Powys Teaching Health Board (PTHB) posted a £34.7 million overspend on their rolling three-year budget, members have been told.

The consequence of this is that the Auditor General for Wales, Adrian Crompton, had issued an “irregular” opinion on PTHB’s accounts for 2024/2025.

The accounts were reported to the board members at their annual general meeting on Monday, September 15 by PTHB’s Director of Finance, Pete Hopgood.

An overspend of £15.7 million for last year on a budget of £464 million had contributed to the three-year position.

Mr Hopgood said: “We have a statutory duty to ensure that our expenditure does not exceed our aggregate funding over a three-year period.”

He pointed out that the deficit had been £7 million in 2022/2023,  £11.9 million in 2023/2024, and £15.7 million for 2024/2025.

Mr Hopgood said: “This gives us an overall cumulative deficit of £34.7 million over the three-year period.

“Over the three years we have had total operating expenses of £1.295 billion against a revenue allocation of £1.260 billion – which gives us that total deficit position.”

Mr Hopgood continued: “Every year the Auditor General (Adrian Crompton) and Audit Wales audit our accounts.

“In relation to our failure to meet our duty to remain within our revenue limit over a three-year period, our accounts have been qualified on a regulatory basis, and it’s deemed to be irregular expenditure.”

But he had some good news and revealed that Audit Wales had given PTHB accounting practices a clean bill of health.

Mr Hopgood said: “We did receive an unqualified opinion in relation to the true and fair view of accounts – this means that they are accurate with no material errors and can be relied upon.”

Earlier in the meeting, PTHB Chairman Dr Carl Cooper had explained that during the year the organisation had seen a Welsh Government “escalation” of intervention.

PTHB had been moved from level three, which means enhanced monitoring, to level four, which means targeted intervention for finance, strategy and planning.

Dr Cooper said: “It’s really important to outline here that we remain and continue in no escalation and in routine arrangements for all other aspects of health board delivery.

“Also, during 2024/2025 we approved temporary changes to Minor Injury Units opening times and also how care and support is provided through our ready to go home units.

“Our board took the decision in July to extend the temporary changes and these will form part of a public consultation as part of the Better Together programme that’s planned for later this year in the autumn and winter.”

Chief Executive Hayley Thomas explained that as part of the wider Better Together transformation programme the initial focus will also be on adult physical and mental health services.

Ms Thomas added that the increased escalation status means that PTHB is “working even more closely” with the Welsh Government with more meetings and greater scrutiny taking place.

Ms Thomas said:  “As the year progresses, we do anticipate there are very difficult choices to come and we’re committed to having the right conversations, with patients, the public, our staff, and partners to face the issues head on.”

The annual report was agreed by the board.