Consultants received €22m in one year

THE C&AG report shows that while money within the HSE has never been tighter, millions have still been spent on outside consultants ranging from media to data analysis.

The report shows the HSE paid €22 million in consultancy fees in 2009 and 27 consultants services were audited as part of a sample by the C&AG, their services used by the HSE between 2006 and 2010 and costing €41.2m.

The C&AG found “there was limited monitoring in a substantial number of projects” and there were also incidents of overcharging, with the report stating “inadequate details were available on how the amount was decided in the case of four consultancies”.

In one case a different rate was used than was stated in the tendering document, meaning an additional cost of almost €160,000, while “in two cases, overcharging had occurred. The first of these led to an overcharge of €9,385 which the HSE is pursuing following an audit query and arrangements are being made to have this refunded to the HSE. The second had been picked up in October 2010. It involved an overcharge of €71,000. The company involved and the HSE came to a compromise and agreed a credit for €50,000. To date, the HSE has only used up €13,000 of the agreed credit.”

Among the big earners for HSE consultancy work between 2006 and 2010 was IBM Ireland, with two contracts worth a total of almost €15m; the ESRI, which compiled and provided data for €13m; and Anderson Editorial and Ogilvy & Mather, who between them provided almost €2m worth of media consultancy.

Billions have been spent in procurement of essential goods and services by the HSE, including medicines, but the C&AG report found there were inconsistencies in the approach to contracts.

Hospital procurement was not done by framework agreements and regarding contracting arrangements, the report states that of a sample audit: “It was found that hospital level procurement was not covered by valid, in-date, contracts in the case of 25 of the 45 suppliers reviewed.

“There is scope to improve the extent of formal contracting and ensure that contracts are up to date. Only 18 of the 45 contracts reviewed in the two hospitals were covered by a current contract.”