Financial accounting and reporting updates

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NHS providers should refer to this page for the latest updates on financial accounting and reporting. We also email updates to finance teams.

Follow @Ian_NHSI on Twitter for updates and discussion.

Key links for 2018/19 year end

For NHS trusts For NHS foundation trusts
Timetable letter for 2018/19 Published on this webpage: 14 November 2018 below Published on this webpage: 14 November 2018 below
DHSC Group Accounting Manual On DHSC website
Latest update: 1 April below
On DHSC website
Latest update: 1 April below
FT Annual Reporting Manual (ARM) n/a See FT ARM webpage
Latest update: 13 February below
DHSC Agreement of balances On DHSC website
Latest update: Q4 update published on 19 March
On DHSC website
Latest update: Q4 update published on 19 March
Annual governance statement requirements and formats for certificates for annual report and accounts Published on this webpage: 7 February below (Guidance in pdf; statements also available in Word format) Requirements in FT ARM.
Word document format: see 20 March entry below.
Year end checklist: summary of everything needed on or before 29 May 2019 17 May below 17 May below
PFR form (incorporating TAC schedules) for month 12 Published to Trust Portals on 22 March. Published to Trust Portals on 22 March.
TAC Completion Instructions Published on this webpage: 22 March below Published on this webpage: 22 March below
Accounts template for providers Emailed to providers on 14 March. NHS Pensions disclosure emailed on 21 March. Emailed to providers on 14 March. NHS Pensions disclosure emailed on 21 March.
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Latest updates

Known issues in M03 PFR Return (FY2019-20) - 12 July 2019

Status Reference Comment
M03 Fixer to be issued (not mandatory) Tab 08a. PSF, FRF and MRET. STF1345 Adjustment for variance on gains on disposals of assets The formula is incorrect and needs amending. Please run the fixer if your trust has recorded plan and/or actual gains on disposals in either M02 or M03.
M03 Fixer to be issued (not mandatory) Tab 08b. ICS PSF Working. STF1341, STF1481 £1.50 per £1 adjustment (capped to total ICS PSF) The formula is incorrectly calculating the £1.50 per £1 reduction and needs amending. Please run the fixer if your trust is part of an ICS for PSF and is reporting behind CT for Q1 and/or FOT.

Audited accounts submission checklist - 17 May 2019, updated 20 May

Audited accounts for 2018/19 with accompanying documents are required to be submitted to NHS Improvement through Trust Portals by 29 May at noon. Some of the documents are also required to be posted in hard copy to us, posted on or before 29 May. We have updated our detailed submission checklist to pull together what providers need to do between now and then. This document contains no new information but is intended to summarise the submission requirements. 

Audited accounts submissions checklist 2018/19 PDF, 159.1 KB

This document was updated on 20 May to correct point in row 3 for the source of the auditor report on the summarisation (TAC) schedules.

IFRS 15 FAQs - 11 April 2019

This document contains the collated answers to IFRS 15 related queries which were received by the provider.accounts team.  This contains no new guidance but may help with any residual questions you have as you finalise your draft accounts.

IFRS 15 FAQs PDF, 190.2 KB

DHSC GAM 2018/19 - Q4 updates - 1 April 2019

The Department of Health and Social Care has updated the Additional Guidance to accompany the GAM 2018/19 for quarter 4. These updates include:

  • FAQ6: confirming continuation of previous treatment of PSF incentive and bonus receivables in PDC dividend calculations for 2018/19. It also corrects a reference in the GAM to now state that PSF not received in cash at the year end should be recorded as a contract receivable (rather than contract asset).
  • FAQ7: revising financial instrument guidance to delete from examples list things that would only rarely be considered financial instruments
  • FAQ9: updated guidance on impact of GDPR on annual reports.  For NHS foundation trusts, this was already included in the February update to the FT ARM.
  • FAQ10: additional clarifying guidance on remuneration reports. This clarifies and improves existing guidance and does not involve any new requirements. For NHS foundation trusts, we will consider if any of this should be reflected in the FT ARM in 2019/20.
  • FAQ11: links to updated guidance on laying annual reports and accounts before Parliament.  NHS trusts can ignore this but NHS foundation trusts should take note.

M12 TAC Completion Instructions - 22 March 2019

The TAC Completion Instructions accompanies the TAC schedules included within the month 12 Provider Finance Return (PFR) form. Updates to this document since month 9 are shown in red text. It also includes a full list of changes since the month 9 TAC schedules. As at month 9, because of the implementation of the new standards on 1 April 2018, it’s important that the TAC schedules are completed in a specific order this year: please refer to section 2.1.1 of the instructions. 

PFR forms were published to Trust Portals on 22 March 2019.

For NHS foundation trusts - extracts from FT ARM for year-end - 20 March 2019

The FT ARM contains the requirements for the annual governance statement and formats for statements such as the Statement of Accounting Officer’s Responsibilities.  To facilitate copying, we’ve extracted these statements and made them available as a Word document below.  This document contains no new guidance.

This is only for NHS foundation trusts. NHS trusts should see the 7 February entry below.

NHS provider example accounting policies - 14 March 2019

The NHS provider example accounting policies have been updated for 2018/19. We circulated these to providers by email on 28 February, along with a version showing tracked changes from 2017/18.

Accounting policies DOCX, 48.7 KB

Example NHS provider accounting policies

FT ARM update - 13 February 2019

We've published an update to the Foundation Trust Annual Reporting Manual (FT ARM) 2018/19. The main update is to explain additional required steps concerning the disclosure of personal information in the annual report and accounts. This only applies to NHS foundation trusts; an equivalent update for NHS trusts is covered by the DHSC GAM update.

The update is available on the FT ARM webpage. This is very slightly different to the version circulated by email on 7 February but only to improve grammar in paragraph 2.52.

NHS trusts: annual governance statements and year end material 2018/19 - 7 February 2019

The attached document provides NHS trusts with guidance and a model format for 2018/19 annual governance statements, as well as year end statements for inclusion in the annual report and accounts. This document does not apply to NHS foundation trusts. The document includes a summary of changes from last year for the material contained in the document.

We have extracted the pro-forma statements in Word format to facilitate copying from the document.

NHS trusts - AGS and year end requirements 1819 PDF, 203.8 KB

NHS trusts: AGS and year end material 2018/19

NHS trusts - AGS and year end requirements 1819 - extracts in Word DOCX, 521.1 KB

NHS trusts: AGS and year end material 2018/19 - pro-forma extracts

Central review of NHS standard contract for IFRS 15 - 29 January 2019

The Department of Health and Social Care has led on a project to provide a review of the main features of the NHS standard contract and how IFRS 15 thinking should be applied. Chapter 5 will be the most useful part of this, explaining key elements of the NHS standard contract. Please note that chapter 7 on disclosure requirements is very focused on the requirements of the standard, rather than considering materiality for the NHS. The disclosures in our TAC schedules are designed to meet the most relevant disclosure requirements of IFRS 15, as explained in the TAC Completion Instructions. 

DHSC Group Accounting Manual 2019/20 consultation - 29 January 2019

The Department of Health and Social Care has published a draft of its 2019/20 Group Accounting Manual (GAM), with an accompanying consultation document and a link to an online survey ‘Citizen Space’ where users can respond to the consultation. The consultation closes on 23 February and NHS trusts and foundation trusts are encouraged to give their views. More details can be found at https://www.gov.uk/government/consultations/changes-to-dhsc-group-accounting-manual-2019-to-2020

As previously communicated, IFRS 16 leases does not apply to NHS providers until 2020/21, but the 2019/20 DHSC GAM provides advance information on IFRS 16 to assist users' preparations. 

TAC completion instructions 2018/19 M09 - additional guidance - updated 18 January 2019

The below additional guidance document has been compiled based on exchanges with some providers and difficulties they had encountered in completing TAC00. We hope it is helpful in case any other providers have the same issues. If, having run the fixer, you are flagging any of the additional JoC checks, please consult this document.

Correction: Section A3 is quoting the wrong cell location, G69 should be H69. This has been corrected in the version below.

DHSC Group Accounting Manual 2018/19 additional guidance - 2 January 2019

The Department of Health and Social Care has published its additional guidance for the Group Accounting Manual: https://www.gov.uk/government/publications/dhsc-group-accounting-manual-2018-to-2019. The new entries are:

  • Discount rates for 2018/19. Please remember that the headline discount rates for general provisions are now set on a nominal rather than real basis and that entities need to apply inflation rates. The inflation rates are provided on pages 7-9 together with combined discount and inflation rates.
  • Updated Injury Cost Recovery (ICR) percentage for probability of non-recovery of income.
  • Guidance on accounting for the Maternity Incentive Scheme.
  • Updates arising from the December 2018 changes to the HM Treasury FReM. NHS foundation trusts are reminded that annual report -related parts of this for FTs are covered by the FT ARM. The FT ARM will be updated to incorporate the GDPR remuneration report guidance included here. 

NHS Pensions ‘Greenbury’ requests 2018/19 - 2 January 2019

The NHS Business Services Authority has now published details for the 2018/19 process for submitting ‘Greenbury’ requests. Details are available in the pdf document contained on this webpage: https://www.nhsbsa.nhs.uk/employer-hub/technical-guidance. The document states that requests for disclosure must be received by NHS Pensions between 7 January 2019 and 28 February 2019. 

Timetable letter for 2018/19 - 14 November 2018

Below is a letter which contains details of in-year monitoring and accounts submissions for the remainder of 2018/19. We hope the letter is a useful source of reference. You will recall that last year we published an additional year end submissions checklist in May. We received positive feedback on this so we will publish this again this year. 

NHS Foundation Trusts only: 2018/19 FT ARM - 14 November 2018

The Foundation Trust Annual Reporting Manual (FT ARM) for 2018/19 has now been published. As there are no significant changes compared to the 2017/18 FT ARM we have published this without issuing a consultation.

The FT ARM is available at: https://improvement.nhs.uk/resources/nhs-foundation-trust-annual-reporting-manual/

Agreement of Balances: Supply Chain Coordination Limited (SCC033) - 14 November 2018

The 2018/19 AoB guidance states that Supply Chain Coordination Limited is part of the Departmental Group from 2018/19 and they will be participating in the AoB exercise. The Department has clarified that this refers only to the entity itself. There are no changes to how providers should deal with goods procured from or via Supply Chain in 2018/19 compared to previous years: these will continue to be regarded as ‘external to government’ in line with paragraphs 7.13 and 7.14 of the guidance (paragraph references per AoB guidance published on 8 October 2018). We do not expect any providers to need to allocate any transactions or balances to SCC033 on TAC62. 

2018/19 accounts timetable (key dates) - 19 October 2018

The Department of Health and Social Care’s Financial Accounts Steering Group has approved the group financial reporting timetable for 2018/19. We will issue a detailed timetable letter in the coming weeks, incorporating accounts, reporting and agreement of balances deadlines. Please find below confirmation of the headline dates for month 9 and month 12:

  • Month 9 PFR (incorporating TAC schedules) submission: Wednesday 23 January 2019, noon
  • Month 12 PFR (incorporating TAC schedules) and draft accounts submission: Wednesday 24 April 2019, noon
  • Month 12 PFR (incorporating TAC schedules) and audited accounts submission: Wednesday 29 May 2019, noon

NHS trusts only: breakeven duty guidance – 6 April 2018

Guidance previously issued by the Department of Health and Social Care for NHS trusts’ breakeven duty requirements is no longer available online. NHS Improvement issued an updated version of this guidance at https://improvement.nhs.uk/resources/Breakeven-duty-guide-NHS-trusts. This document updates the context and some referencing in defining breakeven duty and is intended to improve clarity. However this guidance brings no changes in substance from the previous and existing arrangements in place for NHS trusts.

NHS England centralised inventory procurement - 26 February 2018

NHS England operates a national centralised system for purchasing high-cost medical devices and implants used in specialised services. These items are paid for by NHS England but physically held by providers until they are used. This stock is seen as being owned by NHS England and so is reflected in its Statement of Financial Position. NHS providers are reminded to ensure that they exclude this consignment stock from their inventory counts and it should not be included within providers’ balance sheets.

Previous financial accounting and reporting updates

These are previous updates that we've published. They are primarily relevant to foundation trusts but some may also be of use to NHS trusts. 

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