanations and evidence to support those figures.41 During our evidence session, UKHSA echoed this, noting that from April to August 2022 it reduced its headcount by almost two thirds resulting in a loss of continuity of knowledge to help address the NAO’s audit queries.42 UKHSA also stated that two of the predecessor entities to UKHSA, NHS Test and Trace and the Joint Biosecurity Centre, did not have a history of budget and accounting discipline which further contributed to the difficulties in providing evidence and explanations.43
Government Response Summary
The government agrees and UKHSA has established a Finance and Control Improvement Programme to strengthen financial controls and processes, aiming for a clean audit opinion by 2024-25, with a multi-year project plan in place by Autumn 2023.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2023 4.2 UKHSA is urgently working to improve and strengthen existing financial controls and processes, to evidence compliance with government functional standards and best practice. Following the disclaimed 2021-22 audit opinion, UKHSA immediately established a Finance and Control Improvement Programme to inform the production of 2022-23 auditable accounts and continue to provide oversight and scrutiny of UKHSA’s financial controls. 4.3 The programme will develop to systematically address areas where controls and processes can be improved further. Activities have been focussed on the accounts production but will broaden out into wider financial management and controls without losing focus on the accounts. 4.4 The aim of the programme is to enable UKHSA to achieve a fully clean, unqualified audit opinion at the earliest feasible opportunity, which is the 2024-25 accounts. Due to the disclaimed opinion, NAO advised it is not possible to achieve a clean audit for 2022-23. Unqualified accounts must demonstrate a clean audit position over successive years to enable an accurate prior year comparator. 4.5 The programme is governed by a board chaired by UKHSA’s Chief Executive, with representation from DHSC, GIAA and HMT. The UKHSA Audit and Risk Committee oversees the programme closely with regular formal progress reporting to the department. 4.6 The programme will have a fully developed, multi-year project plan in place by Autumn 2023. This aligns with the expected outcome of the 2022-23 audit and allows any further findings to be incorporated. In the meantime, UKHSA intends to continue driving rapid progress, tightly managed through the improvement programme.