Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Accepted
UKHSA committed to improving financial controls and achieving unqualified accounts for 2022-23.
Recommendation
As part of our examination of the Department’s 2021–22 accounts, we recommended that UKHSA should urgently ensure that it had in place robust financial controls and processes and there was a clear plan to deliver unqualified accounts. Government agreed with our recommendation, and in its response told us the UKHSA was working to urgently improve and strengthen its existing financial control, to evidence compliance with government functional standards and best practice. It explained that UKHSA had established a Finance and Control Improvement Programme to inform the production of auditable accounts of 2022–23, with the aim of achieving a fully clean, unqualified audit opinion at the “earliest feasible opportunity”.7
Government Response Summary
The government agrees and is implementing a Finance and Control Improvement Programme, engaging PwC, and has an audit plan with the NAO, targeting an improved audit opinion for the 2023-24 accounts by January 2025.
Government Response
Accepted
HM Government
Accepted
1.1 The government agrees with the Committee’s recommendation. Target implementation date: January 2025 1.2 Following its 2021-22 disclaimed accounts, the UK Health Security Agency (UKHSA) established a Finance and Control Improvement Programme to develop, implement and embed a robust programme of work to support the production of auditable accounts. While UKHSA received a further disclaimed audit opinion for its 2022-23 accounts, the Comptroller and Auditor General recognised the improvements that had already been made in UKHSA’s financial controls and emphasised that the work of the programme should be accelerated. 1.3 There is now greater confidence both within UKHSA and DHSC of an improved audit opinion for the 2023-24 accounts. While an unqualified opinion is not possible this year due to the prior year disclaimer, we are working hard to produce quality, auditable accounts and to have certification from the NAO in November. UKHSA will then target laying its annual report and accounts pre-summer recess, without any qualifications, at the earliest opportunity. 1.4 A comprehensive audit plan is in place for UKHSA, agreed with the NAO, to support the 2023-24 audit process and in particular, the resolution of the specific 2022-23 Covid Vaccines Unit issue. PWC have been engaged by UKHSA to provide external support and third-party verification to the 2023-24 audit.