Our Finance Reform Programme is changing how we manage finance and procurement across the health sector.
We’re introducing:
- new operating structures and new ways of working
- standard finance and procurement processes
- a modern finance and procurement system
Our finance systems are not fit for purpose
The HSE does not currently have a single financial management and procurement system.
The absence of such a system in the HSE presents additional challenges to the effective operation of the system of internal financial control. Numerous external reviews have reiterated the consensus amongst the finance community in the HSE that the current financial systems are not fit for purpose.
A key element of the Finance Reform Programme is the implementation of a single national integrated financial management and procurement system, or IFMS. This will be based on a set of agreed national standard finance and procurement processes, a single national chart of accounts, national enterprise structure and a new national shared services model.
A significant enabler of the IFMS Project is the development of a Financial Management Framework which defines the process, governance and controls required to demonstrate effective financial management practice across the health system. The framework is a living document which was most recently approved by the Finance Reform Programme Steering Committee in June 2019. Development of the framework and associated strategies will continue as the programme progresses.
We’re working in partnership with statutory, Section 38 and Section 39 organisations to progress the detailed design of IFMS for the entire health sector. This is our first non-clinical priority and a key part of improving our entire health system. We’re determined to deliver better value for money for our services, patients and the public.
The finance reform projects preparing us for a new system
The project to introduce a modern financial management and procurement system for the entire health sector is at the centre of the Finance Reform Programme. The IFMS Project will equip us with modern technology and standard finance and procurement processes.
To prepare for this new system, we’re working on a series of projects. These will make sure that the move to the new system happens correctly and smoothly.
Stabilisation Project
We identified parts of the health sector using old and unstable financial systems which could cause immediate disruption. Two HSE areas, HSE Mid-West and HSE North West, and Our Lady's Children's Hospital, Crumlin now have stable financial systems to manage their finances effectively until they move to the new IFMS system.
Finance Master Data Unit
We introduced new financial structures which give us standard definitions to record financial information and support us to report consistently on our finances. Our services now have the structures they need to report effectively on how they are spending money. These structures are often referred to as our enterprise structure and chart of accounts.
Consolidated Financial Intelligence (CFI) solution:
We introduced a single system for reporting on national finance across the health system, based on single financial structures (known as our enterprise structure and chart of accounts). We now have a common suite of reports and are producing consistent data on our national finances.
Reporting Strategy
We are developing a reporting strategy for the health sector which will define the reporting policies and principles we need before, during and after we introduce the new system. With robust financial reporting, we’ll be able to make more informed and prompt decisions about spending and deliver greater value to our services.
Find out more about the IFMS Project
Introducing a modern finance and procurement system will involve big changes for the health sector over the coming years. Learn more about how and when we will introduce the new system.
Read about the IFMS Project
