Technical Review - March 2019

NHS Improvement has published an updated NHS foundation trust annual reporting manual 2018/19 (ARM). There are a number of changes, including some relating to the General Data Protection Regulation (GDPR) covering the disclosure of personal information about senior managers in the remuneration report. NHS bodies must inform individuals in advance of the intention to disclose information about them, invite them to see what is intended to be published, and notify them that they can object. The manual also sets out the disclosure requirements for off-payroll engagements and gives details of an updated model annual governance statement that makes specific reference to UK climate projections. 

The HFMA has published its response to a consultation on the development of the charities statement of recommended practice (SORP). The association has backed the use of an advisory SORP committee as the ‘only practical way’ to engage at a detailed level with stakeholders. However, it has called for consideration to be given to developing special interest sub-committees to enable wider engagement with stakeholders that have a particular interest. The association’s Charitable Funds Special Interest Group also said it would welcome the opportunity to submit suggested amendments at the start of the revision process, as well as during any final consultation. 

NHS Improvement is calling on trusts to volunteer to pilot new pricing approaches and methods for outpatients. To date, there have been separate prices for consultant-led first and follow-up attendances. Since 2012/13, there has also been a practice of ‘frontloading’ overall outpatient payments into first appointments to discourage unnecessary follow-ups. The 2019/20 tariff consultation set out non mandatory prices for non-face-to-face follow-ups and for non-consultant-led first and follow-up attendances. A number of areas are already testing new outpatient approaches (see Outpatients: a new look?, Healthcare Finance, September 2018). 

The Royal Institution of Chartered Surveyors (RICS) has issued a UK supplement to its Global red book for valuations. The update clarifies the approach that should be taken to componentisation of assets when calculating depreciation. This is where a major asset is broken down into its major components, so that these separate components can be depreciated over their distinct useful lives rather than depreciating the whole asset cost over the same useful life. The guidance says that each significant component should be depreciated separately. Significant parts with similar remaining useful lives can be grouped together. The remaining parts should then be grouped together with approximation techniques used to calculate a single overall estimate of appropriate useful life for those components.