Number of NHS trusts referred to health secretary by auditors rose from five in 2012-13 to 19 in 2013-14

This article is more than 6 years old

This article is more than 6 years old

The number of NHS trusts referred to the health secretary over financial concerns increased almost fourfold in a year, a report reveals.

Nineteen were flagged up to Jeremy Hunt in the financial year 2013-14, compared with five in 2012-13, according to the Audit Commission. Twenty-four clinical commissioning groups (CCGs) were also referred.

Marcine Waterman, the controller of audit, said auditors were reporting concerns about the financial resilience of a third of trusts last year, compared with a quarter for the previous 12-month period.

"This level of reporting is worrying and reflects the increasing risks to the financial sustainability of individual NHS trusts as they continue to face sizeable financial pressures due to a rising demand for services and the necessary focus on quality of care, whilst balancing the need for continued cost savings," she said.

Among those referred to Hunt for failing to meet their statutory break-even duty were the University Hospital of North Staffordshire, Barnet and Chase Farm hospitals and Ipswich hospital NHS trusts. Mid-Essex Hospital Services, North-west London Hospitals and Worcestershire Acute Hospitals NHS trusts were also on the list.

The report (pdf) covers the timeliness and quality of accounts, arrangements to secure value for money, and auditors' use of their statutory reporting powers. It covers 101 NHS trusts and 211 CCGs.

It found that the timeliness and quality of trusts' financial reporting had improved and the majority of NHS bodies put in place proper arrangements for securing value for money. But it revealed that auditors at 34% of NHS trusts issued a non-standard value-for-money conclusion relating to concerns about financial resilience, compared to 26% the previous year.

Ten trusts, including North Cumbria University Hospitals and Croydon Health Services NHS trusts, received "adverse" conclusions, meaning the auditor was not satisfied that the body had made proper arrangements to secure economy, efficiency and effectiveness in its use of resources.