News / Commission finalises PCT resources assessment

Following consultation, the commission said that key lines of enquiry (KLOEs) would be broader and include wider issues, such as workforce planning and use of natural resources. The assessment will apply across the public sector, including councils, fire and police services as well as PCTs, and will feed into wider comprehensive area assessments.

The new KLOEs focus on outcomes not processes and cover managing finances, governing the business and managing resources.

There will be 10 KLOEs rather than the 13 originally consulted on (three in managing finances, four in governing the business and three in managing resources). However not all KLOES will be assessed each year, with the commission giving advance warning of areas to be looked at in each sector.

The proposed KLOE on leadership has been abandoned, while the planned KLOE on performance management has been integrated with a new KLOE on the use of information.

The proposed separate KLOEs on financial health and financial planning have merged into KLOE 1.1 planning for financial health. This emphasises the need to plan for sustained financial health – although the commission acknowledged achieving in-year financial balance would remain the acid test for PCTs.

The proposed KLOE on financial monitoring has been merged with financial reporting and stresses the need to have a single set of financial information for both management information and external reporting.

Auditors will initally assess PCTs on eight of the 10 KLOEs. If an organisation scores 1 on any KLOE, it will automatically be re-assessed in the following year, regardless of whether it is specified for assessment for all PCTs.

In 2008/09 auditors will not assess PCTs on KLOE 2.1 commissioning and procurement, to avoid potential inconsistencies with World Class Commissioning and the Healthcare Commission’s annual health check, and KLOE 3.1 natural resources.

However KLOE 2.1 will inform auditors’ value for money conclusion in their audit report.