28 June 2002
The failures at Bedfordshire Shared Services – a health care partnership of five bodies, including the local NHS trust and health authority – were so widespread that auditors could not make an accurate estimation of the level of cash involved.
'There has been a failure in the arrangements for administering the financial affairs of the partner organisations due to a collapse in financial controls,' the public interest report states.
Suppliers were often paid twice for services and some staff were heavily overpaid after the partnership was set up in April 2001. Around £800,000 of overpayments have yet to be recovered, and there are fears this is just the tip of the iceberg.
The report's author, Mick West, said the mistakes he had uncovered led to a higher risk of fraud and error across the service – which also involves three primary care trusts – and the possibility of qualified accounts.
'The cost and effort involved in the recovery [of the money] is considerable, particularly where consultants are involved,' he said.
A spokesman for Bedfordshire and Luton Community NHS Trust, the host of the BSS programme, said the overall cost was 'changing by the day', but added that it was 'likely to be in single figures in terms of millions'.
Bedfordshire's acting chief executive, Paul Mullen, said: 'We accept there were serious problems in Shared Services which led to a breakdown in financial systems. The trust board immediately took steps to address the situation.'
PFjun2002
