This interim Annual Audit Letter to the Cardiff and Vale University Local Health Board (the UHB) relates to my audits of the final, six-month period to 30 September 2009 of the UHB’s predecessor bodies. The work reported on in the letter was set out in the agreed audit strategies for the following organisations:
- Cardiff and Vale NHS Trust
- Cardiff Local Health Board
- Vale of Glamorgan Local Health Board
From my financial audit work I have concluded that the predecessor bodies’ resources were, in all material respects, properly used and accounted for in the six-month period ended 30 September 2009, although the Trust’s accounts required a material adjustment in respect of fixed assets:
- the predecessor bodies’ six-month accounts were properly prepared and materially accurate, although issues in relation to continuing healthcare (CHC) claims and asset lives and depreciation resulted in modified audit opinions;
- the health community’s financial position at demise, and as forecast to the year-end, indicates that there are significant financial risks to be addressed by the UHB in 2010 and beyond; and
- the predecessor bodies’ significant financial systems were generally fit for purpose, but issues were identified in relation to CHC claims and capital accounting.