The threat of qualification, reported in Accountancy Age in October, stems from severe delays at the Prescription Pricing Authority in processing prescriptions, sparked by shortages of generic drugs.

When health authorities close their accounts at the end of the financial year, the most recent data they will have could be for November. Health authorities would be forced to rely on estimated data and auditors may have to qualify accounts.

But addressing the Healthcare Financial Management Association's annual conference in London last week, NHS Executive director of finance and performance Colin Reeves said a solution was being sought. 'I am in negotiation with both the PPA and the Audit Commission about how we can ensure that health authorities have sufficient financial information to satisfactorily complete their annual accounts,' he said.

With the PPA insisting there is no quick fix, Accountancy Age understands that two theoretical solutions are being considered. Either the closure of accounts could be delayed by up to three months or a deal could be struck with auditors, allowing a greater reliance than usual on estimated data.

The issue is complicated by the introduction of resource accounts for central government next year.

In line with the new initiative, health authority accounts are currently expected to be closed by the end of May making any delays to the deadlines unlikely, but rescheduling the accounts has not yet been ruled out.

Are NHS accounts on road to casualty?

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