Feature / Technical round-up

Accounting for the transfer of primary care trust assets to NHS providers should follow the principles of merger accounting set out in the Treasury’s Financial reporting manual, according to guidance from the Department of Health. It adds that where estates and associated services were provided by PCTs, and not paid by tenant service charges, these services and the running costs budgets and allocations associated with the transferring properties are transferred to the receiving organisations.

The final version of the 2011/12 Manual for accounts has been published by the Department of Health. A number of changes have been made since the draft versions were issued. These include a note that a sustainability report is compulsory for trusts, primary care trusts and strategic health authorities and the requirement to include disclosures on charitable funds in the related parties note.

Best practice guidance for organisations using patient level information and costing systems (PLICS) to produce reference costs for 2011/12 has been published by the Department of Health. The Department said the updated guidance should be read in conjunction with reference cost guidance for 2011/12, the NHS costing manual and the HFMA clinical costing standards for 2011/12.

The Charities Act 2011, which consolidates previous charity legislation into a single comprehensive Act, will be implemented on 14 March. The Charity Commission said charities should refer to the provision of the Charities Act 2011 on documents executed following the Act's implementation, but refer to the provisions of the Charities Act 1993 (or other relevant charity legislation) in documents executed before the implementation of the 2011 Act. For example, for accounts compiled on or after 14 March the accounting policies note should advise that: 'the financial statements have been prepared in accordance with the Statement of Recommended Accounting Practice: Accounting and Reporting by Charities (SORP 2005), issued in March 2005, UK Accounting Standards and the Charities Act 2011’.

The tariff and ceiling on the NHS Injury Costs Recovery Scheme will be increased from 1 April. The scheme allows the NHS to recover the cost of treating injured patients in cases where personal injury compensation is paid, such as in car accidents. The uplifts will largely reflect hospital and community health services inflation, which stood at 2.5% in 2011/12.

NHS acute and mental health trusts must gain external audit assurance for their quality accounts from 2011/12. The Department of Health said the ultimate aim is to bring audit assurance for NHS trusts in line with the requirements Monitor places on foundation trusts.

The Department of Health, Social Services and Public Safety has issued a fraud reporting template for Northern Ireland health and social care bodies. Historically, there has been no set format for reporting fraud.

Financial reporting manual guidance for use by Northern Ireland health and social care bodies is now available. The Department of Health, Social Services and Public Safety said there would be some differences to the rest of the UK as departments in Great Britain had implemented the ‘Clear line of sight’ initiative.

The Department of Health’s payment by results (PBR) team has issued notes on high cost devices and high cost drugs. A number of high cost devices and drugs are excluded from the tariff. The notes set out criteria that must be met for a device or drug to be considered for exclusion from PBR and include links to the new request portals for high cost devices and drugs.

The Department of Health has updated guidance on completing 2011/12 governance statements for primary care trusts, strategic health authorities and NHS trusts. The statements form part of the annual accounts and the timetable for submission of the statements to external auditors and the Department remains unchanged.