Showing posts with label Audit. Show all posts
Showing posts with label Audit. Show all posts

Tuesday, 22 January 2013

Auditing and re-auditing

All of those involved in spending public money have a responsibility for ensuring that it is spent cost effectively and in accordance with the organisations' agreed aims and objectives.  That is as it should be, and it means that all public bodies have agreed internal and external audit processes to verify that it actually happens.

Sometimes, however, the fragmented nature of Wales’ governmental structures means that the same activities can, effectively, be audited multiple times at multiple levels.  European funding is one example which leaps to mind.
The EU of course has its own processes for verifying that money has been spent in accordance with the terms of any grants given.  And that includes the money coming to Wales under the Convergence scheme.
As a result of an attempt by the One Wales government to appear to be more strategic in its approach – which seems to have convinced the ministers but I doubt that they convinced anyone else – an extra layer of funding 'bodies' or consortia was effectively introduced; and the Welsh government audits the way the money it allocates to those funding bodies is spent.
Those bodies in turn audit the way in which the money is spent by the bodies to which it is allocated by them.  Many of those are local authorities, who again have their own audit processes.
So some European funding is being audited at least four times as it passes through different levels of public authority.  That inevitably means that less money and effort are spent on the direct activities concerned.  Even if the audit costs come out of “other” funding rather than out of the grant funding itself, it still means that money is being used to check what is being done and how rather than actually doing something.
At each level, the argument is the same – “we’re dealing with public money, and have to demonstrate that the doing it properly” – and each level has to assemble, collate, and file its evidence of what has actually been done and how.
Now if “Public Sector Wales” was a single unified structure, would we still want or need to audit the same things several times at different levels or would a unified body have just a single set of audit processes?  Could we – and would we – be able to divert more resources into doing things instead of checking up on what other people are doing?
I’m not arguing here for creating a unified structure for the Welsh public services (although the idea is not without some merit).  There is, though, an argument for looking at a single unified audit structure and process for the Welsh public sector, which means that any activity is only subject to a single audit, and that other bodies then accept the veracity of what they’re being told rather than re-check.  Excessive trust can certainly bring problems of its own; but excessive distrust is costing us time and money which could be more usefully deployed elsewhere.

Tuesday, 17 April 2012

Not so obvious

On first reading, yesterday’s report in the Western Mail, that Wales’ health boards do not know how many patients are receiving radiotherapy treatment, nor what the cost of that treatment is, seemed quite ‘shocking’ or ‘staggering’ to use some favourite words from politicians’ press releases.  It seems inherently obvious that they ought to know such things, doesn’t it?  But then I remembered a dictum of one of my old science teachers – “that which is obvious isn’t necessarily true”.
Jumping from an inability to answer some very specific questions about the detail of expenditure on one particular type of treatment to an accusation of ‘financial ineptitude’ as the leader of the Lib Dems has done might make for good headlines, but doesn’t necessarily reflect reality.  There are, as anyone managing a large budget will know, many different ways of analysing expenditure in order to manage and control it; an inability to respond to a newspaper’s request to analyse it in one particular way does not, in itself, mean that there is a lack of control.
One of the challenges for those managing a large and complex organisation like the NHS is to ensure that they concentrate their attention on key information, and don’t get drowned in mere data.  Finding the right balance can be harder than it looks.  I don’t know whether they’ve got the balance right or not – and yesterday’s story gave me no help at all to improve my understanding.  The most that I can say is that there are some questions which the external auditors ought to look at to satisfy themselves that expenditure is being properly controlled.
What I do know is that ensuring that data is kept in a format which will enable any and every question to be answered on demand is not likely to be the most productive use of resources.  And those criticising the inability to answer this particular question seem to have complained often enough in the past about the numbers of bureaucrats and managers in the NHS.  Asking for more detailed record-keeping seems inconsistent to say the least.
Oscar Wilde described a cynic as “A man who knows the price of everything and the value of nothing”.  I don’t want a health service which simply ignores price issues; but I do want one which understands value as well.