Future Services Programme
1. The committee received an update on the programme including finding from the recent NISTA Gateway Review, and Internal Audit, which identified the need for programme recovery actions.
2. Members noted progress on administration and medical records services business cases, discussed the need for clearer prioritisation of procurements, finances and resources, and agreed on the importance of robust recovery and contingency planning during the transition period.
3. Members noted that there appeared to be a number of similarly material and high risk areas which could jeopardise the delivery of the 10 year plan if not resolved (eg Cyber and supply chain). It was agreed that the Finance Director would compile a list of such projects and discuss them with the CEO to ensure that the proposed risk mitigation is sufficiently resourced and funded in the 26/29 plan and 26/27 budget.
IR35 update
4. The Committee received an update on IR35 compliance, noting progress and extensive training that has been delivered to ensure a consistent IR35 assessment practice across all regions.
5. Members also considered Internal Audit findings on contingent labour agreeing the need for a clear delivery plan to manage increased reliance on contingent staff following workforce reductions.
National Audit Office Value for Money programme update
6. The Committee received an update on the NAO Value for Money Programme, noting recent NAO report publications, completed and forthcoming PAC hearings, and progress in closing outstanding actions.
Status of Internal Audit Management Actions
7. The Committee received an update on internal audit management actions, noting a significant reduction in both total open and overdue actions, demonstrating positive progress. Members emphasised the importance of clear ownership for all remaining actions.
Update on Statutory Functions Assurance Framework
8. The Committee received an update on the Statutory Functions Assurance Framework, noting mixed assurance levels across statutory duties. Members agreed that identified assurance gaps should inform future legislative change and supported developing a targeted list of statutory duties to simplify responsibilities.
NHS England Internal Audit update
9. The Committee received the Internal Audit update, noting the completion of eight audit reports with a mix of assurance ratings and continued improvement. Members welcomed the progress achieved through stronger executive engagement and approved proposed amendments to the internal audit plan.
Breaches of Standing Financial Instructions Q2 2025/26
10. The Committee noted the report on the breaches of Standing Financial Instructions for Q2.
Losses and Special Payments Q2 2025/26
11. The Committee noted the report on losses and special payments for Q2.
ISFE update
12. The Committee received an update on the successful go-live of the ISFE2 system, noting that it is now processing payments and reports at scale, with further work underway to embed and extend the system. Members welcomed the robust business continuity arrangements.
NHS England ARA 25/26 High level plan and intent (ARAC/25/64) and NHS England 2025/26 Project Plan
13. The Committee received an update on the challenges affecting the NHS England and CPA accounts timetable, noting the impact of regulatory and auditing changes, organisational restructuring and ICB changes. Members noted the revised plans to accelerate audit completion, welcomed the collaborative approach between auditors, and thanked the Financial Control teams for their continued efforts.