Shropshire health commissioners draw up plan to repay debt

But Shropshire Clinical Commissioning Group is already forecasting to fall short on the savings it must make over the next year by £2.5 million.

The CCG entered the new financial year with a deficit of almost £60 million.

It is aiming to end the current financial year with a deficit of no more than £13.3 million.

If it qualifies for a new national commissioner sustainability fund – which will involve not exceeding that deficit – the CCG will have the chance to offset that year's debt.

However a financial recovery plan has also been drawn up to demonstrate to NHS England how it could repay a debt of £13.3m by 2022.

It includes making savings of £96m over five years.

The CCG is aiming to find £20.5m of savings by the end of 2018/19.

A report from the CCG says commissioners are forecasting to achieve the planned deficit, despite needing to find extra ways to save £2.5m.

Claire Skidmore, chief finance officer, told a recent meeting of its governance board that work was continuing to try and identify additional projects to close the gap.

It has also emerged that auditors say they are not satisfied the CCG put in place proper arrangements to secure "economy, efficiency and effectiveness in its use of resources" in 2017/18.

The comment was made in an audit letter from accounting firm Grant Thornton.

It also said: "The lack of substantive finance staff, poor internal financial controls, and lack of budget holder engagement had resulted in unreliable financial reporting to the governing body during the year.

"It has also impacted on the strategic planning of the organisation.

"As a result the CCG reported a £27m overspend against the revenue resource limit of £19.4m.

"The CCG has therefore overspent against its revenue resource limit and control total by £7.6m. It’s cumulative deficit is £59.7m."

But it also noted that progress has been made since April.

The letter says: "Since the completion of the 2017/18 audit the CCG has put in place a detailed action plan which includes transitioning to a new structure for a strengthened finance team with clearly defined roles and responsibilities.

"Policies and procedures have been refreshed across the CCG, and plans are in place to enhance the associated support of the different budget area by the finance team, including those areas that have proved challenging."