CCGs warned to learn NHS Croydon lessons

Clinical Commissioning Groups in London have been advised to learn from the financial errors at Croydon PCT after the significant misstatement of its accounts for the fiscal year 2010/11.

The Trust had initially reported a surplus of £5.4m but a £27.8m adjustment following an investigation meant the PCT had in reality a significant deficit.

Paul Baumann, NHS London Finance Director, said similar errors should not be made twice “in the new emerging NHS commissioning structures” where CCGs will be responsible for financial planning and management.

The review into the finances at Croydon PCT concluded that the financial reporting had been inaccurate after the Trust’s board relied too much on internal and external auditing.

There was also a failure of financial management and control, limited scrutiny and challenge by the PCT’s board and audit committee, and additional complexity after the Trust had taken on responsibilities of the London Specialised Commissioning Group and its £800m budget, the report said.

The independent report concluded that “overspends are not acceptable” and “valuable lessons” should be learnt by CCGs as they take on the responsibility for healthcare budgets from April next year.