Corporate report

UKHSA Advisory Board: Audit and Risk Committee minutes 17 November 2023

Updated 29 January 2024

Date: 31 January 2024

Sponsor: Cindy Rampersaud

Recommendation

The Advisory Board is asked to note the minutes of 17 November 2023 meeting of the Audit and Risk Committee. The minutes were agreed on 5 December 2023.

Minutes (confirmed), Audit and Risk Committee, 17 November 2023

Present at the meeting were:

• Cindy Rampersaud – Non-Executive Member of UKHSA Advisory Board (Chair)

• Sir Gordon Messenger – Non-Executive Member of UKHSA Advisory Board

In attendance were:

• Andy Brittain – Director General Finance, DHSC

• Jenny Harries – Chief Executive

• Anna Kinghan – Director of Engagement, National Audit Office

• Andrew Sanderson – Chief Financial Officer

• Donald Shepherd – Director of Finance

• Alex Sienkiewicz – Director of Corporate Services

• 16 attendees had their name and title redacted

Apologies were received from:

• Simon Blagden – Non-Executive Member of UKHSA Advisory Board

Introductions and apologies

23/183 The chair welcomed participants to the meeting, noted the apologies above, and confirmed that there were no declarations of interest.

Minutes of the previous meeting

23/184 The minutes from the last meeting on 5 September 2023 (enclosure ARC/23/057) were agreed. 

Matters arising

23/185 The action list (enclosure ARC/23/058) was noted.

23/186 [Information withheld in accordance with the Freedom of Information Act 2000]

Update from the National Audit Office

23/187 The Director of Engagement, National Audit Office (NAO), provided an update on the NAO Audit Completion Report (enclosure ARC/23/059); the Draft NAO Audit Certificate Enclosure (enclosure ARC/23/059a); and the Draft NAO letter of representation (enclosure ARC/23/059b).

23/188 The Audit and Risk Committee NOTED updates including:

• that NAO recognised the significant work that had gone into improving UKHSA’s accounts following the 2022 to 2023 disclaimed audit opinion

• [Information withheld in accordance with the Freedom of Information Act 2000]

• there were still several areas to be finalised that would be worked through in the coming weeks; these included the audit of demand model for the COVID Vaccine Unit (CVU) provisions and vaccine impairment; testing of internal floor areas; completion of work on Rosalind Franklin Laboratory; agreeing the governance statement in progress; and review of audit work in progress

• the remaining items were not currently expected to have a significant impact on the accounts, though more work was needed to assess the CVU modelling issue which was the main material item outstanding

• the audit report would be reissued by correspondence upon resolution of the outstanding items

• the aim remained to complete this report for November certification, but more time may be needed given uncertainty around required sample sizes for testing and requirements for completing work relating to the CVU and this might lead to delay beyond 30 November 2023

23/189 There was discussion on scope of audit next year, level of activity and sampling required in relation to full balance sheet and profit and loss. The risk remained due to several years’ worth of assets and cleansing work that needed to be repeated until fully embedded as business-as-usual. To prepare for capacity requirements, it was confirmed that forward planning would incorporate lessons learnt and identify in key decision points in advance.

23/190 It was noted by UKHSA finance colleagues that the first phase of the Finance and Control Improvement Plan was aligned to the ongoing work on the accounts, while the next phase would be to improve systems and processes for getting things right first time and reducing the need for second line retrospective checks.

23/191 Thanks were noted to Finance colleagues and the National Audit Office for their hard work.

23/192 The Audit and Risk Committee agreed to the delegate responsibility to the Chair for approving the final version of the Annual Report and Accounts and recommendation it to the Chief Executive, as Accounting Officer, for sign off. This was on the basis of no substantial changes to the draft used for the meeting.

(Action: NAO / Cindy Rampersaud / Jenny Harries)

Update from the Government Internal Audit Agency (GIAA)

23/193 Further to the draft that had been considered at the previous meeting, the Head of Internal Audit confirmed their ‘limited’ opinion on the adequacy and effectiveness of UKHSA’s risk management, control, and governance arrangements for the 2022 to 2023 financial year (enclosure ARC/23/060). 

23/194 The executive summary recognised the significant work during the year to address the issues that had contributed to the previous year’s ‘limited’ opinion and the positive trajectory of travel with improved arrangements for corporate governance and strategic risk management.  [Information withheld in accordance with the Freedom of Information Act 2000]

23/195 [Information withheld in accordance with the Freedom of Information Act 2000] The Audit and Risk Committee noted GIAA’s limited annual opinion on the adequacy of the framework of governance, risk management and control within the UK Health Security Agency (UKHSA) for 2022 to 2023.

UKHSA annual report and accounts 2022 to 2023

23/196 The Chief Financial Officer, UKHSA and the Deputy Director, Accounts and Finance Operations, DHSC provided a finance update on the annual accounts (enclosures ARC/23/061 and ARC/23/061a).

23/197 The Audit and Risk Committee noted the progress updates including the following:

• [Information withheld in accordance with the Freedom of Information Act 2000]

• [Information withheld in accordance with the Freedom of Information Act 2000]

• [Information withheld in accordance with the Freedom of Information Act 2000]

• preparation for the 2023 to 2024 accounts was ongoing with the focus on systematically embedding effective financial controls to reduce the number of retrospective corrections needed, as well as making improvements to the cleansing process

• an internal plan was being prepared laying out the tasks required to ensure timely accurate accounts and to minimise the risk of a repeat of the delays experienced in 2022 to 2023

• a joint NAO-UKHSA meeting was scheduled for December 2023 on lessons learnt from 2022 to 2023 and to begin 2023 to 2024 planning

Any other business and close

23/198 The chair thanked all attendees and there being no further business the meeting closed at 9:15. 

November 2023