Mr. Seamus McCarthy:

I think the references to my office and the audit related to a potential prior year adjustment that may be proposed in the HSE's 2021 annual financial statements. Obviously, I and my office are taking this very seriously. I wish to inform the committee that, as yet, we have only preliminary information about what adjustment may be proposed by the HSE. The draft annual financial statements for 2021 are currently being prepared by the HSE and, as is required, will in due course be considered by the HSE's audit and risk committee. We expect to receive the draft financial statements by 28 February, which is the normal date we receive them. If a prior year adjustment is proposed by the HSE, we will expect to receive detailed backup information from the HSE to support that adjustment. We will then complete the final audit, including a full review of the proposed adjustment, within the statutory timeframe. The HSE's financial statements have to be certified by 21 May. We will look to see that any adjustment required is properly accounted for and, particularly, that the reasons for it are adequately explained in the notes to the financial statements. We would expect such notes to explain why the errors occurred, why the existing controls did not pick them up and prevent them and what the HSE has done to ensure they do not recur. Until the audit is completed, it would not be appropriate for me to express an opinion on the matter.

In the public interest, however, I do want to make one observation on information that has been reported in the media. I understand the context in which the Department of Health officials were raising concerns, which is in trying to plan and to control the rate at which Exchequer funding flows to the HSE in order that it has sufficient funds to operate but does not hold excess funds. I do not see anything in what has been reported about the potential prior year adjustment to suggest that it is related to any material loss of public funds. I will, of course, keep an open mind on this and all the other matters alleged. If any material loss is in fact identified, the committee can be assured I will report on it in the normal way.