WHSCT understated fall inPFI hospital value: KPMG

The health authority’s auditors KPMG found the disparity whilst approving the annual accounts for 2012/13. It’s since been amended. The South West Acute hospital in Enniskillen is subject to the longest public private hospital contract in Northern Ireland. It binds the Trust to the Northern Ireland Health Group and lasts until May 2042.

Another Trust Private Finance Initiative (PFI), which will see a consortium of property developers, investors and health insurers net £40m for providing £15m upfront for a pharmacy lab at Altnagelvin is the second longest in duration in NI. It lasts until 2032. The lab in question is wholly privately owned until then.

According to minutes of the Western Trust’s June Board meeting, Mrs Lesley Mitchell, Director of Finance and Contracting told members KPMG had found an “understatement of the impairment relating to the South West Acute Hospital and that it had been agreed with the auditors that this would be an unadjusted item and would be included in the Report to those Charged with Governance.”

Mrs Mitchell told members that the issue only affected the Statement of Financial Position within the accounts. Impairments, according to the Trust’s annual accounts refer to “any fall in value through negative indexation or revaluation.”

According to the Trust accounts: “Land and buildings used for the Trust services or for administrative purposes are stated in the statement of financial position at their revalued amounts, being the fair value at the date of revaluation less any subsequent accumulated depreciation and impairment losses.”