NHS warned over accounts

NHS finance bosses may have moved their money around to meet financial targets.

Auditors concluded that, unless NHS Ayrshire & Arran changes how it works, “patient care will deteriorate.”

The damning allegation was delivered by the national watchdog Audit Scotland in a report on accounts at NHS Ayrshire & Arran.

Health accountants allegedly claimed £ 1m from the government by shifting cash, allowing them to meet targets.

Auditors said there may have been a “deliberate movement of costs between years” to achieve the balance.

They also warned health chiefs: “Accounting practices should not be compromised to achieve financial targets.”

And in another ticking- off they blasted: “The board should consider whether it could be more challenging on the financial information presented to it.”

The findings were presented in the 47- page annual audit report up until April 2016. It explained a funding boost for junior doctor costs was offered by Holyrood on condition that the board balanced the books within £ 1 million.

But now auditors have now blown the whistle on the accounting practice, questioning how the sums were achieved.

However, the report is also full of praise for many processes.

It said: “We have concluded that the board has strong financial monitoring arrangements that support the review and scrutiny of financial performance and the achievement of targets.”

But it added: “We are concerned with the board’s financial performance and planning.”

It said that “financial pressures, combined with greater activity and demand, makes achieving targets and standards more difficult”.

John Burns, chief executive of NHS Ayrshire & Arran, said: “Our annual accounts for 2015/ 16 have been scrutinised by Audit Scotland and presented to the Ayrshire and Arran NHS board.

“The external auditors found NHS Ayrshire & Arran met all its financial targets for the year and has strong financial monitoring arrangements, with a well developed performance management framework in place.

“During the audit the board and the auditor discussed the accounting treatment of a single entry. An approach was agreed that complied with the auditor’s opinion, while ensuring that financial targets were delivered as planned.”