‘Unprecedented financial failure’ trust delays accounts again

University Hospitals of Leicester Trust was supposed to complete accounts for the 2019-20 and 2020-21 financial years by 31 August this year. However, because of “the complexity of the work and delays in the start date” the trust now expects to complete them in December, according to a board paper for its meeting this month.

Last year, it emerged UHL had a £46m hole in its 2018-19 accounts, despite being signed off by trust auditors Grant Thornton. NHS England and Improvement is investigating the accounting shortfall. 

Simon Lazarus, who started as the trust’s CFO at the end of 2019, was unable to sign off the 2019-20 accounts as true and fair, which was described by the National Audit Office as an “unprecedented failure”.

The trust was put into financial special measures in July 2020 due to ongoing financial challenges and has a deficit of £100m.

In papers from January’s audit committee meeting, Mr Lazarus had said it would be “crucial” to avoid any “significant slippage” on the 31 August deadline for the 2019-20 accounts.

He added: “The ability to submit a clean true set of accounts by that date would be a significant milestone for the trust.”

Mr Lazarus told UHL’s September board meeting the trust has developed a medium-term financial plan as part of the special measures programme, but it “needs further work” with local NHS organisations and regulators. The deadline for this plan was also the end of August.

The trust warns in its September board papers there is “no clear link between system‐wide recovery planning… with the trust’s approach to delivering sustainable financial improvement”.

New trust chair John Macdonald said in response: “We can have a beautiful plan, but we need an organisation that can deliver it — how does the board get assurances that an organisation is fit and able to deliver the plan?”

An UHL spokeswoman said: “The new finance team have worked tirelessly to reinstate proper governance and controls and as a consequence the trust’s balance sheet has significantly improved as has our ability to control costs.”

She added: “We expect to have completed the statement of accounts by December this year.”