Letter - fhrp to ministers for treasury and infrastructure re financial governance - 27 september 2023

States Greffe

Deputy Tom Binet , Minister for Infrastructure

Cc Deputy Ian Gorst , Minister for Treasury and Resources

BY EMAIL

27th September 2023 Dear Deputy Binet ,

New Healthcare Facilities Programme Review

As part of its review of the New HealthCare Facilities Programme, the Panel wrote to the Comptroller and Auditor General (C&AG) on 3rd August 2023 (letter to the C&AG) requesting an outline of the Jersey Audit Office’s expectations of the protocol employed by Government in its procurement process and the manner in which tendering and contracts would be undertaken to ensure the greatest value for public monies spent.

The C&AG responded on 8 September (letter from the C&AG) providing an overview of those expectations and the recommendations that her office had already made to Government. In her letter, the C&AG provided the following guidance:

The  Public  Finances  Manual  places  obligations  on  Accountable  Officers  regarding procurement processes and I would expect these obligations to be complied with in full. I have noted in previous reports the level of procurement breaches and exemptions. In order to ensure that value for money is obtained I would expect the New Healthcare Facilities Programme to have no procurement breaches. I would also expect procurement exemptions to be granted only in exceptional circumstances and where best value can be demonstrated. Any procurement breaches and exemptions should be properly recorded, authorised and monitored at programme level.

The Panel would be grateful for your confirmation and any supporting information on the following matters.

1. The obligations placed on Accountable Officers by the Public Finances Manual will be complied with in full.
2. The New Healthcare Facilities Programme will not be subject to procurement breaches.
3. Procurement exemptions will only be granted in exceptional circumstances and where best value can be demonstrated. Please provide information on any exemptions recorded to date.

The C&AG also set out the following information.

Effective procurement is supported by clear and robust criteria to underpin decision making. I made the following recommendations that are relevant in my May 2023 Report:

R4 Ensure that effective mechanisms are put in place to review and, where appropriate, update the Functional Brief for key strategies which should inform capacity requirements as they are finalised.

R5 Establish clear and robust criteria to underpin decision making for the New Healthcare Facilities Programme. Document targets and tolerances and any weighting against the criteria.

R6 Clearly set out reasons for any deviation from the agreed criteria, the thresholds or the weighting and what has been done to mitigate the risks of the changes made.

R7 While recognising that risks and opportunities in health care constantly evolve, ensure that criteria for evaluation at any point in time fairly and reasonably represent a sustainable value for money position.

It is important for these recommendations to be implemented fully as the New Healthcare Facilities Programme moves into a procurement stage.

Further to the acceptance (and partial acceptance) by the Chief Executive and the Treasurer of the States of these recommendations in their Executive Response to the C&AG’s review (r.82- 2023 res.pdf (gov.je), please could you confirm that these recommendations have been fully implemented? In any instance in which the recommendation has not been (or will not be) fully implemented please provide an explanation.

The Panel would be grateful for your response within five working days of receipt of this letter. Yours sincerely

Deputy Sam Mézec

Chair

Future Hospital Review Panel

 Scrutiny Office | States Greffe | Morier House | St Helier | Jersey | JE1 1DD Tel: 01534 441080 | email: scrutiny@gov.je