NHS TRUST DEVELOPMENT AUTHORITY PUBLIC BOARD MEETING, 24 JANUARY 2013 PAPER F: TRANSITION ARRANGEMENTS - TRANSFER ORDER AND TRANSFER SCHEMES
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1 NHS TRUST DEVELOPMENT AUTHORITY PUBLIC BOARD MEETING, 24 JANUARY 2013 PAPER F: TRANSITION ARRANGEMENTS - TRANSFER ORDER AND TRANSFER SCHEMES
2 Board Meeting 24 January 2013 Agenda Item 6 Paper F Title: Transition arrangements: Transfer Order and Transfer Schemes Author: Director of Strategy Purpose: The purpose of the paper is to update the Board on the work currently underway to ensure assets, liabilities and staff are transferred to the NHS TDA to support delivery of its functions. Executive summary: Recommended actions for the Board: The Board is asked to:- Note the process being followed; and Delegate to the Chief Executive authority to agree the content of Transfer Orders and Schemes in light of the internal assurance processes.
3 NHS TRUST DEVELOPMENT AUTHORITY BOARD MEETING 24 January 2013 Purpose 1. Delivery of the reforms set out in the Health and Social Care Act 2012 requires staff, property (assets) and liabilities to transfer from bodies such as SHAs, PCTs and the Department of Health to new statutory bodies including the NHS TDA. 2. This paper sets out the process and actions currently being undertaken to assure the assets and liabilities identified for transfer to the NHS TDA are as anticipated and enable the NHS TDA to deliver its functions effectively. 3. The transfer of assets, liabilities, and staff are predominantly being carried out through two processes:- Transfer Order: is an order of the Secretary of State under Schedule 4 to the NHS Act. It is a Statutory Instrument that must be consulted on and laid before Parliament 28 sitting days before it comes into force. Transfer Scheme: is an instrument in writing made by the Secretary of State between those entities as specified in Schedules 22 and 23 to the 2012 Act, unlike Transfer Orders it does not need to be laid before Parliament. 4. The proposed schedules will be presented for approval once they have been finalised and approved by Sender Organisations Boards. For Transfer Orders this will be in early February, with Transfer Schemes being during March (dates determined by DH and SHA Boards). 5. The Board is asked to delegate authority for signing the Transfer Order and Transfer Schemes to the Chief Executive.
4 Background 6. The NHS TDA will receive, staff, assets and liabilities through a Transfer Order and Transfer Schemes from SHAs and if appropriate PCTs. At present, we expect the distribution of transfer to be as follows: Transfer Order: All Staff Assets and Liabilities from the Department of Health Transfer Schemes: Assets and Liabilities from SHAs and PCTs 7. The same governance arrangements will apply for Senders and Receivers to both Transfer Orders and Transfer Schemes but the timescales will differ due to the requirement for Transfer Orders to be laid in Parliament for 28 days.. Discussion 8. The Transfer Order for all staff (including those from the NHS) and DH assets and liabilities will need to be agreed with lawyers by the end of January. After this, there will be a week in which Sender Boards and (subject to Board Approval) the NHS TDA Chief Executive will sign their approval before the Transfer Order is laid in Parliament. The current expectation is for the Transfer Order to be laid in Parliament on 6 th February. 9. The timetable for the NHS TDAs Transfer Order is, no later than:- 17 th January: Final schedules submitted to the Department 31 st Jan 4 th February: Department, SHAs and PCTs sign draft Transfer Order as representing expected transfer of staff, assets and liabilities to the NHS TDA. Following agreement from all Sender organisations the draft Transfer Order to be signed by representative of NHS TDA 5th February: Final Transfer Order to be ready for a representative of the Secretary of State to sign 6th February: Transfer Order laid before Parliament for 28 sitting days 31st March: Secretary of State to have enacted the Transfer Order 10. Transfer Schemes from SHAs and PCTs will follow the same process but with Transfer Schemes and their supporting schedules not due to be shared with the sending organisation until the 14 th February at the earliest. The proposal is to prioritise the Transfer Schemes in line with planned Board meetings of Sending Organisations in March. The signed Transfer Schemes will therefore become available on an ad hoc basis rather than in one batch. 11. The timetable for the Transfer Schemes is:- 17 th January: Final schedules submitted to the Department 14 th February onwards: Transfer Schemes submitted to Sender Organisations for review and approval by their Boards
5 15 th February onwards: NHS TDA able to approve Transfer Schemes from those NHS Senders where the sending Board has approved the Transfer Scheme 25 th March: Secretary of State or his representative formally signs Transfer Schemes 12. The process is driven by and the responsibility of Sender organisations, such as PCTs, SHAs and the Department. 13. To support delivery of the timetable, the NHS TDA has engaged with Sender organisations to help ensure assets and liabilities identified for transfer to the NHS TDA are in keeping with the organisations expectations and budget. Assets being transferred to the NHS TDA include, Information, IT equipment, and property. Liabilities include contracts eg for services being provided in buildings or support being provided to NHS Trusts, or legal liabilities that would have fallen to the Department or SHA in relation to functions transferring to the NHS TDA. 14. Lead directorates have been identified to ensure that submissions from SHAs and the Department are in line with the NHS TDA s expectations. Assets: Information Finance Directorate lead IT equipment Strategy Directorate lead Property Strategy Directorate lead Liabilities: Contracts Finance Directorate lead Legal Strategy Directorate lead Staff: Strategy Directorate 15. There is recognition that the assurance exercise undertaken by Receiving Organisations will only have reviewed the high level proposals and that discussions will be ongoing. Transfer Schemes will be subject to a change process whilst the Transfer Order setting out what is to be transferred to the NHS TDA will be before Parliament. Recommendations 16. The Board is asked to:- Note the process being followed; and Provide delegated authority to the Chief Executive to approve the content of Transfer Orders and Schemes in light of the internal assurance processes.
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