Press Release - NHS (England) Summarised Accounts
1999-2000
12 July 2001
In a report to Parliament today, head of the National Audit
Office Sir John Bourn gave the results of his annual examination of
the 19 summarised accounts which cover the financial activities of
the NHS in England.
Sir John’s opinion on each of the 19 summarised accounts was
unqualified. The report drew attention, however, to several issues,
as well as to progress made in accounting developments and internal
control during 1999-2000. The key findings are set out below.
The overall financial performance of health authorities and
NHS Trusts in 1999-2000:
- 59 of the 99 health authorities reported a deficit for the
1999-2000 year, an increase from 48 out of 100 in 1998-99. The
health authorities in aggregate reported a deficit of £52 million
(compared with a restated deficit of £25 million in 1998-99) but
Sir John also noted that by the end of the second quarter of
2000-2001 the forecast in-year position was a surplus of £45
million.
- 150 of the 377 Trusts reported a deficit for the 1999-2000
year, compared with 98 of 402 in 1998-99. In aggregate NHS Trusts
reported a net deficit for the year of £77 million (compared with a
deficit of £36 million in 1998-99). Sir John noted however that by
the end of the second quarter of 2000-2001 the forecast in-year
deficit for NHS Trusts had reduced to £8 million.
- Sir John noted that the 1999-2000 financial performance
reported by NHS Trusts reflected the completion of the first three
year rolling period over which they all met the statutory
break-even financial target "taking one financial year with
another", although 41 Trusts were granted an extension from the
three year to a five year target. All health authorities achieved
their statutory duty for net payments not to exceed their cash
limits.
Progress in countering fraud in the
NHS:
- Sir John welcomed the range of initiatives being pursued by the
Directorate of Counter Fraud Services to tackle fraud in the NHS,
including the appointment of trained specialists in each
organisation and establishing a hotline for reporting fraud.
- At the end of March 2001 NHS organisations were investigating
484 cases of suspected frauds with a total estimated value of some
£18 million (compared with 239 cases with an estimated value of £14
million at the end of March 2000).
- Sir John noted that work was ongoing to measure accurately the
level of fraud and "incorrectness" across all main services in the
NHS, and welcomed progress in achieving 22 successful prosecutions
and 34 successful disciplinary cases during 1999-2000.
Clinical negligence:
- Sir John noted that the reported liability for clinical
negligence continued to increase within the NHS, with the net
present value of known and anticipated claims at the end of March
2000 of £3.9 billion, an increase of £0.7 billion from the previous
year. This included an estimate for the first time of £1.3 billion
for incidents incurred but not reported, and Sir John welcomed this
improvement in measurement and disclosure of these significant
costs.
- Sir John’s separate report on the management of clinical
negligence claims by the NHS in May 2001 covered this subject in
more detail. (HC 403, 2000-2001)
Developments in accounting and internal
control:
- Sir John welcomed the progress achieved by the NHS in
implementing three new financial reporting standards during the
year. It has helped to bring NHS accounts into line with generally
accepted accounting practice.
- Sir John noted that the appointed auditors of the underlying
accounts were required to express an opinion on the regularity of
the activities of Health Authorities and Special Health Authorities
for the first time in 1999-2000; and in all but three cases they
gave unqualified regularity opinions.
Sir John said today:
"I welcome improvements in financial control within the NHS
and the initiatives taken to counter fraud. The way forward will be
to continue to improve corporate and clinical governance and to
ensure that accounting for these large sums presents fully and
clearly the financial position of health authorities and NHS
Trusts."
Notes for Editors
Individual health organisations are required to prepare annual
accounts under Section 98 of the National Health Service Act 1977
as extended. The accounts are audited by auditors appointed by the
Audit Commission for Local Government and the National Health
Service in England and Wales. The Secretary of State for Health is
required to prepare nineteen Summarised Accounts from individual
accounts which are then subject to audit by the Comptroller and
Auditor General.
The summarised accounts for 1999-2000 covered: the 99 health
authorities which spent around £39 billion in purchasing health
care and related services from NHS Trusts and other contractors;
the 377 NHS Trusts which spent some £29 billion in delivering
health care; the 460 charitable funds held on trust; and the 16
special health authorities.
Clinical negligence is a breach of a duty of care, which is
admitted as such by the employer or is determined as such by the
legal process, by members of the health care professions acting in
their professional capacity on relevant work.
Press notices and reports are available from the date of
publication on the NAO website at http://www.nao.org.uk/ Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
The Comptroller and Auditor General, Sir John Bourn, is the head
of the National Audit Office employing some 750 staff. He and the
NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 36/01
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