NHS bodies met their statutory financial targets in 2012-13 despite a tough financial settlement but some of the actions taken to achieve break-even are not sustainable according to a report published today.

Published by the Wales Audit Office, 'Health Finances 2012-13 and beyond' also found that that service performance has declined in 2012-13 in some key areas. The report goes on to say that NHS Wales continues to face significant service and financial challenges in 2013-14 and it is likely to struggle to sustain current levels of service and performance.

Annual Improvement Reports will be published for all 28 local authorities, which includes local councils, national parks, and fire and rescue services in Wales. The reports look at how well the organisations are planning for improvement and delivering their services.

The Auditor General has also drawn on the work of other relevant Welsh inspectorates, Estyn, and the Care and Social Services Inspectorate for Wales; as well as work undertaken on behalf of the Wales Audit Office when preparing this report.