External Audit Annual Management Letter 2023-24
Meeting: Public Board
Date: 11 September 2024
Report Title: Patient story – Julian Hammond
Agenda Item: PUB24/9/2.3
Author: Ed Davison – Head of Financial Governance and Compliance
Lead Director: Kevin Smith – Director of Finance
Purpose: Information/noting
Assurance: Substantial
Link to Strategic Objective:
- Be an environmentally and financially sustainable organisation
Link to CQC domain:
- Well-led
Link to strategic risk(s):
- SR4: If we do not resolve long standing organisational inefficiencies, we will be unable to deliver an effective, sustainable, value for money service to our public X
- SR6: If we do not deliver sustainable regulatory compliance and develop positive relationships, we will have limited ability to deliver our strategy
Equality impact assessment: No negative impact identified
Previously considered by: Audit Committee 24 July 2024
Purpose: The purpose of this report is to provide the Board with a summary of findings from the audit of the financial year 2023/24. This report sets out the key findings for the independent Financial Statements audit and review of the Trust’s arrangements for ensuring value for money, including the value for money commentary.
Executive Summary:
The independent auditor issued the audit report for the financial year 2023/24 on 19 June 2024.The financial statements gave a true and fair view of the financial position of the Trust as at 31 March 2024 and of its expenditure and income for the year then ended (unqualified opinion). Referral was made to the Secretary of State around the Trust’s likely breach of its break-even duty over a rolling five-year period as a result of the Trust’s financial plans for 2024/25 not returning the previously accumulated deficit back to break-even by the end of 2025/26. The value for money (VFM) conclusion states that based on the audit work performed, the Trust had proper arrangements in place in 2023/24 to enable it to plan and manage its resources to ensure that it can continue to deliver its services despite the requirement to issue a section 30 referral letter to the Secretary of State for Health and Social Care outlining the prospective breach in the Trust’s cumulative breakeven duty over a rolling five-year period. The Trust has appropriate arrangements in place to monitor the budget and savings target to understand in a timely manner that variances have arisen.
The following summarises the findings of the audit report:
Financial statements The Independent Audit Opinion is Unqualified –The financial statements give a true and fair view of the financial position of the Trust as at 31 March 2024 and of its expenditure and income for the year then ended. The auditor’s report was issued on 19 June 2024.
Parts of the remuneration report and staff report subject to audit The Trust took up amendments to disclosures in the salary and pensions tables from the audit. No other matters were identified.
Consistency of the other information published with the financial statement Financial information in the Annual report and published with the financial statements was consistent with the audited accounts.
Value for money (VFM) The auditors have no matters to report by exception on the Trust’s VFM arrangements.
Consistency of the Annual Governance Statement The auditors were satisfied that the Annual Governance Statement is consistent with their understanding of the Trust.
Referrals to the Secretary of State Referral was made to the Secretary of State on 19 June 2024 issuing a provisional Section 30 notice as the Trust did not achieve its statutory break-even duty. There is a requirement for NHS Trusts to meet the breakeven duty over a default rolling three-year period. NHS England agreed to extend this period to five years. Based on a review of the financial plan submission for 2024/25 (including the CIP targets) and taking into account the cumulative deficit, the Trust was considered unlikely to meet this duty by the end of 2025/26.
Public interest report and other auditor powers There were no reasons for the auditors to use their auditor powers.
Reporting to the Trust on its consolidation schedules The auditors concluded that the Trust’s consolidation schedules agreed, within their £0.3 million testing tolerance, to the audited financial statements.
Reporting to the National Audit Office (NAO) in line with group instructions The NAO did not include the Trust in its sample of Department for Health and Social Care component bodies. The auditors had no matters to report to the NAO.
Certificate The auditor certificate was issued on 19 June 2024.
