Wednesday 26 March 2014
In a statement at the start of this month's States Meeting, HSSD Minister, Deputy Mark Dorey, told States Members that HSSD had overspent its budget by £1.6 million in 2013.
Deputy Dorey explained changes to the HSSD budget made in the course of 2013. He also explained how HSSD had improved their Financial Transformation Programme performance in 2013, finding £3.26 million savings against a target of £3.29 million.
Deputy Dorey outlined how his Department ended the year with an authorised budget of £111.8 million - nearly £4 million more than its original allocation.
More than half of this increase related to centrally-funded pay awards and severance pay; but Deputy Dorey confirmed that £1.3 million related to a general overspend. He said that HSSD had been forecasting an overspend of around this size since the middle of 2013. This was approved by T&R, using their delegated authority, so that it now formed part of HSSD's final authorised budget.
But there was still an additional overspend of around £300,000 which was identified during the year-end accounting processes in early 2014. This had not previously been approved by T&R, and it will bring HSSD's total overspend for 2013 up to £1.6 million.
Deputy Dorey said that the 2013 FTP projects saved £1.75 million in 2013, as they were started at various times during the year; and will generate £3.26 million of repeatable savings in a full year. If all the projects had begun at the very start of 2013, then the Department would have saved an additional £1.51 million, almost cancelling out the overspend.
Despite its overspend, HSSD will continue to provide its full range of health and social care services, and will work towards achieving an even tighter budget in 2014. Deputy Dorey ended his speech on a cautious note, warning of "serious challenges" ahead, in light of the Department's nearly £5 million FTP target. But, he said:
"HSSD will continue to strengthen its own financial management, to work closely with the Treasury and Resources Department, and to share information openly with States Members as the year progresses."
The Minister's statement delivered to the States of Deliberation can be found here.
