External Auditor’s Annual Management Letter 2024/25
Meeting: Trust Board – Public Meeting
Date: 10 September 2025
Report Title: External Auditor’s Annual Management Letter 2024/25
Agenda Item: PUB25/09/4.6
Author: Elizabeth Jackson, Ernst & Young LLP (external auditor)
Lead Director: Steven Course, Chief Finance Officer
Purpose: Information/Noting
Assurance: Substantial
Link to CQC domain:
- Well-led
Link to EEAST Strategic Mission:
- Productivity Mission
Link to Strategic Risk:
- SR4 Finance and Resources
Equality Impact Assessment: No negative impact identified
Previously considered by: Audit and Risk Committee Meeting held on 23 July 2025
Purpose: To provide the Trust Board with a summary of the findings for the 2024/25 accounts and value for money audit
Recommendation: None – for information purposes only
Executive Summary:
The report sets out our key findings for the Financial Statements audit and our review of the Trust’s arrangements for ensuring value for money, including the value for money commentary.
We issued the audit report for the 2024/25 financial year on 19 June 2025, ahead of the 30 June NHS England deadline. The financial statements presented a true and fair view of the Trust’s financial position as at 31 March 2025 and of its expenditure and income for the year then ended (unqualified opinion).
We have reported by exception on the Trust’s value for money arrangements due to significant weaknesses identified in line with the CQC inspection findings.
We also made a referral to the Secretary of State under section 30 for the continued cumulative breakeven deficit position.
The following summarises the findings of the audit report:
Financial statements: The Independent Audit Opinion is Unqualified – The financial statements give a true and fair view of the financial position of the Trust as at 31 March 2025 and of its expenditure and income for the year then ended. The auditor’s report was issued on 19 June 2025.
Parts of the remuneration report and staff report subject to audit: The Trust took up amendments to disclosures in the narrative, salary and pensions tables from the audit. No other matters were identified.
Consistency of the other information published with the financial statement: Financial information in the Annual Report and published with the financial statements was consistent with the audited accounts.
Value for money (VFM): The auditors identified a significant weakness that impacted on two VFM criteria and therefore reported by exception on the Trust’s VFM arrangements.
Consistency of the Annual Governance Statement: The auditors were satisfied that the Annual Governance Statement is consistent with their understanding of the Trust.
Referrals to the Secretary of State: Referral was made to the Secretary of State on 19 June 2025 issuing a provisional Section 30 notice as the Trust did not achieve its statutory break-even duty. There is a requirement for NHS Trusts to meet the breakeven duty over a default rolling three-year period. NHS England agreed to extend this period to five years. Based on a review of the financial plan submission for 2025/26 (including the CIP targets) and taking into account the cumulative deficit, the Trust was considered unlikely to meet this duty by the end of 2025/26.
Public interest report and other auditor powers: There were no reasons for the auditors to use their auditor powers.
Reporting to the Trust on its consolidation schedules: The auditors concluded that the Trust’s consolidation schedules agreed, within a £495,000 tolerance, or £300,000 tolerance for losses and special payments, gifts and contingent liability disclosures, to the audited financial statements.
Reporting to the National Audit Office (NAO) in line with group instructions: The auditors reported to the NAO in line with their group instructions.
Certificate: The auditors could not formally conclude the audit or issue an audit certificate until the NAO, as group auditor, confirmed that no further assurances were required from them as component auditors of the Trust.
Key Issues / Risks:
As above.
