Dáil Éireann Debate, Thursday - 15 June 2023
296. Deputy Róisín Shortall asked the Minister for Health his response to a media report (details supplied); when this deficit in the Service Plan was identified by this Department; the action he proposes to take to address the matter; and if he will make a statement on the matter. [29024/23]
View answerHSE National Service Plan and Financial Risk in 2023
The HSE's National Service Plan (NSP) for 2023 indicated that the HSE assessed an overall potential financial risk of approximately 10% of its current budget allocation in 2023.
On receipt of the NSP and recognising the quantum of risk within, extensive engagements between the Finance teams in both the Department of Health and the HSE were held to understand the assumptions underpinning the HSE's assessment of the financial risk. The final NSP noted that the Department of Health had a lower assessment of the financial risk in 2023.
HSE expenditure data for the first three months of 2023 indicates a deficit of €178 million to end-March, signalling significant expenditure pressures, albeit these are substantially lower than the HSE flagged in the NSP.
The NSP documented a range of joint Expenditure Management Projects to be progressed by the HSE and the Department of Health. Work is underway by both organisations on a number of these projects. In respect of pay pressures, specific actions have been taken to slow management & administration recruitment for the remainder of 2023. The CEO of the HSE recently announced a temporary pause on recruitment of senior management and administrative grades across the HSE.
It is not, at this stage, possible to give a definitive picture of where the expenditure outturn is likely to land at end-2023. Current indications suggest that the expenditure outturn will be substantially lower than the financial risks signalled in the NSP. The Department of Health and the HSE continue to work proactively to mitigate the financial risks in 2023.
Resignation of Chair of the Audit and Risk Committee
The Chair of the Audit and Risk Committee of the HSE resigned in March 2023. The matter of his resignation was his own personal decision and not one that the Department can comment on. The focus of the HSE and the Department following this resignation was to ensure that the Audit and Risk Committee continued to operate, and that it had suitable personnel with experience in financial matters.
A new Chair of the Audit and Risk Committee, Mr. Brendan Whelan, was recently appointed. Mr. Whelan is CEO of Social Finance Foundation, which provides loan funding to organisations in the not-for-profit sector. Prior to this role, he was part of Senior Management in Bank of Ireland responsible for Operations, IT and HR. He is a graduate in Commerce from University College Dublin, a graduate in Management from Stanford University and a Fellow of the Institute of Bankers in Ireland.
There is an appointment process underway to ensure that at least one member of the external Audit and Risk Committee holds a professional qualification in accounting or auditing.
