Source · Select Committees · Public Accounts Committee
Recommendation 8
8
Accepted
C&AG notes UKHSA progress but significant work remains; 2023-24 accounts will be qualified.
Conclusion
The C&AG confirmed that UKHSA had introduced “quite a lot of important governance arrangements” following its 2021–22 accounts, and that it had made progress on being able to present a more manageable set of financial data for the NAO to audit. But he stressed that there was still a long way to go. The C&AG told us that UKHSA remained in a challenging position, and that it was vital that UKHSA did not underestimate the scale of what remained to be done to implement normal accounting processes.10 We asked UKHSA whether it was confident that it could produce accounts for 2023–24 that would not receive another disclaimer. UKHSA told us that it expected that its 2023–24 accounts “absolutely will be qualified” but that it was working hard to avoid the accounts being disclaimed for a third year. The Department and UKHSA noted that the decision was for the C&AG, but UKHSA reiterated that it had plans in place to ensure that it could produce auditable accounts and “hope and anticipate that we will be able to avoid another disclaimer”.11
Government Response Summary
The government agrees with the committee's observations and commits to achieving an improved (though qualified) audit opinion for UKHSA's 2023-24 accounts by November. It outlines a comprehensive audit plan, external support, and an ongoing Finance and Control Improvement Programme to resolve audit issues.
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.