FINANCE: Mid Yorkshire Hospitals Trust end of year statement of internal control reveals it “was alerted to inaccurate financial assumptions” in November last year, and is planning to save £60m in the next two years.
The statement of internal control 2010-11, signed by the chief executive, says: “In November 2010, the trust board was alerted to inaccurate financial assumptions which identified a higher gap between income and expenditure than had previously been reported.
“The systems and processes to support financial control and financial reporting have been reviewed and the income position was successfully resolved in year. Internal audit have subsequently provided assurance to the audit committee that this was not indicative of fundamental issues with the financial control and financial reporting regime although improvements to the reporting and financial control process were identified.”
It also says: “Looking towards the future, in order to ensure the delivery of the challenging cost improvement and transformation programme of £60m of savings and efficiencies required over the next two years, a financial and service recovery programme has been put in place. This is overseen by the finance and service recovery board which reports to the finance committee.”
At the end of 2010-11 the trust recorded a small surplus, but also a “technical deficit” of £60m, according to the Department of Health’s first quarter performance report.
On another finding, it says: “A report carried out by internal audit identified some weaknesses in the controls relating to the system for validating claims for Waiting List Initiative (WLI) payments. Action has been taken to strengthen the process for authorising the need for WLI sessions and validating and tracking payments.”
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See attached paper (see attached file, right)