Health and social care in Fife is being undermined by serious financial issues in the organisation responsible for planning services, the local authority watchdog has warned.

Fife Integration Joint Board (IJB) has had overspends in the past three years and is facing a deficit of more than £10m for 2019/20.

A report from the Accounts Commission warns it still has no long-term financial plan in place, has no reserves and is not financially sustainable.

Chair Graham Sharp said: “The Accounts Commission are seriously concerned about slow progress in Fife IJB and its clear ongoing financial sustainability issues.

“If this persists it will inevitably affect the ability of the IJB and its partners, Fife Council and NHS Fife, to improve health and social care services local people depend on.”

He said some recent progress has been made, such as the appointment of new chief officer Nicky Connor, and a review of financial strategy.

He added: “Now, as a matter of urgency, these plans must be actioned and delivered on. Above all, a robust financial recovery plan must be put in place.”

Last year healthandcare.scot reported concerns that members of the IJB had been kept in the dark about a turnaround consultant report commissioned to help with the development of a financial plan.

The Accounts Commission report notes one of its key recommendation was the introduction of a ‘Grip and Control Framework’, presented as the “main source of savings” in the second financial recovery plan considered by the board in December 2018.

But it adds: “Implementation was delayed until January 2019 and there is little evidence that the process implemented from January resulted in any savings or restriction of any expenditure, before the end of financial year.”

The IJB has had three years of “significant” financial deficits, met by additional contributions from Fife Council and NHS Fife – £9.3m in 2016/17, £8.8m in 2017/18 and £9.3m in 2018/19.

The latest forecast for 2019/2020 shows an expected overspend of £3.5m, with £6.6m of savings which remain unidentified – adding up to a projected underlying deficit of £10.1m.

The report acknowledges Fife is not the only IJB nationally to face significant challenges and there is some “positive progress” following the appointment of a new chief officer and chief finance officer.

But it said: “We emphasise in particular the need for a robust recovery plan to be put in place to address the financial pressures faced by the IJB.

“The responsibilities of the board itself – and thus its relationship with its partners Fife Council and NHS Fife – need to be clearer and adhered to.”

Nicky Connor, director of Fife health and social care partnership, said the report highlighted key areas to focus on as a board.

“There has been progress made with a new strategic plan for the next three years approved, an integrated transformation board created and a medium to long-term financial strategy is in development.

“There is much more we can do and over the coming months we will be working to progress these.”