23.05.18
NHS board blasted for ‘number of weaknesses’ in regional financial management
A government-commissioned review has identified “poor financial management” in its assessment of NHS Tayside, calling on the board to review the robustness of its financial future.
NHS Tayside’s financial board, which has received £40m in funding in recent years and used £3.6m from a public endowment fund to help balance the books in 2013/14, was said to have “a number of weaknesses” in its financial management region that holds 18 hospitals and care centres, including leading teaching service Ninewells Hospital.
“Within our review we have identified examples where we have evidenced poor financial management and governance practices,” the report conducted by accountant Grant Thornton said.
It continued: “Alongside potential indicators, in particular in 2013/14, where the culture at NHS Tayside was not fully aligned with the behaviours, expectations and guidance appropriate to those of a public-sector organisation.
“Based on our review, it would appear that the NHS Tayside Board historically did not have full visibility of the NHS Tayside financial position. Our review identifies a number of weaknesses in NHS Tayside’s financial management arrangements alongside a lack of transparent governance which may have evolved based on NHS Tayside’s organisational culture.”
The review recommended that the audit “play a pivotal role in supporting cultural change” at NHS Tayside, and to ensure that non-executive members are trained and promoted to do the right thing to ensure board members are scrutinised.
The financial board has said that its new leadership – Greater Glasgow Health Board boss John Brown, who replaced recently resigned chairman Prof. John Connell – is aiming to fully refund the money from its endowment fund, which is funded entirely from public donations, and say recommendations have been accepted.
Chairman John Brown said: “All of the recommendations in today’s report will be fully implemented and I can confirm that we’re already making progress in a number of areas. NHS Tayside’s financial position remains very challenging but that does not mean that our financial reporting should also be challenging.
“We owe it to the public to make it as easy as possible to see what is going on and how we are spending large sums of public money every year. I have confidence that this organisation can learn the lessons of the past, move forward and make the improvements and the progress needed to rebuild confidence with the public and ensure there are no distractions for staff as they get on and do what they do best.”
Chief executive Malcolm Wright argued the report is “very unsatisfactory” and the lack of transparent governance processes regarding financial management shown over the years is extremely serious.
“This independent review reinforces our position of transparency first and we will now relentlessly pursue improvements to our financial reporting and governance to ensure all recommendations are implemented,” he noted.
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