Monitor broke procedures over Bradford trust

3 Feb 05
The NHS foundation trust regulator did not adhere to its own assessment procedure when it was considering the Bradford Teaching Hospitals Trust for foundation status, according to a report released under the Freedom of Information Act this week.

04 February 2005

The NHS foundation trust regulator did not adhere to its own assessment procedure when it was considering the Bradford Teaching Hospitals Trust for foundation status, according to a report released under the Freedom of Information Act this week.

The Bradford trust had a projected surplus of around £2m in 2004/05 when it was awarded foundation status last April. But it subsequently emerged that it could face a deficit of up to £11m and it is now implementing a recovery plan.

The report by consultancy McKinsey, commissioned by Monitor, set out six 'learning points' for the regulator. '[These] recommendations are standard practice for Monitor, and Bradford appears to have been an exception to this practice,' the report added.

McKinsey said Monitor did not critically review and challenge an opinion on the trust's finances by independent accountants PricewaterhouseCoopers. If this had happened, 'serious concerns' would have been raised before the foundation trust was licensed.

The report added that Monitor did not ensure PricewaterhouseCoopers was fully briefed, nor did it recommend that the accountants explained their findings to the trust board, nor did Monitor meet the whole trust board.

Monitor has accepted McKinsey's other recommendations – to tighten up review procedures and take a less trusting approach to auditors' views on trusts' financial management.

PFfeb2005

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