Accountability report

Statement of Accounting Officer’s responsibilities

Under the Government Resources and Accounts Act 2000, HM Treasury has directed the Authority to prepare for each financial year resource accounts detailing the resources acquired, held or disposed of during the year and the use of resources by the Authority during the year.

The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of the Authority and of its income and expenditure, Statement of Financial Position and cash flows for the financial year.

In preparing the accounts, the Accounting Officer is required to comply with the requirements of the Government Financial Reporting Manual and in particular to:

• observe the Accounts Direction issued by HM Treasury, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis
• make judgements and estimates on a reasonable basis
• state whether applicable accounting standards as set out in the Government Financial Reporting Manual have been followed, and disclose and explain any material departures in the accounts
• prepare the accounts on a going concern basis
• confirm that the Annual Report and Accounts as a whole is fair, balanced and understandable and take personal responsibility for the Annual Report and Accounts and the judgements required for determining that it is fair, balanced and understandable

HM Treasury has appointed the Permanent Secretary of the Authority as Accounting Officer of the Authority. The responsibilities of an Accounting Officer, including responsibility for the propriety and regularity of the public finances for which the Accounting Officer is answerable, for keeping proper records and for safeguarding the Authority’s assets, are set out in Managing Public Money published by HM Treasury.

As the Accounting Officer, I have taken all the steps that I ought to have taken to make myself aware of any relevant audit information and to establish that the Authority’s auditors are aware of that information. So far as I am aware, there is no relevant audit information of which the auditors are unaware.

Governance statement

Responsibilities

As Accounting Officer, I have responsibility for maintaining effective governance and a sound system of internal control to support the achievement of the Authority’s policies, aims and objectives. As part of this role I safeguard the public funds and assets for which I am personally responsible, in accordance with the responsibilities assigned to me.

This statement sets out the key challenges faced by the UK Statistics Authority (the Authority), the issues which have arisen, the remaining risks, and the system of control to manage these risks. Our Governance Statement supports the description of our performance provided in the Annual Report (Chapter 2) which sets out our strategy and the progress we have made towards delivery.

In line with commitments made by the Authority to the Public Administration and Constitutional Affairs Committee, I appointed Mr Ed Humpherson as an Additional Accounting Officer, with responsibility for the OSR budget, from 1 June 2020. The appointment was made in accordance with Section 5, subsection 8 of the Government Resources and Accounts Act 2000 and carries with it the responsibility for ensuring that resources approved by the UK Statistics Authority Board for the Office for Statistics Regulation are used for the purposes intended.

Compliance with the Corporate Governance Code

I have assessed the Authority’s compliance with the corporate governance in the Central Government Departments’ Code of Good Practice 2017. The code focuses on governance arrangements for ministerial departments and there are elements, such as ministerial chairmanship of the Board (Section 1.1), which are not directly relevant to the Authority due to our statutory framework and status as a non-ministerial department. However, we comply with the spirit and principles of the code.

Role of the Authority Board during 2021/22

The UK Statistics Authority Board (Authority Board) has the statutory objective of promoting and safeguarding the production and publication of official statistics that ‘serve the public good’. In accordance with the 2007 Act, the Authority Board is comprised of a majority of non-executive directors (including a Chair) appointed through open competition, and three executive members, as set out in the 2020/21 Governance and Committees of the Board table.

The post of Chair of the UK Statistics Authority is a Crown appointment. Sir David Norgrove was appointed by HM The Queen following an open competition and subject to a pre-appointment hearing by the Public Administration and Constitutional Affairs Committee and a formal debate on the floor of the House of Commons. Sir David took up his post on 1 April 2017 and his term of appointment ended on 31 March 2022.

Governance and Committees of the Authority Board during 2021/22

During 2021/22 sub-committees, which supported the Authority Board in its work and reported to it met as follows:

Topics covered by each committee

Authority Board

Strategy and Business planning; Board effectiveness; Census 2021; COVID-19 Infection Survey and Surveillance Studies; Climate Change statistics portal; Crime Statistics; Economic Statistics transformation; EU Exit Statutory Instrument; Governance of Economic Statistics; Government Statistical Service; Inclusive Data Taskforce; Integrated Data Service Programme; Interventions Policy; Media Strategy; Migration Statistics; National Statistics Designation; Review of Release Times; Spending Review 2021; Strategic resourcing; Strategic Risks; Sub-national data; User Engagement.

Audit and Risk Assurance Committee

Annual Report and Accounts; Business planning; Census and Data Collection Transformation Programme; COVID-19 Infection Survey; Committee effectiveness; Corporate Governance Assurance; External Audit; Finances; Fraud;
Integrated Data Service Programme; Internal Audits; Portfolio Management; Risk and Assurance (including risk management); Security; Statistical quality; Legacy transformation.

Regulation Committee

Analytical Leadership; Annual Business Plan and Regulatory Programme; Annual Review of Casework; Interventions Policy; Levers and Mechanics of Change; National Statistics Designation Review; ONS Annual Economic Surveys and the Assessment of the Annual Business Survey; OSR Maturity Model; Risk Management; Horizon Scanning; Review of Release Times; Committee Effectiveness; Transparency; Compliance checks and Rapid Reviews; Assessments: 2021 Census in England and Wales and 2021 Census in Northern Ireland; Systemic Reviews: Children and Young People Statistics; Review of Migration Statistics; Climate Change Statistics; Loneliness Statistics; Improving Health And Social Care Statistics – lessons learned from the COVID-19 pandemic; Review of Income-based Poverty Statistics; Transport Accessibility Statistics.

Remuneration Committee

Senior Civil Service performance moderation (base pay and non-consolidated performance related award).

Attendance at the Authority Board and its sub-committees

Board effectiveness review

This year’s board effectiveness review was overseen by the Chair of the Authority Board. A survey was undertaken that sought members’ views on:

• processes for agreeing business plans
• adequacy of information provided to the Board, to allow it to monitor performance and progress
• board composition and culture
• support for members
• areas of focus for the coming year

The outcome of the survey was discussed at the board meeting in September 2021. The responses indicated an improvement in the operation of the Board in a number of areas including business planning and risk discussions. The Chair continued to provide an open and supportive culture to allow an inclusive, open and challenging environment for discussion. The Board considered important strategic issues focusing on the delivery of the strategy, Statistics for the Public Good. Members indicated that in the coming year, delivery of the strategy should continue to be the area of focus including legacy transformation, the Integrated Data Service, COVID-19 Infection Survey, statistics transformation and the trustworthy communication of quality statistics.

Assurance over the quality of information

The Authority Board recognised the need to ensure it receives sound advice and information to enable informed decisions to be made. The Secretariat works with teams to ensure the information provided is of a good quality, with a template used for committee papers, structured to ensure risks and resource implications are highlighted and to ensure sufficient engagement and challenge during discussions.

The structure and information contained in regular agenda items are reviewed annually as part of the board effectiveness review. An Integrated Performance and Finance Report is provided to the Authority Board in each meeting to aid decision making and the Strategic Risk framework has been discussed throughout 2021/22. Overall, the Authority Board has been content with the quality of the data it has been provided with during the year.

Executive Committees during 2021/22

I chair the National Statistics Executive Group (NSEG). The role of NSEG is to support the National Statistician in the exercise of my functions as the Head of the Government Statistics Service (GSS) and Analysis Function, and as Chief Executive of the UK Statistics Authority and ONS, so as to achieve the collective mission and strategic objectives of the official statistics system.

This group met on 9 occasions during 2021/22.

Risk management approach

Risk management is inherent in all of our activities and is considered throughout our planning and delivery. The UKSA Risk Management Framework provides our mechanism for the identification and analysis of risk. It also ensures we are able to provide assurance that risks to the delivery of the UKSA Strategy are being managed within risk appetite.

The Authority Board has ultimate accountability for risk management, with responsibility for agreeing our Strategic Risk profile and the associated risk appetite. Updates on the Strategic Risk profile are provided to the Board on a bi-annual basis.

The Audit and Risk Assurance Committee has responsibility for advising the Board on the effectiveness of governance, risk management and the system of internal control. Updates are provided to each ARAC meeting on the evolving Strategic Risk profile, as well as other relevant risk and assurance activities.

Executive accountability for risk management resides with the National Statistician (the Accounting Officer) and their senior leadership team. Executive oversight of risk management resides with the National Statistician’s Executive Group (NSEG) committee and its sub-committees. In-depth analysis of the emerging risk environment and Strategic Risk profile is provided to NSEG on a quarterly basis through the Quarterly Strategic Risk and Assurance Report.
Strategic Risk updates are provided to each NSEG meeting through the monthly Integrated Performance Report.
The UKSA operates a ‘Three Lines of Defence’ model to distinguish the different executive responsibilities for risk and assurance:

1. First line
   Owns risk and implements controls, as well as operationalising and executive strategic objectives – undertaken by our senior leaders and Directors.
2. Second Line
   Responsible for risk reporting to NSEG, ARAC and the Authority Board. As well as giving independent challenge and advice to 1st Line of Defence, including supporting the management of risk and building of assurance mechanisms – undertaken by the Risk and Assurance team, as well as other related functions including the Data Quality Hub, Security and Information Management Team, the Data Protection team and the Planning and Portfolio team.
3. Third line
   Provides assurance to the Accounting Officer, ARAC and the Authority Board that risk management and controls are appropriate and effective through independently and objectively evaluating internal controls, risk management and governance processes – undertaken by Internal Audit. The UKSA Risk Management Framework complies with the Government Finance Function’s Orange Book principles for risk management.

Key successes of 2021/22

2021/22 has seen further investment in our Risk and Assurance framework.

As this work has developed, we have seen the following improvements:

• an updated and streamlined Strategic Risk profile, with clear executive ownership and associated governance
• enhanced Quarterly Risk and Assurance Reports, providing greater insight and analysis to decision makers
• an updated UKSA Risk and Assurance Policy, clarifying executive accountability and responsibility for risk management
• increased horizon scanning activities to identify emerging risks, including the creation of an ONS Quarterly Risk Council

An internal audit of Strategic Risk management was undertaken in 2021/22 which concluded that risk is now more regularly and robustly discussed at the UK Statistics Authority Board (UKSA) and committees and there is a significant change in the perception of the risk management process as now crucial to ONS decision making.

In 2021/22 the UKSA Risk and Assurance team won the ‘Risk Excellence Award’ at the Government Finance Function and Internal Audit Awards.

UK Statistics Authority strategic risks

The Strategic Risk profile demonstrates the most significant risks to the successful delivery of the UKSA Strategy and its statutory objectives, owned by the UKSA senior leadership.

The profile is agreed by the Authority Board on an annual basis, with reference to the UKSA Strategy, the ONS Business Plan and the external environment.

UK Statistics Authority Strategic Risks Summary

Independence and trustworthiness

The risk that the statutory independence of the UK Statistics Authority is, or is perceived to be, compromised by political interests or commercial relationships.

Mitigation includes – clear internal governance and oversight of strategy delivery and income streams; regular engagement with Parliament (including through the National Statistician appearing before the Public Administration and Constitutional Affairs Select Committee) and; intervening when statistics are misused.

Keeping pace with the analytical priorities of society

The risk that the UKSA does not identify or prioritise answering the key analytical questions by not sufficiently engaging in, or being aware of, the evolving public policy debate.

Mitigation includes – regular and ongoing stakeholder engagement with the centre of Government; cross-ONS and GSS horizon scanning; the evolving workplan of the Analytical Hub; and faster economic indicators to provide more responsive insight on key priorities.

Security: cyber, information, insider and physical

The risk of information security mismanagement, insider activity, or a cyber-attack or physical attack. With a focus on preventing a major data breach.

Mitigation includes – a suite of physical, technical, people and process security controls (including proactive monitoring through the Security Operations Centre – S.O.C); compliance with the ONS Security Principles and Policies; business continuity planning and; security training and internal awareness campaigns to raise awareness and to reinforce behavioral expectations.

Trust through our communications

The risk that the UKSA does not demonstrate transparency, openness, accessibility, quality, and timeliness in our public communications.

Mitigation includes – proactive communications with stakeholders and the public to build awareness, understanding and acceptance of the ONS’ use of data; investment in the ONS website to improve user experience; regular monitoring focused on the accuracy and timeliness of statistical outputs and; a suite of controls ahead of media releases to reduce the risk of publishing in error.

Data access and usability

The risk that the UKSA does not have or is unable to obtain regular and sustainable access to the required administrative data (admin and survey) to deliver on its commitments and ambitions; and/or it is unable to process acquired data due to usability or quality issues.

Mitigation includes – the building of the Integrated Data Service to support cross-government sharing of data and efficient access to datasets; the Data Pipeline Service Design project to optimise data acquisition requests and efficiencies in data processes and; established Data Principles, polices and standards to ensure data integrity and security.

Quality statistics

The risk that the quality (and/or perception of quality) of UKSA output diminishes due to the scope, nature and focus of statistics changing, in addition to the use of wider data sources, the streamlining of processes, legacy technology and updated methodological approaches.

Mitigation includes – the Statistical Quality Maturity Model (SQMM) to assess process, methods, and systems in output areas; Quality Deep Dives to review the quality of a set of statistics and; the ONS Quality Improvement Strategy and Divisional Quality Improvement Actions Plans.

Our people

The risk that the UKSA is unable to build a workforce that is agile and adaptable to change; we are unable to attract, mobilise and retain individuals with the best analytical and professional skills; we are unable to build a diverse and inclusive pool of talent and/or; we are unable to enhance the sustainability, wellbeing and resilience of our workforce.
Mitigation includes – strategic resourcing; enhancements to our recruitment offering; embedding the Inclusion and Diversity Plan, to create a diverse and inclusive workforce and; Delivery of the Location and Dynamic Working Programme (including return to the office and evolving the workplace etc.), to create places of work where skills are best accessed and realised.

Ability to accurately measure population and migration

The risk that the UKSA fails to provide a credible evidence base for the 2023 Census recommendation by Parliament due to a lack of robust and responsive population and migration statistics.

Mitigation includes – the delivery of a set of tools and methods that allow admin data to be fully utilised to produce high quality Census outputs; the creation of a roadmap for establishing and delivering a robust set of evidence required to support the 2023 recommendation and drive forward the transformation of population and social statistics and; the Social Statistics Transformation, Analysis and Research programme to the wider transformation of population statistics.

Technological resilience

The risk that the UKSA technology estate (inc. software, systems, services, and platforms) is unreliable, obsolescent, or no longer supported. Mitigation includes – an ongoing programme of upgrades and patching across the ONS IT estate to address identified flaws and vulnerabilities in applications and software, as well as the ONS Digital and Technology Strategy which contains a strategic roadmap that identifies the reduction in reliance on Legacy systems, and migration to Cloud native technologies.

Delivery of strategic ambition

The risk that the UKSA is not adequately funded and/or is not internally structured in a way that enables it to respond with agility, both to prioritise resources and deliver the portfolio (existing and new/emerging demands).

Mitigation includes – the submission to and approval of a Spending Review bid that aligns to key priorities and delivery of the UKSA Strategy; the BASE Review and project plan to implement the findings to provide effective structures and balance across the enabling and frontline delivery services; an Efficiencies Programme and framework for facilitating and managing delivery of efficiencies and; Portfolio management – prioritising demands, as well as understanding dependencies and delivery constraints.

Collaboration with strategic partners

The UKSA fails to make the most of, or take, opportunities to collaborate across Government (inc. the GSS), and with appropriate external partners. Mitigation includes – Government colleagues being members of a number of
UKSA governance committees; the building of the Integrated Data Service; the ONS Research Strategy, to including how we collaborate with external partners, e.g., Wellcome Trust and; collaborations through the Secure Research Service.

Inclusivity in our statistics and analysis

The risk that the UKSA’s presentation of society is not inclusive and reflective of all aspects of the UK’s rapidly changing economy, demographics, and policy priorities.

Mitigation includes – responding to the recommendations of the Inclusive Data Taskforce and ensuring that our workforce is inclusive and representative of society at large.

Public health monitoring, analysis, and reporting

The risk that the UKSA’s remit is unclear in public health monitoring and surveillance and/or it is unable to adequately resource to deliver.

Mitigation includes – regular engagement with public health authorities including SAGE and the UKHSA; the development of an ONS Health Analysis Strategy, building on the success of the COVID-19 Infection Survey and; the support of the Analytical Hub to enable agile and flexible responses required to deliver priority outputs.

Data and security management

The security of staff and data is a top priority for the UK Statistics Authority (UKSA) and its executive agency, the Office for National Statistics (ONS).

November 2021 saw the launch of a revised Security and Information Strategy – Evolving A Resilient ONS 2021 – 2023. The strategy is designed to support the UKSA ambitions through a radical evolution of our security and information measures that moves security to a higher level of maturity and resilience while enabling ONS to achieve its ambitions. To enable this the strategy identifies six key objectives, which we are already on a pathway to deliver – secure ONS business transformation; build stronger internal security understanding and relationships; empower business areas to make more security decisions within an overarching framework of protection; highlight security risk more clearly with appropriate mitigation choices; demonstrate ongoing security assurance and increase maturity through resilience.

This has been an important year for security and data management, with the UK England and Wales Census being secured, transformation of the internal Data Access Platform (DAP) for improved statistics and the creation of a new Integrated Data Service (IDS) for cross-government data analysis. Advances in cloud technology security assurance and improved risk management have been key for ensuring these have been appropriately protected as befitting their Authority and wider Government priority.

Security and Information Management as a whole have contributed significantly to the design, build and operation of the England and Wales 2021 Census; from the initial design work, leading into build, then test into the final operation and now into decommissioning. In addition, we obtained independent assurance of the security being implemented through a detailed third-party specialist review, which concluded that the Authority had a comprehensive security programme in place designed to reduce the risk of compromise to the Census and citizen data. To support this Security and Information Management also provided a 24 hour, 7 days a week protective monitoring service to monitor events and initiate planned responses to any malicious activity.

The Coronavirus pandemic and the Authority’s response have been major factors in our data security activity. While our work with other Government departments to acquire data continued, substantial work was performed in acquiring datasets from new sources to support Coronavirus analysis for the Government. The security of these new and existing sources of data has remained a priority for the Authority.

During the pandemic Security and Information Management quickly adapted our work, methods, and support for wider ONS colleagues that successfully enabled a move to home working in secure ways and then the return to the office. This brought new security challenges for ONS, which collectively we worked hard to find solutions to keep the whole of ONS working securely and safely. This was particularly important in the fast but considered policy changes made to bring new sources of data in and provide secure options to enable the immediate ingest, processing and dissemination of this for Government and public benefit.

The overall security of our systems, in particular our key data management environment, the DAP, remains critical. Within the review period DAP became UK Government – Critical National Infrastructure, outlining the importance of the platform and the levels of security assurance applied.

The security and data assurance of the IDS, a new platform approach for the secure sharing and use of Government data for analysis and research, was a key programme throughout the period. Substantial focused work has supported the launch and operation of a prototype and two different Private Betas. Transforming the security of DAP and IDS using modern techniques and technology supports the Authority and wider Government transformation of statistics, and our ongoing success in operating these.

Our support to the Digital Economy Act continues through the security assessment of potential data processors under Act and Code of Practice.

Maintaining high levels of security protection for public data used in research is a key requirement for the Authority. Our experts have assessed organisations for accreditation this year to ensure strong security controls are in place to host and process data, with the Research Accreditation Panel making a determination on the formal accreditation. In addition, several annual assessments have been performed on accredited organisations to ensure that their security environment remains strong, with appropriate improvements being implemented.

Public confidence and support for the provision of data is critical, including the acceptability of legislation such as the Digital Economy Act. We recognise that a data or cyber breach in the management of data could impact this significantly.

To support our approach to managing these areas, we have made significant investment in protective technology, monitoring services and vulnerability testing together with staff training and development. This has included extensive engagement with the National Cyber Security Centre and with key Government department security teams. Enhanced security training is now a mandatory requirement for all staff, with substantial effort being put into behavioural security to provide staff with the awareness needed so they play a stronger part in the defence of the Authority.

Security and Information Management have made significant progress over the last year to fully implement an office wide, modern Business Continuity Management System (BCMS). This has created for the first time a single organisation view of business priority outputs and their underpinning technology and service needs which are now embedded into a resilient service response.

Information management

Management of the Authority’s documents and records throughout their lifecycle, and according to information legislation, continues to be a priority. The document management system that enables greater functionality for the storage and sharing of operational information was upgraded during 2020/21.

The document management system has been supported by a new document and records management policy which has been revised to allow for ongoing management of personal data in the upgraded system in support of compliance
and accountability with data protection legislation.

With significant levels of confidential data collected and acquired for use in official statistics, information management and confidentiality are critical considerations where people, processes and systems interface with the external world. Staff working in some parts of the Authority have access to a range of business and personal data to produce high quality, accurate statistics. There is a recognised, strong cultural understanding that information must be handled lawfully, accurately and securely, supported by strong legal, technological, and business processes.

We continue to make available a range of documents that describe how the Authority looks after and uses data for the public benefit. These include the strategic approach to data use; a comprehensive data management framework to describe how the Authority manages and governs data practices to ensure we protect the confidentiality and security of data we hold and meet our legal obligations; a range of data management policies; and a transparent register of the data sources we acquire from other organisations that support the production of our statistics and research.

Successful digitalisation of the 1921 Census returns documentation was a significant achievement through the period, following a migration of the paper records to The National Archives. This work has run in parallel with selecting Census 2021 datasets for permanent preservation for 100 years.

The data protection auditing, and compliance monitoring service continues to report on all activities across the Authority from a data protection perspective, also supporting the work of the Data Protection Officer in providing guidance, training and awareness of data protection requirements.

I am required to report any significant breaches relating to personal data to the Information Commissioner’s Office (ICO). There have been no such incidents during 2021/22.

Developments in the control environment

Operating throughout the COVID-19 pandemic has proven the importance of internal controls in supporting, and improving our organisational resilience. A strong internal control environment facilitates the UKSA’s effective and efficient operation, by enabling it to respond appropriately to the Strategic, Programme and Operational risks to the achievement of our objectives. Additionally, an effective system of internal control helps us to ensure the quality of both internal and external reporting. Of increasing importance, it supports us to ensure compliance with applicable law and regulations, as well as our internal policies.

During 2021/22 we made significant investment and improvements within the internal control environment. These include:

• the continued embedding of the 2021 revised governance framework and structure of the sub-committees below the National Statistician’s Executive Group, placing the Strategic Objectives and Strategic Risks at the core of their Terms of Reference to provide robust oversight and challenge
• continued improvements in the oversight of organisational management, with an integrated approach to reporting, and assurance over, progress against our strategic business plan, objectives, risks and finances
• investment in risk and assurance capability, both in the central Risk and Assurance team and Internal Audit team, as well as across the organisation; with strengthened lines of defence as a result. This year has seen a particular focus on statistical quality and security
• the creation of Risk Appetite Metrics and Assurance Maps across a number of the UKSA’s priority Strategic Risks. With regular challenge on metric performance as well as assessing the adequacy of assurance frameworks
• an enhanced focus on the investigation of incidents and control failures, as well as addressing assurance gaps identified by undertaking targeted reviews
• a revised demand management and prioritisation approach, as well as the inclusion of Strategic Risk mitigation in the post-Spending review planning process

These developments have provided organisational stability to manage the ongoing and changing demands placed upon us. We will continue to invest in this area to maintain the confidence and integrity of our internal control framework.

A revised Governance Assurance Statement, signed by each of our Directors was developed this year to ensure and maintain focus on core areas of internal control, including; People; Risk; Governance; Security; Statistical Quality; Portfolio Management; Commercial and Finance Management, and has confirmed the adequacy of the control environment operating each of their respective areas.

Assurances from Internal Audit

The Internal Audit function provides the National Statistician and the Audit and Risk Assurance Committee with a clearer view on any emerging risks. The internal audit programme is closely linked to the key risks of the Authority.
Arrangements are in place to ensure that the National Statistician is made aware of any significant issues which indicate that key risks are not being effectively managed. The Internal Audit service complies with the Public Sector Internal Audit Standards.

Opinion of the Head of Internal Audit

In my role as Head of Internal Audit (HIA), I am required to provide an overall opinion based on my professional judgement, which is supported by the outcomes of the 2021/22 Internal Audit Programme of work. However, my annual opinion also recognises the wider control and operating environment within the Authority, the level and extent of change, and the way in which the organisation is managing and responding to its key risks. The opinion I provide reflects the status of the risk, control and governance environment, based at the point in time in which the work was undertaken.

The impact of the COVID-19 pandemic, both on the priorities and business activities of the organisation and on internal audit’s ways of working, has continued to be felt during the year. However, the level of disruption has diminished and working practices have stabilised such that we have been able to carry out the annual programme of work substantially as planned. There has been a change in HIA during the year as the former acting HIA moved internally to become Head of Assurance, thus retaining continuity and institutional knowledge within the broader Internal Audit, Risk and Assurance function.

Risk management has continued to improve, as demonstrated by our ‘Moderate’ February 2022 audit report following the implementation of a substantial number of actions agreed in our 2019/20 ‘Limited’ audit opinion. Now that the governance and reporting mechanisms are well established for the strategic risks, work remains to turn attention to improving operational risk management mechanisms. The tone from the top continues to be very supportive, which is helping to further drive risk management maturity. In addition, the recent staffing additions to the Risk and Assurance team are starting to bear fruit as capacity increases, notably with the continued development of assurance maps to gain a more complete understanding of existing assurance arrangements to inform further improvement activity.

There has continued to be a strong level of engagement from senior leaders and management when planning reviews, supporting audit fieldwork, and in the process of agreeing value adding management actions to strengthen the control environment. I have also been impressed with the spirit of openness with which the UKSA executive leadership volunteered ideas for audit reviews as part of the audit planning round for 22/23.

The trend towards more positively rated audit reports observed last year has been maintained over the last 12 months. As shown in the table in section 3.1, we have again issued three ‘Limited’ reports, with the remainder ‘Moderate’ or ‘Substantial’. There are however areas where improvement is still needed. We noted in our reviews of legacy IT reduction (Transformation of Output Areas) and data acquisition and processing (Data Pipeline), that such complex challenges require prolonged effort. These processes have been subject to negatively rated audit reports previously, and while progress has been made, at times the complexity of the problems and resource constraints have limited management’s ability to achieve their full ambitions.

Past HIA opinions have raised the issues of working in silos and ineffective collaboration. Our audit work indicates that in several cases real improvements are being made to address this. For instance, DST and Security are working more closely together, bringing security in earlier in projects to achieve ‘secure by design’ objectives. We also noted the collaborative approach to IT legacy reduction between technology and statistical quality teams, directing efforts to reduce our legacy estate to drive up quality standards. We did find some processes where there is potential to drive efficiency and reduce risk by improving collaboration further, for example in the Data Pipeline where enhancements in supporting systems, processes and communication are underway.

The total number of incomplete or superseded audit actions reported in our action follow up reporting has reduced from last year, representing improved performance by the business in closing actions on time. There has been a deterioration in the rating of audit action follow up reports, with two quarters reporting ‘good’ and two quarters of ‘reasonable’ progress (compared with all ‘good’ in the prior year). However, this is more due to the way the opinion is calculated (total incomplete and superseded actions as a % of total actions) rather than an actual deterioration in performance.

I am pleased to report that the improvements in the framework of governance, risk management and internal controls observed in the prior year have been maintained, and there is evidence of continuing improvement in areas such as cross-organisational collaboration and resource prioritisation.

Overall, my opinion on the framework of governance, risk management and controls is “moderate” for 2021/22 financial year.

Opinion of the Chair of the Audit and Risk

Assurance Committee

Based on the work of the Committee during the year and the assurance work carried out by the External and Internal Auditors, it is my opinion that the Authority’s governance and control framework is generally effective. The Committee accepts the overall moderate opinion from the Head of Internal Audit, which reflects the work and effort across the organisation on joint working and achieving improved accountability and ownership of cross organisational risks, which were issues highlighted in previous HIA opinions. This progress has been achieved as a result of the commitment of the Accounting Officer and the Senior Leadership Team to working as ‘One ONS’, which has been a key enabler of continued progress this year.

The significant developments in risk and assurance have been underpinned by the revised executive governance framework which has a critical role in the oversight, challenge and cross organisational management of risk.
This is the second year of a moderate opinion from the Head of Internal Audit, which builds upon the early successes achieved last year in the three areas below. Improvements have been sustained, in the following three areas highlighted in 2020/21, with continued development this year:

• strengthening risk and oversight functions
• developing the culture of ownership and accountability
• strengthening governance

In the coming year, the Committee anticipates the continued constructive and proactive engagement of the Executive in responding to Internal Audit reports and recognising the function’s strategic value in its business partnering role. In
order that the Committee and in turn, the Board can continue to benefit from the assurance that Internal Audit offers, it will be important that the quality of constructive engagement with Internal Audit on agreed actions is upheld. Pace of progress in mitigating risks in programmes such as Census, IDP and legacy management will be key in realising the organisation’s strategic objectives.

Proactive efforts on the part of management to deliver on commitments made to the Committee will be a key indicator of the developing maturity of the risk and assurance framework and the culture of accountability and ownership.
The roll out of the risk framework by the Risk and Assurance Team will be key to further improvements in the effective management of cross organisational risks to underpin the delivery of the business plan.

Overall conclusion

In conclusion, the UK Statistics Authority’s approach to governance, risk management and control is generally effective. We have developed our approach across each of these areas during the year and I am pleased that this progress has been reflected in the assurance work that has been delivered through the year.

During 2022/23 we will continue to embed the improvements in our approach and focus on further developing our assurance activities to match the ambitions we have for the organisation and ensure that we keep pace with these activities.

Professor Sir Ian Diamond
Accounting Officer
6 July 2022

Summary financial information

Key Financial Outturns

The key financial outturns for 2021/22 are shown below:

The Authority has utilised 87 per cent of its Resource funds throughout the year in progressing its strategic and operational objectives. The above figures include both ring-fenced and non-ring-fenced resources. The Authority utilised 71 per cent of its non-ring-fenced funding (Depreciation and Amortisation).

From a ring-fenced resource perspective, the key variances relate to lower than anticipated expenditure through strategic programmes with CDCTP being the most significant contributor. The CDCTP variances are driven ultimately by a lower than anticipated cost to carry out the Census Field operations both in terms of staffing costs and third-party service provision; a lower-than-expected utilisation of a specific severance budget; and a lower use of programme contingency.

Departmental Expenditure Limit – Capital

The Authority has been able to utilise 93 per cent of its Capital funds throughout the year using this funding to continue to transform our IT systems; capitalise research where appropriate in the context of ESA10; and to ensure our estate reflects our changing requirements.

Depreciation and Amortisation

The Authority has robust financial controls in place for asset management and we have been able to plan effectively for the utilisation of our assets. During the year we have continued to review our assets which verified the continued useful economic life.

Annually Managed Expenditure

The Annually Managed Expenditure saving is attributed to a reduction in the level of provisions created during the period compared to that anticipated during the Estimate process. This is primarily related to all costs for a voluntary
exit scheme carried out in 2021/22 being accrued for, rather than generating a provision as initially planned. The Authority also planned to create a provision in 2021/22 in relation to unredeemed survey incentive vouchers, but the value of vouchers unredeemed at period-end and for which expenditure could not be accrued, was of less value than initially anticipated.

Included within the resource expenditure are staff costs which are analysed in the staff report. This shows the number of full-time equivalent staff (FTEs) and their costs, which include wages, social security and pension costs. Employees
are Civil Servants to whom the conditions of the Superannuation Acts of 1965 and 1972 and subsequent amendments apply.

The Remuneration Report (page 78) provides further information on the relevant schemes. In accordance with IAS24 Related Party Disclosures, all executive directors, non–executive directors and deputy directors are required to complete declarations that they have not entered into agreements or undertaken any material transactions with a related party during the year. Further information is in note 17 of the accounts.

The accounts of the Authority are audited by the Comptroller and Auditor General and his Certificate and Report to the House of Commons is presented in the Annual Accounts at pages 106 to 112.

The financial statements are audited in accordance with International Standards on Auditing (UK and Ireland) issued by the Accounting Practices Board, and in accordance with the Government Resource and Accounts Act 2000.
Audit fees charged in the accounts amount to £111,600 (2020/21 £96,500). There were no non-audit fees charged in 2021/22 (2020/21 nil).

The Statistics Board Total departmental spending, 2017/18 to 2022/23

Prompt payment target

The Authority is committed to both the Chartered Institute of Credit Management and the Department for Business, Energy and Industrial Strategy’s prompt payment code. The policy sets out that all invoices should be paid in
accordance with contractual conditions.

Where no conditions exist, payment will be made within 30 working days of the receipt of goods or services, or the presentation of a valid invoice, whichever is the later. We made payments in accordance with this policy in 93 per cent of transactions for the year ended 31 March 2022 (95 per cent in 2020/21). The performance is measured in accordance with HM Treasury guidelines.

In addition to the 30 days target we endeavor to pay small and medium sized enterprises within five days. We achieved payment in accordance with this policy in 85 per cent of transactions for the year, (82 per cent in 2020/21) compared to a target of 80 per cent.

Directors’ report

The requirements of the Directors’ report are covered by the following:

The UK Statistics Authority is a non-ministerial department, operating at arm’s length from Government and reporting directly to Parliament and the devolved legislatures. The Cabinet Office retains residual ministerial responsibilities for the UK Statistics Authority.

The composition of the Authority Board and its sub-committees is set out in the Governance Statement (pages 53 to 70).

The Executive Directors of the UK Statistics Authority are set out in the Remuneration Report (pages78 to 89).

The Authority maintains a Register of Interests of its Board members. The Register of Interests is maintained on the UK Statistics Authority website at: https://uksa.statisticsauthority.gov.uk/the-authority-board/

It is updated at least annually. The onus is on individual members of the Authority to determine other interests that should be disclosed and to make known to the Chair and Secretariat any subsequent changes in those interests.
At the start of every meeting of the Authority Board, members will be asked to declare any interests in the business on the agenda. Members should similarly make an interest know should it arise during the business of the meeting.

Personal data related incidents are described in the Governance Statement (page 66).

Other disclosures are promulgated by HM Treasury through Public Expenditure System papers.

Financial reporting to Parliament

This report forms part of the annual reporting process to Parliament. Further, and as part of the reporting process the Authority also prepares estimates of its expenditure with the Main Estimate in the early part of the financial year, and the Supplementary Estimate normally published in February. Details can be found at: https://www.gov.uk/government/collections/hmt-main-estimates

Engagement and transparency

The Authority believes that transparency is a key condition and driver for the delivery of our services. As a publicly funded organisation, we have a duty to our stakeholders to be transparent about our business operations and outcome.

To provide transparency across its operations the Authority published information which is regularly updated on its own website and /or the UKSA website. This includes:

• expenses and hospitality received by board members and senior directors
• organisation charts
• details of senior and junior posts and senior staff salaries
• details of payments to suppliers each month over £25,000
• monthly prompt payment information
• exception reporting

The Authority has a central email enquiry point, authority.enquiries@statistics.gov.uk. Enquiry handling is managed by the Secretariat. There is also a central telephone enquiry line 0845 604 1857.

The Authority operates transparently and openly. It publishes the minutes and papers of its meetings, and correspondence regarding issues of public concern and information about other aspects of its work on its website
www.statisticsauthority.gov.uk.

Contractual arrangements

The Authority continues to work across circa. 250 3rd party agreements to deliver its business. All contracts are tiered using a segregation tool that follows Government Commercial Operating Standards (GCOS) best practice and this
allows the Authority to determine the level of engagement to successfully deliver the required contractual outcomes.
The segregation tool categorises contracts into 3 tiers: Gold; Silver; and Bronze, where Gold receives the highest level of input and scrutiny from commercial contract managers, as they are considered key to delivering our operational
goals. With the successful delivery and close of Census contracts there are fewer Gold agreements than previous years, and the COVID-19 Infection Survey contract remains our most significant contract by a factor of many times.

Supplier performance is reviewed in accordance with Government Procurement Guidelines including monthly reviews to strategically monitor the financial stability of the business, Key Performance Indicators, and to share lessons
learned to improve delivery across the whole portfolio.

Social value has been delivered through ONS commercial activity in projects such as CIS to provide additional benefits for the local communities they serve. For example, producing a more inclusive and accessible recruitment procedure to improve opportunities for groups in under-represented areas.

The COVID-19 Infection Survey has successfully delivered greater value for the public purse over the last 12 months as a result of an effective re-procurement in April 2021. To further exploit the opportunity for value and to provide a more efficient programme, the Authority will begin to collect data digitally in financial year 2022/23.

The Commercial Insights team has driven compliance and value throughout the commercial cycle, supporting contract managers and standardising processes to drive efficiency. Engaging the market will continue to be key in managing supply chain risk through a difficult geo-political period.

Remuneration report

The remuneration report is presented in accordance with Civil Service Employer Pension Notice guidance.

Service contracts

The Constitutional Reform and Governance Act 2010 requires Civil Service appointments to be made on merit on the basis of fair and open competition. The Recruitment Principles published by the Civil Service Commission specify the circumstances when appointments may be made otherwise.

Unless otherwise stated below, the officials covered by this report hold appointments which are open-ended. Early termination, other than for misconduct, would result in the individual receiving compensation as set out in the Civil Service Compensation Scheme.

Further information about the work of the Civil Service Commission can be found at www.civilservicecommission.org.uk

Remuneration policy

The Remuneration Committee concluded the pay arrangements for the UK Statistics Authority’s Senior Civil Servants. The committee’s membership is set out in the Governance Statement.

The UK Statistics Authority Senior Civil Service (SCS) salary arrangements follow the guidance set out by the Cabinet Office in response to the Senior Salaries Review Body. SCS pay consists of two elements: a consolidated increase to base pay and a non-consolidated bonus payment. Both elements are performance-related and determined by an individual’s performance in the previous appraisal year.

The remuneration for the National Statistician is not agreed by the Authority’s Remuneration Committee but is determined independently.

Remuneration (including salary) and pension entitlements

The following sections provide details of the remuneration and pension interests of the Executive and Non-Executive Directors of the UK Statistics Authority and the Office for National Statistics.

Notes to the remuneration tables (current and previous board members)

Where a member of the Board served for only a part of a year, the full time equivalent (FTE) figure is also shown in brackets.

The value of pension benefits accrued during the year is calculated as (the real increase in pension multiplied by 20) less (the contributions made by the individual). The real increase excludes increases due to inflation or any increase
or decrease due to a transfer of pension rights.

Salary

Non-Executive Directors are paid a fee, plus expenses, and have no pension entitlement.

‘Salary’ includes gross salary; overtime; reserved rights to London weighting or London allowances; recruitment and retention allowances; private office allowances and any other allowance to the extent that it is subject to UK taxation.
This report is based on accrued payments made by the Department and thus recorded in these accounts.

Benefits in kind

None of the above received benefits in kind.

Bonus payments

Bonuses are based on performance levels attained and are made as part of the appraisal process. Bonuses relate to the performance in the previous appraisal year in which they become payable to the individual. The bonuses reported in 2021-22 relate to performance in 2020-21 and the comparative bonuses reported for 2020-21 relate to the performance in 2019-2020.

Fair pay (audited)

Reporting bodies are required to disclose the relationship between the remuneration of the highest-paid director in their organisation and the lower quartile, median and upper quartile remuneration of the organisation’s workforce.

The mid-point banded remuneration of the highest-paid director in the Authority in the financial year 2021/22 was £182,500 (2020/21: £162,500). This was 5.91 times (2020/21: 5.45 times) the median remuneration of the workforce, which was £30,855 (2020/21: £29,790).

No employees received remuneration in excess of the highest-paid director in either 2021/22 or 2020/21. The lowest staff remuneration in 2021/22 was £18,833 (2020/21: £18,041).

Percentage change in total salary and bonuses for the highest paid director and the staff average

The percentage change from previous financial year in respect of the highest paid director is based on the mid-point of their banded total salary and bonus payments. The percentage change in the staff average figures, is calculated as total salary and bonus payments in the period, divided by the FTE number of employees (excluding the highest paid director).

Total remuneration includes salary, non-consolidated performance-related pay and benefits-in-kind. It does not include severance payments, employer pension contributions and the cash equivalent transfer value of pensions.
The Authority implemented the August 2020 pay award in 2021/22 which increased the average staff remuneration. The increase in ratios between highest paid director and the staff lower/upper and median remuneration categories is attributed to the highest paid director receiving a bonus in 2021/22.

The highest paid director’s salary did not increase between 2020/21 and 2021/22. The significant percentage change in 2020/21 for highest paid director bonus payments is attributed to no bonus payments being made in 2019/20.

Pension benefits (audited)

The following table identifies pension benefits for Executive Directors of the UK Statistics Authority and the Office for National Statistics.

Details of the Civil Service Pensions Scheme can be found on page 86.

Civil Service pensions

Pension benefits are provided through the Civil Service pension arrangements. From 1 April 2015 a new pension scheme for civil servants was introduced – the Civil Servants and Others Pension Scheme or alpha, which provides benefits on a career average basis with a normal pension age equal to the member’s State Pension Age (or 65 if higher). From that date all newly appointed civil servants and the majority of those already in service joined alpha. Prior to that date, civil servants participated in the Principal Civil Service Pension Scheme (PCSPS). The PCSPS has four sections: 3 providing benefits on a final salary basis (classic, premium or classic plus) with a normal pension age of 60; and one providing benefits on a whole career basis (nuvos) with a normal pension age of 65.

These statutory arrangements are unfunded with the cost of benefits met by monies voted by Parliament each year. Pensions payable under classic, premium, classic plus, nuvos and alpha are increased annually in line with Pensions
Increase legislation. Existing members of the PCSPS who were within 10 years of their normal pension age on 1 April 2012 remained in the PCSPS after 1 April 2015. Those who were between 10 years and 13 years and 5 months from their normal pension age on 1 April 2012 switch into alpha sometime between 1 June 2015 and 1 February 2022.

Because the Government plans to remove discrimination identified by the courts in the way that the 2015 pension reforms were introduced for some members, it is expected that, in due course, eligible members with relevant service between 1 April 2015 and 31 March 2022 may be entitled to different pension benefits in relation to that period (and this may affect the Cash Equivalent Transfer Values shown in this report – see below). All members who switch to alpha have their PCSPS benefits ‘banked’, with those with earlier benefits in one of the final salary sections of the PCSPS having those benefits based on their final salary when they leave alpha. (The pension figures quoted for officials show pension earned in PCSPS or alpha – as appropriate.

Where the official has benefits in both the PCSPS and alpha the figure quoted is the combined value of their benefits in the two schemes.) Members joining from October 2002 may opt for either the appropriate defined benefit arrangement or a defined contribution (money purchase) pension with an employer contribution (partnership pension account).

Employee contributions are salary-related and range between 4.6% and 8.05% for members of classic, premium, classic plus, nuvos and alpha. Benefits in classic accrue at the rate of 1/80th of final pensionable earnings for each year of service. In addition, a lump sum equivalent to three years initial pension is payable on retirement. For premium, benefits accrue at the rate of 1/60th of final pensionable earnings for each year of service. Unlike classic, there is no automatic lump sum. Classic plus is essentially a hybrid with benefits for service before 1 October 2002 calculated broadly as per classic and benefits for service from October 2002 worked out as in premium. In nuvos a member builds up a pension based on his pensionable earnings during their period of scheme membership. At the end of the scheme year (31 March) the member’s earned pension account is credited with 2.3% of their pensionable earnings in that scheme year and the accrued pension is uprated in line with Pensions Increase legislation. Benefits in alpha build up in a similar way to nuvos, except that the accrual rate in 2.32%. In all cases members may opt to give up (commute)
pension for a lump sum up to the limits set by the Finance Act 2004.

The partnership pension account is an occupational defined contribution pension arrangement which is part of the Legal & General Mastertrust. The employer makes a basic contribution of between 8% and 14.75% (depending on the age of the member). The employee does not have to contribute, but where they do make contributions, the employer will match these up to a limit of 3% of 88 | Chapter 03 Annual Report and Accounts 2021/22 pensionable salary (in addition to the employer’s basic contribution). Employers also contribute a further 0.5% of pensionable salary to cover the cost of centrally-provided risk benefit cover (death in service and ill health retirement).

The accrued pension quoted is the pension the member is entitled to receive when they reach pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over pension age. Pension age is 60 for members of classic, premium and classic plus, 65 for members of nuvos, and the higher of 65 or State Pension Age for members of alpha. (The pension figures quoted for officials show pension earned in PCSPS or alpha – as appropriate. Where the official has benefits in both the PCSPS and alpha the figure quoted is the combined value of their benefits in the two schemes, but note that part of that pension may be payable from different ages.)

Further details about the Civil Service pension arrangements can be found at the website www.civilservicepensionscheme.org.uk

Cash equivalent transfer values

A cash equivalent transfer value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies.

The figures include the value of any pension benefit in another scheme or arrangement which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost. CETVs are worked out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

Real increase in CETV

This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Board member and senior official off-payroll engagements

The following table identifies off-payroll engagements of board members, and/or, senior officials with significant financial responsibility, between 1 April 2021 and 31 March 2022.

Other information

Compensation for loss of office (audited)

No Director received compensation for loss of office during 2021/22.

Payments to past directors (audited)

No payments were made to past directors other than in respect of employment or other contractual service for the company other than as a director.

Staff report

Staffing structure

Staff numbers (audited)

Staff costs (audited)

Capitalised Staff Costs (audited)

Staff numbers as at 31 March 2022 (audited)

Staff loaned as at 31 March 2022

Staff hosted as at 31 March 2022

Those less than 12 months to projected end date are considered short term assignments. The average duration of staff redeployments is less than 12 months. The cost of staff on short term loan is included in the staff costs above and Chapter 4, note 3. All staff costs are programme costs.

Staff turnover

Contingent workers as at 31 March 2022

Staff composition as at 31 March 2022

Number of Senior Civil Service staff by SCS pay band (average for the year)

Off payroll engagements

The following table identifies all off-payroll engagements as at 31 March 2022 for more than £245 per day for a period longer than six months.

The following table details the total number of off-payroll engagements in excess of £245 per day for a period longer than six months (between the 1 April 2021 and 31 March 2022).

Sickness absence

Average working days lost during 2021/22 is 5.6 (2020/21 was 4.3).

Reporting compensations for employee departures (audited)

During the financial year 2021/22 we ran a targeted Voluntary Exit Scheme which resulted in 71 applicants accepting offers of exit. All offers were accepted in March 2022, therefore costs will be attributed to financial year 2021/22. The last day of service for leavers will be June 2022.

In addition, there were two VR exits in December 2021 due to organisational change (ESG Target Operating Model).

Redundancy and other departure costs have been paid in accordance with the provision of the Civil Service Compensation Scheme, a statutory scheme under the Superannuation Act 1972. Exit costs are accounted for in full for the year of departure. Where the department has agreed early retirements, the additional costs are met by the department and not the Civil Service pension scheme.

Ill-health retirement costs are met by the Pension Scheme and are not included in the table.

Employee matters

Employment, training and support for people with disabilities

The Authority is committed to being an equal opportunities employer. As part of this commitment, the Authority gives full and fair consideration to the employment, training, support and progression of colleagues with a disability.

The Authority applies the Recruitment Principles of the Civil Service Commission, appointing candidates on merit through fair and open competition.

Recruitment and selection training is provided to all interviewers. The Authority has achieved the highest-level accreditation Level 3 Disability Confident Leader status and offers an interview to all those who declare a disability and meet the minimum selection criteria.

The Authority’s policies require that managers must consider and make workplace adjustments to enable an employee with a disability to attend work and carry out their role effectively.

Such adjustments are recorded on a Workplace Adjustments Passport and are kept under regular review. There is an active Disability Network, supported by senior champions, focused on removing any barriers within the workplace, and celebrating key disability awareness days throughout the year across the organisation.

The Authority promotes a number of cross-government talent schemes that seek to attract colleagues with disabilities, as well as those from other underrepresented groups. These include the Future Leaders Scheme (FLS) and Senior Leaders Scheme (SLS). The bespoke Disability Empowers Leadership Talent scheme, also known as DELTA, is available to anyone with a disability or long-term health condition who gains a place on the cross-government FLS.

As part of our Diversity into Leadership programme we also offer a specific development route, called disABILITY into Leadership, focused on supporting the career development of colleagues with disabilities.

Monitoring spending on consultancy and temporary staff

Professional services external resources can generally be split into two broad categories. Temporary staff includes temporary workers and specialist contractors who are used to cover business-as-usual or service delivery activities within the Authority. Consultancy includes staff who provide objective advice relating to strategy, structure, management or operations of the Authority and may include the identification of options with recommendations.

Expenditure on consultancy increased from £6.0m in 2020-21 to £10.3m in 2021-22 and expenditure on contractors increased from £28.4m in 2020-21 to £36.1m in 2021-22. Further information can be found in Note 4 to the accounts.

Spend on consultancy and the need for temporary staff is largely dependent on the nature of projects being undertake and the expertise required. The beginning of 2021-22 saw an increase to Census Field activities following Census Day on 21 March 2021. This was the primary contributor to an increase in temporary staff costs from the previous year, increasing from £27.6m in 2020/21 to £44.0m in 2021/22, as disclosed in Note 3 to the accounts.

Workplace health, safety and welfare

The Health and Safety (H&S) framework of governance, risk management and performance for the Authority is reviewed on an annual basis. The resulting compliance report was signed off by People Committee.

The report highlighted the significant H&S input that has been required and delivered during this reporting period in response to the Covid-19 pandemic and supporting key operations including Census and the Covid Infection Survey.

It was reported that 23 of the 25 statutory H&S compliance areas were marked green, 2 areas are amber due to the continued attention required, specifically the Covid Secure arrangements and rollout of a new DSE Application to support Hybrid working, which is being rolled out across the Authority.

The Authority has an up-to-date Health and Safety Policy, which has been amended to ensure that it remains aligned to legislation and takes account of organisational changes. All necessary risk assessments, inspections, maintenance, cleaning and testing regimes were in place.

The Authority is especially aware that it needs to ensure it protects our Field Force against the H&S risks they encounter outside the office environment and often working alone. Suitable and sufficient H&S management arrangements were developed and implemented for the 2021 Census, permanent Field Force and Covid Infection Survey.

In terms of the wellbeing of our people, three of the four wellbeing-related questions in the 2021 People Survey showed improved scores against the 2020 results. Our overall PERMA score, a holistic measure of positive wellbeing, remained static at 74% which represents a strong outcome in the context of ongoing challenges related to the pandemic. We have approached wellbeing as an underlying priority that wraps around all of our People Survey and engagement activity. Our wellbeing offer is wide-ranging and dynamic across the organisation, and we have been recognised for our leading practices in this area, for example in our achievement of a Gold Award from MIND. We have also embedded wellbeing in our approach to hybrid working, and continue to develop new initiatives to support the mental and physical health of our employees.

Equality, diversity and inclusion overview

Our strategic intent is to create ‘Statistics for the Public Good’, and to deliver this intent effectively it is vital that we create a working environment which embodies inclusion and diversity at its core, and a workforce that reflects the public it serves.

Compliance with the Equality Act 2010 remains a core tenet, as we align policies, processes and infrastructure to its principles. Our Equality Impact Assessments (EIAs) play a key role in helping us ensure that Inclusion is hardwired into all our practices. Further information on our commitment to the Public Sector Equality Duty is available on the Authority’s website.

‘Inclusion’ is a central pillar in our People Plan. Our ambition is to drive an inclusive culture in which everyone feels valued, that they belong and have an equal opportunity to contribute to the organisation’s purpose. Our Strategy and Strategic Business Plan also echo our ambition to be inclusive in everything we do.

Our more detailed Inclusion Plan outlines our intention to:

• build a coordinated approach to Inclusion and Diversity across the organisation
• hardwire Inclusion and Diversity into everything we do
• build representation of underrepresented groups and support their career progression
• continue to build the Authority’s reputation as an inclusive employer.
• improve and develop our evidence base

This plan was launched in November 2020 and we have made significant progress to date, notably in the development of our evidence base, strengthening our governance and coordination, and being recognised for our practices by external benchmarking experts including MIND and Working Families.

Equality, diversity and inclusion infrastructure

Governance

Our Inclusion & Diversity Steering Group (IDSG) leads on evaluating new initiatives, and progress against existing commitments and issues. The Group consists of colleagues from across our employee diversity networks and other key stakeholders. IDSG reports to our People Committee, the governance body responsible for people matters. People Committee is attended by key senior leaders, chaired by our Second Permanent Secretary, and includes colleagues chosen to represent diverse viewpoints.

Networks

Our employee diversity networks continue to add essential value and insight to our inclusion agenda and play a key role in supporting the organisation to improve our processes and policies. Each recognised employee network is led by a team of volunteers with dedicated roles and responsibilities, and a sponsor from the senior leadership team. The networks also play an active role in raising awareness and creating a learning environment around inclusion. This includes expert guest panels, sharing blogs on lived experience, identifying and sharing best practice, organising recognition for key calendar events and linking with other government departments’ networks.

Benchmarking and collaborating

We continue to ensure that our policies and practices are robust and in line with leading industry standards by participating in external benchmarking exercises.

The Authority achieved the GOLD Award in the Mind Workplace Wellbeing Index 2021 and has successfully retained our position in the Working Families Top 30 Employers List for 2021. We also hold Leader status through the Disability Confident scheme.  We continue to identify opportunities for more collaboration and shared initiatives with the Cabinet Office and other government departments, and to work with other expert organisations such as Business in the Community to improve our practices.

Measuring progress

Workforce diversity data is monitored at both business unit and organisational level and progress is measured on a regular basis via an interactive dashboard. Declaration rates are steadily increasing and colleagues are continuously encouraged to contribute information to support a stronger evidence base that drives our interventions.

In addition to our workforce demographic data, progress is measured through a combination of sources including new people dashboards, insights from our employee diversity networks, listening groups, internal targeted pulse surveys and the annual Civil Service People Survey.

The People Survey provides an overall score for Inclusion and Fair Treatment, and the Authority has recorded an improvement in our score in 2021 from 85% to 86%. With the publication of the revised Civil Service Inclusion & Diversity strategy, we continue to closely align our approach to measuring and evaluating our success with the wider Civil Service set of standards.

Workforce diversity data and progress against targets as at 31 March 2022

Whilst all employees in the Authority are strongly encouraged to make a positive declaration within each of these diversity measures there is no obligation to do so. The percentage of employees who have declared is 87.4.%. The following data is collated from those who have made a declaration.

The Authority has a long-term ambition to be representative of the society we serve. We have set a headline workforce representation target to increase ethnic minority representation by 1 percentage point a year, with an ambition to reach 11% by 2025. The annual target has been achieved for March 2022. Efforts to increase the diversity of the applicant base for our vacancies and to minimise any bias within our recruitment and selection processes will continue to be a priority focus to ensure positive progress continues.

Trade union facility time

Organisations are required to publish trade union facility time data. Trade union facility time is a legal entitlement and is allocated by the Authority. Total time spent on union activities should equate to no more than 0.1% of the total pay bill and no-one should spend more than 50% of their time on such activities.

The total number of employees who were trade union representatives during the year was 50.

The cost to the Authority of trade union facility time represents 0.03% of the pay bill of £310,285,000 (2020/21 0.04% of the pay bill £254,857,000).

Statement of Outturn against Parliamentary Supply

In addition to the primary statements prepared under IFRS, the Government Financial Reporting Manual (FReM) requires the Authority to prepare a Statement of Outturn against Parliamentary Supply (SOPS) and supporting notes.

The SOPS and related notes are subject to audit, as detailed in the Certificate and Report of the Comptroller and Auditor General to the House of Commons.

The SOPS is a key accountability statement that shows, in detail, how an entity has spent against their Supply Estimate. Supply is the monetary provision (for resource and capital purposes) and cash (drawn primarily from the Consolidated fund), that Parliament gives statutory authority for entities to utilise. The Estimate details supply and is voted on by Parliament at the start of the financial year.

Should an entity exceed the limits set by their Supply Estimate, called control limits, their accounts will receive a qualified opinion.

The format of the SOPS mirrors the Supply Estimates, published on gov.uk, to enable comparability between what Parliament approves and the final outturn.

The SOPS contain a summary table, detailing performance against the control limits that Parliament have voted on, cash spent (budgets are compiled on an accruals basis and so outturn won’t exactly tie to cash spent) and administration.

The supporting notes detail the following: Outturn by Estimate line, providing a more detailed breakdown (note 1); a reconciliation of outturn to net operating expenditure in the SOCNE, to tie the SOPS to the financial statements (note 2); a reconciliation of outturn to net cash requirement (note 3); and an analysis of income payable to the Consolidated Fund (note 4).

The SOPS and Estimates are compiled against the budgeting framework, which is similar to, but different from, IFRS. An understanding of the budgeting framework and an explanation of key terms is provided on pages 40 to 42, in the financial review section of the performance report. Further information on the Public Spending Framework and the reasons why budgeting rules are different from IFRS can also be found in chapter 1 of the Consolidated Budgeting Guidance, available on gov.uk.

The SOPS provides a detailed view of financial performance, in a form that is voted on and recognised by Parliament. The financial review, in the Performance Report, provides a summarised discussion of outturn against estimate and functions as an introduction to the SOPS disclosures.

Net Cash Requirement 2021/22 (audited)

Notes to the parliamentary supply, 2021/22
(£000’s)(audited)

SOPS 1 – Outturn detail by Estimate Line

For the period ending 31 March 2022

SOPS 1.1 Analysis of resource outturn by estimate line

SOPS 1.2 Analysis of capital outturn by estimate line

SOPS 2 – Reconciliation of outturn to net operating expenditure

SOPS 3 – Reconciliation of net resource outturn to net cash requirement

For the period ending 31 March 2022

SoPS 4 Amounts of income to the consolidated fund

SoPS 4.1 Analysis of income payable to the consolidated fund

There is no income payable to the consolidated fund.

SoPS 4.2 Consolidated fund income

The authority does not collect income as an agent of the consolidated fund.
Parliamentary Accountability Disclosure (audited)

Special payment and losses

For the period ending 31 March 2022

There are no individual cases of special payments or losses over £300,000 (2019/20: No cases) which need separate disclosure as required by Managing Public Money.

Fees and charges

The Authority is not subject to statutory fees and charges.

Remote contingent liabilities

None identified.

Disclosure of information to the auditors

The responsibilities of an Accounting Officer include confirming that as far as he is aware there is no relevant audit information of which the auditors are unaware and that he has taken steps he ought to have taken to make himself aware of any relevant audit information, and to establish that the auditors are
aware of that information.

Professor Sir Ian Diamond
Accounting Officer
6 July 2022

The Certificate and Report of the Comptroller and Auditor General to the House of Commons

Opinion on financial statements

I certify that I have audited the financial statements of the UK Statistics Authority for the year ended 31 March 2022 under the Government Resources and Accounts Act 2000. The Department comprises the core Department and its agency. The financial statements comprise: the Department’s

• Statement of Financial Position as at 31 March 2022
• Statement of Comprehensive Net Expenditure, Statement of Cash Flows and Statement of Changes in Taxpayers’ Equity for the year then ended
• the related notes including the significant accounting policies

The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and UK adopted international accounting standards.

In my opinion, the financial statements:

• give a true and fair view of the state of the Department’s affairs as at 31 March 2022 and its net expenditure for the year then ended
• have been properly prepared in accordance with the Government Resources and Accounts Act 2000 and HM Treasury directions issued thereunder

Opinion on regularity

In my opinion, in all material respects:

• the Statement of Outturn Against Parliamentary Supply properly presents the outturn against voted Parliamentary control totals for the year ended 31 March 2022 and shows that those totals have not been exceeded
• the income and expenditure recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them

Basis for opinions

I conducted my audit in accordance with International Standards on Auditing (UK) (ISAs UK), applicable law and Practice Note 10 Audit of Financial Statements of Public Sector Entities in the United Kingdom. My responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of my certificate.

Those standards require me and my staff to comply with the Financial Reporting Council’s Revised Ethical Standard 2019. I have also elected to apply the ethical standards relevant to listed entities. I am independent of the UK Statistics Authority in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK. My staff and I have fulfilled our other ethical responsibilities in accordance with these requirements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Conclusions relating to going concern

In auditing the financial statements, I have concluded that the UK Statistics
Authority’s use of the going concern basis of accounting in the preparation of
the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the UK Statistics Authority’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

My responsibilities and the responsibilities of the Accounting Officer with respect to going concern are described in the relevant sections of this certificate.

The going concern basis of accounting for the UK Statistics Authority is adopted in consideration of the requirements set out in HM Treasury’s Government Financial Reporting Manual, which requires entities to adopt the going concern basis of accounting in the preparation of the financial statements where it anticipated that the services which they provide will continue into the future.

Other information

The other information comprises information included in the Annual Report, but does not include the financial statements nor my auditor’s certificate and report thereafter. The Accounting Officer is responsible for the other information.

My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my certificate, I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Opinion on other matters

In my opinion the part of the Remuneration and Staff Report to be audited has been properly prepared in accordance with HM Treasury directions made under the Government Resources and Accounts Act 2000.

In my opinion, based on the work undertaken in the course of the audit:

• the parts of the Accountability Report subject to audit have been properly prepared in accordance with HM Treasury directions made under the Government Resources and Accounts Act 2000
• the information given in the Performance and Accountability Reports
  for the financial year for which the financial statements are prepared is
  consistent with the financial statements and is in accordance with the
  applicable legal requirements

Matters on which I report by exception

In the light of the knowledge and understanding of the UK Statistics Authority and its environment obtained in the course of the audit, I have not identified material misstatements in the Performance and Accountability Report.

I have nothing to report in respect of the following matters which I report to you if, in my opinion:

• I have not received all of the information and explanations I require for my audit
• adequate accounting records have not been kept by the UK Statistics Authority or returns adequate for my audit have not been received from branches not visited by my staff
• the financial statements and the parts of the Accountability Report subject to audit are not in agreement with the accounting records and returns
• certain disclosures of remuneration specified by HM Treasury’s Government
  Financial Reporting Manual have not been made or parts of the Remuneration and Staff Report to be audited is not in agreement with the accounting records and returns
• the Governance Statement does not reflect compliance with HM Treasury’s guidance

Responsibilities of the Accounting Officer for the financial statements

As explained more fully in the Statement of Accounting Officer’s Responsibilities, the Accounting Officer is responsible for:

• maintaining proper accounting records
• the preparation of the financial statements and Annual Report in accordance with the applicable financial reporting framework and for being satisfied that they give a true and fair view
• ensuring that the Annual Report and accounts as a whole is fair, balanced and understandable
• internal controls as the Accounting Officer determines is necessary to enable the preparation of financial statements to be free from material misstatement, whether due to fraud or error
• assessing the UK Statistics Authority’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Accounting Officer anticipates that the services provided by the UK Statistics Authority will not continue to be provided in the future

Auditor’s responsibilities for the audit of the financial statements

My responsibility is to audit, certify and report on the financial statements in
accordance with the Government Resources and Accounts Act 2000.

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a certificate that includes my opinion.

Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was considered capable of detecting non-compliance with laws and regulations including fraud

I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of non-compliance with laws and regulations, including fraud. The extent to which my procedures are capable of detecting non-compliance with laws and regulations, including fraud is detailed below.

Identifying and assessing potential risks related to non-compliance with laws and regulations, including fraud

In identifying and assessing risks of material misstatement in respect of non-compliance with laws and regulations, including fraud, we considered the following:

• the nature of the sector, control environment and operational performance including the design of the UK Statistics Authority’s accounting policies
• Inquiring of management and those charged with governance, including obtaining and reviewing supporting documentation relating to the UK Statistics Authority’s policies and procedures relating to:
  • identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance
  • detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud
  • the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations including the UK Statistics Authority’s controls relating to the UK Statistics Authority’s compliance with the Government Resources and Accounts Act 2000, Managing Public Money, and the Supply and Appropriation (Main Estimates) Act 2021
• discussing among the engagement team and involving relevant internal specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud

As a result of these procedures, I considered the opportunities and incentives that may exist within the UK Statistics Authority for fraud and identified the greatest potential for fraud in the following areas: revenue recognition, posting of unusual journals, complex transactions, and completeness of expenses. In common with all audits under ISAs (UK), I am also required to perform specific procedures to respond to the risk of management override.

I also obtained an understanding of the UK Statistics Authority’s framework of authority as well as other legal and regulatory frameworks in which the UK Statistics Authority operates, focusing on those laws and regulations that had a direct effect on material amounts and disclosures in the financial statements or that had a fundamental effect on the operations of the UK Statistics Authority.

The key laws and regulations I considered in this context included Government Resources and Accounts Act 2000, Managing Public Money, Supply and Appropriation (Main Estimates) Act 2021, General Data Protection Regulation, tax legislation, employment law and relevant statute pertaining to the delivery of services.

Audit response to identified risk

As a result of performing the above, the procedures I implemented to respond to identified risks included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described above as having direct effect on the financial statements
• enquiring of management, the Audit and Risk Assurance Committee
  concerning actual and potential litigation and claims
• reading and reviewing minutes of meetings of those charged with governance and the Board and internal audit reports
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business
• using analytical procedures to identify any unusual or unexpected
  relationships
• inspecting transactions in the period prior to and following 31 March 2022 to verify revenue had been recognised in the correct accounting period
• inspecting transactions in the period prior to and following 31 March 2022 to verify expenditure had been recognised in the correct accounting period
• evaluating accruals posted as at 31 March 2022 and verifying accruals are appropriate and accurately recorded

I also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of my responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of my
certificate.

Other auditor’s responsibilities

I am required to obtain appropriate evidence sufficient to give reasonable assurance that the Statement of Outturn against Parliamentary Supply properly presents the outturn against voted Parliamentary control totals and that those totals have not been exceeded. The voted Parliamentary control totals are Departmental Expenditure Limits (Resource and Capital), Annually Managed Expenditure (Resource and Capital), Non-Budget (Resource) and Net Cash Requirement.

I am also required to obtain evidence sufficient to give reasonable assurance that the expenditure and income recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities
which govern them.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Report

I have no observations to make on these financial statements.

Gareth Davies
Comptroller and Auditor General
National Audit Office
12 July 2022