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 Food Standards Agency (Westminster) for the year ended 31 March 2022 under the Government Resources and Accounts Act 2000. The financial statements comprise:

• 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; and
• the related notes including the significant accounting policies.

The financial reporting framework that has been applied in the preparation of the Food Standards Agency (Westminster) 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 Food Standard Agency’s (Westminster) affairs as at 31 March 2022 and of its net expenditure for the year then ended
• the financial statements 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; and
• 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 Food Standards Agency (Westminster) in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK. I have fulfilled my 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 Food Standards Agency (Westminster) 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 Food Standards Agency (Westminster) 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 a going concern are described in the relevant sections of this certificate.

The going concern basis of accounting for the Food Standards Agency (Westminster) is adopted in consideration of the requirements set out in HM Treasury’s Government Reporting Manual, which requires entities to adopt the going concern basis of accounting in the preparation of the financial statements where it is anticipated that the services which they provide will continue in 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.

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 then 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 to be audited have been properly prepared in accordance with HM Treasury directions made under the Government Resources and Accounts Act 2000; and
• 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.

Matters on which I report by exception

In the light of the knowledge and understanding of the Food Standards Agency (Westminster) and its environment obtained in the course of the audit, I have not
identified material misstatements in the Performance and Accountability Reports.

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; or
• adequate accounting records have not been kept by the Food Standards Agency (Westminster) or returns adequate for my audit have not been received from branches not visited by my staff; or 
• the financial statements and the parts of the Accountability Report to be audited are not in agreement with the accounting records and returns; or
• 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; or
• 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 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 statement to be free from material misstatement, whether due to fraud or error; and
• assessing the Food Standards Agency (Westminster) 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 Food Standards Agency (Westminster) will not continue to be provided in 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 regulation, 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 noncompliance 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 Food Standards Agency (Westminster)’s accounting policies.
• inquiring of management, the Food Standards Agency’s Head of Internal Audit and those charged with governance, including obtaining and reviewing supporting documentation relating to the Food Standards Agency (Westminster) 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; and
− the internal controls established to mitigate risks related to fraud or non‑compliance with laws and regulations including the Food Standards Agency
(Westminster)’s controls relating to Food Standards Agency (Westminster)’s compliance with the Government Resources and Accounts Act 2000 and Managing
Public Money;

• discussing among the engagement team 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 Food Standards Agency (Westminster) for fraud and identified the greatest potential for fraud in the following areas: revenue recognition, posting of unusual journals and complex transactions. 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 Food Standards Agency (Westminster) framework of authority as well as other legal and regulatory frameworks in which the
Food Standards Agency (Westminster) operates, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the Food Standards Agency (Westminster). 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 2022, and employment law. 

In addition, I considered other risk assessment procedures performed relating to fraud, non-compliance with laws and regulations and regularity including compliance with the Cabinet Office controls.

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
discussed above as having direct effect on the financial statements; 

● enquiring of management, the Audit and Risk Committee and in-house legal counsel 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; and 

● other audit procedures responsive to the risk of fraud, non-compliance with laws and regulations or irregularity as appropriate. 

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. 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 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

157 to 197 Buckingham Palace Road

Victoria, London

SW1W 9SP

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