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Dorset Healthcare University NHS Foundation Trust Board Meeting Dorset HealthCare University NHS Foundation Trust Board Meeting A special meeting will be held on 25 May 2016 at Sentinel House, 4-6 Nuffield Road, Poole, Dorset, BH17 0RB commencing at 10.30am. If you are unable to attend please notify Keith Eales on 01202 277008. Yours Sincerely, Ann Abraham Chair PART 1 Initials Paper Time 1. Welcome, apologies and introduction AA Verbal 10:30 2. Annual Report and Accounts 2015/16 AB Verbal 10:35 To receive an overview from PwC on the Financial Statements, Annual Report and the Quality Report 3. ISA 260 Annual External Audit Report and AB Attchd 10:50 Quality Report To receive reports from PwC on the audit. 4. Letters of Representation 11.00 (a) To consider the letters of representation to AB/JC Attchd PwC. (b) To consider letters of representation from the RS Attchd Chief Executive to the Board 5. Quality Governance Committee LH Verbal 11:10 Recommendations To receive a report from the Chair of the Committee in respect of the Quality Report. 1 6. Audit Committee Report and Recommendations JMc Verbal 11:15 To receive a report from the Chair of the Committee on its review of the Annual Report and Accounts, the ISA 260 report and Letters of Representation. 7. Approval of AA 11.20 (a) Financial Statements App A (b) Annual Report App B (c) Quality Report App C [A schedule of material changes since these Documents were considered by the Audit Committee is attached]. 2 www.pwc.co.uk Dorset HealthCare University NHS Foundation Trust Report to those charged with governance Government and Public Sector Report to the Audit Committee on the audit for the year ended 31 May 2016 March 2016 (ISA (UK&I) 260) Audit Code and scope of our audit We perform our audit in accordance with the Comptroller and Auditor General’s Code of Audit Practice (“the Code”), which was issued in April 2015. Contents Our reports and audit letters are prepared in accordance with the Code and all associated Audit Guidance Notes Executive summary 1 issued by the National Audit Office. Audit approach 2 Reports and letters prepared by Significant audit and accounting matters 8 external auditors and addressed to Value for Money 11 governors, directors or officers are prepared for the sole use of the NHS Other reporting matters 14 Foundation Trust, and no responsibility Internal controls 16 is taken by auditors to any governor, director or officer in their individual Insight into financial procedures 17 capacity, or to any third party. The Risk of fraud 18 matters raised in this and other reports that will flow from the audit are only Fees update 20 those which have come to our attention arising from or relevant to our audit that we believe need to be brought to Appendices 21 your attention. They are not a Appendix 1: Summary of uncorrected misstatements 22 comprehensive record of all the matters arising, and in particular we cannot be Appendix 2: Audit reports issued in 2015/16 23 held responsible for reporting all risks Appendix 3: Letter of representation 24 in your business or all internal control weaknesses. This report has been prepared for and only for this NHS This is a draft prepared for discussion purposes only and should not be relied upon; the contents are subject to Foundation Trust in accordance with amendment or withdrawal and our final conclusions and findings will be set out in our final deliverable. the terms of our engagement letter and for no other purpose. We do not accept or assume any liability or duty of care for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. Dorset HealthCare University NHS Foundation Trust PwC Contents Executive summary An audit of the financial The CQC inspection in June 2015 concluded that statements is not designed to Background overall the Trust “requires improvement” with a identify all matters that may be This report tells you about the significant findings from our specific conclusion that the Trust “requires relevant to those charged with audit. We presented our plan to you in January 2016; we improvement” against the domain “are services governance. Accordingly, the have reviewed the plan and concluded that it remains effective” indicating that the Trust did not have proper audit does not ordinarily identify appropriate. We have completed our risk assessment for our arrangements in place throughout the year for the all such matters. Value for Money conclusion and updates are included effective use of its resources. regarding this below. We have set out in detail our risk assessment, audit approach and conclusions within the Value for Money Audit summary section of this report on pages 11 to 13. We have completed the majority of our audit work and expect to be able to issue an unmodified audit opinion Quality Report summary on the financial statements on 25 May 2016. We have completed the majority of our work on the Quality The key outstanding matters, where our work has Report subject to any matters highlighted as outstanding in commenced but is not yet finalised, are: our Long Form Report. A summary of the matters arising completion of journals testing; from our work is as follows: related parties testing; To conclude whether the local interpretation of the review of the detailed non-financial disclosures in the financial statements; referral to treatment (RTT) indicator impacts on our audit opinion; and confirming consistency of FTCs with financial statements; To complete the content and consistency check of the overall Quality Report. approval of the financial statements and letters of representation; and Please note that management is required by Monitor to send completion procedures including the review them a copy of this report, in accordance with the NHS process and subsequent events review. Foundation Trust Annual Reporting Manual (‘‘NHS FT There are a number of key judgements which require ARM’’). the attention of the Audit Committee – further details We look forward to discussing our report with you on 23 May are set within the ‘significant audit and accounting 2016. matters’ section. We thank the management and staff of the Foundation Trust Value for Money summary for their co-operation and assistance during the course of our We have substantially completed our work on the work. Value for Money conclusion and will be issuing a modified opinion on 25 May 2016. Dorset HealthCare University NHS Foundation Trust PwC 1 Our audit approach meets the requirements of all ISAs (UK&I). Audit approach Our work has been conducted in accordance with the Comptroller Our audit approach was set in our audit plan which we As detailed in our audit plan, our approach consists of smart and Auditor General’s Code of presented to you on 25 January 2016. people, a smart approach and smart technology. Audit Practice, the National Audit Office Auditor Guidance Notes Materiality Smart People and the relevant requirements of the NHS Act 2006. We reported our planned materiality to the Audit Committee We continue to deploy an experienced team on your audit, in our audit plan. As this was based on the 31 March 2015 supported by a substantial investment in training and in our accounts, this has been updated for the results for the year industry programme. ended 31 March 2016. The basis of our materiality calculation We have maintained continuity of staff during the audit for has not changed. this year through inclusion of Anna Blackman, Sasha Lewis, Terri Hanley, Poppy Taylor-Porter and Matt James in your As per audit plan Final materiality audit team, which ensures accumulated audit knowledge is used retained and brought forward to help achieve an efficient audit. Basis Actual income per Actual income per final accounts for the draft accounts Smart Approach the year ended 31 for the year ended Data auditing March 2015 31 March 2016 We use technology-enabled audit techniques to drive quality, Overall £4,920,000 £5,052,000 efficiency and insight. In 2016, our work included the testing materiality of journals through data analysis, to identify and focus our testing on those entries we deem to have the highest inherent Clearly trivial £200,000 £200,000 risk. reporting de- minimis We have included relevant insight from this data analysis on page 17 of this report. We will also continue to explore ways to extend our use of smart technology and data into other areas where we see an opportunity to add value, as well as for quality and efficiency. Dorset HealthCare University NHS Foundation Trust PwC 2 The PwC Audit consists of: Centre of Excellence Smart people; We have a Health Centre of Excellence in the UK - a dedicated team of specialists which advises, assists and shares best A Smart approach; and practice with our audit teams in more complex areas of the audit. Smart technology. Our team has followed the guidance issued by the Centre of Excellence to ensure we are executing the best possible audit approach. Delivery centres We use dedicated delivery centres to deliver parts of our audit work that are routine and can be done by teams dedicated to specific tasks; for example these include confirmation procedures, preliminary independence checks ‘Client Connect’ and consistency and casting checks of the financial We gave your team access to our Client Connect platform, statements. where all the information requests that we make are logged, Use of the delivery centres frees up time for your audit team files are uploaded electronically and are securely transferred to concentrate earlier on more complex areas of accounting.
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