Good morning. I thank the committee for the invitation to discuss the HSE financial statements for 2023. I have noted in the invitation the specific reference to the requests to focus on the roll-out of IFMS, non-compliant procurement, staffing and remuneration, and capacity at University Hospital Limerick and the University of Limerick Hospitals Group. I am joined by my colleagues, who have already been introduced by the Chair, and I am supported by Sara Maxwell from my office.
The financial details of the HSE for the year 2023 are set out in the annual report and financial statements. In a service context, using those resources, 2023 saw unprecedented levels of demand for almost all health and social care services. Despite growth in key demand areas of scheduled and unscheduled care, the second half of 2023 saw significant improvements in waiting times and waiting numbers in scheduled care, and also in the emergency department trolley position, which is unscheduled care. I am pleased to be able to report to the committee that in 2024, despite continued additional growth in demand, with outpatient department scheduled care demand being up by 7.5% and unscheduled care emergency department attendances being up by 8.4% in the year to date to the end of September compared with the same period last year, we have continued to see reductions in waiting times and trolleys compared with 2023. We remain challenged in a number of sites for unscheduled care and this continues to be a priority for the whole of the HSE.
Members will be familiar with the improving financial position as set out prior to the summer economic statement and budget 2025. This is the first year when we have had early sight of our in-year closing cash position and our existing level of service position for next year. The cash management of the organisation is now more clearly set out and aligned to planned expenditure than it has been for some time. The focus of the pay and numbers strategy has resulted in a better control environment and the 2023 moratorium has ended with no future requirement for this type of blanket measure. In non-pay control, we have a plan in place until the end of 2025 to achieve better value and efficiency from the significant resources we have. Managing the variables of demand and inflation requires a clear plan that is comprised of new resource, productivity and control. I am satisfied we have progress in all of these three fronts.
I will address the integrated financial management system, IFMS. Replacing fragmented and outdated systems has long been talked about in the HSE, since its foundation. Clear benefits can be achieved by using a single national modern system. These benefits include better and more timely financial reporting and forecasting, improved financial management, governance, compliance and transparency and better overall financial control. IFMS went live on schedule in July 2023 in what is referred to as implementation group 1, which includes the HSE in the east, the HSE nationally, in corporate and national services, the primary care reimbursement service, and Tusla, the Child and Family Agency, to which we continue to provide financial services. Roll-out of the solution to the remainder is under way with go-live scheduled for 1 April 2025 and 1 July 2025, respectively, in two tranches, at which point all HSE expenditure, which is about 80% of the total health budget, will be transacted on IFMS. Implementation to voluntary organisations in scope, which are predominantly section 38 agencies, will follow subject to further planning. That is anticipated to go live potentially from 2026 onwards. That latter point requires further discussion with those organisations and the Government.
I am advised that while still on track to achieve the planned go-live dates for the two tranches in 2025, some challenges have been encountered. The project is currently reported as behind schedule but at a minor level. By way of external oversight, the Comptroller and Auditor General published chapter 17 of his report which relates to the HSE's IFMS. The Comptroller and Auditor General noted this in his opening statement. The chapter notes the challenges experienced by the HSE in relation to the first go-live phase and the measures undertaken by the HSE, which are factored into the roadmap for the rest. I consider it helpful that the committee has asked the HSE to provide it with a quarterly update on the progress of the IFMS project and the HSE is happy to commit to same.
On compliance with procurement rules, HSE procurement estimates addressable current expenditure of approximately €4.9 billion in respect of goods and services that are subject to procurement regulations. The HSE is required to report on compliance in accordance with the requirements of the revised Code of Practice for the Governance of State Bodies. The HSE's statement of internal control acknowledges the challenges in respect of its monitoring and reporting of non-compliance, but equally it reflects the significant work that is progressing to improve this reporting. Prior to 2020, the HSE was not in a position to report annually on procurement non-compliance. In 2020, the HSE introduced an internal self-assessment process, which has been conducted on a quarterly basis since 2022. This self-assessment incorporates a review of all invoices greater than €25,000, which represents 38% of the estimated procurable expenditure for 2023. This assessment indicates a compliance level in the order of 88%. The current up-to-date estimate at the end of quarter 2 2024 puts it at 90%.
The HSE has acknowledged in the 2023 statement of control that not all expenditure is assessed in this context, which is a limitation. The HSE’s corporate procurement plan details the efforts under way to improve compliance. Spend under management, where contracts or frameworks with all of the terms agreed are in place, is an important driver of compliance. Our corporate procurement plan included a target to have 75% of spend under management for 2023, which was achieved. It is currently 82.7%, indicating that we are on track to achieve 85% by the end of 2024.
The implementation of IFMS, which I have mentioned, will make further improvements to this.
Staffing in the HSE continues to be at its highest in the history of the services. In 2023, a pause aimed at slowing down the growth in unfunded workforce was introduced. Despite this, the HSE and section 38 partners recruited 8,000 net extra whole-time equivalent, WTE, staff in that year against a funded level of 6,000. At the end of August 2024, there were 147,714 whole-time equivalents occupied by 166,000 people. The WTE growth is 23.3% since December 2019. When adjusted to exclude certain categories such as students, it is 21.9% up on the same period. Remuneration and the rules pertaining to it are set externally to the HSE by the Department of public expenditure. Pay scales and the new consultant contract will contribute to the number of higher earners over time. However, the primary concern of the organisation, and I believe this committee, will be the reference in the Comptroller and Auditor General's report and the HSE’s own financial statements regarding those ten employees paid in excess of €500,000 in 2023. It is clear that there is a contractual provision for consultants in respect of call outs that can lead to payments. In my assessment, these were never intended to accumulate to the level that they have, even where there may be a shortage of consultants to provide services. The majority of very hard-working staff, including consultants, who provide on call services do not come into this category of earning.
I am very conscious of the significant and ongoing commentary in respect of University Hospital Limerick, UHL, and the overall provision of emergency care in the mid-west region. There are important balancing factors on the commentary regarding services in the region. I have been clear in my public statements on the issues of capacity, pace of reform, process, best use of resources and the important issue of errors and failures. Where warranted, I have been unequivocal in some of the more difficult issues there. However, again, I stress that there are many positive aspects and strengths to the services in UHL. It is of concern to me that this balance often loses out to an either-or "good or bad" discourse. I pay tribute to our many fine staff in our hospitals and services in the mid-west, who come to work to care for the public every day. We are absolutely determined to overcome the challenges that are experienced there, particularly at the point of emergency access to service. There is now in place a strong programme board under the direction of the regional executive officer, Sandra Broderick, who is here today, bringing together all of our capability. In the coming months, we will see more beds in addition to what has been added, more staff in addition to the growth of more than 1,000 in recent years and more options for people to pursue their care needs, all of which will be underpinned by excellence in leadership and governance. Capacity at UHL will continue to be expanded and we will await and work with government on the outcome of the HIQA review of emergency department capacity in the region.
This January, the HSE approaches the 20-year mark of its foundation. In 2023 and 2024, we have put in place the long-awaited Sláintecare structures, improved governance and transparency, delivered the highest levels of service ever and we have record resources. We also have unprecedented demand. I am very conscious that for many people today we still have more improvements to make to either restore or build their confidence. I assure the committee of the absolute focus of the board and leadership of the HSE in that continuous improvement.