Corporate report

OISC Annual Report and Accounts 2020 - 21 : Part 2: Accountability Report

Published 19 July 2021

2.1 Corporate governance report

2.1.1 Directors’ Report

These financial statements report the results of the Office of the Immigration Services Commissioner (OISC) for the year 1 April 2020 to 31 March 2021 and incorporate the content required with a Directors’ Report, as required by the Government Financial Reporting Manual (FReM). It has been prepared in accordance with the Accounts Direction given by the Secretary of State for the Home Department with the consent of HM Treasury, in accordance with Schedule 5 paragraph 20 (1 and 2) of the Immigration and Asylum Act 1999 (the Act).

Commissioners

The OISC is led by the Immigration Services Commissioner, who is a Corporation Sole. The Commissioner is supported by a Deputy Commissioner. Both the Commissioner and the Deputy Commissioner are appointed by the Secretary of State (Home Secretary). Mr John Tuckett was appointed as Immigration Services Commissioner on 8 July 2019 for a period of five years.

On 5 February 2021, Dr Ian Leigh stepped down as Deputy Commissioner following the completion of his second five year term as Deputy Commissioner. The position of Deputy Commissioner is currently vacant in accordance with the provisions of the Immigration and Asylum Act 1999.

Details on salary and pension benefits for the Commissioner and Deputy Commissioner can be found in the Remuneration and Staff Report.

Non-Executive Advisers

The Commissioner is supported by an Audit and Risk Assurance Committee (ARAC). Members are appointed by the Commissioner for a three year period with the option to extend for a further three. In March 2021 three members of ARAC were reappointed, with two members reappointed for a further three year term and one for a further two year period.

Member	Role	Appointment dates	Re Appointment dates
Simon Smith	ARAC Chair	January 2019 - December 2021
Daniel Bunting	ARAC Member	April 2018 - March 2021	March 2021 – March 2023
Sue Gallone	ARAC Member	April 2018 - March 2021	March 2021 – March 2024
Jon Hayes	ARAC Member	April 2018 - March 2021	March 2021 – March 2024

Interests

During 2020/21 the Commissioner and Deputy Commissioner held no company directorships or other significant interests relating to the OISC’s interests, and there were no significant interests held by any of the Non-Executive Advisers which may conflict with their responsibilities. A register of interests is held by the OISC.

Results for the period

The accounts for the year 1 April 2020 to 31 March 2021 are set out in the Financial Statements. The Notes to the Accounts form part of the accounts.

In accordance with Schedule 5 paragraph 20 of the Act, the OISC’s financial statements cover the period 1 April 2020 to 31 March 2021, and are prepared on an accruals basis in accordance with the Accounts Direction issued to the Commissioner by the Secretary of State for the Home Department with the consent of HM Treasury.

Grant-in-aid received was used to finance activities and expenditure which supports the statutory and other objectives of the OISC are treated as financing and are credited to the General Reserve because they are regarded as contributions from a controlling party.

Total operating expenditure for the year was £4,061,943 (2019/20: £3,972,936) of which £3,046,393 (2019/20: £2,798,125) were employment costs.

Compliance with public sector payment policy

The OISC policy, in line with government policy, is to pay all invoices within 30 days of receipt, unless the amount billed is in dispute. In the year ended 31 March 2021, 100% of invoices were paid within 30 days of receipt (2019/20: 100%).

Suppliers can claim statutory interest where a buyer has not paid an undisputed and valid invoice within 30 days (or any earlier payment date agreed in the contract). No such claims were received during the year.

Environmental policy

The OISC is not required to provide a sustainability report but seeks to minimise the impact of its activities on the environment. It has adopted the Home Office Environmental Policy in so far as it applies to the OISC. This includes energy-saving lighting, use of recycled materials where possible, recycling office waste and reducing use of paper through its digital first approach.

Employment policies

The OISC developed and implemented four new policies and procedures during 2020/21. The four new policies and procedures are:

• Guidance on recruitment and selection of staff

• Performance Appraisal Policy and Procedure

• The OISC Process for Organisational Change

• Requirement for the recording of meetings

The OISC also reviewed and implemented four existing policies and procedures:

• Gifts and Hospitality Policy and Procedure

• Flexible Working Hours, Time off in Lieu & Travelling Time Policy

• Flexible Working Policy

• Suggestion Box Procedure

Social matters, respect for human rights, anti-corruption and anti-bribery matters

We operate a Dignity at Work policy which fully supports the right of all its members of staff and external stakeholders it engages with to be treated with dignity and respect. All staff were required to undertake mandatory training in counter fraud, bribery and corruption over the last year.

The OISC is not required to produce a statement under the Modern Slavery Act, but we are committed to ensuring that there is no modern day slavery or human trafficking in any of our supply chains or in any part of our business. Any indication of such activity would be dealt with promptly and robustly. We take a similar approach to the maintenance of human rights, anti-corruption and anti-bribery.

Impact of COVID-19

In 2020/21 all staff continued to work from home with only essential travel allowed and any access to the OISC office restricted to business critical activities. This was to ensure the safety of staff and comply with Government guidelines. The impact on the OISC’s capability to maintain business as usual was managed by introducing new online processes and procedures. This included the introduction of remote audits, online competency assessments and statements being taken through video calls. Access to the Courts impacted the ability to take forward cases and whilst cases were able to be heard from the latter part of 2020 the process was significantly slower than previous years. One area of concern due to COVID-19 was a decline in staff wellbeing and morale and a number of actions were taken to manage this including a staff wellbeing survey, financial support for purchasing of equipment, regular internal meetings and a new wellbeing scheme – OISConnect.

Going concern

The OISC’s Grant-in-aid for 2020/21: £4,388k was approved, which included £552k of supplementary grant-in-aid (2019/20: £3,820k).

There is an expectation that the OISC will continue in operational existence and has a statutory obligation to continue to provide services in 2021/22 and for the foreseeable future. The future financing of the OISC’s liabilities will be met by Grant-in-aid to support its operations, and future financial support. There is no indication that this will cease over the next twelve months.

Accordingly, it is appropriate to adopt a going concern basis for the preparation of these financial statements.

2.1.2 Statement of Accounting Officer’s responsibilities

Under the Immigration and Asylum Act 1999, the Secretary of State for the Home Department has directed the Immigration Services Commissioner to prepare for each financial year a Statement of Accounts in the form and on the basis set out in the Accounts Direction. The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of the OISC and of its income and expenditure, changes in taxpayers’ equity 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 (FReM) and in particular to:

• observe the Accounts Direction issued by the Secretary of State, 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 FReM have been followed, and disclose and explain any material departures in the financial statements

• prepare the financial statements 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

The Accounting Officer of the Home Office designated the Immigration Services Commissioner as the Accounting Officer of the OISC on appointment on 8 July 2019. 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 OISC’s assets, are set out in the Accounting Officers’ Memorandum issued by HM Treasury.

Disclosure of audit information to auditors

As Accounting Officer, I have taken all the steps I ought to have taken to make myself aware of any relevant audit information and to establish that the OISC’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.

John Tuckett

Immigration Services Commissioner and Accounting Officer

7 July 2021

2.1.3 The Governance Statement

Overview

As the Office of the Immigration Services Commissioner’s (OISC) Accounting Officer I am accountable for the management and control of the resources at the OISC, and for maintaining a sound system of risk management, governance and control in support of achieving the OISC’s policies, aims and objectives.

Oversight and governance*

The OISC is a Non-Departmental Public Body established through the 1999 Immigration and Asylum Act. As Immigration Commissioner, I act as Corporation Sole and am accountable to the Home Secretary.

The OISC’s sponsoring department is the Home Office, to which the OISC is accountable for its use of resources and performance. The corporate governance arrangements between the Home Office and OISC are set out in a framework document. Home Office oversight of the OISC is managed through the OISC’s Senior Sponsor (Deputy Director for Human Rights & Family Unit within the Migration and Borders Group,) and the Home Office Sponsorship Unit (HOSU).

The OISC complies with the Cabinet Office code of corporate governance to the extent that it is applicable. Owing to the statutory framework under which the OISC was established with the Commissioner acting as Corporation Sole, the OISC does not have a management board with non-executive directors.

I am supported by an Audit and Risk Assurance Committee (ARAC) and a senior management team. The ARAC act as an advisory committee providing appropriate independent advice and challenge to give assurance on overall governance arrangements, financial and risk management and internal audit arrangements. The senior management team provide executive governance, reporting on financial, strategic and operational issues and on performance against the OISC’s annual business plan. Their responsibilities are set out in detail in the OISC’s Governance Framework.

• https://www.gov.uk/government/organisations/office-of-the-immigration-services-commissioner/about/our-governance

Audit and Risk Assurance Committee

The ARAC currently comprises of four non-executive members, drawn from a variety of sectors. It provides an independent view and challenge on the OISC’s governance, its financial, risk management and assurance processes. The formal responsibilities are set out in its Terms of Reference. These were considered and agreed at the ARAC held on 30th March 2021.

The ARAC meets at least four times a year. Meetings are attended by the Commissioner, Deputy Commissioner and relevant members of the OISC’s senior management team. Representatives from internal and external audit, Home Office Sponsorship Unit and Home Office Senior Sponsor are also in attendance.

Additionally, the Commissioner asks ARAC members with relevant expertise to support a range of activities, including periodic attendance at meetings of the OISC’s Senior Management Team, and at the Design Authority and Programme Board responsible for the ‘transformation’ project. The ARAC has provided challenge on the delivery of the 20/21 Business Plan, reviewed the Strategic Risk Register and the OISC’s financial position at each meeting, and reviewed key policies. It conducts periodic ‘deep dives’ into particular aspects of the OISC’s operations, such as the audit processes for regulated entities. Individual members have provided Non-Executive input to recruitment activities, and to other operations.

ARAC members last reviewed their effectiveness in August 2020 using an NAO Effectiveness checklist (November 2017 edition). Each member was also interviewed by the Chair, and he was interviewed by his colleagues. The results were documented and reported to the Commissioner. The conclusion was that the ARAC was effective and was meeting its Terms of Reference.

ARAC members are also invited to attend and advise on strategic management meetings.

Name of ARAC member	Attendance
Simon Smith	4/4
Daniel Bunting	4/4
Sue Gallone	4/4
Jon Hayes	4/4

Risk management

The OISC proactively manages corporate risks, through its risk management process and Corporate Risk Register. The risk management process enables the identification, prioritisation, and escalation of operational and corporate risk. It identifies risk owner, pre control risk level, mitigating actions and post control risk level. The Corporate Risk Register and risk review process is managed by the Head of Corporate Strategy and Communications and formally considered by the senior management team and ARAC on a quarterly basis. In 2020 the Corporate Risk Register and risk management process was reviewed and a new Corporate Risk Register and risk management process adopted in July 2020. The new register and process were reviewed and commended by Internal Audit in March 2021. Recommendations are being taken forward to align the operational risk register to the new approach.

2020/21 key risks

All the risks within the corporate risk register have been managed effectively, and none are considered to pose any significant threat to the OISC. In 2020/21 the corporate risks mitigated through the OISC’s risk management process included financial management, COVID-19, stakeholder engagement, IT and data security and staff wellbeing.

The three principal risks to the OISC in 2020/21 were on:

• financial management due to unexpected costs relating to the impact of COVID-19, limited movement of staff due to COVID-19 and additional building service charge rates

• longer term financial risk posed due to 2020 spending review outcomes for both capital and revenue financial allocations

• impact of COVID-19 restrictions on operational activities

Both financial risks were successfully mitigated, through liaison with Home Office finance and policy. The COVID-19 risk was mitigated through the introduction of new remote systems where possible including online assessment, remote audits and remote statements.

Audit

Internal

The Government Internal Audit Agency provide internal audit services for the OISC. A programme of four internal audits were carried out in 2020/21. These were:

• Intelligence Processes (Moderate)

• Corporate Governance (Moderate)

• Data Governance (Moderate)

• Risk Management (Moderate)

All four of the audits resulted in a ‘Moderate’ assurance, confirming that the systems reviewed operated effectively with no critical actions being identified.

Other matters

Internal controls are in place to mitigate against risk in relation to financial loss, handling of information, health and safety, security incidents, business continuity. All policies and processes relating to these matters are reviewed at appropriate intervals and are effective.

In July 2020, a small number of staff opened a phishing email which compromised the OISC’s IT security. The breach was reported to the Information Commissioner’s Office who decided that no further action was necessary. There have been no other incidents during the year relating to these matters that have required reporting to the Home Office.

Whistleblowing

The OISC ‘Whistleblowing Policy and Procedure’ aligns with the principles of the model policy recommended by Cabinet Office. The OISC policy allows staff to raise legitimate issues of public interest via the Head of Human Resources and Corporate Support, through a confidential central reporting email address. To support the Whistleblowing Policy and Procedure, the policy has been communicated across the OISC with the message of positively encouraging staff to feel safe to challenge and feel safe to report any concern. During the reporting year, no whistleblowing cases were received.

Conclusion

I confirm that the systems have been in place for the year under review and up to the date of approval of the annual report and accounts. I am therefore satisfied that throughout 2020/21 the resources for which I am responsible were subject to appropriate controls.

John Tuckett

Immigration Services Commissioner and Accounting Officer

7 July 2021

2.2 Remuneration and staff report

Remuneration report

Part V of the Immigration and Asylum Act 1999 created the role of the Immigration Services Commissioner. The Commissioner heads the Office of the Immigration Services Commissioner (OISC) and is supported by a Deputy Commissioner. Both the Commissioner and Deputy Commissioner are Ministerial appointees.

In accordance with schedule 5 of the Immigration and Asylum Act 1999, Mr John Tuckett was appointed to the position of Immigration Services Commissioner for a period of five years commencing 8 July 2019. Dr Ian Leigh was appointed as Deputy Commissioner and commenced on 7 February 2011 for five years. Dr Leigh was subsequently reappointed and completed his second term on 6 February 2021.

Remuneration policy

The Commissioners’ salaries are determined by the Secretary of State for the Home Department. Salary increases are awarded to both the Commissioner and the Deputy Commissioner in accordance with the Senior Salaries Review Body’s annual recommendations. In 2020/21, only the Deputy Commissioner had a salary increase.

Salary and pension entitlements

The following sections provide details of the remuneration and pension interests of the most senior members of the OISC.

‘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.

Senior staff remuneration and fair pay disclosure (audited)

			2020/21			2019/20
	Salary	Non-Consolidated Performance Pay	Total	Salary	Non-Consolidated Performance Pay	Total
	£’000	£’000	£’000	£’000	£’000	£’000
John Tuckett Commissioner	65 – 70*	0	65 – 70*	45 - 50*	0	45-50*
	110 – 115**		110 – 115**	110 - 115**		110-115**
Dr. Ian Leigh Deputy Commissioner	50 – 55*	0	50 – 55*	55 - 60*	0	55 - 60*
	70 – 75**		70 – 75**	70 - 75**		70 - 75**
Band of Highest Paid Commissioner’s Remuneration (annualised) – (£’000)		110 - 115			110 - 115
Range of Staff Remuneration, excluding highest paid above (annualised) - (£’000)		26 - 71			25 - 70
Median Total Remuneration - (£)		37,220			36,313
Ratio		3.00			3.1

*The Commissioner works 0.80fte (from 7 February 2021). He worked 0.60 FTE from 8 July 2019 to 6 February 2021. The Deputy Commissioner worked 0.83fte and stepped down from the OISC on 5 February 2021. During the year ended 31 March 2021 neither were members of the Civil Service pension arrangements whilst working for the OISC. **Full time equivalent salary.

Amounts paid to members of the Audit and Risk Assurance Committee are not included in this table since they are not members of the management board but are appointed as advisers by the Commissioner, a Corporation Sole.

Benefits in kind

The monetary value of benefits in kind covers any benefits provided by the OISC and treated by HM Revenue and Customs as a taxable emolument. Neither the Commissioner nor the Deputy Commissioner received benefits in kind for 2020/21 or 2019/20.

Pension benefits (audited)

During the year ended 31 March 2021 neither the Commissioner nor the Deputy Commissioner were members of the Civil Service pension arrangements.

Fair pay multiples (audited)

Reporting bodies are required to disclose the relationship between the remuneration of the highest-paid director in their organisation and the median remuneration of the organisation’s workforce. The information is reported in the table above. 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.

Audit and Risk Assurance Committee (ARAC)

The non-executive members of the Audit and Risk Assurance Committee were paid £375 per day (£425 Chair of Committee) until February 2021, and a flat annual rate of £3,750 per annum (£4,250 Chair of Committee) from March 2021 for attendance at OISC meetings in 2020/21. All received more than £2,000 during the year in this capacity.

Civil Service Pensions

Pension benefits are provided through the Civil Service pension arrangements through either Principal Civil Service Pension Scheme or ALPHA scheme which was introduced 1 April 2015. These statutory arrangements are unfunded with the cost of benefits met by monies voted by Parliament each year. Employee contributions are salary-related and range between 4.6% and 8.05% of pensionable earnings. Further details about the Civil Service pension arrangements can be found at the website www.civilservicepensionscheme.org.uk.

Staff Report

Staff costs (audited)

	2020-21			2019-20
	Total	Permanently Employed	Others	Total
	000’s	000’s	0000’s	000’s
Wages & Salaries	2,260	2,260	0	2,072
Social security costs	236	236	0	216
Other pension costs	550	550	0	510
	3,046	3,046	0	2,798

Average number of persons employed (audited)

The average number of full-time equivalent persons employed during the year was as follows:

	2020-21	2019-20
Directly employed	57.60	55.00
Others	0.00	0.48
Total	57.60	55.48

The Commissioner and Deputy Commissioner are Ministerial appointments and are not included in the above. The Deputy Commissioner completed his second term on 6 February 2021. The position of Deputy Commissioner is currently vacant in accordance with the provisions of the Immigration and Asylum Act 1999.

Pensions contributions

The Civil Service Pension Scheme (CSPS) is an unfunded multi-employer defined benefit scheme but the OISC is unable to identify its share of the underlying assets and liabilities. The scheme actuary valued the scheme as at 31 March 2016. Details of the resource accounts of the Cabinet Office: Civil Superannuation can be found at www.civilservicepensionscheme.org.uk.

For 2020/21, employer contributions of £540,625 were payable to the CSPS (2019/20: £503,828) at one of three rates in the range 26.6%% to 30.30% of pensionable pay, based on salary bands. The scheme’s actuary reviews employer contributions every four years following a full scheme valuation. The contribution rates are set to meet the costs of benefits accruing during 2020/21 to be paid when the member retires and not the benefits paid during this period to existing pensioners.

Employees can opt to open a partnership pension account – a stakeholder pension with an employer contribution. Employer contributions of £8,704 (2019/20: £6,235) were paid to the appointed stakeholder pension providers. Employer contributions are age-related and for the period 1 April 2020 to 31 March 2021 ranged from 8% to 14.75% of pensionable pay. Employers also match employee contributions up to 3% of pensionable pay.

Contributions of £303 were due to Partnership Pension providers at 31 March 2021 (2019/20: £1,212).

Reporting of Civil Service and other compensation schemes – exit packages (audited)

During 2020/21 there were no exit packages (2019/20: £nil).

Number of persons of each sex employed

The number of persons of each sex employed during the year was as follows:

	2020/21	2019/20
Commissioner*	1	1
Deputy Commissioner*	1	1
Female (F) Staff	35	41
Male (M) Staff	24	25
Total	61	68

*Both the Commissioner and Deputy Commissioner (M) are male and ministerial appointments.

Sickness data

During the period from 1 April 2020 to 31 March 2021, 170 sick days were taken by OISC staff (2019/20: 330). 27 (16%) were taken as short-term sickness absence (2019/20: 226 (68%)) and 143 (84%) were taken as long-term sickness absence (2019/20: 104 (32%)). This equates to 4.6 days average per person overall compared to the latest comparison figures available from the public sector of 7.9 days average per person. Long-term sick absence has a disproportionate impact on the organisation, given our small number of staff. The OISC’s short-term absence figure equates to an average sickness rate of 4.0 days per person (2019/20: 3.88).

Staff turnover

During 2020/21 the annual turnover of staff was 7%, equating to 4 members of OISC staff. This is based on the number of employees leaving the OISC as a percentage of the total number of staff (headcount) employed.

Equality and diversity

The OISC recognises the business benefits of having a diverse workforce and is committed to maintaining a culture in which diversity and equality are actively promoted and where discrimination is not tolerated. During 2020/21 we have published internally a Diversity and Inclusion Strategy and Plan.

Staff involvement and development

The OISC is committed to keeping its members of staff informed of performance, career and personal development and progress. The OISC encourages members of staff involvement in its development and recognises the Public and Commercial Services Union for collective bargaining purposes.

During this financial year, the OISC began the creation of a new set of organisational values, conducted homeworking surveys and commenced discussions regarding the introduction of a hybrid operating model. All these activities led to a number of employee consultations and participation. Also, the Human Resources and Corporate Support department prepared a risk assessment that covered risks relating to remote working from home during the COVID-19 pandemic. The risk assessment considered the physical and mental wellbeing of staff working from home during the pandemic. The homeworking survey that was also conducted led to the Commissioner approving four Mental Health First Aiders, which have also been trained and appointed.

Following the government guidance for a salary increase of up to 2.00%, the Commissioner awarded 2.00% to all members of staff (excluding the Commissioners).

Trade union facility time

The OISC has an agreement in place with the Public and Commercial Services Union, the trade union it has recognised, for its Branch Executive Committee (BEC) members to have access to 52 days facility time which can be used between them to carry out trade union duties. In addition, the BEC’s Health and Safety Committee and the Union Learning and Development Working Group Representatives each have a total of 10 days paid leave to attend training for their respective roles. All BEC members work within the allotted allowances.

Consultancy

There were no consultancy assignments in the year or in the previous year.

Off payroll engagement

No employee was paid through their own limited company.

2.3 Parliamentary Accountability and Audit Report

These notes and disclosures are audited.

Losses and special payments

OISC incurred £nil extra-contractual costs in the year ended 31 March 2021. In 2019/20 it incurred £13,961 extra-contractual costs in respect of legal services for criminal investigations.

There were no losses and special payments in the year ended 31 March 2021 (none in 2019/20).

Material remote contingent liabilities

There is one ongoing Tribunal matter that is potentially a material remote contingent liability as at 31 March 2021 (31 March 2020: two).

Gifts

There were no gifts for the year ended 31 March 2021 (2019/20: none).

Fees and charges

OISC costs and fee income are as follows:

		2020/21			2019/20
	Costs	Income	Deficit	Costs	Income	Deficit
	£’000	£’000	£’000	£’000	£’000	£’000
Adviser fees*	4,062	(986)	(3,076)	3,973	(922)	(3,051)
	4,062	(986)	(3,076)	3,973	(922)	(3,051)

*Application fees are paid by advisers at a level set by the Home Office (S.I. 2011/1366). This generates income which is less than the total cost of OISC operations.

Regularity of expenditure

The Office of the Immigration Services Commissioner operates within a Framework Document dated 14 February 2017 which sets out the financial transaction limits to which the OISC may operate without further referral to the Home Office. During the course of 2020/21, there were no additional expenditure controls. The Commissioner also operates to the standards set out in HM Treasury’s ‘Managing Public Money’ and can confirm no irregularity with any of the provisions contained therein.

John Tuckett

Immigration Services Commissioner and Accounting Officer

7 July 2021

2.3.1 The certificate and report of the comptroller and auditor general to the houses of parliament

Opinion on financial statements

I certify that I have audited the financial statements of the Office of the Immigration Services Commissioner for the year ended 31 March 2021 under the Immigration and Asylum Act 1999. The financial statements comprise: The Statements of Comprehensive Net Expenditure, Financial Position, Cash Flows, Changes in Taxpayers’ Equity; and the related notes, including the significant accounting policies. These financial statements have been prepared under the accounting policies set out within them. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards as interpreted by HM Treasury’s Government Reporting Manual.

I have also audited the information in the Accountability Report that is described in that report as having been audited.

In my opinion, the financial statements:

• give a true and fair view of the state of the Office of the Immigration Services Commissioner’s affairs as at 31 March 2021 and of net expenditure for the year then ended;

• have been properly prepared in accordance with the Immigration and Asylum Act 1999 and Secretary of State directions issued thereunder.

Opinion on regularity

In my opinion, in all material respects, 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 (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 Office of the Immigration Services Commissioner 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 Office of the Immigration Services Commissioner’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 Office of the Immigration Services Commissioner’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 report.

The going concern basis of accounting for the Office of the Immigration Services Commissioner is adopted in consideration of the requirements set out in International Financial Reporting Standards and interpreted by HM Treasury’s Government Reporting Manual, which require 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 parts of the Accountability Report described in that report as having been audited, the financial statements and my auditor’s report thereon. 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 report, 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, 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 Secretary of State directions made under the Immigration and Asylum Act 1999; 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 Office of the Immigration Services Commissioner 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:

• adequate accounting records have not been kept 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 Report Manual are not made; or

• I have not received all of the information and explanations I require for my audit; 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:

• 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;

• 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 of error;

• assessing the Office of the Immigration Services Commissioner’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 Office of the Immigration Services Commissioner 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 Immigration and Asylum Act 1999.

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.

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.

My procedures included the following:

• Inquiring of management, the Office of the Immigration Services Commissioner‘s head of internal audit and those charged with governance, including obtaining and reviewing supporting documentation in respect of the Office of the Immigration Services’ Commissioner‘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; and

  • the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations including the Office of the Immigration Services Commissioner’s controls relating to the Immigration and Asylum Act 1999 and Managing Public Money;

• discussing among the engagement team and where required, involving relevant internal and or external specialists, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, I identified potential for fraud in the following areas: revenue recognition, appropriateness of expenditure and posting of unusual journals;

• obtaining an understanding of the Office of the Immigration Services Commissioner’s framework of authority as well as other legal and regulatory frameworks that the Office of the Immigration Services Commissioner operates in, 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 Office of the Immigration Services Commissioner. The key laws and regulations I considered in this context included the Immigration and Asylum Act 1999, Managing Public Money and relevant employment law and tax legislation.

In addition to the above, my procedures to respond to identified risks included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;

• enquiring of management and the Audit and Risk Assurance Committee concerning actual and potential litigation and claims;

• reading minutes of meetings of those charged with governance;

• 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.

I also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members 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.

In addition, I am required to obtain evidence sufficient to give reasonable assurance that the income and expenditure reported in the financial statements have been applied to the purposes intended by Parliament and the financial transactions 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

Date: 15 July 2021

National Audit Office

157-197 Buckingham Palace Road

Victoria

London

SW1W 9SP