Source · Select Committees · Public Accounts Committee
Recommendation 32
32
Accepted
Multiple Departmental Group entities received additional audit qualifications for various failures.
Conclusion
There have been other qualifications across the Departmental Group. The NHS Property Services (NHSPS) accounts were qualified in 2021–22 as NHSPS were unable to demonstrate compliance with the Financial Reporting Framework and account for the expenditure, assets and liabilities arising from certain contracts in accordance with IFRS16 Leases. There were 182 rental arrangements with approximate annual payments of £7.7 million, and NHSPS was unable to provide documentation to determine the substance of arrangements.62 The NHS England 2021–22 Annual Report and Accounts ‘regularity’ opinion was qualified by the C&AG as ineligible payments were made to suspended medical practitioners; two suspended medical practitioners received suspension payments, over a number of years, with a combined total of £1 million to which they were not entitled.63 In addition, the C&AG qualified his ‘regularity’ opinion on the NHS England 2020–21 Annual Report and Accounts, also as NHS England failed to comply with Managing Public Money and made payment without Treasury approval for a special severance payment.64
Government Response Summary
The government agrees with the implied concern, stating it has already implemented a financial reset programme with robust controls to reduce future failings, which are kept under continual review.
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2023 6.2 As the Committee is aware, the department has undertaken a financial reset programme. This programme established robust financial controls and governance across the department and its arms’ length bodies. 6.3 This programme put in place a proportionate, risk-based financial control framework that ensures that areas of spend subject to external controls (for example, by HM Treasury and Cabinet Office) are reviewed and approved as required by Managing Public Money. Internal delegations ensure that spending proposals below those subject to external controls are also subject to appropriate review and approval and maximise value for money. 6.4 During 2021-22 the financial reset programme was still being implemented. The department has now put into place controls which are proportionate in reducing the risk of future financial and governance failings. 6.5 Despite the clear processes and improvements set out above, it is important to note that ensuring full compliance across such a diverse and sizeable group is inherently challenging. As such, whilst the department believes the processes and controls in place represent a proportionate and robust risk mitigation, they cannot guarantee full compliance from all bodies. 6.6 The department keeps these controls under continual review and applies a ‘lessons learnt’ process in the event that governance issues are identified.