Brennan Report - Department of Health and Children

Report of the Commission on Financial Management and Control Systems in the Health Servicerespect of 2001. The Comptroller and Auditor General indicated to us that the EasternRegional Health Authority and its three area health boards, established in 2000 to replace theEastern Health Board, experienced significant difficulties in producing accounts for 2000 to anauditable standard. Fundamental questions about these accounts were not resolved untilrelatively recently and certification is expected shortly.Table 8.1: Dates of Health Board Audit CertificatesAudit Certificate Date (no. months late)Accounts Year Ended 31.12 1998 1999 2000Health board Date Audit Months Date Audit Months Date Audit MonthsCompleted Late Completed Late Completed LateEastern Health Board 29/2/00 5 months 9/7/01 2 7 months Still incompleteMidland Health Board 7/2/00 4 months 18/12/00 3 months 17/1/02 4 monthsMid-Western Health Board 17/12/99 3 months 17/1/01 4 months 26/3/02 6 monthsNorth Eastern Health Board 23/12/99 3 months 3/1/01 3 months 8/2/02 4 monthsNorth Western Health Board 16/3/00 5 months 9/11/00 1 month 24/1/02 4 monthsSouthern Health Board 23/12/99 3 months 15/12/00 2 months 1/2/02 4 monthsSouth Eastern Health Board 23/12/99 3 months 28/2/01 5 months 20/2/02 5 monthsWestern Health Board 23/12/99 3 months 12/12/00 2 months 30/7/02 10 monthsSource: Department of Health and ChildrenThe Comptroller and Auditor General explained why this situation had arisen as follows:●●●Firstly, the Office of the Comptroller and Auditor General had experienced staffshortages arising from difficulties in retaining appropriately qualified personnel in hisOffice.Secondly, health boards appear to concentrate on meeting their own legal requirementto have Annual Financial Statements approved by their boards. Once this is done, seniormanagement in health boards appear to attach little priority to securing audited financialstatements.Thirdly, lack of preparedness for audit, delays in responding to requests for informationnecessary for the completion of audits and changes in key staff in health boards have allbeen identified as causes of delay in completing audits.Arising from staffing difficulties, and in an effort to meet his statutory auditing deadlines, theComptroller and Auditor General has outsourced some of his audits of health agencies (but nothealth boards) to private sector firms. This exercise met with mixed results, suggesting thateven when adequate audit resources were available (whether from within his Office or from2As part of the transition to the Eastern Regional Health Authority, the accounting period for this year ended on 29/2/00.102