Source · Select Committees · Public Accounts Committee
Recommendation 10
10
Accepted
UKHSA prioritised vaccine delivery over financial reporting, leading to significant audit challenges.
Conclusion
We asked UKHSA how it was going to fix the issue with the covid vaccine demand model that was one of the causes of the C&AG disclaiming his opinions on its 2022–23 accounts. The Department confirmed it had made a mistake in failing to communicate the detail of the model it was using to the NAO on a timely basis, and that this resulted in the NAO being unable to audit significant amounts in UKHSA’s accounts. UKHSA described the steps it had taken to produce auditable figures in 2023–24. It explained that it had identified the vaccine demand model as business critical and resourced the quality assurance framework for the model. However, UKHSA told us that its priority was delivering vaccines in the immediate term, with the impact on financial reporting and accountability coming second.16
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.