A new computerised system for the Irish Blood Transfusion Service is three years late and will cost twice as much as expected, according to the Comptroller and Auditor General.
Mr John Purcell's report into certain financial control shortcomings in the blood service was published yesterday, and also shows that it incurred a deficit of €4.5 million in 2000. This has since been reduced, and the service's overdraft is expected to be down to €1 million early this year.
The new computer system for controlling blood banking activities, called the Progresa Project, was begun in 1998, but remains uncompleted. It was intended to replicate best industry practice in the management of blood banking, and will, when completed, enhance donor screening and provide access to a databank from laptops in local centres.
The project was budgeted at €4.26 million and was due to be implemented by late 1999. However, the current final cost of the project is a projected €9.04 million, and the scheme is not now expected to be fully implemented until May of this year.
The Comptroller and Auditor General also found shortcomings in the service's budgeting system for the year 2000-2001. He commented: "Despite the fact that deficiencies in this area had been highlighted in 1997 in a report by consultants [Deloitte and Touche] there was
still no comprehensive budgeting or costing system in place [in
2000]."
Instead, budgeting was done at an overall organisational level and
budget forecast information was used to calculate price increases for
the following year. Budgets were not assigned to budget holders or
cost centres, and there was no costing system in place that would
allow for product pricing as well as the measurement of performance.
This has now been corrected, with fully devolved departmental
budgeting. Budget managers and holders are now responsible for cost
centres, which allows more accurate pricing across product lines.
Mr Purcell was also critical of the IBTS's cash management, which
led to a shortfall of 14.7 million in 2000.
This partly arose from its need to meet the costs of its
representation before the Lindsay tribunal, which came to 11.47
million. This will eventually be recouped from the Department of
Health and Children, but the Department declined to do so until the
issue of costs was decided by the tribunal.
In addition, sales invoices for the first quarter of 2000 were not
issued until April, thereby reducing income.