Concern as four health boards fail to break even
Four Welsh health boards who failed to break even despite their “statutory duty” to do so have been criticised by the Welsh Government – and must now take “action to meet their financial duties”.
The accounts of all 10 NHS Wales organisations for 2017-18 have been audited by the Auditor General for Wales and were laid before the National Assembly in a report by Vaughan Gething, Cabinet Secretary for Health and Social Services yesterday.
It is the fourth year the accounts have been prepared under the NHS three-year financial regime that was introduced under the NHS Finance (Wales) Act, on April 1, 2014.
All NHS accounts in 2017-18 received a clean “true and fair” audit opinion from the Auditor General for Wales.
Six out of 10 organisations complied with the statutory break-even duty by operating within their budgets over the three-year period of assessment from April 2015 to March 2018.
In addition to their reported outturns, Aneurin Bevan and Cwm Taf generated surpluses during 2017-18 of £2.4m and £3m respectively which the Welsh Government has agreed to carry forward.
Those amounts were removed from the boards’ 2017-18 allocations, and will be re-provided to them in 2018-19.
But four of the 10 organisations have not achieved their financial duty to break even over three years.
Abertawe Bro Morgannwg operated within allocations in 2015-16 but failed to do so in 2016-17 and 2017-18.
Cardiff and Vale University Health Board operated within allocations in 2015-16 but failed to do so in 2016-17 and 2017-18.
Betsi Cadwaladr and Hywel Dda University Health Boards have failed to operate within allocations in all three years.
Consequently those four organisations have failed to meet their statutory financial break-even duty for the threeyear period of assessment, and as a result, have received qualified regularity opinions from the Auditor General for Wales on their 2017-18 accounts.
As independent bodies that have a statutory duty to operate within their allocations over a three-year period, Mr Gething said that the Welsh Government expects the health boards to take the action needed to meet their financial duties.
All Health Boards reporting financial deficits in 2017-18 have received reports from independent financial governance reviews commissioned by the Welsh Government during 201718, and have developed and published action plans for implementation.
Progress on delivery of these actions is being monitored by officials through the regular intervention meetings with these boards, Mr Gething said.
Additional cash support has continued to be provided when required to all boards in deficit to enable them to meet their normal cash commitments including payroll expenditure.
The cash assistance is repayable in future financial years when appropriate and improved plans are developed and approved under the Act to enable the repayment of deficits.
But Mr Gething added that the overall net outturn for NHS Wales in 201718 was slightly improved on the 201617 position, indicating that the actions being taken to increase financial discipline in NHS Wales through the medium term planning process and escalation and intervention process are having effect.
All the Health Boards have been contacted for comment.