Chris said: ‘This is not just disappointing. It is serious. The auditors are saying that there has been a significant shortfall in savings plans and this means that the CCG has had to dip into one-off reserves to keep the show on the road.’
He added: ‘I am told that the position has improved and that there is an action plan in place to address this rather serious issue. I remain concerned, however, that there could be complacency about how effectively taxpayers’ money is being used.’
Extract from audit report from PriceWaterhouseCoopers
Basis for qualified conclusion
In considering the CCG’s arrangements, we identified that due to
a significant shortfall in the delivery of savings plans for 2014/15, the CCG has supported it financial performance through the use of non-recurrent funding, which had been set aside for spending on transforming the local health economy.
In addition, NHS England has raised concerns in their ‘assurance framework’ assessment of the CCG for quarter three of 2014/15 in relation to the planning and delivery of savings plans as well as financial sustainability in 2015/16.
Qualified conclusion
On the basis of our work, having regard to the guidance issued by the Audit Commission on 13 October 2014, we have identified instances where Herts Valleys CCG has not put in place proper arrangements to secure financial resilience or for challenging how it secures economy, efficiency and effectiveness in its use of resources for the year ending 31 March 2015.