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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-10-19 Daily Xml
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Ministerial Statement

ROYAL ADELAIDE HOSPITAL

The Hon. J.D. HILL (Kaurna—Minister for Health, Minister for Mental Health and Substance Abuse, Minister for the Southern Suburbs, Minister Assisting the Premier in the Arts) (15:46): I seek leave to make a ministerial statement.

Leave granted.

The Hon. J.D. HILL: I should apologise to the house; I tried to catch the Speaker's eye at the end of question time but I missed it, so I am doing it now. I table today a copy of the Ernst & Young report into non-operating funds' internal control and governance, dated 19 September 2008, which was commissioned at a cost of approximately $64,728—and that is probably exactly, rather than approximately. There have been requests for this report to be released and I would like to ensure it is accessible to all members of parliament.

The report was commissioned as a result of irregularities detected in non-operating fund accounts in April 2008 at the Royal Adelaide Hospital. Those irregularities were reported to South Australia Police and also referred to the Director of Public Prosecutions, who continues to have carriage of this matter. Non-operating funds include research grants and doctors' private practice funds.

The report reviews the processes and internal controls that were in place at the then Central Northern Adelaide Health Service Incorporated. The report made 11 recommendations for areas of improvement in governance systems, management, policy and procedures, and delegations. The executive and leadership team at the Central Northern Adelaide Health Service Incorporated oversaw the process of implementing the report recommendations. All the report recommendations were accepted by the then Central Northern Adelaide Health Service Incorporated and were implemented, including the appointment of a manager of non-operating accounts.

The report demonstrated the need for a change in governance to a single entity, being the Adelaide Health Service Incorporated, to ensure tighter controls, increased accountability and continuity in procedures across all health sites. Through the creation of the Central Adelaide and Northern Adelaide local health networks there will continue to be a focus on controls and accountability across the management of non-operating funds.

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