Shetland’s health and social care partnership reported a £1.95m overspend last year.
The integration joint board’s financial position was revealed in annual accounts discussed by the committee this afternoon (Thursday).
Committee chairwoman Emma Macdonald said the accounts contained no surprises.
“We are well aware that we still have savings to find and that there’s need for a robust financial recovery plan,” she added
“It’s clear that doing nothing is not an option.”
The report highlighted spending on agency staff and locums, which Ms Macdonald said may require a creative approach to address.
IJB audit committee chairman Robbie McGregor also questioned the impact of Covid-19.
However, he was reassured to hear the Scottish government was committed to cover “reasonable costs” expended during the pandemic.
Auditor Conor Healy said despite challenges, the IJB had managed to set a balanced budget for the first time in its history.
He said this had closed the 14 per cent funding gap envisaged for 2023/24 to three per cent.