Feature / Technical round-up

04 March 2013

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HRG4+ – internal audit – 2012/13 accounts – standard contract

  • HRG4+ will be used to cost clinical activity for 2012/13. The National Casemix Office said Monitor, the NHS Commissioning Board and the Department of Health had approved the use of the latest iteration of HRG4 in the 2012/13 reference costs collection. The office said HRG4+ would allow specialised services – provided in tertiary centres and centres of excellence – to be separately identified and appropriately costed and funded.

     

  • New public sector internal audit standards (PSIAS) will be implemented in the NHS from?1 April. The Department of Health said the PSIAS, based on the Institute of Internal Auditors international professional practices framework, would replace the NHS internal audit standards. A letter from NHS chief financial controller Janet Perry said the update would improve internal audit professionalism, quality, consistency and effectiveness.

     

  • The Department of Health has published FAQs for NHS trusts, primary care trusts and strategic health authorities on accounting policies and disclosures for the 2012/13 accounts. The three documents, available from the online finance manual, cover accounting policies and associated disclosures on PCT/SHA closure; pay multiples disclosure clarification; and exit packages disclosure.

     

  • The NHS Commissioning Board has published the 2013/14 NHS standard contract. It said the contract enabled ‘safe, innovative and transformation’ commissioning and would support commissioners and providers in delivering the QIPP challenge. It includes a simplified payments clause and CQUIN (commissioning for quality and innovation) process and is being issued as an e-contract. Several supporting documents are also available.

     

  • The Department of Health, Monitor and the NHS Trust Development Authority have jointly issued changes to the quality accounts reporting process for 2012/13. A letter sets out the changes, including core quality indicators that should be included.

     

  • The Department of Health has issued a letter on the requirements for the completion and submission of 2012/13 governance statements for strategic health authorities, primary care trusts and NHS trusts. It said following the guidance would ensure compliance with Treasury guidance and allow the NHS chief executive to draw the assurance he needs to sign an overarching governance statement.

     

  • Strategic health authorities and commissioners will be able to access CQUIN data. The Department of Health said the information, available from SHA CQUIN leads, would allow the bodies to assess whether performance met locally agreed thresholds for 2012/13.

     

  • Northern Ireland’s Department of Health, Social Services and Public Safety has published final indices for use in the 2012/13 accounts. A circular outlining the indices supersedes one issued in September 2012, which provided forecast indices.

YEAR-END CASH BALANCES

The HFMA’s Accounting and Standards Committee has alerted NHS organisations of the potential impact of the faster payments service on closing cash balances, given that the Easter bank holiday weekend coincides with the year-end.

The last working day of the year is Thursday 28 March (Easter Sunday falls on the 31 March). The faster payments service – available all year and enabling payments to be made and cleared within hours – creates the potential for payments made during the bank holiday weekend (on 29, 30 or 31 March) to change the cash balances recorded prior to the weekend.

This particularly relates to Citibank, which deals with electronic payments to GBS customers. To help, bank statements from Citibank identify both the entry date (when transaction recorded) and the value date (when cash cleared). For example, a transaction may have an entry date of 02/04/2013 and a value date of 31/03/2013 indicating that a faster payment has occurred, which could require an adjustment to the closing cash balance.

Although the risk of these non-NHS transactions being material is low, finance staff will need to verify the closing bank balance noted at the end of 28 March is still correct after the bank holiday weekend. Organisations with outsourced financial services may want to discuss in advance how any cash received over the weekend through the faster payments system is treated.