IT is responsible for paying for health services in the York and Selby area - but today the debt-ridden primary care trust is under investigation by the Audit Commission over its finances.

The Evening Press can reveal that bosses at Selby and York Primary Care Trust (PCT) are currently £9.4 million in debt, with a prediction that by the end of the 2005/2006 financial year they will be £28 million in debt.

It has drawn up a three-year recovery plan to clear the deficit, which will see it slashed to £13.3 million by the end of the 2005/06 financial year and cleared by the end of 2007/08.

The situation could mean less funding for York Hospitals NHS Trust, which is also striving to meet targets and just managed to break even this year after a £2 million forecasted deficit.

But the Evening Press understands the Audit Commission is so concerned about the finances at the PCT that it has issued a Statutory Notice of Public Interest and is currently compiling what it calls a Public Interest report.

This type of report is produced only when the Government auditors find something serious, which they decide must be brought to the attention of the public.

Today, a spokesman for the Audit Commission said: "We can confirm that we are looking into the financial position of Selby and York Primary Care Trust."

In December last year, the Audit Commission wrote to the trust saying: "The PCT is seriously at risk of not meeting the break-even target for 2004/05 and beyond.

"The board will need to monitor the financial position closely during the year to ensure that your financial recovery strategy is adhered to and is not allowed to slip.

"Current indications are, however, that there is a serious risk of financial balance not being achieved in 2004/05. Given the magnitude of the problem, the board, through the finance steering group, needs to monitor the position on a frequent regular basis and be prepared to take firm action if necessary.

"We will be reviewing your core financial processes as part of our 2004/05 audit work."

Mike Proctor, director of nursing at York Hospital, said: "I would like to look at the report, which has not yet been published. When we have seen the report then we will comment."

A PCT spokesman said: "Following the PCT's declaration earlier this year that we would fail to meet a requirement to end the financial year 2004/5 in financial balance, we have been actively working with our local strategic health authority and the Audit Commission to not only identify areas of overspend and the reasons behind them, but also on a three-year financial recovery strategy.

"The PCT has a statutory duty to present the Audit Commission's Public Interest Report within four weeks of receipt.

"Following its receipt, it will be presented to the next available public board meeting. At that meeting we will discuss the findings and debate any actions necessary from it."

Updated: 09:56 Friday, September 09, 2005