Dáil Éireann Debate, Tuesday - 14 June 2022
1881. Deputy Róisín Shortall asked the Minister for Health the steps that are being taken to ensure that there is robust oversight of HSE accruals and a legitimate basis for same following a review of HSE spending which found that €72 million had been incorrectly recorded as spent; and if he will make a statement on the matter. [30643/22]
Amharc ar fhreagraIn early 2021 the HSE Finance team commenced a substantive review of the 2020 non-pay revenue accruals element of c.€1.0bn, which formed part of the HSE’s overall closing current liabilities of €2.5bn (see Note 18 of the HSE’s 2020 Annual Financial Statements). A review of accruals balances had been planned by the HSE as part of the migration to the new Integrated Financial Management System (IFMS) and was brought forward in consultation with the Department of Health.
The HSE’s review found that while most of the recorded accruals were deemed to be valid, there was an element which were not able to be validated with a total value of €71m, representing 3% of the overall current liabilities balance. This gives rise to a prior year adjustment to be booked in the 2021 financial statements. A prior year adjustment relates to a restatement in the current year’s accounts of a balance or matter previously reported in a prior year’s set of financial statements.
The review of non-pay revenue accruals was a substantial exercise undertaken by the HSE, involving a large number of individual accruals balances, some of which were historical balances going back a number of years. Having completed this exercise, the HSE and the Department now have additional assurance that the current accruals balance recorded by the HSE is fully valid. The transition to the new Integrated Financial Management System Across the HSE, which is currently in the ‘Build and Test’ phase before implementation beginning in 2023, will include a more standardised process and robust controls for the posting of financial journals (including accruals) built into the system.
