NHS Trust Development Authority. 2015/16 Trust Financial Management System (TFMS) Plan Guidance

Transcription

1 NHS Trust Development Authority 2015/16 Trust Financial Management System (TFMS) Plan Guidance

2 NHS Trust Development Authority 2015/16 Trust Financial Management System (TFMS) Plan Guidance Table of Contents Section 1 NHS Trust 2015/16 Plan Form Guidance... Introduction... Capital and cash planning... Structure of the forms... Validations and queries... Recording data and submitting forms... Section 2 TRU Key Data... Section 3 TRU01... Statement of Comprehensive Income (SOCI)... Reported NHS Financial Performance... Additional information... Section 4 TRU02... Statement of Financial Position (SoFP)... Section 5 TRU04... Statement of Cash Flows... Cash flows from operating activities... Cash flows from investing activities... Cash flows from financing activities... Section 6 TRU05... Revenue from patient care activities... Other operating revenue... Section 7 TRU06... Operating expenses... Employee benefits

3 Section 8 TRU14... Analysis of impairments and reversals... Categories of impairment... Section 9 TRU19... Provisions for liabilities and charges... Section 10 TRU20... IFRIC 12/UK GAAP data... IFRIC 12 performance calculation... Capital consequences of IFRS: LIFT/PFI and other items under IFRIC Section 11 TRU54... Continuity of Service Risk Ratings... Section 12 TRU55... Capital tables... Annual capital cost absorption rate... External financing limit... Capital Resource Limit including IFRS impact... IFRS capital expenditure IFRIC 12 and non-ifric Section 13 TRU56... Capital expenditure by project code/name... Summary analysis of total gross capital expenditure (by type) including IFRS impact... Calculation of delegated limits... Additional disclosures for projects identified as requiring NHS TDA business case approval... Additional disclosures for projects above delegated limits... Additional disclosures for centrally funding capital schemes for which NHS Trusts have carried forward limits or capital PDC repayments

4 Section 14 TRU63... Capital cash management plan... Net borrowing requirement... Section 15 TRU64a, TRU64b, TRU64c... Planned and underlying income and expenditure / sources and application of funds - Introduction... TRU64c Summary tables... Links to other tabs... Commissioning for Quality and Innovation (CQUIN)... Deficit support funding... Winter resilience... Referral to Treatment backlog clearance... Transactions... TRU64a Sources of Funds... Memorandum table on income values and deductions arising from national policy... Uplift commentary table... Memorandum table on service / volume change... TRU64b Application of funds... Uplift commentary table... Memorandum table on service / volume change... Section 16 TRU65... Efficiency programme /16 Efficiencies summary information tables /15 Full year effect e efficiencies summary information tables... Section 17 TRU67... Metrics derived from source and application of funds... Efficiency as a percentage of planned expenditure

5 Drivers of efficiency in 2015/16... Normalised position... Section 18 TRU70 and TRU Expected outturn of contract values 2014/15 and planned contract values 2015/ Section 19 TRU_COM1... Key item commentary... Section 20 Validations Appendices Appendix 1 Appendix 2 Appendix 3 Appendix 4 Outline of changes and developments to planning forms Scope of initial planning forms and full planning forms Consultancy Residual interests: assets brought on-sofp under IFRS

6 1. NHS Trust 2015/16 Plan Form Guidance Introduction 1.1 The NHS Trust Development Authority (NHS TDA) planning forms are designed to capture the financial planning information that forms part of the NHS Trusts integrated plans to provide high quality sustainable services within available resources. 1.2 The full planning forms collect current year data for 2014/15 (forecast outturn values) and planning data for 2015/16 profiled for each month of the year. Initial planning forms collect data for 2014/15 (forecast outturn) and planning data for 2015/16. Capital expenditure plans are collected for the five years from 2015/16 to 2019/ This data will provide the NHS TDA with information on all financial aspects of NHS Trusts plans for 2015/16, as well as provide financial monitoring information against which all 2015/16 monthly submissions will be measured. 1.4 Key changes to the forms and the guidance, arising from new data collection requirements and other developments have been summarised in Appendix Entries are to be prepared in accordance with the guidance issued in this document, applying the accounting principles detailed in the 2014/15 NHS Manual for Accounts, available on the Department of Health (DH) FINMAN website. 1.6 From 2014/15, NHS bodies are required to consolidate NHS Charitable Funds in their annual accounts and summarisation schedules under the terms of IAS 27 Consolidated and Separate Financial Statements. The consolidated statements will be presented so as to identify the NHS body s own transactions and the consolidated position in separate columns. NHS bodies performance outturns will be based on the core entity s returns, rather than on the consolidated return. All financial planning submissions should therefore exclude Charitable Funds and should represent the NHS Trusts own transactions. 1.7 The underlying planning assumptions of all NHS Trusts should be consistent with the 2015/16 National Tariff document. NHS Trusts should apply the assumptions within the 2015/16 National Tariff consultation notice until such time as the final 2015/16 National Tariff is issued. 1.8 The governance requirements in relation to the data submitted are as follows: the 2014/15 forecast outturn should reflect the latest reported at each submission date; the 2015/16 plan submission on 10 April 2015 should completely correspond to the plan agreed by the full NHS Trust Board by the 31 March 2015 deadline for agreed budget plans; 1 of 96

7 the planning forms should be in line with the medium term plans presented to the NHS Trust Board. 1.9 It is expected that NHS Trusts will align their plans with those of the wider local health economy. In order to test the alignment of key assumptions NHS TDA, NHS England (NHSE) and Monitor will reconcile provider and commissioner plans as part of the review of the full plan submissions The outputs of the reconciliation will be shared between the assurance teams of NHS TDA, NHSE and Monitor. Every step will be taken not to prejudice the position of any NHS Trust or commissioner and no information will be shared at individual organisation level without first contacting the appropriate party NHS Trusts should ensure consistency between their financial, activity and workforce plans for 2015/16. The review of NHS Trusts planning submissions will include a series of triangulation tests designed to assess the alignment of these plans In order to support NHS Trusts in their review of plans prior to submission, the NHS TDA have designed a spreadsheet tool for NHS Trusts which provides dashboard summaries for each of the finance, activity and workforce plans, and performs a series of triangulation tests to identify how well the finance, activity and workforce returns are aligned. The tool is referred to as the Linked File and has been made available as a pilot within the Trust pigeonholes Supplementary guidance has been provided this year in the form of prerecorded webinars which provide an overview of the Linked File and the new format TRU64 Sources and Application of Funds. The Webex recordings have been made available from a summary schedule saved into the Trust pigeonholes and can be accessed directly at the following web links: Linked File Webex: 348a13ca d1f6 TRU64 Webex: 16b75cb43726e7f1828cb4 Capital and cash planning Capital 1.14 NHS Trusts capital plans will be an update on the plans agreed in 2014/15. The update will need to reflect any changes in overall strategy or affordability since the previous plan submissions. 2 of 97

8 1.15 The NHS TDA will continue to recognise the capital approval decisions made by predecessor organisations but validate those that impact in 2015/16 and beyond to ensure they reflect current circumstances and have an appropriate level of consistency It should be noted that access to Public Dividend Capital (PDC) will be on an exceptional basis when all other available options to finance capital have been exhausted. The availability of such funding will be severely restricted to NHS Trusts that meet the criteria to access capital PDC and can only be accessed by a financing application to the Independent Trust Financing Facility (ITFF). All applications require prior scrutiny and approval by the NHS TDA and will be presented to the ITFF by the NHS TDA on the NHS Trusts behalf It has been agreed that central support for Private Finance Initiative (PFI) contracts should be provided to a small number of NHS Trusts where affordability of PFI is preventing them from achieving financial sustainability. A total of six NHS Trusts have been identified as requiring central support for PFI contracts through direct funding as follows: St Helens and Knowsley Teaching Hospitals NHS Trust; Maidstone and Tunbridge Wells NHS Trust; Dartford and Gravesham NHS Trust; North Cumbria University Hospitals NHS Trust; Barking, Havering and Redbridge University Hospitals NHS Trust; Lewisham and Greenwich NHS Trust The agreed levels of central support should be assumed in the plans of the six NHS Trusts, recognising that passing the four key tests laid down by the DH to release such funding must be evidenced NHS Trusts should also include in their plans any revenue support for capital schemes where there is a formal agreement with commissioners or a predecessor organisation. Cash 1.20 NHS Trusts may require revenue financing for two purposes, either to support operational requirements (i.e. to enable creditors to be paid in a reasonable timeframe) or to strengthen liquidity to deliver the required cash position for a successful Foundation Trust application. 3 of 97

9 1.21 For operational requirements, the financing can be through loan financing or PDC both of which can only be accessed by a financing application to the ITFF. All applications require prior scrutiny and approval by the NHS TDA and will be presented to the ITFF by the NHS TDA on behalf of the NHS Trust Access to PDC will be severely restricted and should be considered only as a final option and exceptional circumstances otherwise lean financing can be made available and where all health economy solutions have been exhausted. Where PDC is included in NHS Trust plans it should not be assumed that this will be available and all cases will be scrutinised during the planning process Please note that where appropriate, NHS Trusts should also refer to the Secretary of State s Guidance under section 42a of the National Health Service Act Structure of the forms 1.24 Planning forms are collected in two stages, with the earlier initial plans submission representing a key subset of the later full plan submission. The initial planning forms contain all primary statements and management information but exclude some of the detailed analysis required in the full planning forms. Details of each of the forms to be completed and the required monthly or annual phasing at initial plan and at full plan are included in Appendix Overview of planning forms and data flow: the flow of data through the forms from input to summary and review has been represented on the diagram overleaf. Related forms have been colour coded and feeder flows of data have been represented with connecting lines and directional arrows; the colour coding used in the diagram has been used to colour the respective tabs on the forms themselves. 4 of 97

10 Diagram 1: Overview of planning forms and data flow Data Inputs - Data Inputs - Primary Summary and Level 1 Level 2 Statements Review Data OVERVIEW OF PLANNING FORMS AND DATA FLOW TRU_ /15 Revenue CCG/AT's TRU_ /16 Revenue CCG/AT's TRU_05 Revenue TRU_06 Expenditure TRU_01 Statement of Comprehensive Income VALIDATIONS TRU_COM1 2015/16 Commentary TRU_14 Impairments TRU_04 Cash Flow Statement TRU_20 IFRIC12 TRU_56 Capital Analysis of Projects TRU_19 Provisions TRU_55 Capital Expenditure Summaries TRU_63 Capital Cash Management TRU_02 Statement of Financial Position TRU_54 Risk Ratings TRU_Key Data Key Metrics Following review of all summary and review schedules; update the required forms until the Key Data Metrics fully reflect your position and all commentary has been completed to further describe all remaining variances TRU_65 Efficiency Programme TRU_64 Sources TRU_64 and Application Sources TRU_64A,B,C of Funds and Application Sources of Funds and Application of Funds TRU_67 Efficiency Metrics Colour Legend: Revenue Efficiency/ S&A Expenditure Primary Statements Provisions Review Data Capital and Cash Summary Data Connecting Line Legend: Solid Lines: reflect data feeds Dotted Lines: reflect data reconciliations 5 of 97

11 1.26 A summary of the full planning forms is provided below: Introduction: Provides NHS Trust contact details to the NHS TDA, a summary of any validation errors still remaining and Director of Finance (or NHS Trust Executive) signature to be evidenced by electronic signature which can be copy and pasted to the left of the box and dragged across it; TRU_index: List of forms with summary contents and hyperlinks to each tab. The diagram of data flows has been included within the index for ease of reference; TRU_RAG_Criteria: Details the risk assessment criteria for the calculation of the planning RAG ratings included within the Key Data tab (see table 1 overleaf); TRU_Key Data: The forms bring together key information in respect of the revenue performance, capital and cash management, efficiencies, Continuity of Service Risk Ratings and other key data for the NHS Trust. The key data fields feed directly from the detailed forms. A number of key data metrics have been RAG (Red/Amber/Green) rated according to a set of criteria designed for planning purposes only and will not replace the in-year risk assessment metrics. The assessment criteria are included in Table 1; the RAG ratings in the planning forms are a desk top review process that are intended to signpost areas that may require further investigation. The overall finance RAG rating can be moderated as a result of detailed discussions at individual organisation level; 6 of 97

12 Table 1: Key data Rating Red Amber Green Overall RAG Rating Criteria Override - assessed as red on indicator P1 OR has 3 or more other indicators assessed as red Maximum of 2 indicators assessed as red from the remaining indicators OR 2 or more assessed as amber from the remaining indicators Maximum of 1 Amber, all other indicators are assessed as Green Indicator Number Indicator description Risk assessment criteria Red Amber Green P1 Bottom line I&E planned position Planned deficit Breakeven or surplus less than Surplus of 1% or greater 1% P2 Is the Trust planning to Yes - No access permanent PDC 'Other' funding? P3 % of efficiency high risk at Over 20% Between 10% and final plan 20% Less than 10% P4 % of efficiency unidentified at final plan Over 20% Unidentified efficiencies of 20% or less P5 Efficiencies as % of total Over 5.4% or less Between 5% and planned spend excluding than 3.8% 5.4% current year efficiencies at plan P6 Underlying position as a percentage of turnover Underlying deficit or more than 2% P7 Continuity of Services Risk CoSRR score of 1 Rating (CoSRR) or 2 Underlying deficit of less than 2% No unidentified efficiencies Between 3.8% and 5% No underlying deficit or an underlying surplus - CoSRR score of 3 or 4 TRU01: The principle table is the Statement of Comprehensive Income (SOCI) and this is supplemented by a further data set which provides key performance information. These are: the reported NHS financial performance table which adjusts the SOCI position for items which the DH has agreed should not be included in financial performance; the Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) which is used as a further performance measure; finally a memorandum included at full plan shows agency/contract staff costs to inform workforce and finance triangulation and in-year data collections; 7 of 97

13 TRU02: The Statement of Financial Position (SOFP) provides an analysis of the key balances for the 2015/16 financial year as well as the opening position at 1 April The table is supported by a memorandum table for further data collection requirements and the analysis of cash balances; TRU04: The Statement of Cash Flows analyses the movements in cash inflows and outflows, which together with the opening cash balances, determines the cash holding at the end of the 2014/15 financial year and for the 2015/16 financial year. The table is supported by a memorandum table that provides further information on other loans received and other loans repaid; TRU05: Analysis of revenue split between income arising from patient care activities and income from other sources. This detailed analysis feeds into the SOCI on TRU01 at full plan. The revenue values from patient care activity from NHSE Area teams and Clinical Commissioning Groups (CCGs) feed from the detailed input forms TRU70 and TRU71; TRU06: Analysis of operating expenses set out in two tables that detail the costs arising from employee benefits and those relating to other expenses. Both tables feed into the SOCI on TRU01 at full plan; TRU14: Provides an analysis of the different categories of impairments arising during the financial year and in summary for the 2015/16 year, that impact on the SOCI. This detailed analysis feeds into the TRU06 at full plan; TRU19: Provisions split by the key headings and expenditure items that are recorded in the annual accounts. A text box below the table requires narrative explanation of material provisions included in the other category. These figures feed into the Statement of Financial Position (TRU02) and the Statement of Cash Flows (TRU04) at full plan; TRU20: Identification of the financial implication of applying the International Financial Reporting Standards (IFRS) requirements relating to service concessions (impacting on Private Finance Initiatives (PFIs) / Local Improvement Financial Trust (LIFT) projects). These (IFRIC 12 costs) are added back to the Retained Surplus/(Deficit) to form part of the Adjusted Financial Performance on TRU01; TRU54: Continuity of Service Risk Ratings (CoSRR) table includes the calculation of key metrics consistent with the format used by Monitor for Foundation Trusts (FTs); 8 of 97

14 TRU55: Details of capital expenditure in four tables. The first three tables analyse the Annual Capital Cost Absorption Rate, the External Financing Limit (EFL) and the Capital Resource Limit (CRL). These are followed by the IFRS capital expenditure table which includes IFRIC 12 and non-ifric 12 expenditure analysis feeding from drop down categories used in the table in TRU56; TRU56: Details of capital expenditure by the key categories planned for the 2015/16 financial year and, in summary detail, for the four subsequent years. These values are then aggregated for the Capital project summary analysis. This is supplemented by a table that requires details of business case approvals for projects that are above the delegated limits for the NHS Trust and a table of centrally funded capital schemes; TRU63: The Capital Cash Management Plan analyses the gross capital expenditure between both the internal and external sources of finance and sets out the Net Borrowing Requirement. This is supplemented by the summary of Capital Programme Funding Sources, Capital Resource Limits and External Funding Limits table, and a table of initial anticipated adjustments at plan; TRU64a, b and c: Provide an analysis of the bridge between the financial position for 2014/15 and the projected position for 2015/16 through sources and application of funds. This is supplemented by a memorandum of 2015/16 forecast values for national policy items such as the emergency marginal rate and emergency readmissions and a bridge summary tracking changes in the net income spend planned between 2014/15 and 2015/16; TRU65: The main elements of the NHS Trusts Cost Improvement Programme (CIPs) are summarised on this table by key categories, and profiled by month for 2015/16. The full year effect of CIPs from 2014/15 is also profiled by month. A table of summary information is shown below for both 2015/16 and the full year effect of 2014/15. This table feeds efficiency values into TRU64a and b; TRU67: Provides further detail regarding NHS Trust efficiency measures detailed in TRU64 and TRU65 and how these impact on the normalised position. This includes a requirement to provide the value of 2014/15 forecast efficiency to be achieved; TRU70 and 71: Provides information on 2014/15 forecast outturn and planned revenue from patient care activities for 2015/16. Revenue is to be analysed by individual CCGs and Area Team and by point of delivery. Additional information relating to the expected contracted revenue is required for 2015/16; 9 of 97

15 TRU_COM1: This provides a summary of key variances in five categories for 2015/16; key data commentary, Continuity of Services finance ratings, governance, significant movements in revenue, expenditure and provisions and contract revenue from patient care activities. The data feeds directly from the detailed forms within the collection and includes a formula driven check. NHS Trusts are required to review any variances highlighted in red and either amend data in the main part of the forms or provide adequate explanations on the reason section of the commentary form; Validations: Validations with links to checks and / or figures required to reconcile in the plan and ensure data quality. Validations and queries 1.27 It is very important for NHS organisations to ensure that any validation errors on the forms have been cleared before they are submitted back to the NHS TDA. If NHS organisations experience any difficulties in clearing validation errors, they should seek advice from their NHS TDA contact in good time; technical queries should be directed to TDA.TFMSqueries@nhs.net. All queries relating to the planning forms should clearly reference Planning in the subject header to ensure these can be distinguished from other types of queries received in this mailbox (for example Q3 and Agreement of Balances queries). Recording data and submitting forms 1.28 All data entered into the forms is important and stringent validation processes should be in place in all NHS organisations to ensure that all data is entered accurately: please check that the contact details on the introduction sheet are correct; avoid dragging and dropping on the forms as this can corrupt the spread-sheet formulae. Corrupted spread-sheets cannot be repaired and may require the NHS Trust to download a blank form from the pigeon hole for complete re-input of data. Please use copy and paste special values for data extracted from other sources; the correct signage and currency must be used, as noted below; you may also notice that on some forms to the side of the main tables, there are several cells containing data. These serve as assistance to any feed-through and validations; please ensure when submitting to the NHS TDA that TFMS files are not password protected or in a shared workbook format or linked to other workbooks; 10 of 97

16 the NHS TDA are operating using Excel 2010, therefore all planning submissions should now be returned in.xlsm format (not xls format) The forms are marked 000 : figures must be entered in pounds thousands; figures must be rounded to the nearest whole figure. You must not enter decimals, or enter your own formulae, as this commonly leads to the creation of validation errors that cannot be easily traced or cleared; where no values are required, cells should be left blank or a zero inserted. Do not write in NIL or N/A The print areas have been set on each form to enable NHS Trusts to print the entire workbook on one sided A4 size paper. A limited number of forms print across a two page width (TRU55, TRU56, TRU65, TRU70 and TRU71) The finance planning forms have been designed using the TFMS tool which is used for in-year collections. This enables finance planning data to be captured using a familiar format and will be used to populate planning data as part of the in-year TFMS finance forms during 2015/16. This tool is not available for other types of planning submissions which should be submitted in accordance with the NHS TDA technical planning guidance available on the NHS TDA website. Completed finance planning forms should be submitted to TDAfinance@dh.gsi.gov.uk by twelve noon on the submission deadlines detailed in the NHS TDA planning guidance. 11 of 97

17 2. TRU Key Data 2.1 This form provides a summary of the headline financial data provided by the more detailed forms that support it. The key data is presented in a concise format, allowing the user of this form to assess how well the key data elements combine to form an overall coherent financial plan which is in line with the NHS Trusts medium term plans. A number of key data metrics are RAG rated to provide a desktop risk assessment of the plan. The key information summarised is: Statement of Comprehensive Income (SoCI) (sub codes 100 to 160): Comprises details of turnover, retained surplus/(deficit) represented both in absolute terms and as a percentage of turnover; Reported Financial Performance (sub codes 170 to 205): This links the retained surplus/(deficit) and adjusts this for items that should not impact on financial performance, these include impairments, donated assets and Government granted assets, IFRIC 12 items and gains and losses relating to transfers by absorption; Capital Position (sub codes 280 to 330): This provides key data relating to Gross Capital Expenditure, receipts and losses, other adjustments regarding grants, donations and losses on disposal of donated assets. The section also summarises the CRL, the spend against this and the resulting under or over spend; Cash, Funding and Loans (sub codes 340 to 386): This comprises key data relating to cash balances, PDC issued and repaid and loans; CIPs/Efficiencies (sub codes 390 to 445): This summarises the total efficiency programme for the year to date and forecast outturn showing their risk profile, those that are un-identified and those that are recurrent and non-recurrent. This section also provides the measure of efficiencies as a percentage of planned expenditure (sub code 440); Other key metrics (sub codes 450 to 510): This comprises key data relating to the NHS Trusts External Financing Limit (EFL), the Annual Capital Absorption Rate (%), the normalised position and underlying financial position of the NHS Trust; Continuity of Services Risk Ratings (sub codes 530 to 560): This sets out the CoSRR by its component parts of liquidity days (sub code 530) and Capital Servicing Capacity (sub code 540); Key Metrics Overall RAG Rating (sub code 570): This reflects the combined desk top RAG rating for the financial plan, calculated from the individual RAG ratings calculated within the individual key data sections. 12 of 96

18 3. TRU01 Statement of Comprehensive Income (SOCI) (sub codes 100 to 220) 3.1 In the full plan, entries in the SOCI are largely generated from the related notes (especially TRU05 and TRU06). These entries should be prepared in accordance with the guidance in the NHS Trust Manual for Accounts, Chapter 4 and any additional guidance in this document. 3.2 Gross employee benefits (sub code 100) and other operating costs (sub code 110): expenditure feeds from TRU06 in the full plan (see notes relating to the completion of TRU06 below). 3.3 Revenue from patient care activities (sub code 120): income the NHS Trust receives from patient care activities feeds through from TRU05 in the full plan (see notes relating to the completion of TRU05 below). 3.4 Other operating revenue (sub code 130): other operating revenue the NHS Trust receives. The figure feeds through from TRU05 in the full plan (see notes relating to the completion of TRU05 below). 3.5 Operating surplus/(deficit) (sub code 140): total of sub codes 100 to Investment Revenue (sub code 150)/ other gains and losses (sub code 160)/ finance costs (sub code 170). 3.7 Surplus/(deficit) for financial year (sub code 180): total of sub codes 140 to Dividends Payable on Public Dividend Capital (sub code 190): calculated on the basis of average relevant net assets less cash held in paymaster accounts. See NHS Trust Manual for Accounts for more details. 3.9 Net gains/loss on transfers by absorption (sub code 195): represents mergers to be accounted for using the absorption accounting guidance issued in 2014/15. In line with this guidance, this row should be used to record the book value of the net assets transferred at the date of the acquisition. 13 of 97

19 3.10 Retained surplus/(deficit) for the year (sub code 200): total of sub codes 180 to Prior period adjustment (sub code 210): to record any prior period adjustments for 2014/15 only Retained surplus/(deficit) for the year as per the accounts (sub code 220): retained surplus/(deficit) including prior period adjustments; total of sub codes 200 to 210. Reported NHS Financial Performance (sub codes 350 to 390) 3.13 The Reported NHS Financial Performance is a financial measure which recognises the impact of items that are considered to be either one off or outside of the normal running costs of the NHS Trust. These include prior period adjustments, impairments, IFRIC 12 costs, income/expenditure arising from Government grants and/or donated assets and losses or gains relating to mergers accounted for on an absorption basis. These items are added back to the Retained Surplus/(Deficit) to arrive at the Adjusted Financial Performance Retained Surplus/(Deficit): at full plan stage, all of the items that make up this section with the exception of particular 2014/15 entries, feed from other forms The IFRIC 12 Adjustment for 2014/15 (sub code 360, main code 01) is required to be input directly into sub codes 354 and 358, using the principles applying to TRU20 (see TRU20 guidance in section 10). Additional information (sub codes 400 to 570) 3.15 EBITDA (sub codes 400 to 490) is used as a key financial performance measure. The table starts with Retained Surplus/(Deficit) (sub code 400) and adds back depreciation, amortisation, impairments, interest receivable, finance costs, dividends, donated asset income and (gains)/losses relating to disposals and (gains)/losses on transfers by absorption: in the full plan, the majority of the rows feed through from other tables; the rows that require direct input are (gains)/losses on disposal of assets and other (sub code 470 and 480). 14 of 97

20 3.16 Restructuring costs (sub code 500): used to record restructuring costs of an exceptional nature, i.e. this should not be used to record restructuring costs that are within the normal running costs of the NHS Trust. As such, any input to this line should be agreed with the NHS TDA prior to submission. The plan values (per main codes 02 and 14) will be a subset of the restructuring costs reported on TRU64b sub code 640 for 2015/ Normalised EBITDA (sub code 510): total of sub codes 490 to Memorandum of Agency/Contract staff costs (sub codes 550 to 570): memorandum item used in NHS TDA reviews, finance and workforce triangulation analyses and consolidation work; values reported must not exceed the total included in Employee Benefits Expenditure (TRU06 sub code 400); totals to be consistent with the entries in the workforce return on the Workforce worksheet, cell reference R8. 15 of 97

21 4. TRU02 Statement of Financial Position (sub codes 100 to 775) 4.1 NHS Trusts should complete the SOFP in accordance with the guidance to the related notes in the NHS Trust Manual for Accounts, Chapter 4. In some cases, full year figures feed from the respective notes but all other figures must be entered manually. Figures are to be provided on the basis of the planned monthly profile for the 2015/16 financial year. 4.2 Non-Current Assets (sub codes 100 to 150): property plant and equipment (sub code 100) should be stated at fair value in line with the NHS Trust Manual for Accounts; intangible assets (sub code 110) are recognised if it is probable that future economic benefits will flow to, or service potential is provided to, the NHS Trust and the cost of the asset can be measured reliably. EU Emissions Trading Scheme allowances should be included here if they are not expected to be realised within twelve months of the end of the reporting period; investment property (sub code 120): The accounting requirements for investment property are set out in IAS 40. Only those assets which are held solely to generate a commercial return should be considered to be investment properties within the meaning of IAS 40. It should be noted that investment properties that are held for sale but do not meet the IFRS 5 criteria for treatment as assets held for sale should be recorded on this row; other financial assets (sub code 130) is used to record other fixed assets not recorded in sub codes 100 to 120; trade and other receivables (sub code 140) in which the settlement period is anticipated to be over one year. 4.3 Total non-current assets (sub code 150): total of sub codes 100 to Current assets (sub codes 160 to 230). 4.5 Inventories (sub code 160): to record stock and Work in Progress recorded at the lower of cost and net realisable value. Work in Progress should not be used to record partially completed spells. 16 of 96

22 4.6 Trade and other receivables (sub code 170): includes trade receivables net of doubtful debts and includes prepayments and accrued income as well as other receivables, including operating lease receivables and income due from the Compensation Recovery Unit under the Injury Costs Recovery Scheme. 4.7 Other financial assets (sub code 180): stated in accordance with IFRS 7 (Financial Instruments). 4.8 Other current assets (sub code 190): presented in accordance with IAS 1, includes EU Emissions Trading Scheme allowances should be recorded here when they are expected to be realised within twelve months of the end of the reporting period. 4.9 Cash and cash equivalents (sub code 200): in line with the Manual for Accounts, cash and cash equivalents are not deemed to include bank overdrafts, instead these form part of borrowings included in sub code 280. A validation check is included in the planning forms to ensure that cash balances (and bank overdrafts) included in the Statement of Financial Position (TRU02) match the balances included in the Cash Flow Statement (TRU04); additional analysis of cash balances included in sub code 200 is to be recorded in sub codes 685 to 775. Please note that as per the National Health Service Act 2006, NHS Trusts should not hold an average annual cash balance in a commercial account that exceeds 50, Sub-total current assets (sub code 210): total of sub codes 160 to Non-current assets held for sale (sub code 220): assets intended for disposal are reclassified as Held for Sale if the sale is highly probable and if the asset is available for immediate sale in its present condition subject only to terms which are usual and customary for such sales Total current assets (sub code 230): total of sub codes 210 to Total assets (sub code 240): total of sub codes 150 and of 97

23 4.14 Trade and other payables (sub code 250): presented in accordance with IAS 1 Presentation of Financial Statements, paragraph Other liabilities (sub code 260): includes deferred credits relating to PFI projects funded principally by third parties as well as pension liabilities for non-nhs schemes Provisions (sub code 270): provisions that are payable within one year, sub analysed in form TRU19 and annual values feed through from that form Borrowings (sub code 280): In line with the Manual for Accounts, bank overdrafts are not netted off against cash and cash equivalents in sub code 200 but are included in borrowings Other financial liabilities (sub code 290): presented in accordance with guidance on Financial Instruments and Contractual Capital Commitments set out in the Manual for Accounts Liabilities arising from PFIs / LIFT / Finance Leases (sub code 295): all current (within one year) liabilities arising from PFIs / LIFT / Finance Leases should be entered here DH Loans: FT liquidity, revenue support and capital (sub codes 300 to 310): current (within one year) portion of loans repayable at the period end Total current liabilities (sub code 320): total of sub codes 250 to Net current assets/ (liabilities) (sub code 330): total of sub codes 230 and Total Assets less current liabilities (sub code 340): total of sub codes 240 and of 97

24 4.24 Non-current liabilities (sub codes 350 to 410): these rows replicate the rows relating to current liabilities (sub codes 250 to 310) but comprise the element of the total liabilities that are payable in more than one year Total non-current liabilities (sub code 420): total of sub codes 350 to Assets less liabilities (total assets employed) (sub code 430): total of sub codes 340 and Taxpayers equity (sub codes 440 to 490) Public Dividend Capital (sub code 440): the PDC at the start of the year as stated in the prior year accounts adjusted for any agreed additions and repayments planned during each year. A validation test is included to ensure that this agrees to the sums included in Statement of Cash Flows Retained earnings reserve, revaluation reserve and other reserves (sub codes 450 to 480): opening reserves as stated in the prior year accounts adjusted for increases and decreases planned for 2015/ Total taxpayer s equity (sub code 490): total of sub codes 440 to Cash held in Government Banking Service accounts/nlf (sub code 500): closing GBS balances/balances invested with the National Loans Fund (NLF) at the end of each period Memorandum items (sub codes 510 to 555): the memorandum section will be used to facilitate future developments in the Continuity of Services Risk Ratings (CoSRR) as well as providing further analysis required by the DH/HM Treasury. These should be input directly where applicable Analysis of Cash Balances (sub codes 685 to 775): The information required focuses firstly on the overall cash balances (sub codes 685 to 710) and secondly on the commercial bank accounts held (sub codes 720 to 775): Analysis of Total Cash Balances (sub codes 685 to 710): This analyses the total cash balance in sub code 200; 19 of 97

25 Commercial accounts (sub codes 720 to 800): NHS Trusts are required to identify the number of individual commercial accounts held (sub code 720) and separately identify who these accounts are held with and the balances held in each account (sub codes 730 to 770). The values provided here link directly to the cash analysis in sub code of 97

26 5. TRU04 Statement of Cash Flows (sub code 100 to 640) 5.1 The cash flows reported relate to movement in cash and cash equivalents. IFRS requires cash flows to be reported under only three sections: operating, investing and financing. This Statement of Cash Flows should be completed in accordance with Chapter 4 of the NHS Trusts Manual for Accounts and all amounts must be shown gross. Cash flows from operating activities (sub code 100 to 260) 5.2 Operating surplus/(deficit), depreciation and amortisation, impairments (sub codes 100 to 120): feed directly from TRU01 / TRU Other Gains/(Losses) on foreign Exchange (sub code 130): gains/losses on the restatement of year end cash and cash equivalent balances using foreign exchange rates at the year end. 5.4 Donated Assets and Government Granted assets received credited to revenue but non-cash (sub codes 140 to 150): income that is credited to revenue in the SOCI but which does not involve the movement of cash; please note that adjustments here should only relate to revenue that has been recognised on TRU05 sub code 290 to Interest paid (sub code 160): cash payable during the period for interest. 5.6 Dividend (paid) /refunded (sub code 170): cash payable during the period for Dividends (normally in September and March of each financial year). 5.7 Release of PFI /deferred credit (sub code 180): includes the repayment of deferred credits relating to PFI projects funded principally by third parties. 5.8 Cash impact of working capital movements (sub codes 190 to 230): cash generated (or spent) through increases or decreases in working capital. In normal circumstances these can be calculated by deducting the opening balance for each category on the SOFP from the closing balance. 21 of 96

27 5.9 Provisions utilised and movements in non-cash provisions (sub codes 240 to 250): provisions utilised (sub code 240) records cash payments relating to provisions. The categories of provisions are analysed in TRU19 and in the case of the year end balances for 2014/15, 2015/16, the figures feed directly from that form. Direct input is required for the in-year profiling of figures for 2015/16; increase/(decrease) in movement in non-cash provisions (sub code 250) is used to record all other movements on provisions Net cash inflow/(outflow) from operating activities (sub code 260): total of sub codes 100 to 250. Cash flows from investing activities (sub codes 270 to 410) 5.11 Interest received (sub code 270): cash receivable during the period for interest Payments to acquire fixed assets, current assets or investments (sub codes 280 to 320): cash utilised for the purchase of assets by the period in which the cash is due to be spent Cash received from the proceeds of disposals of fixed assets, current assets or investments (sub codes 330 to 370): cash received for the disposal of assets by the period in which the cash receipt is due Rental revenue (sub code 400): cash received for rentals by the period in which the cash receipt is due Net cash inflow/(outflow) from investing activities (sub code 410): total of sub codes 270 to Net cash inflow/(outflow) before financing (sub code 420): total of sub codes 260 and of 97

28 Cash flows from financing activities (sub codes 430 to 580) 5.17 Public Dividend Capital received and repaid (sub codes 430 to 442): receipts and repayments of PDC (capital and revenue) should be included in the period of that receipt / payment. A validation check is included in the forms that tests that this correctly reconciles to the balance sheet values; the amount of capital PDC received is linked directly to the total capital PDC funding recognised on TRU63 sub codes 230 to 260 and a validation checks that this reconciles with capital spend allocated as PDC funded on TRU56; Where a repayment of capital PDC needs to be recognised on sub code 441, further analysis is required on TRU56 sub codes 2090 to 3090 which will feed directly to the total recognised here Loans received/repaid (sub codes 450 to 500): used to record the loans received and repaid from the various sources; repayments recognised on sub code 495 should represent only the capital cash repayments made in relation to PFI/LIFT/Finance Leases and should represent actual cash out-flows; where other capital loans are received e.g. Salix Energy loans these should be recorded under sub codes 650 to 665 which directly feed sub code 470; any repayments relating to other capital loans received e.g. Salix Energy loans, should be recorded under sub codes 690 to 710 which directly feed sub code Cash transferred to NHS Foundation Trusts (sub code 520): the cash payment should be recorded in the period of the transfer Capital grants and other capital receipts (excluding donated/ government granted cash receipts) (sub code 560): the cash payment/receipt should be recorded in the period of the transfer. Please note that only cash in-flows not already recognised on TRU05 sub codes 290 to 295 should be recognised here Net cash inflow/(outflow) from financing activities (sub code 580): total of sub codes 430 to Net increase/(decrease) in cash and cash equivalents (sub code 590): total of sub codes 420 and of 97

29 5.23 Cash and cash equivalents (and Bank Overdraft) at beginning of the period (sub code 600): should include the net of the cash balances recorded in the SOFP (sub code 200) and any bank overdrafts (expected to be rare) that are included in the SOFP under borrowings (sub code 280). The figure for 2014/15 (main code 01) requires populating and all of the other figures (main codes 2 to 15) are automatically generated Opening balance adjustment (sub code 610): expected to be exceptional cases only Restated cash and cash equivalents (and Bank Overdraft) at beginning of the period (sub code 620): sub-total of sub codes 600 and Effect of exchange rate changes in the balance of cash held in foreign currencies (sub code 630): the cash payment/receipt should be recorded in the period of the foreign currency exchange Cash and cash equivalents (and Bank Overdraft) at end of period YTD (sub code 640): the final cash balance for the period should match the net of the cash balance reported on the SOFP (sub code 200) and any bank overdrafts that are included under borrowings (sub code 280) Memorandum items (sub codes 650 to 720): the memorandum section should be used by NHS Trusts to provide analysis of Other loans received/repaid which will be used to directly feed sub codes 470 and 500. NHS Trusts should include a narrative description of the loan source and the amount received/repaid from and to each source. 24 of 97

30 6. TRU05 Revenue from patient care activities (sub codes 110 to 230) 6.1 This section is used to show patient care revenue together with the organisations from which it is sourced. 6.2 NHS Trusts (sub code 110): revenue received from other NHS Trusts. 6.3 NHS England (sub code 115): a detailed analysis of patient care revenue by Area Team should first be populated on forms TRU70 and 71 for each of the years 2014/15, and 2015/16 respectively (please see further guidance in section 17). The totals for each year will then feed through to sub code 115 on TRU05. The total revenue value for 2015/16 should then be profiled for each month of the year in main codes 03 to 14; main codes 16 and 18 should be used to record the element of this revenue that is recognised in accordance with the National Tariff in 2014/15 and 2015/16 respectively. The balancing figures in main codes 17 and 19 will be the non-tariff element. If there is no tariff element to be recorded in main codes 16 and 18 then please enter a 0 as leaving the cell blank will trigger a validation. 6.4 Clinical Commissioning Groups (sub code 120): a detailed analysis of patient care revenue by CCG should first be populated on forms TRU70 and 71 for each of the years 2014/15, and 2015/16 respectively (please see further guidance in section 17). The totals for each year will then feed through to sub code 120 on TRU05. The total revenue value for 2015/16 should then be profiled for each month of the year in main codes 03 to 14; main codes 16 and 18 should be used to record the element of this revenue that is recognised in accordance with the National Tariff in 2014/15 and 2015/16 respectively. The balancing figures in main codes 17 and 19 will be the non-tariff element. If there is no tariff element to be recorded in main codes 16 and 18 then please enter a 0 as leaving the cell blank will trigger a validation. 6.5 Foundation Trusts (sub code 150), Local Authorities (sub code 160) and Department of Health (170): should be used to record only the income from patient care activities received from these organisations. Other operating revenue received from these organisations should be included within the relevant headings on sub codes 250 to of 96

31 6.6 NHS other (including Public Health England) (sub code 180): income from NHS organisations such as Public Health England and NHS Property Services. It also includes income from other NHS bodies e.g. Special Health Authorities. 6.7 Non-NHS private patients (sub code 190): all income for patient care services from private patients. It does not include income payable directly by overseas visitors charged for their treatment under the NHS (Charges to Overseas Visitors) Regulations Non-NHS overseas patients (non-reciprocal) (sub code 200): income payable by overseas visitors liable for charges for NHS hospital treatment and covers payments made directly by overseas visitor patients who have been found to be liable for charges under the NHS (Charges to Overseas Visitors) Regulations (These should not be shown under Non-NHS: Private patients at sub code 190). Income from CCGs for overseas patients exempt from charge should be shown under the CCG heading (sub code 120). 6.9 Injury cost recovery (sub code 210): should be reported in line with the guidance contained in Chapter 4 of the Manual for Accounts Non NHS other (sub code 220): used to record other income from patient care activities that does not fit into any of the categories above Total revenue from patient care activities (sub code 230): total of sub codes 110 to 220. Other operating revenue (sub codes 250 to 360) 6.12 Should be completed using guidance in Chapter 4 of the NHS Trusts Manual for Accounts Recoveries in respect of employee benefits (sub code 250): captures those staff expense recoveries that should be accounted for as income (as opposed to being netted off gross staff expenditure); the total value of employee benefits recorded in TRU06 sub code 420 less the value of recoveries in respect of employee benefits recorded in TRU05 sub code 250 must be consistent with the entries in the workforce return on the Workforce worksheet, cell reference R6. 26 of 97