States of Jersey Public Accounts review reveals overall costs increased by £146 million in 2023
A report into the States of Jersey Public Accounts has found that costs have risen by £146 million in 2023, compared to 2022.The annual review found that an extra £83 million was spent on health services while the cost of staffing increased by £72 million.
The main objective of the report was to investigate whether public funds have been used in the way intended by the States and whether financial practices have been maintained.
The review disclosed that the spend in 2023 within Health and Community Services was £330 million, an increase of £83 million from 2022 when the spend was £247 million.
The attributing factors are thought to be increased pay awards in 2023, drug inflation and a reliance on agency staff along with additional overtime payments for staff.
An estimated £14 to £15 million has been predicted to have been spent on Health and Community Services Agency staff costs within 2024.
However, the report has stated that the Financial Recovery Plan within Health and Community Services is focused over a three-year period and intends to achieve savings.
It's hoped that money will be saved through a reduction of agency staff and improvements in procurement processes.
Along with the concerns around staffing costs and funds for health departments, the report mentions the need to offer more training on-island to highlight key recruitment gaps.
The review states: "We support the employment and engagement of local Jersey residents over the use of consultants wherever practical, as it reduces the need for more expensive consultancy or agency staff while providing excellent employment opportunities locally.
"This should also be supplemented by more provision of internal training to help upskill staff in these areas.
"Health Services have made some progress, but more effort is needed to establish a paid training program for local residents to fill vacancies in the medium term."
The Public Accounts review was published along with a list of 10 recommendations:
Accessibility of the report: Improve accessibility and provide an understandable digital summary in next year's report
Assurance to Ministers on departmental performance: A departmental annual report must be submitted to the relevant Minister for review
Reporting on staffing numbers: Reintroduce detailed employee numbers per pay bracket in the 2024 report for transparency
Internal IT controls: Chief Information Officer to present an action plan for new IT controls
Consolidation of States-Owned Entities: Present a plan to include all States-Owned Entities in the Jersey Group Annual Report by 2025
Health and Community Services Financial Recovery Plan: Quarterly updates on the Financial Recovery Plan
Value for Money: Define "Value for Money" consistently across departments to improve resource prioritisation
Operating Balance: Include a narrative on public sector growth in the 2024 report
Overall Government performance reporting: Include clear tables and narratives on service performance measures for easier public assessment
Customer feedback and complaints reporting: Incorporate feedback from Health and Community Services, and schools in future annual reports
Leader of the review and member of the Public Accounts Committee, Deputy Raluca Kovacs says: "I am pleased to present the 2023 report, highlighting several critical areas for attention.
"Health’s IT projects need rigorous monitoring to ensure patient outcomes and cost efficiency, while recruitment challenges in Health require proactive solutions to reduce waiting times and manage rising costs.
"Additionally, we must address overall government cost increases, enhance the clarity and accessibility of annual reports, and improve local training programs to reduce reliance on costly consultants.
"Efforts should also be made to better engage stakeholders and communicate effectively about the report’s findings."
The full report is available to read online.
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