Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Accepted
Operational decisions, like uncounted transferred inventory, made accounts qualification inevitable for UKHSA.
Conclusion
There were also operational decisions which UKHSA and the Department took which meant that some form of accounts qualification was always likely. The Department decided not to count the stockpile of emergency goods transferred from Public Health England to the UK Health Security Agency on 1 October 2022. The Department’s view was that counting these stocks on the date of transfer would have compromised the autumn 2021 vaccine roll-out because it would have required the closure of warehouses.44 However, there were other inventories transferred to UKHSA, for example the NHS Test and Trace inventories transferred from the Department, where no stock counts were performed because the Department’s inventory management systems were not adequate.45 38 C&AG’s Report on UKHSA, p. 94. 39 C&AG’s Report on UKHSA, p. 94. 40 Q 21 41 C&AG’s Report on UKHSA, p. 93. 42 Q 22 43 Q 17 44 Qq 38, 51 45 C&AG’s Report on UKHSA, p. 94. 14 Department of Health and Social Care 2021–22 Annual Report and Accounts 3 Departmental group oversight Timely publication of the Annual Report and Accounts
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.