Source · Select Committees · Public Accounts Committee
Recommendation 20
20
The Department’s Head of Internal Audit concluded that “the existing arrangements in place do not...
Conclusion
The Department’s Head of Internal Audit concluded that “the existing arrangements in place do not best support the current operating environment” and that “necessary adjustments are required to the framework of risk control and governance arrangements for them to be considered effective in what is a new operating environment”. The Head of Internal Audit also reported that “lines of accountability, interfaces, interdependencies and escalation routes are not clear or fully integrated across the Department and wider health group”.38 The Department told us it was going to address all of these concerns as part of its reset programme.39 Transparency of interests
Government Response
Not Addressed
HM Government
Not Addressed
4: PAC conclusion: The Department has regularly failed to follow public spending rules and across the Departmental Group there is a track record of failing to comply with the requirements of Managing Public Money. 4: PAC recommendation: The Department should write to us by October 2022 setting out the systems and processes it has established as part of its ‘financial reset’ to ensure the regularity of expenditure and compliance with spending controls across the Departmental Group going forward. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2022 4.2 The department is undertaking a finance reset programme, which is establishing robust financial controls and governance across the department and its arms’ length bodies (ALBs). The department is making good progress in this area, with the programme of activity continuing through to the end of this calendar year. 4.3 The programme has 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. 4.4 To date, the department has: • implemented updated financial delegations across the department and its ALBs, taking account of internal and external controls; • developed a training programme which will be mandatory for all senior civil servants, aimed at increasing their awareness and understanding of their roles as budget holders; and • re-developed internal business case guidance, to improve the quality of business cases going forward. The department will provide a further update to the Committee by October 2022.