TWO big-spending departments believe the States’ financial watchdog has misinterpreted the accounts. In its annual report the Public Accounts Committee claims Health overspent last year by £2.5m. and Social Security by £3m.

Both departments say that is wrong.

‘I do think Public Accounts has got itself into a bit of confusion, which we could have helped with if they had approached us,’ said deputy Social Security minister Dan Le Cheminant.

‘We knew nothing about the alleged overspend on budget until we heard it on the news. And it’s simply wrong.’

The department did get £3m. more from general revenue, but that was only the difference between actual expenditure in 2005 and 2006.

‘Yes, we did receive more money than the previous year. But we did not exceed any of our budgets that were approved by the States.’

Health minister Peter Roffey said that the department had gone over budget, but by £675,000 as had previously been reported.

‘It would appear that the Public Accounts Committee has misinterpreted the 2006 accounts,’ said Deputy Roffey.

‘If we had overspent by the amount stated, it would have been a very big news story long before now.’

The 2006 overspend was put down to the cost of off-island treatments.

‘In 2006, we spent £2.5m more than in 2005, but the States had increased our budget by £2m.,’ said Deputy Roffey.

‘Considering that, at the last minute, the States gave us £1m. less for 2006 than we had been led to expect from the indicative budget previously given to us by the Treasury and Resources Department, we had to find significant savings in order to limit the overspend to £675,000.’

PAC chairman Leon Gallienne said that he was trying to contact other committee members to see if it would make any further comment on the situation.

It yesterday announced that it would review the two departments.

Deputy Le Cheminant believed that the review of his department related to one already under way, of its computer expenditure over the last 10 years.

‘Its contractors have been with us in Wheadon House for the last three weeks and we have allowed full access to all records and staff.

‘This is administrative expenditure which falls mostly on the contributory Guernsey Insurance Fund, not on the general revenue account.’