Wales’ biggest health board, Betsi Cadwaladr University Health Board, has admitted to serious mistakes after a £9.4 million accounting error was uncovered. The board now says it has “learned” from the issue and is working towards improved transparency and governance.

The error, described in a scathing report by Audit Wales, involved the deliberate misreporting of financial figures in the board’s 2021–22 accounts. The incident prompted investigations by NHS Counter Fraud and North Wales Police. While both probes found no evidence of criminal fraud, the intentional nature of the incorrect accounting raised significant ethical and professional concerns.

Chief Executive Carol Shillabeer addressed the issue at a recent board meeting, expressing regret over the incident. “This report provides an opportunity for us to move forward,” she said. “We are committed to learning from these mistakes and putting stronger systems in place.”

Return to Special Measures

The Welsh government had placed the health board under special measures in February 2023 following the initial findings by Audit Wales. At the time, the board was criticised for a “deeply worrying degree of dysfunctionality” among its senior leadership and governance structures.

The financial misreporting came to light through internal whistleblowing procedures, where concerned finance department staff confidentially raised red flags about the accuracy of recorded transactions. Their actions led to further scrutiny and eventually full-scale investigations.

Adding to the controversy, the health board in May 2023 was also alerted to the unauthorised disclosure of a sensitive financial report by accountancy firm Ernst & Young (EY). The nature and impact of that disclosure remain unclear but have contributed to an ongoing sense of mismanagement within the organisation.

No Fraud, But Serious Concerns

Although criminal fraud was ruled out, experts and oversight bodies have questioned the ethical and procedural lapses that led to the £9.4m blunder. The report from Audit Wales made it clear that the figures were manipulated knowingly and that internal controls failed to prevent the misreporting.

Dr. Shillabeer assured stakeholders that the board is undertaking a wide-ranging internal review of its financial practices. New safeguards are being introduced, including tighter audit processes and better leadership oversight. A renewed focus on encouraging staff to speak up about concerns is also underway.

A Path to Recovery

Despite the damage to its credibility, Betsi Cadwaladr Health Board continues to serve North Wales’ population. However, rebuilding public trust and satisfying government oversight requirements will be a long-term challenge.

“The public must be confident in how their money is managed,” said a Welsh government spokesperson. “We expect immediate and sustained improvements from the board.”

The board’s leadership has pledged to work closely with regulators and auditors to ensure compliance and better accountability going forward. The final report into the matter is expected to shape future reforms aimed at preventing similar incidents.

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