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16 April 2003HEALTH FUNDING CONCERNS RAISED BY AUDITOR GENERALSerious concerns have been raised by the WA Auditor General over the processes and practices used by the Department of Health to fund Not for Profit Organisations (NFPOs) for the provision of services. In his report tabled in Parliament today, Des Pearson highlights a raft of problems that put at risk significant amounts of taxpayers’ dollars. Six operational areas of the Department of Health were examined which together account for approximately 88% of the total NFPO funding of some $260 million – these were Aged and Continuing Care, Resource Management Directorate, Office of Mental Health, Office of Aboriginal Health, Public Health, and Office of the Chief Medical Officer. The concise but comprehensive report identifies several broad areas of concern pertaining to funding arrangements, activity and financial reporting obligations, monitoring service delivery and performance, and contract management. However, beyond these wider issues, the report details specific examples of non-compliance, lack of accountability, and deficient management practices that put considerable funds at serious risk or failed to deliver the services sought. Putting the issues raised into context Mr Pearson notes that the majority of funding arrangements with NFPOs involved low risk situations where the inadequacies of current contracting practices were “rarely if ever” highlighted; however, application of these same inadequate contracting practices to the small percentage of high risk funding arrangements had resulted in “significant, undesirable outcomes”. Notwithstanding the concerns expressed in the report, it also recognises the complex, difficult and some times unique circumstances Department of Health managers have to work under, especially in the area of Aboriginal health where the organisations they must work through may not have the same capacities or work within the same frameworks as other NFPOs. Commenting today on his report Mr Pearson said that although it was not one of the largest reports his Office had produced, it was certainly one of the most sensitive, requiring considerable care and forethought in both the audit and reporting phases. “Many of the problems had been identified for some time, with a good deal of rumour and innuendo clouding the situation,” he said. “My Office did not wish to shirk the issue, nor did it wish to see limited health dollars being wasted through poorly targeted or inefficiently delivered health services. “Thus, cognisant of the sensitivities and broader perspectives surrounding many of the issues, it steadfastly maintained a focus on this report being a catalyst in generating improved and more efficient and effective health services for a large group of West Australians. “And in this we have already been successful, as during the course of the audit the Department of Health has indicated it has committed to implementing measures including a new contract system to address these issues and to meet the requirements of a new Government policy on the funding of NFPOs.”
Ends/ Media Contact: Peter Villiers, Manager Reporting and Communications |
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