Betsi Cadwaladr University Health Board says it has “learned” from the events of an historical £9.4M blunder.

An Audit Wales report confirmed accounting errors by the then Betsi Cadwaladr University Hospital Board happened as a result of identified expenditure of £9.4m being accounted for in 2021/22, when it appeared to relate to 2022/2.

Probes by NHS Counter Fraud and North Wales Police found no evidence of fraud.

Some finance department staff raised concerns regarding the recording of transactions, and the board was also made aware of an unauthorised disclosure of an accounting report by Ernst & Young in mid-May, 2023. The firm wrote a scathing report after “significant errors” were identified.

Although the report’s circulation was restricted, the disclosure constituted a breach of data legislation.

A “deeply worrying degree of dysfunctionality,” within the then board and senior leadership,” was identified in the report.

Sue Hill, then executive director of finance, was on leave of absence since December 2022, including 12 months due to major surgery and treatment. She resigned in December 2024.

Since November 2023 the board has been led by CEO Carol Shillabeer, who was also interim chief from May 2023 until her appointment.

A final summary report on accounting issues was discussed at a BCUHB meeting on 31 July.

A board statement said BCUHB discussed the report “to provide transparency and accountability and ensure learning, with measures in place to safeguard that such matters do not happen in future”, adding: “This was clearly a serious and complex matter and a wide range of reviews, investigations and other processes have been undertaken as a result.

“No evidence of fraud was found through investigations by Counter Fraud Wales and North Wales Police.

“The report demonstrates the learning and actions implemented and there are now strengthened systems, culture, and leadership in place. Audit Wales has issued an unqualified audit opinion (a true and fair view) on the annual accounts for the last two financial years.

“External bodies, through various reports and assurances, have recognised the progress made by the health board. We have, and will continue to learn from this experience as we build a culture of integrity, respect, and transparency across all areas of our organisation.”

It also outlined the board’s summary of “learning and action” as:

• Strengthened Financial Governance and Financial Improvement Plan in place

• Strong financial performance, reducing financial overspend, exceeding Welsh Government target for 2024-25

• Improvements in Contract Procurement and Management

• Significant improvement in the quality of the draft financial statement presented for audit

• Further improvements in Information Governance processes

• Frameworks now in place setting out ambition and expectations for effective leadership and governance – including risk management framework, Integrated Performance Framework and an Integrated Planning Framework. These have underpinned improvement actions and organisational capability.

• Strengthened Corporate Governance.

• Leadership – at the Board level, successful recruitment has taken place of a new Chair, Vice-Chair and Independent Board Members; a substantive Chief Executive and a significant number of Executive Team member roles.

• Culture of openness and transparency which Audit Wales and Welsh Government recognise.