Source · Select Committees · Public Accounts Committee
Recommendation 33
33
Accepted
University Hospitals of Leicester NHS Trust faces significant audit and control weaknesses.
Recommendation
At the time of our evidence session, University Hospitals of Leicester NHS Trust (UHL) had yet to publish its 2021–22 Annual Report and Accounts. UHL’s auditor was not able to obtain sufficient, appropriate evidence upon which to form an opinion for 2019–20, and issued an adverse audit opinion for 2020–21, due to system and control weaknesses resulting in material misstatements.65 We asked the Department what oversight it had of other hospitals which may be having similar issues to UHL. The Department advised us that the NHS has a financial oversight framework that looks at financial and performance measures. The Department also advised that it has regular meetings with the NHS, at which it had not been alerted to similar concerns about any other specific trusts.66 62 NHS Property Services Limited, NHS Property Services Limited Annual Report and Accounts 2021/22, 17 February 2023 63 NHS Commissioning Board, NHS Commissioning Board Annual Report and Accounts 2021–22, HC 1011, 30 January 2023 64 NHS Commissioning Board, NHS Commissioning Board Annual Report and Accounts 2020–21, HC 1027, 3 February 2022 65 C&AG‘s Report, para 17 66 Qq 136–137 Department of Health and Social Care 2021–22 Annual Report and Accounts 17
Government Response Summary
The government agrees and details its financial reset programme, which has established robust financial controls and a risk-based framework across its bodies to reduce future financial and governance failings, with a target implementation date of December 2023.
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.