Today, the Comptroller and Auditor General (C&AG) has
qualified the CQC's accounts for
2023-24 due to two issues:
Regulatory Platform intangible asset
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New IT systems were developed at CQC between 2019 and 2024
and went live in March 2024. The new systems aimed to improve
operations and communication.
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A review (commissioned by the Department of Health) into CQC,
and an external IT expert (commissioned by the new Chief
Executive, Sir Hartley) identified major
issues with the IT system (Regulatory Platform).
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The Regulatory Platform's value was £21.8 million in March
2024 (up from £20.7 million in 2023), after applying a £15.8
million impairment charge.
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CQC has started an impairment review, but it is not yet
complete. Due to the incomplete review, the C&AG could
not obtain enough evidence to confirm:
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The asset's value at 31 March 2024.
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The accuracy of the £15.8 million impairment charge.
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Whether the 2023 asset value (£20.7 million) should also
have been impaired.
Share of Teesside Pension Fund assets and related
balances
Teesside Pension Fund is the largest of CQC's 13 legacy Local
Government Pension Scheme (LGPS). As of 31 March 2024, CQC
reported a net pension asset of £30.6 million, in respect of its
share of Teesside pension fund.
This figure is comprised of:
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£393.4 million: CQC's share of the total value of pension
assets.
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£308.4 million: The estimated cost of future pension
payments
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£54.3 million: deducted from the pension surplus because
accounting rules (termed ‘asset ceiling') only allow
organisations to show the part of the surplus they can
actually use or benefit from.
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The C&AG was unable to obtain sufficient and appropriate
evidence to verify the valuation of CQC's pension assets, or
the related figures in the Statement of Comprehensive Net
Expenditure—specifically, interest income (£17.2 million),
return on plan assets (£20.5 million), and the asset ceiling
adjustment (£54.3 million).
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This limitation arose because the Teesside Pension Fund's
2023-24 financial statements received a disclaimed audit
opinion. The pension fund auditor was unable to determine
whether the statements were true and fair before the
statutory deadline for completing the audit in February
2025.
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CQC has limited control over these pension figures because
they are managed by the Teesside Pension Fund and its
independent auditor.
