DESPITE monthly projections warning of a year end deficit in the millions, the Western Trust was expecting to break even at the end of last month thanks to a final hour lifeline from the Permanent Secretary.
The latest Financial Report brought news that Permanent Secretary, Richard Pengelly, had saved the Trust from its £11.2million projected deficit.
Mr. Pengelly wrote to the Trust at the end of February advising that it would receive the allocation of £11.2million non-recurrently to address the deficit following receipt of assurances that the projected deficit would no rise above this level.
The Trust gave assurances that it would break even and a formal business case for the allocation was submitted.
Looking ahead to the 2017/18 financial year, however, the report was already highlighting concerns for financial pressures.
“The Trust budget for 2017/18 is based on a flat cash assumption with a projected recurrent allocation of £570million,” said the report, “Resulting in a forecast pressure of £59 million to address issues such as inflation and demographics. 
“The Trust is working in partnership with the HSCB and the Department of Health in the development of a plan to address this forecast financial pressure.”
At the end of February this year Acute Services was reporting an overspend of £3.969 million. Pay budgets were overspent by £3.207 million, mainly in medical and nursing. The medical overspend was mainly due to a reliance on medical agency cover in relation to vacancies or rota cover in general medicine and unscheduled care in South West Acute Hospital (SWAH) and across surgery and anaesthetics.
Primary Care and Older People Services reported an overspend of £3.204 million at the end of February, while Women and Children’s Services reported an overspend of £3.231 million.
Four expensive independent provider packages for Looked After Children, 14 new private agency placements and new fostercare and kinship scheme placements (a high number of which are specialist placements) played a role in the overspend for this directorate.
Adult Mental Health and Disability Services was overspent by £23,000.