Quick links for 2019/20
|NHS Improvement timetable letter 2019/20||To follow. Dates for submissions for M1-M6 PFR (monthly monitoring) confirmed in email from Sector Reporting team (NoReply email address) on 3 May 2019. M9 and M12 accounts deadlines confirmed in 4 October 2019 entry below.|
|DHSC Group Accounting Manual (GAM) 2019/20||Available here|
|FT Annual Reporting Manual (ARM) 2019/20||To follow|
|DHSC agreement of balances||Available here|
2019/20 M07 PFR form issues - updated 13 November 2019
|Mandatory fixer v1.19.07.0a issued on portals||Tab 18. Capital Funding-GrsCpxCDEL, cell reference P192. Validation to be updated||The validation currently identifies excess sources of capital funding greater than £5m only. The validation will be updated to match year to date capital spend with resources used.|
IFRS 16 implementation - 30 September 2019, updated 4 November
IFRS 16 (Leases) will apply from 2020/21, but there is work to continue with now. Over the past year we have made providers aware of various sources of guidance. We have now pulled these together into an IFRS 16 implementation guide for providers, which includes a plan with milestones for IFRS 16 implementation. A document with answers to Frequently Asked Questions on technical aspects IFRS 16 implementation has been published separately and will be updated over the coming year.
The FAQ document has been updated (version 2) on 4 November. Changes are highlighted in red. These updates have also been reflected in the main implementation guide.
Answers to common questions on IFRS 16 implementation in the NHS. Last updated 4 November 2019.
2019/20 main submission dates for providers - 4 October 2019
The Department of Health and Social Care’s Financial Accounts Steering Group has approved the group financial reporting timetable for 2019/20. We will issue a detailed timetable letter in the coming weeks, incorporating accounts, monthly reporting and agreement of balances deadlines. The headline submission dates for month 9 and month 12 for NHS trusts and NHS foundation trusts are:
- Month 9 PFR (incorporating TAC schedules) submission: Thursday 23 January 2020, noon
- Month 12 PFR (incorporating TAC schedules) and draft accounts submission: Friday 24 April 2020, noon
- Month 12 PFR (incorporating TAC schedules) and audited accounts submission: Friday 29 May 2020, noon
Month 6 agreement of balances - 19 September 2019
DHSC has issued the timetable for the month 6 agreement of balance exercise. Receivable bodies are required to issue receivable statements, but there is no requirement for bodies to agree balances or to report back to national bodies at month 6. The agreement of balances guidance has also been updated for 2019/20. These documents are available on the DHSC website here. AoB contacts lists are available to providers on NHS Improvement portals.
IFRS 17 Insurance Contracts - 8 August 2019
IFRS 17 on insurance contracts (replacing IFRS 4) is expected to apply to the public sector from 2022. An insurance contract is defined as “a contract under which one party (the issuer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specific uncertain future event (the insured event) adversely affects the policyholder”.
IFRS 17 brings a number of changes to accounting compared to IFRS 4; a useful summary is available here. But the first step for HM Treasury and DHSC is to identify what contracts might be held that would fall under IFRS 17. It’s possible that there may be items currently considered as provisions or contingent liabilities which are in reality insurance contracts. There are a number of important parts of the definition (this list is not complete):
- The compensation from the issuer to the policyholder could be in money or in-kind: for example fixing a broken machine
- The future event is uncertain – which means at least one of the probability of the event occurring, when it will occur, or how much would be paid if it occurs.
- The future event is specific to the insured party (e.g. flood damage to a building owned or used by the policyholder is specific to that party).
- The risk around the future event existed for the policyholder before the agreement was made, and it is not financial risk such as a future change in an index.
- Warranties provided in connection with the sale of goods and services are specifically excluded by the standard as they fall under IFRS 15. So for example we would see readmissions in the NHS as affecting IFRS 15 measurement, and not considered the provision of insurance. Employer pensions and insurance contracts where the entity is the policyholder are also excluded from IFRS 17.
We request that all NHS providers think about whether they are likely to have contracts which are likely to fall under IFRS 17, with the provider as the issuer (rather than the policyholder). If you do have, or have matters that you’re unsure about and would like to discuss further, please get in touch with us.
DHSC Group Accounting Manual (GAM) 2019/20 - 17 July 2019
DHSC has now published the 2019/20 GAM which is available here. It's a quiet year for accounting changes: a summary of changes is provided on page 6. For NHS foundation trusts' annual reports, we expect the FT ARM 2019/20 to be published in the autumn.
Publication of results from FT audit quality reviews - 17 June 2019
NHS Improvement is responsible for overseeing arrangements to review the quality of auditors’ work at NHS foundation trusts. NHS trusts are subject to separate arrangements not overseen by NHS Improvement. Each year we publish a summary of the results of the reviews to share understanding between auditor teams. NHS provider accounts teams are encouraged to consider this summary as points raised may be an area of auditor focus over the next year. The summary of results for 2017/18 is now available at https://improvement.nhs.uk/resources/review-audits-nhs-foundation-trusts.
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.
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.
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.
Example NHS provider accounting policies
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 material 2018/19
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.
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.
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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