Media Release
23 August 2005
DHB Finances end financial year on strong note
The Ministry of Health continues to see evidence that District Health Boards are generally managing their financial
performance well.
The combined results for the financial year to the end of June 2005 show that DHBs’ actual deficits are better than
planned by $73.5M.
The total planned deficit for the financial year to June is $88.7M. The actual deficit is $15.2M. A one-off Government
payment of $11.4m for asbestos removal as part of the redevelopment of Auckland City Hospital provides part of the
explanation, but the difference is largely explained by underspending due to delays in putting in place new programmes
in several DHBs. The delays occur while DHBs plan to ensure that new programmes are well set up; that they have
recruited the required staff and the programmes are sustainable.
Some of the reduced deficit is explained by a small number of DHBs prudently making provision for planned major capital
expenditure, or taking a conservative position on spending until extra funding was provided for holiday pay costs.
The total planned deficits for the full financial year ending June 2005 include a carry-forward of $7.3m of mental
health funding from the previous year which was unspent, and in this year shows as a deficit due to accounting practice.
The Ministry continues to work closely with boards to ensure that deficits as a whole are reduced. Auckland DHB is the
focus of particular attention as it re-orients itself to take advantage of its new facitilites and achieve the benefits
planned.
Please attribute any comments to Ministry of Health, DHB Funding and Performance, Manager Finance John Hazeldine.
ENDS