Central London, West London, Hammersmith & Fulham, Hounslow and Ealing CCGs
Audit Committee
This is a meeting of the Audit Committees of five CCGs. Items apply to all five CCGs, unless indicated otherwise
Monday 2nd June 2014
Room 5.4, 15 Marylebone Road
Members in attendanceAll five CCGs
Philip Young (PY) / Lay member for Audit & Governance CWHHE, Chair
Central London, West London, Hammersmith & Fulham and Hounslow CCGs
Alan Hakim (AH) / Secondary Care Consultant, CWHH CCGs
Central London CCG
Michael Morton (MM) / Lay Member, Central London CCG
West London CCG
Simon Tucker (ST) / Lay Member, West London CCG, by phone
Hammersmith & Fulham CCG
Tony Willis (TW) / Governing Body Member, Hammersmith & Fulham CCG
Hounslow CCG
Trevor Woolley (TW) / Lay member, Hounslow CCG
Ealing CCG
Raj Chandok (RC) / Vice Chair, Ealing CCG, by phone
John Riordan (JR) / Secondary Care Consultant, Ealing CCG
Non Members in attendance
Nick Atkinson (NA) / Baker Tilly, Internal Audit
Matthew Bazeley (MB) / Managing Director, Central London CCG
Heather Bygrave (HB) / Deloitte, External Audit (Ealing)
Sally-Anne Eldridge (SAE) / KPMG – External Auditors (CWHH)
Daniel Elkeles (DE) / Chief Officer CWHHE CCGs
Angus Fish (AF) / Deloitte, External Audit (Ealing)
Philip Johnstone (PJ) / KPMG – External Auditors (CWHH)
Gary McLeod (GMc) / KPMG – External Auditors (CWHH)
Pooja Maniar (PM) / Senior Finance Manager, CSU
Mary Neckles (MN) / Senior Finance Manager, CSU
Clare Parker (CP) / Chief Financial Officer CWHHE CCGs
Louise Proctor (LP) / Managing Director, West London CCG
Kieran Seale (KS) / Governance Manager, CWHHE
Tim Spicer (TS) / Chair, Hammersmith & Fulham CCG
Rebecca Whitworth (RW) / Senior Finance Manager, CSU
Ben Westmancott (BW) / Director of Compliance CWHHE CCGs
Minutes
Business Items / Action1. / Welcome/Apologies
1.1. / Apologies were received from Nicola Burbidge, Fiona Butler, Rohan Hewavisenti, Mohini Parmar and Mark Trevallion.
2. / Declaration of Interests
2.1. / No other interests in addition to those previously identified were declared.
3. / Minutes of meeting – 8th May 14
3.1. / The minutes were approved as an accurate record of the meeting.
4. / Matters Arising
4.1. / The issues that had been identified at the last meeting relating to the audit were set out in a note which was used to inform the discussion in the meeting. The other actions (unrelated to the accounts) were deferred to the next meeting Committee.
5. / Update on common issues
5.1. / Clare Parker introduced a note which summarised the changes which had been made consistently across the Annual Accounts and Annual Reports of the five CCGs since the meetings of the Audit Committees on 8th May. She also introduced a similar note relating to changes to the Governance Statements.
5.2. / It was noted that the median pay calculation has been re-done and was currently being reviewed by the auditors.
5.3. / The papers were noted by the Committee.
Central London CCG
6.1. / Clare Parker presented the Annual Report and Accounts for Central London CCG to the Committee. She identified two specific changes that had been made since the last meeting.
The first arose as the draft accounts included a finance lease obligation of £1,529,000 relating to the South West Clinic, whilst the related asset sat with NHS Property Services. The asset and liability should have been co-located with NHS Property Services. She said that a correction for this legacy issue has been agreed and processed and is reflected within the final accounts presented for approval. The adjustment made has reduced liabilities, offset to legacy reserves.
The other change arose as in the Draft Accounts a £500,000 CQUIN rebate from Imperial College Health Trust had originally been included within a net creditor/payable balance. This has now been corrected leading to an increase in both Receivables and Payables of £500,000 with no net impact to the Statement of Financial Position (Balance Sheet).
She explained that, with these exceptions, all other changes made have been either presentational or disclosure in nature and that the reported surplus remains at £16.9m.
6.2. / Philip Johnstone (KPMG) presented the ISA 260 report. He complimented the CCG on the quality of the accounts and the work done to support the audit. Following the review of the financial statements, the Annual Report (including the remuneration report) and the Governance Statement he said that their key findings were:
· There are no material amendments to the draft financial statements submitted for audit.
· There are no unadjusted audit differences.
· A number of minor presentational and typographical changes to the accounts had been agreed with management.
· In addition to the routine request, KPMG have requested specific management representations regarding the classification of revenue and capital expenditure, and the CCG’s £nil provisions for continuing healthcare claims.
He said that KPMG intended to issue an unqualified audit opinion on the accounts following the Audit Committee adopting the accounts and receipt of the management representation letter.
6.3. / Turning to the use of resources, Philip Johnstone said that, based on the findings of their work, KPMG concluded on whether there are any matters arising from the value for money work that need to report on. They had concluded that there are no matters to report for the CCG.
6.4. / The Committee discussed the documents that had been presented. Philip Young asked about the accuracy of the table of salaries and allowances, particularly with regards to pension related benefits. It was noted that this is a common issue across the five CCGs. It was agreed that Clare Parker will review the information and agree any changes with Philip Young. The Committee discussed other minor changes to the wording of the documents. / CP
6.5. / Philip Johnstone said that there were two specific items that would be asked for in the letter of representation in addition to the standard wording. These related to GP IT equipment and Continuing Care provision. The Committee agreed the signing of the letter of representation on behalf of the CCG by the Chief Officer and the Chair of the Audit Committee.
6.6. / Having considered the items outlined above, the Committee approved the Annual Report and Accounts and the Governance Statement for Central London CCG.
6.7. / The Committee noted that the accounts were for submission to NHSE on Friday 6th June and that it was possible that further changes may be required pursuant to emerging NHS England guidance. It was agreed that in that eventuality the revised papers will be circulated, but will be subject to Chairs Action to ensure the filing deadline can be met.
West London CCG
7.1. / Clare Parker presented the Annual Report and Accounts for West London CCG to the Committee. She said that the only changes that had been made since the previous meeting of the Committee were either presentational or disclosure in nature. The Statement of Comprehensive Net Income (Income and Expenditure) is unaltered, and the reported surplus is unchanged at £29.6m.
7.2. / Philip Johnstone (KPMG) presented the ISA 260 report. He complimented the CCG on the quality of the accounts and the work done to support the audit. Following the review of the financial statements, the Annual Report (including the remuneration report) and the Governance Statement he said that their key findings were:
· There are no material amendments to the draft financial statements submitted for audit.
· There are no unadjusted audit differences.
· A number of minor presentational and typographical changes to the accounts had been agreed with management.
· In addition to the routine request KPMG have requested specific management representations regarding the classification of revenue and capital expenditure, and the CCG’s £nil provisions for continuing healthcare claims.
He said that KPMG intended to issue an unqualified audit opinion on the accounts following the Audit Committee adopting the accounts and receipt of the management representation letter.
7.3. / Turning to the use of resources, Philip Johnstone said that, based on the findings of their work, KPMG concluded on whether there are any matters arising from the value for money work that need to report on. They had concluded that there are no matters to report for the CCG.
7.4. / The Committee agreed the signing of the letter of representation on behalf of the CCG by the Chief Officer and the Chair of the Audit Committee.
7.5. / Having considered the items outlined above, the Committee approved the Annual Report and Accounts and the Governance Statement for West London CCG.
7.6. / The Committee noted that the accounts were for submission to NHSE on Friday 6th June and that it was possible that further changes may be required pursuant to emerging NHS England guidance. It was agreed that in that eventuality the revised papers will be circulated, but will be subject to Chairs Action to ensure the filing deadline can be met.
8. / Hammersmith & Fulham CCG
8.1. / Clare Parker presented the Annual Report and Accounts for Hammersmith & Fulham CCG to the Committee. She said that with one exception the only changes that had been made since the previous meeting of the Committee were either presentational or disclosure in nature.
The exception related to an issue that under the Hammersmith & Fulham PCT Transfer order, the contract between Care UK and the PCT (Farm Lane and St Vincent) was transferred to Hammersmith & Fulham CCG. The balances from this contract, asset and finance lease, were incorrectly assigned and transferred to NHS Property Services. The asset and liability should have been with the CCG. A correction for this legacy issue has now been agreed and processed, but only after publication of the draft accounts. It is now included in the final accounts presented for approval. The adjustment made has created an asset of £1,191,000; a liability of £1,362,000; and a net £11,000 impact on the Statement of Comprehensive Net Expenditure, marginally reducing the reported surplus. The Statement of Comprehensive Net Income (Income and Expenditure) has not materially altered, and whilst the reported surplus remains £12.3m, it has reduced by £11,000.
8.2. / Philip Johnstone (KPMG) presented the ISA 260 report. He complimented the CCG on the quality of the accounts and the work done to support the audit. Following the review of the financial statements, the Annual Report (including the remuneration report) and the Governance Statement he said that their key findings were:
· There are no material amendments to the draft financial statements submitted for audit.
· There are no unadjusted audit differences.
· A number of minor presentational and typographical changes to the accounts had been agreed with management.
· In addition to the routine request KPMG have requested specific management representations regarding the classification of revenue and capital expenditure, and the CCG’s £nil provisions for continuing healthcare claims.
He said that KPMG intended to issue an unqualified audit opinion on the accounts following the Audit Committee adopting the accounts and receipt of the management representation letter.
8.3. / Turning to the use of resources, Philip Johnstone said that based on the findings of their work, KPMG concluded on whether there are any matters arising from the value for money work that need to report on. They had concluded that there are no matters to report for the CCG.
8.4. / The Committee agreed the signing of the letter of representation on behalf of the CCG by the Chief Officer and the Chair of the Audit Committee.
8.5. / Having considered the items outlined above, the Committee approved the Annual Report and Accounts and the Governance Statement for Hammersmith & Fulham CCG.
8.6. / The Committee noted that the accounts were for submission to NHSE on Friday 6th June and that it was possible that further changes may be required pursuant to emerging NHS England guidance. It was agreed that in that eventuality the revised papers will be circulated, but will be subject to Chairs Action to ensure the filing deadline can be met.
9. / Hounslow CCG
9.1. / Clare Parker presented the Annual Report and Accounts for Hounslow CCG to the Committee. She said that the only changes that had been made since the previous meeting of the Committee were either presentational or disclosure in nature. The Statement of Comprehensive Net Income (Income and Expenditure) is unaltered, and the reported surplus is unchanged at £1.9m.
9.2. / Philip Johnstone (KPMG) presented the ISA 260 report. He complimented the CCG on the quality of the accounts and the work done to support the audit. Following the review of the financial statements, the Annual Report (including the remuneration report) and the Governance Statement he said that their key findings were:
· There are no material amendments to the draft financial statements submitted for audit.
· There are no unadjusted audit differences.
· A number of minor presentational and typographical changes to the accounts had been agreed with management.
· In addition to the routine request KPMG have requested specific management representations regarding the classification of revenue and capital expenditure, and the CCG’s £nil provisions for continuing healthcare claims.