Financial accounting and reporting updates

(0)

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.

Latest updates

Month 12 PFR mandatory fixer version 1.17.12.1 – 10 April 2018

A fixer for the month 12 PFR return has been uploaded to the Additional Documents section of your NHSI portal. It can be downloaded by clicking the three dots to the right of the document, then the three dots at the bottom of the dialog box that opens, then selecting ‘download a copy’.

This update contains:

  • Fixes for all known issues listed below 'Known issues' section.
  • Population of DH financing data to activate TAC validations 158 to 162.
  • Updates to capital financing information in tab 18 and limits (NHS trusts only) in tab 16 of the monthly monitoring information.
  • Correction of formula errors in the breakeven duty rolling assessment table, plus additional rows added to facilitate central review by NHSI (NHS trusts only).
  • Other minor corrections.

A further fixer is planned to be issued on 20th April which will include updates to STF validations. This fixer must be run by all providers prior to submitting on 24 April. Please ensure that “Draft accounts” is selected in cell D26 on the cover sheet of your PFR return (as required for submission 1) prior to running the fixer.

Known issues in TAC schedules and M12 PFR Return – updated 19 April 2018

Status Reference Comment
To be fixed in fixer on 20 April TAC JoCs - checks 43 and 44 The formulas in column J are incorrect for CY and PY charitable fund current borrowings and overdrafts.
To be fixed in fixer on 20 April For NHS trusts: TAC28 - cell F83 The breakeven duty calculation needs to be amended to add back CQUIN risk reserve.
To be fixed in fixer on 20 April For NHS trusts: TAC28 - cell F79 The calculation of breakeven duty financial performance has the wrong sign in the DEL impairments row. (OTD0240).
To be fixed in fixer on 20 April 08a. STF A number of formula updates are required to calculate the expected STF in specific circumstances.
To be fixed in fixer on 20 April 18. Capital Funding-GrsCpxCDEL and TAC05 checks next to table CF4 A tolerance level of £1k will be introduced to resolve rounding issues in pre-populated loan repayment data. This will affect Data validations 52 to 54 and TAC validation 160.
To be fixed in fixer on 20 April TAC Validations – check 74 The formula needs to be amended to recognise negative IFRS charges (in cases of large impairment reversal).
To be fixed in fixer on 20 April TAC28, Note 38.3 CRL The formulas need to be corrected to add in disposal from AHFS into the CRL table.
Fixed version 1.17.12.1 13. SoCI Other - cell AK138 The opening adjustment – incentive and bonus STF figure (13 FOTCY sub code SCI1885) has been pre-populated but with the incorrect signage.
Fixed version 1.17.12.1 TAC28, Breakeven duty row 95 The formulas in the final row of the breakeven duty assessment table are currently incorrect.

DHSC GAM additional guidance – 6 April 2018

The Department of Health and Social Care has updated its additional guidance (previously termed FAQs) for the Group Accounting Manual: https://www.gov.uk/government/publications/department-of-health-group-accounting-manual-2017-to-2018. The new entries are:

  • For NHS trusts and FTs: Confirming that receivables associated with STF incentive and bonus amounts at the year end should be excluded from relevant net assets for calculating the PDC dividend
  • For NHS trusts only: Requiring NHS trusts to publish any annual audit letter provided by the auditor on their website (this is already in the FT ARM update for FTs)
  • For NHS trusts only: Incorporating the requirements of the Public Contract Regulations 2015 for invoice payment performance into the GAM (this is already in the FT ARM update for FTs)
  • For CCGs: updating the threshold for disclosure of senior manager pay policy (this is already in the FT ARM update for FTs) – this does not apply to NHS trusts
  • For NHS trusts only: updated accounts directions (see below section)

For NHS trusts only: updated accounts directions – 6 April 2018

The DHSC GAM additional guidance contains (in FAQ14) two accounts directions for NHS trusts.

The first is the direction over the form and content of NHS trusts’ annual accounts. This updates a previous version of this direction to change a reference to the ‘DH Manual for Accounts’ to the ‘DHSC GAM’. This updated direction does not bring any changes in practice for NHS trusts.

The second is a new direction dealing with the submission of NHS trusts’ annual reports and accounts. This direction formally delegates the function of receiving NHS trusts’ annual reports and accounts to NHS Improvement (the NHS Trust Development Authority legal entity). This places on a legal footing the arrangements that NHS trusts are already aware of for 2017/18 onwards: annual reports and accounts are to be submitted to NHS Improvement. Our instructions for this are provided in the timetable letter issued on 1 December (see below section dated 6 December 2017) – this letter now forms a direction to NHS trusts from NHS Improvement over the submission of accounts. It was already a direction to NHS foundation trusts using powers conferred on Monitor.

For NHS foundation trusts: revision to FT ARM Update – 6 April 2018

In January 2018 we published an update document to accompany the FT Annual Reporting Manual (FT ARM). We have made a minor change to pages 5-6 of this document. In the disclosure of the liability to pay interest and the interest paid in relation to late payment of invoices, we have removed the need to split this between NHS and non-NHS invoices. This is available at https://improvement.nhs.uk/resources/nhs-foundation-trust-annual-reporting-manual-201718/

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.

M12 linked accounts template: example word accounting policies document – 28 March 2018

We distributed the linked accounts template by email on 27 March 2018. The accounting policies (for all providers) have been extracted into the below word document; trusts should tailor as necessary.

Month 12 PFR form including Trust Accounts Consolidation (TAC) schedules (due Midday 24th April 2018) – 23 March 2018

TAC schedules

  • Completion instructions for the TAC schedules are below. Section 2 of the guidance explains changes to the TAC schedules since month 9.

  • As we explained at month 9, the prior year comparatives provided in forms are again taken from the audited data submitted in 2016/17, plus any central adjustments made by the Department of Health and Social Care (DHSC) or us. Any updates you made to comparatives at month 9 need to be reapplied to comparatives here. We recommend starting with this when you use the form. As at month 9, the completion instructions document lists where comparatives may need to be revisited.

  • The quarter 4 DHSC agreement of balances update document is now available on the DHSC agreement of balances webpage.

  • Also below is the pro forma accounts disclosure for the trust's interest in the NHS Pension Scheme.

Any queries should be directed to the following mailboxes:

 

Limits reports (NHS trusts only) – 23 March 2018

Please note that the limits posted initially in the month 12 forms are based on the latest limits report posted to individual trusts’ portals. The limits report include initial CRL and EFL limits based on trusts’ plan submissions, in addition to other in year allocations and adjustments posted by DH.

The intention is that any updated limits figures will be posted to trust’s portals in April and will be actioned in forms via a fixer. This will capture any final year end limits adjustments. At the point the trust runs the fixer, on tab ‘16. Limits- NHS Trust only’, cells in sub codes CAP1590 to CAP1880 and the cell in subcode CAP1910 will be locked and cleared to zero. Sub codes CAP1890-1900 will remain open for trusts to populate the year end IFRS capital position at draft accounts stage. Sub codes CAP1920-1940 will also be left open but only to be completed by exception and agreed with NHSI Capital and Cash team.  We will then assess at draft accounts stage and action as necessary ahead of final accounts.

Sustainability and Transformation Fund (STF) year-end process for incentive and bonus funds – 1 March 2018

The attached document provides details of the arrangements for the incentive and bonus elements of STF for the 2017/18 year end. Any queries should be addressed to nhsi.sector.reporting@nhs.net.

NHS Trusts: Annual governance statement requirements and other 2017/18 year end material - 26 February 2018

The attached document provides NHS trusts with guidance and a model format for 2017/18 annual governance statements, as well as year end statements for inclusion in the annual report. This document does not apply to NHS foundation trusts. We have published this document in word format alongside a pdf to facilitate copying of text from the document.

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.

Month 12 preparations - 13 February 2018

As communicated in our timetable letter, we plan to issue month 12 PFR forms on 23 March. Only a small number of changes to TAC schedules are planned compared to month 9, and we will list every change. Foundation trusts will find that the issuing of this form is later than in previous years, as we need to have processed month 11 data for inclusion in the forms. The prior year comparative TAC data will again be taken from 2016/17 FMA / FTC data: i.e. will be the same as was provided in the month 9 form.

For NHS foundation trusts: FT ARM 2017/18 update - 31 January 2018

We have now updated the FT ARM with the two missing annexes to chapter 2 and other small amendments. This has been added to the FT ARM webpage at https://improvement.nhs.uk/resources/nhs-foundation-trust-annual-reporting-manual-201718/.

DHSC Group Accounting Manual 2018/19 consultation - 26 January 2018

The Department of Health and Social Care has published a draft of its 2018/19 Group Accounting Manual (GAM), with an accompanying consultation document. 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-2018-to-2019

For NHS trusts: Update to DH GAM 2017/18 additional guidance - 26 January 2018

The Department of Health and Social Care published additional guidance for the 2017/18 DH GAM in December. A new FAQ 9 has now been added to it, clarifying the requirements for NHS trusts disclosing the External Financing Limit. This is available at https://www.gov.uk/government/publications/department-of-health-group-accounting-manual-2017-to-2018 .

Quality accounts letter - 26 January 2018

Details of the reporting arrangements for quality accounts 2017/18 have been published today: this applies to all providers of NHS healthcare. The letter can be found at https://improvement.nhs.uk/resources/quality-accounts-requirements-201718/ .

Quality reports and assurance 2017/18 (primarily for NHS foundation trusts) - 26 January 2018

Also today we have published the requirements for quality reports and draft requirements for quality reports assurance for NHS foundation trusts. The documents also contain guidance for NHS trusts who may choose to adopt the quality report principles being applied by NHS foundation trusts. Our document which explains the content requirement for quality reports may also be useful to NHS trusts to help understand the requirements of the quality accounts regulations.

The requirements for assurance on quality reports are being issued as a draft for engagement. Section 1.4 of that document explains the process; we invite any comments by 16 February. Both documents are available at https://improvement.nhs.uk/resources/nhs-foundation-trust-quality-reports-201718-requirements/ .

Month 9 agreement of balances - 26 January 2018

As a reminder, the deadline for submission of month 9 I&E agreement of balances data is Tuesday 6 February at noon. As explained in our timetable letter, for this and the 23 February submissions please ensure that 'Agreement of balances resubmission' is selected on the cover of the PFR form: if you find that the Portal doesn't accept your file, this is likely to be the reason.

Draft optional 2017/18 accounts templates - 19 January 2018

We have prepared two optional accounts templates for use by NHS trusts and NHS foundation trusts. We are providing these indicative templates in draft at month 9 to assist with year end planning.  There are two versions available:

  •  One for preparers of single entity (provider only) accounts
  • One for preparers of group accounts (consolidating a subsidiary and/or charity)

These accounts templates currently contain no links to TAC schedules but updated versions will be issued at month 12 with links to the month 12 TAC schedules, and may include additional functionality. These templates are optional for use and do not form part of the accounts direction. They have been developed to assist providers in keeping abreast of changing requirements but will still require tailoring for local circumstances.

Optional Month 9 PFR Fixer - 19 January 2018

An optional fixer for the month 9 PFR return has been uploaded to the Additional Documents section of your NHSI portal.

This update contains:

  • Correction of the formula error in cell F96 of ‘TAC15 Investments & groups’    

The fixer should be applied by any providers affected by the formula error above. Other providers have the option of running this but are not required to. If you have not yet applied the version 1.17.09.1 fixer issued on 10 January then please apply this updated cumulative fixer.  Any version 1.17.09.0 files submitted on 23 January will be rejected.

M9 PKD Key Data external updater – version 7.17.09.0a – 12 January 2018

A fixer for the month 9 Key Data Return has been uploaded to the Additional Documents section of your NHSI portal.

 This update contains fixes for:

  • Trusts who received a post audit reallocation of STF bonus relating to 2016/17.

  • The PPA line on row 41, which was hidden in error and will now allow providers to enter any PPAs with an impact on adjusted financial performance that have been identified for month 9.

The fixer version 7.17.09.0a must be run against the Month 9 Key Data file PKD_D_FY2017-18_M09_[NHSCode].xlsm by all providers who received a post audit reallocation of STF bonus relating to 2016/17 prior to submitting on 16 January. For all other providers this fixer is optional.

Month 9 PFR mandatory fixer version 1.17.09.1 - 11 January 2018

A fixer for the month 9 PFR return has been uploaded to the Additional Documents section of your NHSI portal. It can be downloaded by clicking the three dots to the right of the document, then the three dots at the bottom of the dialog box that opens, then selecting ‘download a copy’.

This update contains:

  • Fixes for all known issues listed below
  • Populates DH financing data to activate TAC validations 156 to 160
  • Updates to sheet ‘8a. STF’ for winter funding and CQUIN risk reserves
  • Updates to capital financing information and limits (NHS Trusts only) in tabs 16 and 18 of the monthly monitoring information 

The fixer must be run by all providers prior to submitting on 23 January. Please ensure that “Month 9 main submission” is selected in cell D26 on the cover sheet of your PFR return (as required for submission 1) prior to running the fixer.

Known issues in Month 9 Key Data Return - 11 January 2018

Status Reference Comment
Will not be fixed 40. Variances - cell P46 The previous month forecast for CDEL has not been prepopulated into cell P46, consequently the variance reported in cell Q46 is incorrect. This will not be corrected by the fixer but we would request a commentary be included if there is a significant movement in FOT from month 8, despite the flag not showing.
Fixed version 7.17.09.0a 04. SoCI - row 42 Trusts who received a post audit reallocation of STF bonus relating to 2016/17 will note that this is not visible within 04. SoCI sheet within the month 9 Key Data return and is therefore not currently adjusted out of the 17/18 performance as in previous months.
Fixed version 7.17.09.0a 04. SoCI - row 41 The PPA line on row 41 is hidden in error. This row should be unhidden to allow providers to enter any PPAs with an impact on adjusted financial performance that have been identified for month 9. Any provider with such a PPA who is needing to record the impact within the month 9 Key Data Return can run the STF fixer to update this.
Will not be fixed Cover We are aware that a number of trusts are unable to paste an electronic signature onto the Cover sheet in cell D32. In these circumstances, for Month 9 Key Data Return only, we will accept the submission but trusts are requested to type in the name of the signatory to clear any validation.

Known issues in TAC schedules and M9 PFR Return – 11 January 2018

Status Reference Comment
Will not be fixed TAC65 Audit sheet The formulas from E491 to H504 are incorrectly picking up the wrong counterparty information from the WGA tabs. No fixer will be issued for this but it will be corrected for the M12 PFR return.
Not yet fixed TAC15 Investments & groups - cell F96 The formula in F96 is not picking up the correct signage from subcode IGR0475. This will be corrected by fixer to be issued no later than 19th January.
Fixed version 1.17.09.1 13. SoCI Other – cell AH58 The formula in cell AH58 is incorrectly picking up TAC22 Provisions F37 (change in discount rate) instead of F36 (absorption transfer).
Fixed version 1.17.09.1 08a. STF The expected STF figure before finance override is not being correctly pulled through to cells O62 and O78 due to an issue within a hidden cell.
Fixed version 1.17.09.1 TAC62 WGA – NHS and DH Two CCG name changes that occurred on 1 April 2017 have not been reflected in the list of DH bodies. Row 52 should read North Cumbria CCG (code 01H) and row 103 should read Morecambe Bay CCG (code 01K). Please refer to the codes rather than the names for these two rows.
Fixed version 1.17.09.1 TAC07 Op Inc 2: Table 2B – row 84 Trusts who received a post audit reallocation of STF bonus relating to 2016/17 will note that it is not currently possible to enter this 2017/18 figure in Table 2B. Row 84 is currently hidden for all trusts in error.

Release of month 9 PFR form including TAC schedules – 22 December 2017

Your month 9 Provider Finance Return (PFR) form is now available on your Portal inbox. As previously advised, the month 9 PFR form also contains the TAC schedules. You should refer to section 1.1 of the TAC completion instructions document for overarching guidance on how to complete the TAC forms.  We shared a sample of the TAC schedules with you on 5 December. Changes to the TAC schedules compared to that version are listed in annex 2 of the attached TAC Completion Instructions.

 The monthly monitoring tabs are essentially in the same format to those used at month 8. However, please note that many of the year to date fields previously requiring input are now linked to the equivalent data in the TAC forms. This is only the case for year to date; the appropriate forecast outturn fields still require input. The updated monthly monitoring guidance for PFR forms is available on your Portal. Changes are included in appendix 4 to the guidance.

TAC Completion Instructions - 201718 month 9 PDF, 544.9 KB

TAC Completion Instructions - 201718 month 9

DH GAM updates and NHS Pensions requests – 22 December 2017

The Department of Health has published updates to the DH Group Accounting Manual 2017/18 today. This is available at https://www.gov.uk/government/collections/department-of-health-group-accounting-guidance. This includes an important update on accounting for the apprenticeship levy. The dedicated line in TAC staff costs (TAC09, STA0025) should be used for amounts paid under the levy. For in-year monitoring these costs should continue to be recorded in the ‘other’ row of the employee expenses note on tab 11 staff costs. If trusts are receiving benefit from the fund, please follow the guidance in the DH GAM update and use the ‘education and training’ rows in TAC07 income (INC1240) and TAC08 expenditure (EXP0330) for the non-cash items at month 9.

  The NHS Business Services Authority has now published details for the 2017/18 process for submitting ‘Greenbury’ requests: details are available at https://www.nhsbsa.nhs.uk/sites/default/files/2017-12/Disclosure%20of%20Snr%20Man%20Rem%20%28Greenbury%29%202018-20171204-%28V1%29.pdf

Accounts and reporting timetable 2017/18 – 6 December 2017 (updated)

The attached letter sets out the accounts and reporting timetable for NHS trusts and NHS foundation trusts for the remainder of 2017/18.

This letter was updated on 6 December to correct referencing on the 21 March and 27 March rows.

FT Annual Reporting Manual 2017/18 – 23 November 2017

The Foundation Trust Annual Reporting Manual for 2017/18 has now been published here. There are no significant changes compared to 2016/17. We proposed to the HFMA Provider Technical Interest Group that we should issue the FT ARM without a consultation given the minimal changes in order to give certainty to the sector. The group agreed to this proposal.

This document only applies to NHS foundation trusts. NHS trusts should refer to the Department of Health Group Accounting Manual.

IAS 7 amendments – 23 November 2017

You may be aware that IAS 7 (cash flow statements) is being amended to require an additional disclosure on non-cash movements in financing activities. Please be advised that HM Treasury has deferred adoption of this change until 2018/19, but with early adoption being permitted in 2017/18. NHS Improvement will not be early adopting this in our consolidation forms or accounts templates for providers in 2017/18.

Injury Cost Recovery scheme 2017/18 – 23 November 2017

The Compensation Recovery Unit has advised that the percentage to use for the probability of not receiving the income is now 22.84%. Please refer to the Department of Health’s guidance on the Injury Cost Recovery scheme available here.

2017/18 reporting timetable (key dates) - 23 October 2017

NHS Improvement has worked with the Department of Health and NHS England to develop the 2017/18 reporting timetable. We can confirm the main submission dates at month 9 and month 12 as:

  • Tuesday 23 January, noon – submission of month 9 PFR return, containing accounts data and monthly monitoring
  • Tuesday 24 April, noon – submission of month 12 PFR return, containing draft accounts data and monthly monitoring
  • Tuesday 29 May, noon – submission of month 12 PFR return, containing audited accounts data and monthly monitoring

At month 9 and month 12 there will be an earlier submission of a ‘key data’ return providing financial headlines. The timing for these is being confirmed, but is likely to be to a similar number of working days after the month end as the monthly monitoring in other months.

In the next couple of weeks we will provide a full timetable letter which sets out the detailed agreement of balances, monitoring and accounts timetable for the rest of 2017/18.

Agreement of balances guidance for 2017/18, 28 September 2017

DH has now issued the month 6 'Agreement of balances' guidance which can be found here.

Additionally on 15 September 2017 providers should have received an email from NHSI which contained the four AoB counterparty contact files (note: the password to the file is in the body of the email). If you have not received said email please contact provider.accounts@improvement.nhs.uk to request a copy.

Preparations for month 9 financial reporting, 23 August 2017

We’ve written to NHS trusts and NHS foundation trusts providing an update on our plans for financial reporting at month 9 and month 12 2017/18. Given the different legacy systems, different versions of the letter were sent to the NHS trust and NHS foundation trust sectors: please see attachments below.

Publication of the Department of Health (DH) Group Accounting Manual (GAM) 2017/18, 30 June 2017

Following a consultation earlier in the year, DH has now published the Group Accounting Manual (GAM) for 2017/18. 

This provides the detailed requirements for accounts for NHS trusts and NHS foundation trusts, and annual report requirements for NHS trusts. The formal accounts direction and requirements for annual reports for foundation trusts will be contained in the FT Annual Reporting Manual, to be published later in the year.

Provider financial monitoring form completion guidance: updated for month 2, 5 June 2017

We have now released the provider financial monitoring form and associated completion guidance for NHS providers and you can find these on your trust portals. These new portals are being used for 2017/18 onwards.  

Update on Department of Health Group Accounting Manual 2017/18, 2 May 2017

Publication of the post-consultation DH Group Accounting Manual (GAM) for 2017/18 is delayed by the purdah period in advance of the general election. The manual is expected to be published in June or July.

The draft version issued for consultation continues to be available here

Agreement of balances guidance for 2016/17, 28 March 2017

DH has now issued the month 12 'Agreement of balances' guidance and quarter 4 update documents. 

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. 

Get updates to this page by RSS feed

Is there anything wrong with this page?

Help us improve this website

Do not include any personal, sensitive or confidential information.