Recommendation 9

We asked UKHSA what lessons could be learned from the setup of a complex new government body and the issues reported by the C&AG in 2021–22 and 2022–23.12 UKHSA responded that if setting up a similar new body it would go about it ”in exactly the same way” and that the control issues that led to two consecutive disclaimers were a consequence of the operational challenges arising from the pandemic.13 The Department’s view, shared by UKHSA, was that it would take decisions on health protection issues first and then “do our best about the rest”. UKSHA stated that, if another significant health protection issue were to arise, it might expect to see further lapses in financial management and accountability. UKHSA told us that there was a balance point about recognising “exactly what we must do in terms of financial governance and control” and dealing with large health protection issues.14 The Department told us that it defended the decisions it had taken about the organisation based on health protection but recognised that it had made mistakes in some areas. We noted that UKHSA had encountered challenges in setting up a new organisation and responding to the pandemic, but that this was not an excuse 9 Q 47 10 Q 49 11 Qq 59–60 12 Q 61; C&AG’s Report, UKHSA 2022–23, pages 133–140; Report by the Comptroller & Auditor General, UKHSA Annual Report and Accounts 2021–22, HC 1086, 26 January 2023, pages 91–96 13 Q 61 14 Q 62 Department of Health and Social Care2022–23 Annual Report and Accounts 11 not to have proper financial controls. We observed that these were the “bread and butter” of what government departments should be doing, including when making sure that organisations are set up with the proper arrangements.15