The Christie NHS FT Annual Report & Accounts 2019-20

• the Accounting Officer’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or • the Accounting Officer has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or the Trust’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. In our evaluation of the Accounting Officer’ conclusions, and in accordance with the expectation set out within the Department of Health and Social Care Group Accounting Manual 2019 to 2020 that the Trust’s financial statements shall be prepared on a going concern basis, we considered the risks associated with the group and Trust’s operating activities, including effects arising from macro-economic uncertainties such as Covid-19 and Brexit. We analysed how those risks might affect the Trust’s financial resources or ability to continue operations over the period of at least twelve months from the date when the financial statements are authorised for issue. In accordance with the above, we have nothing to report in these respects. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the Trust will continue in operation.

Overview of our audit approach Financial statements audit • Overall materiality: £6,618,000, which represents 2% of the group’s gross operating expenses; • Key audit matters were identified as: − Valuation of land and buildings − Covid-19 • The group consists of six components – the Christie NHS Foundation Trust, two wholly owned subsidiaries and three joint ventures. • We performed a full scope audit of the Christie NHS Foundation Trust and audit testing on classes of transactions, account balances, or disclosures relating to the subsidiaries and joint ventures which were material to the group position or included a likely significant risk of material misstatement to the group financial statements. Conclusion on the Trust’s arrangements for securing economy, efficiency and effectiveness in its use of resources • We did not identify any significant risks in respect of the Trust’s arrangements for securing economy, efficiency and effectiveness in its use of resources (see Report on other legal and regulatory requirements section).

Key audit matters The graph below depicts the financial statement audit risks identified and their relative significance based on the extent of the financial statement impact and the extent of management judgement.

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