皇冠体育app

Purpose of the paper

This paper gives an overview of the UK Health Security Agency鈥檚 (UKHSA) finances as at month 7 of financial year 2023 to 2024 (the end of October 2023).

Recommendations

皇冠体育app Advisory Board is asked to note UKHSA鈥檚 financial position.

Summary of in-year 2023 to 2024 financial performance (at end of October)

皇冠体育app tables below shows resource and capital departmental expenditure limits (RDEL and CDEL) for 2023 to 2024, split by the parts of:

• core agency costs
• COVID-19
• COVID Vaccine Unit (CVU)
• vaccines and countermeasures

Table 1: Month 7 year to date resource departmental expenditure limits (RDEL) and capital departmental expenditure limits (CDEL)

	Budget	Actual	Variance
Core RDEL	224,116	207,053	17,062
COVID RDEL	157,856	122,323	45,533
ODA RDEL	8,007	8,007	0
CVU RDEL	489,064	728,382	(239,318)
Vaccines and countermeasures response RDEL	197,789	211,221	(13,432)
UKHSA total resource	1,076,832	1,266,987	(190,155)
Core CDEL	44,908	30,286	14,622
COVID CDEL	0	(18,112)	18,112
CVU CDEL	0	(148,124)	148,124
Vaccines and countermeasures response CDEL	4,668	5,866	(1,198)
UKHSA total capital	49,576	(130,084)	179,660
UKHSA total	1,126,408	1,136,902	(10,494)

Table 2: Full year resource departmental expenditure limits (RDEL) and capital departmental expenditure limits (CDEL)

	Budget	M7 forecast	Variance
Core RDEL	375,193	370,900	4,293
COVID RDEL	445,481	419,680	25,800
ODA RDEL	10,342	10,342	(0)
CVU RDEL	939,000	1,021,786	(82,786)
Vaccines and countermeasures response RDEL	568,137	598,552	(30,415)
UKHSA total resource	2,338,152	2,421,260	(83,108)
Core CDEL	83,129	84,844	(1,715)
COVID CDEL	0	(18,112)	18,112
CVU CDEL	0	(189,602)	189,602
Vaccines and countermeasures response CDEL	20,551	25,060	(4,509)
UKHSA total capital	103,680	(97,810)	201,490
UKHSA total	2,441,832	2,323,449	118,383

Core resource and capital budget

UKHSA鈥檚 core resource budget was agreed at 拢395 million. Of that, 拢11 million was ringfenced by the Department of Health and Social Care (DHSC) as contingency against a shortfall in our royalty income and 拢11.2 million for workforce transition. 皇冠体育appse are now unlikely to be needed, so the budget has been reduced.

皇冠体育app full-year resource forecast shows an underspend of 拢4.3 million against the revised budget. However, the current monthly run rate would project a much larger underspend of circa 拢20 million. Although group forecasts have been reviewed and challenged for realism, there is a risk that they are still overly optimistic about spending and delivery. 皇冠体育app Executive Committee has been closely overseeing progress, and agreed a set of mitigating actions in quarter 2 that should lead to increased delivery in the final months of the year.

We are currently waiting for further detail in relation to the announcement on capping civil service headcount, which could impact on plans. 皇冠体育app total UKHSA workforce at September 2023 is planned to increase slightly by March 2024. This reflects continuing recruitment to core-funded clinical and science functions, balanced by reductions from the phasing out of remaining COVID-19 funded activity.

皇冠体育app core capital budget has been over-programmed for the year to be offset by credits generated on the COVID-19 capital budget. It was always expected that spending would be back-loaded, reflecting the time for projects to go through planning stages and gain approvals. A significant acceleration of spend is expected in quarters 3 and 4, in line with historic delivery.

皇冠体育app replacement laboratories programme is developing the strategic review of the programme business case. A priority component of the work is establishing options for reducing costs closer to the original budget; advice is due to go to DHSC ministers in December.

COVID-19 resource and capital budget

皇冠体育app year-to-date position shows an emerging underspend as demand has been lower than originally planned and we prioritise bringing down spending during this final year of COVID-19 funding.

CVU resource and capital budget

皇冠体育app resource forecast is based on national vaccine drawdown plans and an optimum inventory position, which supports demand and scientific advice. 皇冠体育app full-year forecast is a pressure against the agreed budget at the time of the spending review but within the margin agreed in principle for additional HMT Reserve funding.

皇冠体育app capital credit is generated by a refund and purchases from contracts agreed in the previous financial year and delivered in 2023 to 2024.

Vaccines and countermeasures resource and capital budget

This budget is ring-fenced by DHSC and is currently managed on the basis that UKHSA should neither gain nor lose.

Business planning

Activity is underway with Groups on business planning for 2024 to 2025, which includes looking at the potential cost pressures from residual COVID-19 funded activity and at the agency鈥檚 capability for future pandemic preparedness.

Annual accounts and the finance and control improvement programme

皇冠体育app audit for UKHSA鈥檚 annual report and accounts (ARA) for 2022 to 2023 is in its final stages; I will update the board verbally on the latest position. 皇冠体育app overall process has been much smoother than last year, reflecting strong progress from the finance and control improvement programme. 皇冠体育app programme鈥檚 continuing work is focused on embedding improvements sustainably.

Andrew Sanderson
Chief Financial Officer
November 2023