SCOTTISH AMBULANCE SERVICE ANNUAL ACCOUNTS AND NOTES

Transcription

1 SCOTTISH AMBULANCE SERVICE ANNUAL ACCOUNTS AND NOTES FOR YEAR ENDED 31 MARCH 2013

2 Scottish Ambulance Service Board Annual Accounts CONTENTS Page Directors Report (including interests of Board members) 1 Operating and Financial Review 8 Remuneration Report 16 Statements of Responsibilities 20 Governance Statement 22 Independent Auditors Report 26 Direction by the Scottish Ministers 28 Principal Financial Statements 29 Notes to the Accounts Note 1 (Accounting Policies) 35 Note Scottish Financial Returns 96 Payment Policy 107 Resource and Cash Outturn 108 Sickness Absence 109

3 Scottish Ambulance Service Board Annual Accounts SCOTTISH AMBULANCE SERVICE ANNUAL ACCOUNTS AND NOTES FOR YEAR ENDED 31 MARCH 2013 DIRECTORS REPORT DIRECTORS REPORT 1. NAMING CONVENTION Scottish Ambulance Service is the common name for the Scottish Ambulance Service Board. 2. PRINCIPAL ACTIVITIES AND REVIEW OF THE BUSINESS AND FUTURE DEVELOPMENTS The information that fulfils the requirements of the business review, principal activities and future developments can be found in the Operating and Financial Review, which is incorporated in this report by reference. 3. DATE OF ISSUE Audited Financial Statements were approved and authorised for issue by the Board on 26 June ACCOUNTING CONVENTION The Annual Accounts and Notes have been prepared under the historical cost convention as modified to reflect changes in the value of fixed assets and in accordance with the Scottish Government Financial Reporting Manual (FREM). The Accounts have been prepared under a direction issued by Scottish Ministers, which is included at Page 28 of the accounts. The statement of the accounting policies, which are in line with the International Financial Reporting Standards (IFRS) and have been adopted, are shown at Note APPOINTMENT OF AUDITORS The Public Finance and Accountability (Scotland) Act 2000 places personal responsibility on the Auditor General for Scotland to decide who is to undertake the audit of each health body in Scotland. The Auditor General has appointed Deloitte LLP to undertake the audit of the Scottish Ambulance Service. The general duties of the auditors of health bodies, including their statutory duties, are set out in the Code of Audit Practice issued by Audit Scotland and approved by the Auditor General. 6. BOARD MEMBERSHIP Under the terms of the Scottish Health Plan, the Scottish Ambulance Service Board ( the Board ) is a Board of governance whose membership will be conditioned by the functions of the Board. Members of Health Boards are selected on the basis of their position or the particular expertise which enables them to contribute to the decision making process at a strategic level. The Board has collective responsibility for the performance of the Service as a whole, and reflects the partnership approach, which is essential to improving health and health care. The Scottish Ambulance Service Board comprised during 2012/13: David Garbutt Pauline Howie Councillor David Alexander Moi Ali Neelam Bakshi Suzanne Dawson Edward Frizzell Theresa Houston Andrew Richmond Pamela McLauchlan Shirley Rogers Chairman Chief Executive Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Director of Finance and Logistics Director of Human Resources and Organisational Development 1

4 Matt Bell Prof George Crooks New Appointments (until 30/4/2012) Employee Director Medical Director (part time) Scottish Ambulance Service Board Annual Accounts Shirley Rogers left on secondment on 30 April 2012 to take up a position within Scottish Government. Elinor Mitchell joined the organisation on 1 May 2012 to take up the post of Director of Human Resources and Organisational Development. A new appointment was made of Director Health Professions and Nursing Care and Karen Wilson was appointed to the post from 1 October 2012, both of these positions are as Director of Scottish Ambulance Service. The Board members responsibilities in relation to the accounts are set out in a statement following this report. 7. BOARD MEMBERS AND SENIOR MANAGERS INTERESTS The following interests have been declared by Board members and senior managers: Board Member Directorships Ownerships David Garbutt Chartered fellow of the Chartered Institute of Personnel and Development Fellow Scottish Police College Visiting Fellow Australian Institute of Police Management Self Employed Consultant Pauline Howie None None Councillor David Alexander Depute Convenor Fife and Forth Valley Criminal Justice Authority Member and office bearer Scottish National Party Member CND Scotland Elected Member Falkirk Council Moi Ali Fellow of the RSA Governor, Napier University Neelam Bakshi Judicial Complaints Reviewer Non-Executive Director NHS Education for Scotland Public Appointments Ambassador Cabinet Office Scottish Police Authority Member Chartered Institute of Personnel & Development (Affiliate) Federation of Small Business Co Operative Society National Autistic Society Royal Horticultural Society Member BBC Audience Council Scotland Approved Training Institute American Board NLP Scottish Government, Non-Executive Member Lay Member Employment Tribunals Scotland Reserve Forces Tribunal & Lay Race Equality Assessor to Judiciary Member Scotland Committee of Equality & Human Rights Commission None Self Employed Consultant NB Associates Owner 2

5 Scottish Ambulance Service Board Annual Accounts Suzanne Dawson Lay member of Council of the Law Society of Scotland Member of the Board of Newbattle Abbey College Fellow of Chartered Institute of Marketing Self-employed Marketing Consultant Edward Frizzell Theresa Houston Chair of Court of Abertay University, Dundee Visiting Professor, Queen Margaret University, Edinburgh Non-Executive Director NHS Education for Scotland Andrew Richmond Non-Executive Member of NHS Tayside Chair of Angus CHP Non- Executive Director of Frontier IP Group PLC Trustee Tayside NHS Board Endowment Fund Associate of Society of Investment Professionals (ASIP) Member of Church of Scotland Lay Court member of the University of Dundee Trustee of the University of Dundee Superannuation and Life Assurance scheme Executive Member CIPFA in Scotland Pamela McLauchlan Non-Executive Audit Committee Member National Theatre for Scotland None None None None Shirley Rogers None None Matt Bell None None Prof George Crooks Medical Director NHS24 None Senior Managers Directorships Ownerships Heather Kenney None None Elinor Mitchell None None Daren Mochrie None None Karen Wilson None None 8. PUBLIC SERVICES REFORM (SCOTLAND) ACT 2010 The Public Services Reform (Scotland) Act came into being in October In Sections 31 and 32 it placed a duty on all public bodies to publish information on expenditure and certain other matters as soon as is reasonably practicable after the end of each financial year. These items include: Overseas Travel; Public Relations ; Hospitality and Entertainment; and External Consultancy. In order to comply with this Act, the Scottish Ambulance Service places on its external website the information relating to the expenditure incurred under these headings since 1 April In addition, public bodies are required to publish cash payments made to external parties that exceed 25,000 on a monthly basis, as soon as the monthly accounts are available. A list of these payments is also placed on our External Website. The following link will take readers to the relevant information: 3

6 Scottish Ambulance Service Board Annual Accounts Payments made to staff that exceed 100k per annum should also be disclosed. This information is contained in the Directors remuneration report. No other members of staff currently earn more than 100k per annum. 9. PENSION LIABILITIES The accounting policy note for pensions is provided in Note 1 and disclosure of the costs is shown within Note 24 and the Remuneration Report. 10. REMUNERATION FOR NON-AUDIT WORK Deloitte LLP, the Service s current External Auditor, have only undertaken audit related work during 2012/13 for the Scottish Ambulance Service Board. 11. RELATED PARTY TRANSACTIONS During the year, no Board member, key manager or other related parties have undertaken any material transactions with any body. All Board members are also Trustees of the Scottish Ambulance Service Endowment (charity) funds. 12. PAYMENT POLICY The Scottish Ambulance Service is committed to supporting the Scottish Government in helping businesses during the current economic situation by paying bills more quickly. The intention is to achieve payment of all undisputed invoices within 10 working days across all public bodies. The target has been communicated to all non-departmental public bodies, who are working towards the accelerated payment target of 10 working days. The Scottish Ambulance Service has endeavoured to work towards this target and does ensure that invoices received that have been correctly checked are processed within 7 working days of date of receipt. However those that require further investigation result in delays to the achievement of the target, this is required to ensure sound financial management of public funds. In 2012/13 the Board paid 28% of invoices by value and 37% by volume within 10 days (2011/12= 24% by value & 17% by volume ) In 2012/13 average credit taken was 25 Days (2011/12 = 28 Days) In 2012/13 the Board paid 71% of invoices by value and 81% by volume within 30 days (2011/12 = 73% by value & 77% by volume ) 13. CORPORATE GOVERNANCE The Board meets regularly during the year to progress the business of the Scottish Ambulance Service Board. This includes reviewing of performance against the key targets for the organisation. Considering the key strategies and policies the organisation wishes to develop. Seeking assurance that principal decisions are governed and implemented, as planned. In order to support the work of the Board and to provide a framework of assurance the following governance committees report to the Board: Clinical Governance; Audit; Staff Governance; and Remuneration. 4

7 Clinical Governance Committee 5 Scottish Ambulance Service Board Annual Accounts The Clinical Governance Committee of the Board has two key roles: - Systems assurance to ensure that clinical governance mechanisms are in place and operate effectively throughout the Scottish Ambulance Service System; and - Public health governance to ensure that the principles and standards of clinical governance are applied to the health improvement activities of the NHS Board. The Clinical Governance Committee currently comprises four Non-Executive Directors: Ms Suzanne Dawson (Chair); Mr Andrew Richmond; Ms Neelam Bakshi; and Ms Theresa Houston. Mr David Nelson is the Public/Patient Representative. The Committee meets approximately four times per year to monitor standards of care and measure the effectiveness of pre-hospital treatment. Audit Committee The Audit Committee currently comprises four Non-Executive Directors: Mr Edward Frizzell (Chair); Ms Moi Ali; Mr Andrew Richmond and Councillor David Alexander. Mr Frizzell took up the post of Chair from Mr Richmond from the 1 July The Audit Committee meets four times per year to consider the various reports from both internal and external auditors to assess the risks that may arise in the Service. Staff Governance Committee The Staff Governance Committee comprises four Non-Executive Directors: Mr Matt Bell, (Employee Director and Chair), Ms Moi Ali, Councillor David Alexander, Ms Neelam Bakshi and the Chairman, Mr David Garbutt. The Committee meets four times per year to ensure effective monitoring of staff governance within the organisation. Remuneration Committee At the start of the year, the Remuneration Committee comprised the Chairman and three Non-Executive Directors: Mr Edward Frizzell; Ms Suzanne Dawson and Councillor David Alexander. In compliance with the membership arrangements set out in the 4 th edition of the Staff Governance Standard, Matt Bell, Employee Director joined the membership of the Committee in November The Committee is chaired by the Chairman, Mr David Garbutt. It meets at least twice per year to consider the evaluation of performance and pay awards for Executive Directors. The committee has an important role in ensuring consistency of policy and equity of treatment of staff across the local NHS system, including remuneration issues, where they are not already covered by existing arrangements at national level. The Board Members responsibilities in respect of internal control are set out in a statement following this report. 14. DISCLOSURE OF INFORMATION TO AUDITORS The directors who held office at the date of approval of this directors report confirm that, so far as they are each aware, there is no relevant audit information of which the Board s auditors are unaware; and each director has taken all the steps that he/she ought reasonably to have taken as a director to make himself/herself aware of any relevant audit information and to establish that the Board s auditors are aware of that information. 15. HUMAN RESOURCES Human Resources and Organisational Development Structure In early 2012/13 a new Director of HR and OD was appointed and subsequently, towards the end of the financial year, the post of Head of HR and Staff Governance was filled. Work also began this year to review the HR and OD structure and it is envisaged that a new structure will be agreed and in place by the summer of Partnership Working and Staff Governance Throughout 2012/13, and in the face of difficult economic challenges, we have continued to live out the values and principles of partnership working, ensuring that effective staff governance exists across the Service. Work began in the latter part of 2012 looking at the partnership model within the Service and a new model was agreed, in partnership, which will be in place as of 1 June This new model brings the Service in line with other NHS Boards and has a focus on ensuring the new Staff Governance Standards are understood and embedded within the organisation.

8 Scottish Ambulance Service Board Annual Accounts During 2012/13 Staff Governance standard audits were conducted in all of the Divisions. The purpose of these audits was to asses the extent to which the 5 standards of staff governance were being met within each Division. During the course of these audits, a number of areas of good practice, as well as some areas for improvement were identified. Each Division received written feedback on their audit and these are published on the SAS internal website. Workforce and Recruitment 2012/13 was a challenging year for staff as we continued to take forward our Working together for better patient care strategy and the development of Emergency, Unscheduled and Scheduled Care Services. As our Strategy moved forward, we continued to work on the development of new roles and models of service and recognise the opportunities and challenges this presents for staff. Partnership and staff across the Service have and will continue to be involved at all stages in the development and implementation of plans and we have developed our engagement and communication with staff through visible leadership, using innovative mechanisms for communication and introducing a team briefing system to improve face to face communication. We implemented our Clinical Strategy which maintains a continued focus on Patient Safety, testing and evaluating new roles and enhanced clinical practice for ambulance staff (e.g. our specialist paramedics). We will also continue to involve staff in improving the efficiency and effectiveness of our Service and embed the improvements identified in our 2011/12 Learn and Improve Programme around Workforce, Scheduled Care, EMDC and administration services. We have continued to implement the recommendations from our Learn & Improve review of Scheduled Care specifically aiming to improve the way we manage and organise the Patient Transport Service and have introduced mobile technology to our PTS fleet to support this improvement. We aim to ensure those with a medical need for ambulance transport get the best patient care and, for those who are not eligible; we will continue to work with our partners to signpost alternative transport. This is part of the 5 year development programme. We are also progressing through Learn and Improve changes to the way we function administratively by ensuring the administrative service is as efficient as it can be. We will look to improve the efficiency, effectiveness and quality of our Scheduled Care, administrative, support functions and workforce planning arrangements. In January 2012 we reached agreement over the management of rest breaks. The immediate focus has been on implementing the new arrangements across the Service. In moving to these agreed new arrangements, the Service was required to recruit and train additional staff to fill the gaps in operational cover that would inevitably result from a move to a 37.5 hour working week. This resulted in 150 additional staff being recruited over the last 12 months, with 110 being in post by 31 March 2013 and the remainder due to commence the April 2013 course. Having now recruited the additional posts we will look to review our skills mix in order to provide the most appropriate clinical care for our patients at all times. This work will be further developed and refined through the Optima modelling work. Ambulance Control Structure Over the past year, a major review of the Ambulance Control Centres (ACC) operating model has been completed resulting in the introduction of a fundamentally new management structure and the introduction of an operational performance hub based in Cardonald. The new structure includes a new 24 hour National Operations Senior Management role and the introduction of 5 specialised development managers responsible for systems, emergency planning, workforce and clinical performance. The recruitment, management of change and communication processes have been conducted over the last 6 months and required significant and crucial input from the HR team. The new structure is due to go live over the summer months. The pilot to include the new clinical advisor role has been conducted throughout This new role is fundamental to improving operational performance, by improving clinical decision making within the ACC. The pilot has been extended until December 2012 to enable further evaluation of outcomes. 6

9 Scottish Ambulance Service Board Annual Accounts Phase 1 of the Scheduled Care Programme has now been completed and all scheduled care co-ordinators have transferred from regional ASO offices into the three regional control rooms. Ambulance Control has taken responsibility for the scheduled care co-coordinator teams with effect from April Human Resources Scorecard We are continuing to develop an HR Scorecard that reports on various HR statistical indicators including sickness absence, turnover, vacancies, Occupational Health/Health and Safety statistics and other workforce information. The scorecard ensures that this data is reported in one report and can be used to identify and track trends or compare different sets of statistics to establish any relationship between them. e:ess (electronic Employee Support System) Over the latter part of 2012/13 we have been preparing to implement our new NHSS HR system called e:ess. We are ahead of schedule, having brought forward our participation in this project by several months and have been busy setting up a project team, ensuring project governance is in place, and planning ahead for the business process changes that will occur as a result in 2013/14. The new system will benefit our workforce greatly by allowing staff greater access to their personal data and will streamline our HR business transactions, cutting the amount of time spent on administrative tasks. Organisational Development We are now midway through our HR/OD Strategy Doing the Right Thing and can now assess our progress to date. A review of the Action Plan by Doing the Right Thing Programme Board highlighted that we have made considerable progress in what we initially set out to achieve with many of the actions complete or seen as business as usual. Any outstanding actions will be incorporated into the Staff Governance Action Plan going forward. A number of innovative Culture discussion workshops have been run across the Service initially to a Divisional Management Team and Partnership audience. These workshops have stimulated excellent discussion and debate around a number of organisational issues encompassing culture, values, behaviours, staff engagement, patient safety and managing adverse incidents and they have received very positive feedback. It is our intention to keep the momentum of these workshops going with a view to developing a sustainable model that can be delivered in house. Keeping staff well informed of developments is an important aspect of our leadership and management roles and one of the key tenets of our Staff Governance Standards. One of the ways we are improving communication in our organisation is to introduce a team briefing model we have named Team Talk that is initially being piloted in the North Division EVENTS AFTER THE END OF THE REPORTING PERIOD There have been no significant events after the end of the financial year that would materially impact on the information contained within the accounts. 17. FINANCIAL INSTRUMENTS Information in respect of the financial risk management objectives and policies of the Board and the exposure of the Scottish Ambulance Service to price risk, credit risk, liquidity risk and cash flow risk is disclosed in note 27. The Accounting Officer (Chief Executive) of the Scottish Ambulance Service has authorised these financial statements for issue on the 26 June Signed: Date: 26 June 2013 Mrs Pauline Howie Chief Executive 7

10 OPERATING AND FINANCIAL REVIEW Scottish Ambulance Service Board Annual Accounts NHS Boards are required to prepare an Operating and Financial Review under section 7.2 of the FReM. This provides a narrative explanation of the main trends and factors underlying the development, performance and position of the Board during the financial year covered by the financial statements, and those which are likely to affect its future development, performance and position as defined in the Accounting Standards Board Reporting Statement objectives. The operating and financial review has been prepared in accordance with the FReM and complies with best practice. 1 Principal Activities and Review of the Year The Scottish Ambulance Service was established in 1999 under The Scottish Ambulance Service Board Order 1999 which amended the National Health Service (Scotland) Act 1978 and is responsible for the provision of Accident & Emergency Response, Patient Transportation Service and Air Ambulance services for the residents of Scotland, including the islands communities. This covers a total population of over 5.2 million. The role of the Scottish Ambulance Service is to: provide accident and emergency, patient transport and air ambulance services to the people of Scotland; improve and protect the health of people; improve health services for local people; focus clearly on health outcomes and people s experience of their local NHS system; and promote integrated health and community planning by working closely with other local organisations. The functions of the Scottish Ambulance Service Board comprise: strategy development; implementation of strategic framework; resource allocations; implementation of its Delivery Plan; and performance management. During this year the Organisation has delivered the following: Realigned all A&E rosters and moved A&E staff across to a 37.5hr week inclusive of rest period almost all staff were on their new rosters by 31 March with a small number moving during April and early May 2013; Progressed design and development of Single Clinical Triage System (SCTS) in partnership with NHS 24, jointly developing clinical content and pathways to route patients more effectively to definitive care; Increased levels of clinical paramedic advisors on a 24/7 basis across the three Ambulance Control Centres (ACC) sites investing 1.3 million; Developed a national framework and care pathways for elderly patients who have fallen in partnership with the Long Term Conditions Collaborative and Reshaping Older Peoples Care; Invested 100k in testing various professional to professional decisions support systems for crews to reduce avoidable attendances at hospital; With NHS Fife, developed pilot SEPSIS warning tool for crews through the mobile data e-prf system, with real time transfer of patient record to receiving hospital ahead of ambulance arrival, to pre-alert for potential SEPSIS; Established national patient booking service offering direct patient booking for Patient Transport Service and relocated 29 local offices into 3 regional centres to manage all booking, planning & day control across Scotland; Introduced mobile data technology across the PTS fleet to support dynamic deployment, more efficient use of resources and electronic capture and transfer of data; Continued to work in partnership with NHS Boards, local authorities and community transport partners to establish alternative integrated hubs. This is for patients not requiring ambulance transport to hospital appointments. We now have two pilot sites operating in Grampian and Lochaber; Continued to grow community First Responder schemes across Scotland to strengthen community resilience, including the launch of a higher skilled Emergency Responder scheme in West Ardnamurchan supported by telehealth links to Aberdeen Royal Infirmary; 8

11 Scottish Ambulance Service Board Annual Accounts Continued to work with partners such as British Heart Foundation and British Red Cross to strengthen community based life-saving skills. Also supported the expansion of community based public access defibrillators, including across the Caledonian MacBrayne ferry fleet, and initiated the mapping of these defibrillators onto the C3 command and control system to highlight their proximity to a caller, where this is relevant, which is proven to save lives; Completed business case for the development of the ScotSTAR National Specialist Retrieval Service to be co-ordinated by the Scottish Ambulance Service; Progressed preparation for the new contract for Air Ambulance Service in 2013 and worked in partnership to extend air ambulance capacity with the launch of Scotland s first charitable Air Ambulance Service; Reviewed frontline leadership and management roles and designed specific development programme for this cohort of managers to be delivered in 2013, focussing the role on strengthening clinical leadership and patient safety; Established a national Quality Hub and Collaborative to build capacity for quality improvement across SAS to drive forward service change and improvement and patient safety; Undertaken extensive planning and preparation for the Commonwealth Games in Glasgow in Financial Performance and Position The Scottish Government Health Directorate (SGHD) sets three financial targets at NHS Board level on an annual basis. These limits are: revenue resource limit - a resource budget for ongoing operations; capital resource limit - a resource budget for new capital investment; and cash requirement - a financial requirement to fund the cash consequences of the ongoing operations and the new capital investment. NHS Boards are expected to contain their net expenditure within these limits, and to report on any variation from the limits set. The Scottish Ambulance Service achieved each of the targets set and the table below indicates the financial performance against each target. Revenue resource limit Core Revenue resource limit Non Core (1) Limit as set by SGHD 000 (2) Actual Outturn 000 (3) Variance (over)/under (1)-(2) , , ,311 14,311 0 Capital resource limit 17,150 17,146 4 Cash requirement 220, , / / (46) Brought forward (surplus) from previous financial year (23) 5 (Savings)/excess against in year revenue resource limit (9) (41) TOTAL (Surplus) / Excess for year (32) 18 Non Core Surplus returned to government 0 (23) Brought forward Core (surplus) to current year (32) 9

12 Scottish Ambulance Service Board Annual Accounts In respect of financial position and performance: The Scottish Ambulance Service achieved a breakeven position against Non-Core Revenue Resource Limit at the year end, and generated a surplus against Core Revenue Resource Limit at the year end of 32k, resulting in an overall saving of 32k; The Scottish Ambulance Service contained its costs within the revenue and capital resource limits; The closing bank balance as at 31 March 2013 was 60k; Provisions for bad and doubtful debts of 73k were made; Provision for legal obligations of 227k were made, of which 136k relates to medical and clinical claims, 66k relates to employers liability claims and 25k relates to third party claims; Land and buildings were fully revalued by the Valuation Office Agency at 31 March 2013 on the basis of fair value (market value or depreciated replacement cost where appropriate). Other Property Plant and Equipment were revalued on the basis of indices at 31 March 2013; o The net impact was a decrease in value of 699k (2011/12: 382k increase), of which 153k (2011/12: 374k) was credited to the revaluation reserve and 852k (2011/12: 8k credit) charged to the Statement of Comprehensive Net Expenditure. The net charge of 852k to the Statement of Comprehensive Net Expenditure was comprised of 1,281k (2011/12: 512k) impairment losses and 429k (2011/12: 520k) reversal of previous impairment losses; Total outstanding liabilities are m; All of the five operating divisions returned deficits against budget in the year. This was due to high utilisation of overtime and an additional cost pressure from the new on call arrangements which were implemented from 1 October Improvements in overtime utilisation have been made; however, further work is required in 2013/14; and In addition, there was a high usage of medical consumables and drugs due to activity demands which also contributed to the overspend position in the divisions. There were four incidents during the year of theft of laptops. None of these laptops had personal data on them and in addition the Service has an encryption policy and this therefore mitigated the risk around the loss of Service data. 10

13 3 Key Performance Indicators (KPIs) Scottish Ambulance Service Board Annual Accounts Health Boards are required to report on their Key Performance Indicators, as agreed with the Scottish Government Health Directorate, shown below. Examples of KPIs include financial break-even targets, waiting times targets, delayed discharges, absences and suicide rates, which are all examples of the main NHS objectives. These objectives can be classified under four categories: Health improvement for people in Scotland; Efficiency improvements; Access more quickly to service; and Treatment appropriate for patient (HEAT). NHS Scotland Objective 1: Health Improvement for the people of Scotland improving life expectancy and healthy life expectancy Target No. H1 H2 H3 H4 H5 Target Save more lives: Achieve a return of spontaneous circulation on arrival at hospital of 12% to 20% Actual 17.5% - Improved on previous year Cardiac Arrest Cardiac Arrest patients responded to in 8 minutes Target 80% Actual 79.1% - Improved on previous year % of Cat A incidents responded to within 8 minutes Target 75% Actual 74.7% - Improved on previous year % of Cat B incidents responded to within 19 minutes Target 95% Actual 91.8% - decrease on previous year % emergency incidents responded to within 8 minutes in Island Boards Target 55% Actual 53.0% - decrease on previous year NHS Scotland Objective 2: Efficiency and Governance Improvements continually improve the efficiency and effectiveness of the NHS Target No. E1 E 3 E5 E6 Reduce Sickness absence to a target of 5% Actual 6.3% - increase from previous year PTS journeys with CHI recorded Target 85% Actual 93.4% - not recorded previous year Target NHS Boards to operate within their Revenue Resource Limit and Capital Resource Limit; and to meet their cash requirement. Target achieved Consistent with last year Deliver a 3% Cash Releasing Efficiency Saving per annum Target achieved Consistent with last year 11

14 Scottish Ambulance Service Board Annual Accounts NHS Scotland Objective 3: Access to Services recognising patients need for quicker and easier use of NHS services Target No. A1 A2 A3 A4 Target % of 1 hour urgent calls responded to within an hour target 91% Actual = 87.6% - Improved on previous year Improve punctuality for appointment for all PTS patients target 72% Actual = 53.7% - decrease on previous year see note Improve punctuality for pick up for all PTS patients target - 90% Actual = 74% - decrease on previous year see note % of PTS journeys cancelled by SAS target < 0.5% Actual = 0.5% - Improved on previous year NOTE: previously A2 and A3 only measured Priority 1 patients now it measures all patients NHS Scotland Objective 4: Treatment Appropriate to Individuals: ensure patients receive high quality services that meet their needs Target No. Target T1 T2 T10 Reduce Hospital admissions. Increase % of calls treated at scene target - 12% Actual = 16.5% - Improved on previous year % of Hyper Acute Stroke patients taken to hospital in 55 minutes target 80% Actual = 78.8% - Improved on previous year Reduce the % of patients conveyed to hospital Actual = 75.7% - Not measured previously 12

15 Scottish Ambulance Service Board Annual Accounts Sustainability and Environmental Reporting Significant work has been ongoing during 2012/13 in relation to sustainability and environmental reporting. Our National Headquarters is continuing to lead the Service in waste management and energy conservation. The organisation achieved a 2.02% reduction in energy consumption which meets the government 2% target of year on year energy reduction.this equates to an efficiency saving of 24k. Fleet continues to follow its action plan to reduce carbon emissions by purchasing vehicles with reduced carbon emissions. Waste Minimisation and Recycling The Scottish Ambulance Service has located its National Headquarters function within a shared NHS premises at Gyle Square, Edinburgh. A recycling area is set up within the National Headquarters which is proving to be extremely popular. Recycling will be monitored and measured and target figures have been set for 2013/14. Two new stations have also been identified to act as pilot stations for waste minimisation within the South East Division. Energy Efficiency As part of our property strategy, we are continuing to install energy saving devices in our upgrades/new builds; in particular, thermostatic valves to all radiators; time clocks to all heating systems; automatic devices for lighting and - within the actual build - energy saving insulation. The Service is also trialling a new gas heating system that incorporates air-source heat pumps (air to water system). These pumps absorb heat from the outside air, and can extract heat even at low temperatures, which reduces the amount of energy required to heat radiators and hot water. Transport Vehicle Emissions The Scottish Ambulance Service is committed to reducing vehicle emissions within the constraints of operating a blue light fleet. Emissions are recorded and reported on a monthly basis, with month to year trend analysis. With the reduction in vehicle numbers, the introduction of lower emission vehicles and focus on emission reduction, the Scottish Ambulance Service is now showing a slight reduction in its overall annual emissions footprint of 3.6% on the previous level of emissions. The leased vehicle essential-user car scheme was suspended late in 2012 to allow a full review which has now been completed and is being introduced. The emission limits have been reduced further with choice restricted to a small set of low emission vehicles. There is still an operational requirement for the resilience provided by a 4x4 vehicle but the emissions of these vehicles is now restricted to below 150g/km. Vehicle & Equipment Selection The procurement process recognises the requirement to consider the environmental impact of vehicles and the opportunities for reduced emissions. All vehicle manufacturers have to meet stringent environmental standards resulting in Scottish Ambulance Service vehicles replaced in recent years already complying with Euro V standards. Vehicles registered in the next calendar year will have to comply with Euro VI standards. In addition to these controls, the Scottish Ambulance Service has assessed individual vehicles identifying new models and technology to help reduce emissions while still meeting operational needs. New 4x4 Paramedic Response Units are now being converted from a base vehicle with emissions below 150g/km. During the year, 200 van conversion A&E vehicles with lower weights, improved fuel economy and reduced emissions were brought into service. During the design of our vehicles, consideration is given to reducing energy both in whole life and operational use. There has been a transition across to LED lighting for emergency warning lights, functional vehicle marker lighting and interior/exterior work lighting. This uses reduced energy and offers extended operational life. Intelligent plug in charging systems allow vehicle electrical systems to have optimum charging ensuring all vehicle based equipment is ready for use but also resulting in extended battery life, reduced battery requirement and removing the requirement to have the vehicle engine running unnecessarily. During the year, an electric Patient Transport Ambulance was brought into service and is currently being evaluated in operational use in the central Glasgow area. Electric vehicles are seen as one potential option to help reduce emissions while maintaining patient service. 13

16 Scottish Ambulance Service Board Annual Accounts Waste Management The Scottish Ambulance Service vehicle workshops continue to implement a waste management process which separates waste to be recycled appropriately, through the shared waste services with other departments, and separately for workshop specific waste. This allows segregation and recycling of the majority of workshop waste e.g. oils, metals, paper, plastics, glass etc. All waste and recycling is facilitated through appropriately registered partners and records are retained for audit purposes. Water Efficiency The constant use of water at all of our sites for vehicle cleaning does mean that our water consumption is high. Unfortunately, unless we undertake vehicle cleaning off site, there is very little latitude to reduce water consumption. However, 85% of our sites now have water meters in operation. This does allow us to closely monitor the consumption and although we may not be able to reduce the consumption because of our vehicle cleaning, it will alert us quicker to any leaks or problems with the water supply. We continue to concentrate on installing water-saving devices such as touch-sensitive taps within certain areas of the station as part of our upgrades and new builds. A new initiative is being trialled at a new build Ambulance Station for the use of recycled water for vehicle washing. This will be monitored during 2013/14 and if successful will be incorporated into all upgrades and new builds. Green Purchasing The Service has in place an environmental procurement policy which supports the Service s environmental policy and the Scottish Executive s policy on Public Procurement and Sustainable Development. As a national public service, the Scottish Ambulance Service is committed to investing in Green Procurement practices and recycling initiatives that will have a positive impact on sustainability of the environment. 5 Equality & Diversity Our Strategic Framework Working Together for Better Patient Care establishes our vision, to deliver the best patient care for people in Scotland, when they need us, where they need us. Our goals to improve patient access and referral to the most appropriate care, to deliver the best service for patients and to engage with all our partners and communities to deliver improved health care cannot be achieved without a firm commitment to continue to progress our equalities work, now and in the future. During the last number of months we have developed our equality outcomes after considering a wide range of input across a number of sources including our patients, members of the public, senior managers, staff and staff side colleagues. We have also taken cognisance of the greater equality and health inequality context and Scottish Government and National NHS policy priorities. We are working hard to ensure that equality and diversity is firmly embedded in all that we do and we recognise the significant impact this has on the service we provide to our patients and the experience of the workforce for all our staff. Our mainstreaming report highlights some of our equalities work and outlines the actions we are taking to progress this further. We have published our equality outcomes, mainstreaming report, equal pay statement and gender pay gap information on 30 April This work ensures that we are compliant with the requirements of the Equality Act 2010 and Equality Act (Specific Duties) (Scotland) Regulations 2012 and the need to have due regard to eliminating discrimination, advancing equality of opportunity and fostering good relations. We continue to monitor the Service Anti-Bullying and Harassment Campaign. The aim of this campaign is to raise awareness of unacceptable behaviour and encourage staff to raise any concerns/issues at the earliest opportunity in order to resolve problems as soon as possible. The Equality and Diversity Steering Group continues to meet bi-monthly to take some of the key areas of work forward. Membership includes representatives from across the Divisions. 14

17 Scottish Ambulance Service Board Annual Accounts Equal Pay The Scottish Ambulance Service has received one claim under the Equal Pay Act 1970 from a woman seeking compensation for past inequalities with male colleagues, under their pay arrangements. The basis of the claim is as follows: The claimant s job has been rated as being of equivalent to that of their comparator using a valid Job Evaluation Study, and/or is of equal value to that of their comparator; Their comparator is currently paid or has been paid more than them; and They claim equal pay, back pay and interest (back pay is claimed for the statutory maximum of five years). The current position and recent developments are summarised below. Comparator Information Comparators have still not been identified, with the exception of a small number of cases. Work is still ongoing by both claimants and respondents in this regard. Until comparators are identified it is not possible to identify the term which is said to breach the equality clause. Period of Claim The period over which back pay for any established breach would have to be calculated is the period between dissolution of their employing Trust and 30 September For the Scottish Ambulance Service this means that the period of the claim is limited to 6 months. The limited scope of these claims was upheld by the Employment Appeal Tribunal in the test case of Foley and Ors v Greater Glasgow Health Board (August 2012). Unequal Contract Term The issue of the basis of claims was considered at the Case Management Discussion on 22 January 2013, which centred on Emmanual v City and Hackney Primary Care Trust. This was a national test case to establish, where claimant and comparators carried out work of equal value, whether there was a genuine material factor defence for different terms relating to pay. The Tribunal decided that the Trust had failed to demonstrate a justification in the respect of different weekend overtime rates, but had done so in relation to basic pay.. Signed: Date: 26 June 2013 Mrs Pauline Howie Chief Executive 15

18 Scottish Ambulance Service Board Annual Accounts SCOTTISH AMBULANCE SERVICE ANNUAL ACCOUNTS AND NOTES FOR YEAR ENDED 31 MARCH 2013 ANNUAL REPORT REMUNERATION REPORT BOARD MEMBERS AND SENIOR MANAGERS REMUNERATION The remuneration of Board members and senior employees is determined in accordance with the NHS MEL(2000)25 Pay and Conditions of Service. This document sets out the pay arrangements for Board members and senior employees of NHS Boards. The arrangements referred to in this document are mandatory from 1 April Performance appraisal for Board members and senior employees is conducted in accordance with HDL(2002)64 Appraisal arrangements for staff on Executive pay ranges. As stated above, the Remuneration Committee meets at least three times per year to consider the evaluation of performance and pay awards for Executive Directors. This committee comprises the Chairman and three Non- Executive Directors: Mr Edward Frizzell, Ms Suzanne Dawson, and Councillor David Alexander. The Committee is chaired by the Chairman, Mr David Garbutt. 16

19 SCOTTISH AMBULANCE SERVICE REMUNERATION REPORT FOR THE YEAR ENDED MARCH 2013 CURRENT YEAR 2012/13 Scottish Ambulance Service Board Annual Accounts Remuneration (Bands of 5,000) Performance Related Bonus (Bands of 5,000) Real increase in pension at pensionable age (Bands of 2,500) Total accrued pension at pensionable age at 31 March (bands of 5,000) Cash Equivalent Transfer Value (CETV) at 31 March 2012 Cash Equivalent Transfer Value (CETV) at 31 March 2013 Real increase in CETV in year Benefits in kind Remuneration of: '000 '000 '000 '000 Executive Members Chief Executive: Pauline Howie (11) 4.3 Director of Finance & Logistics: Pamela McLauchlan (6) 4.0 Director of HR and Organisational Development: Shirley Rogers (3) 0.5 (Outward Secondee from 30/04/12 to Scottish Government) Part Time Medical Director : Prof George Crooks (a) (a) (a) (a) (a) (a) Non Executive Members Chairman: David Garbutt Suzanne Dawson Andrew Richmond David Alexander Theressa Houston Moi Ali Neelam Bakshi Edward Frizzell Employee Director : Matt Bell (b) (b) (b) (b) (b) (b) Other Senior Employees Director of Service Delivery: Daren Mochrie Director of Strategic and Planning and Quality Improvement: Heather Kenney (8) 4.3 Director of Nursing : Karen Wilson (Started 01/10/12) Director of HR and Organisational Development : Elinor Mitchell (Inward Secondee from 01/05/12 from Scottish Government) (c) (c) (c) (c) (c) (c) 2,219 2,373 (19 ) 24.7 Notes (a) (b) (c) George Crooks' Director's pension information is included within NHS24 information. The Employee Director, Matt Bell's Salary is entirely in respect of board duties. Elinor Mitchell's pension information is included within Scottish Government Information. These salary costs stated above include Employers Contributions to National Insurance and NHS Pension Scheme plus On Call Allowances where applicable. 17

20 Scottish Ambulance Service Board Annual Accounts SCOTTISH AMBULANCE SERVICE REMUNERATION REPORT FOR THE YEAR ENDED MARCH 2013 PRIOR YEAR 2011/12 Remuneration (Bands of 5,000) Performance Related Bonus (Bands of 5,000) Real increase in pension at pensionable age (bands of 2,500) Total accrued pension at pensionable age at 31 March (bands of 5,000) Cash Equivalent Transfer Value (CETV) at 31 March 2011 Cash Equivalent Transfer Value (CETV) at 31 March 2012 Real increase in CETV in year Benefits in kind Remuneration of: '000 '000 '000 '000 Executive Members Chief Executive: Pauline Howie Director of Finance & Logistics: Pamela McLauchlan Director of HR and Organisational Development: Shirley Rogers Part Time Medical Director : Prof George Crooks (a) (a) (a) (a) (a) (a) Non Executive Members Chairman: David Garbutt Suzanne Dawson Andrew Richmond David Alexander Theressa Houston Moi Ali Douglas Marr (Left 30/06/11) Christine Humphries (Left 30/06/11) Neelam Bakshi (Started 01/07/11) Edward Frizzell (Started 01/07/11) Other Senior Employees Director of Service Delivery: Peter Ripley (Left 05/08/11) (b) (b) (b) (b) (b) (b) Director of Service Delivery: Daren Mochrie (Started 08/08/11) Director of Strategic and Planning and Quality Improvement: Heather Kenney Total 1,816 2, Note (a) (b) George Crooks' Director's pension information is included within NHS24 information. Peter Ripley's Pension information is included within East Midlands Ambulance Service NHS Trust The salary costs stated above include Employers Contributions to National Insurance and NHS Pension Scheme plus On Call Allowances where applicable. 18

21 Scottish Ambulance Service Board Annual Accounts SCOTTISH AMBULANCE SERVICE REMUNERATION REPORT - ADDITIONAL DISCLOSURE FOR THE YEAR ENDED MARCH 2013 CURRENT YEAR 2012/ Highest Earning Director's Total Remuneration ( 000s) Highest Earning Director's Total Remuneration ( 000s) Median total Remuneration 29,585 Median total Remuneration 30,452 Ratio Ratio NOTE: Following further guidance from Scottish Government on the preparation of this note the 2011/12 figures have been restated to comply with this guidance. The salary costs stated above exclude Employers Contributions to National Insurance and the NHS Pension Scheme. On Call Allowances, where applicable, are included. The Median Total Remuneration has decreased due to the recruitment of a large number of trainee staff over the course of the year. Signed: Date: 26 June 2013 Mrs Pauline Howie Chief Executive 19

22 Scottish Ambulance Service Board Annual Accounts STATEMENT OF THE CHIEF EXECUTIVE S RESPONSIBILITIES AS THE ACCOUNTABLE OFFICER OF THE HEALTH BOARD Under Section 15 of the Public Finance and Accountability (Scotland) Act, 2000, The Principal Accountable Officer (PAO) of the Scottish Executive has appointed me as Accountable Officer of NHS Scottish Ambulance Service. This designation carries with it responsibility for: the propriety and regularity of financial transactions under my control; the economical, efficient and effective use of resources placed at the Board s disposal; and safeguarding the assets of the Board. In preparing the accounts, I am required to comply with the requirements of the Government s Financial Reporting Manual and in particular to: observe the accounts direction issued by Scottish Ministers including the relevant accounting disclosure requirements and apply suitable accounting policies on a consistent basis; make judgements and estimates on a reasonable basis; state whether applicable accounting standards as set out in the Government s Financial Reporting Manual have been followed and disclose and explain any material departures; and prepare the accounts on a going concern basis. I am responsible for ensuring proper records are maintained and that the Accounts are prepared under the principles and in the format directed by Scottish Ministers. To the best of my knowledge and belief, I have properly discharged my responsibilities as Accountable Officer as intimated in the Departmental Accountable Officers letters to me of 24 June 2008 and 5 November Signed: Date: 26 June 2013 Mrs Pauline Howie Chief Executive 20

23 Scottish Ambulance Service Board Annual Accounts STATEMENT OF HEALTH BOARD MEMBERS RESPONSIBILITIES IN RESPECT OF THE ACCOUNTS Under the National Health Service (Scotland) Act 1978, the Health Board is required to prepare accounts in accordance with the directions of Scottish Ministers which require that those accounts give a true and fair view of the state of affairs of the Health Board as at 31 March 2013 and of its operating costs for the year then ended. In preparing these accounts the Directors are required to: apply on a consistent basis the accounting policies and standards approved for NHSScotland by Scottish Ministers; make judgements and estimates that are reasonable and prudent; state where applicable accounting standards as set out in the Financial Reporting Manual, have not been followed where the effect of the departure is material; and prepare the accounts on the going concern basis unless it is inappropriate to presume that the Board will continue to operate. The Health Board members are responsible for ensuring that proper accounting records are maintained which disclose with reasonable accuracy at any time the financial position of the Board and enable them to ensure that the accounts comply with the National Health Service (Scotland) Act 1978 and the requirements of the Scottish Ministers. They are also responsible for safeguarding the assets of the Board and hence taking reasonable steps for the prevention of fraud and other irregularities. The NHS Board members confirm they have discharged the above responsibilities during the financial year and in preparing the accounts. Director of Finance and Logistics Date: 26 June 2013 Mrs Pamela McLauchlan Chairman Date: 26 June 2013 Mr David Garbutt 21

24 Scottish Ambulance Service Board Annual Accounts SCOTTISH AMBULANCE SERVICE ANNUAL ACCOUNTS 2012/13 GOVERNANCE STATEMENT Scope of Responsibility As Accountable Officer, I am responsible for maintaining an adequate and effective system of internal control that supports compliance with the organisation s policies and promotes achievement of the organisation s aims and objectives, including those set by Scottish Ministers. Also, I am responsible for safeguarding the public funds and assets assigned to the organisation. Purpose of Internal Control The system of internal control is based on an ongoing process designed to identify, prioritise and manage the principal risks facing the organisation. The system aims to evaluate the nature and extent of risks, and manage risks efficiently, effectively and economically. The system of internal control is designed to manage rather than eliminate the risk of failure to achieve the organisation s aims and objectives. As such, it can only provide reasonable and not absolute assurance. The process within the organisation accords with guidance from Scottish Ministers in the Scottish Public Finance Manual (SPFM) and supplementary NHS guidance, and has been in place for the year up to the date of approval of the annual report and accounts. The SPFM is issued by Scottish Ministers to provide guidance to the Scottish Government and other relevant bodies on the proper handling and reporting of public funds. The SPFM sets out the relevant statutory, parliamentary and administrative requirements, emphasises the need for efficiency, effectiveness and economy, and promotes good practice and high standards of propriety Governance Framework The Scottish Ambulance Service has set out its vision of how the service will be delivered in the future through its Strategy Working Together for Better Patient Care and has consulted widely with stakeholders including the public, other Health Boards and the Scottish Government both in the preparation of this document and also in the progress made with the strategy. The strategy has 5 key Programme Boards set up in partnership, these are well established and report to the Scottish Ambulance Service Executive Team and the Scottish Ambulance Service Board. This is the mechanism for the Board to ensure appropriate governance and performance management of each workstream is carried out. The Scottish Ambulance Service Board is supported in its governance responsibilities by the following committees: Staff Governance Is conducted in Partnership with Joint Chairs( management and staff side) Audit Committee Looks after the review of Standing Financial Instructions, Procurement, Fraud and Risk matters as well as the Scheme of Internal Controls operating within the organisation. Clinical Governance Looks after the clinical controls that are required to be in place, as well as assessment of new clinical practices and clinical development of staff. Remuneration Committee Examines the pay and benefits of senior staff within the organisation. The Board also examines its own effectiveness in line with current best practice, approves the scheme of delegation and ensures compliance with current legislation. The Board through defining the roles and responsibilities of members sets out clear areas of responsibility and levels of delegated authority.. 22

25 Scottish Ambulance Service Board Annual Accounts The Board in conjunction with the Scottish Government Health Directorate sets a series of performance measures that enables the Board to report to the public on the quality of services provided and how year on year these are improving. The Board has a whistle blowing policy and makes it clear that staff will be supported when they raise genuine areas of concern in respect of patient safety and quality of service. The Scottish Government during 2012/13 also launched the whistle blowing help line to assist NHS Scotland staff in raising appropriate concerns. Each of the Executives and non- Executives as Board members have key objectives to deliver each year and they are formally appraised in the case of the Executives by the Chief Executive and the Non Executives by the Chairman. The Chief Executive is appraised by the Chairman also. From these appraisals Personal Development Plans are prepared and acted upon. There is also through the Board development sessions opportunities for the Board to develop as a collective. Various channels of communication exist to communicate effectively with all stakeholders, these vary from the Chief Executives Bulletin to internal stakeholders to one to one meetings with key stakeholders at Scottish Government. The Board has endeavoured to ensure compliance with the UK Corporate Governance Code and is assured that it is in compliance with all relevant areas of this code that impact on NHS public bodies. Review of Adequacy and Effectiveness As Accountable Officer, I am responsible for reviewing the adequacy and effectiveness of the system of internal control. My review is informed by: the executive and senior managers who are responsible for developing implementing and maintaining internal controls across their areas; the work of the internal auditors, who submit to the organisation's Audit Committee regular reports which include their independent and objective opinion on the effectiveness of risk management, control and governance processes, together with the recommendations for improvement; comments made by the external auditors in their management letters and other reports; establishment of key performance and risk indicators, including the requirement for all projects to be managed according to PRINCEII project management methodology; maintenance of an organisation-wide risk register formally reviewed by the Board annually and the Risk Management Steering Group quarterly; a performance appraisal system is in place for all staff with personal objectives and development plans designed to support the Board in the attainment of the corporate objectives set out in the Health Plan and Delivery Plan. In addition, Personal Development Plans for all staff are being developed in line with the NHS Agenda for Change Knowledge and Skills Framework; an efficient government programme which aims to achieve cash releasing savings and productivity improvements (e.g. overtime management); and implementation of a continuous improvement strategy. I have been advised on the implications of the result of my review of the effectiveness of the system of internal control by the Board, the Audit Committee, Clinical Governance Committee and Staff Governance Committee. Appropriate action is in place to address weaknesses identified and to ensure the continuous improvement of the system. Best Value In accordance with the principals of Best Value, the Board aims to foster a culture of continuous improvement. As part of this, Directors and Managers are encouraged to review, identify and improve the efficient and effective use of resources. I can confirm that arrangements have been made to secure Best Value as set out in the Scottish Public Finance Manual. 23

26 Risk Assessment Scottish Ambulance Service Board Annual Accounts All NHS Scotland bodies are subject to the requirements of the Scottish Public Finance Manual (SPFM) and must operate a Risk Management Strategy in accordance with relevant guidance issued by Scottish Ministers. The general principles for a successful Risk Management Strategy are set out in the SPFM. The Board s Risk Management Strategy for was launched in March 2008 and updated by the Board in 2011 From this revision work is ongoing in 2012/13 to achieve the goals set out in this document. The Scottish Ambulance Service aims to control, eliminate or reduce significant risk to an acceptable level by creating a culture founded upon assessment and prevention rather than reaction and remedy. The management of risk objectives are to: minimise risks to the quality and delivery of emergency and patient care transport services; protect the services, reputation and finances of the Scottish Ambulance Service; optimise the resources available for patient care by managing risk, thus reducing the financial implications associated with adverse incidents; develop a partnership culture that secures the participation of all staff in risk assessment and incident reporting; integrate our risk management arrangements with our partners, where appropriate; ensure that routine and systematic identification, assessment and control of significant risk is an integral part of all work activities; ensure that an effective reporting process is in place to facilitate the systematic identification of adverse events and near misses; secure commitment of management to promote risk management and provide the necessary leadership and direction to support this; adopt agreed standards of risk management throughout the organisation, monitor compliance and ensure that corrective action is taken where necessary; and have in place effective systems of communication to ensure that everyone in the organisation is appropriately informed about risk management. The Board meets annually to review and add to the corporate (high level) risk register. The key risks identified are prioritised through a risk matrix scoring methodology that examines likelihood and impact. Thereafter, the key risks have controls or mitigating actions developed which allow the organisation to manage these risks. Each quarter the Risk Management Steering Group meets to review these key risks and monitor action taken/to be taken. This group also ensures that organisational risks that require escalation can be fed into the Corporate Risk register. The Audit Committee receives updates on how these risks are managed to assure the Board that management is taking effective action. Internal Audit utilise the high level register and the findings from the annual risk workshop to develop their work plan for the forthcoming year. This process ensures that Internal Audit is focused on areas of greatest risk to the organisation. More generally, the organisation is committed to continuous development and improvement: developing systems in response to any relevant reviews and developments in best practice. In particular, during the year to 31 March and up to the signing of the accounts, the organisation has put in place the following: The Service has reviewed the way in which it manages significant adverse events, following the Ayrshire and Arran report and has a framework called Patient Safety Learn and Improve, Management and Review of Significant Adverse Events currently out for consultation. This was developed following benchmarking with another UK Ambulance Service and other NHS Boards in Scotland. This includes: o Common definitions; o Advice and guidance for engagement with staff and families following Serious Adverse Episodes; o Consistent process and templates for review; The Patient Safety Learn and Improve Group, continues to meet monthly to ensure lessons learned from incidents, claims and complaints continue to be shared internally and with external stakeholders in a consistent and open manner; A staff survey was carried out on the Services Risk Management system, Datix, with an action plan developed for improvement; Quarterly Clinical Governance Risk Management and Patient Safety reports have been presented to the Clinical Governance Committee and Audit Committee; 24

27 Scottish Ambulance Service Board Annual Accounts A Board risk workshop, facilitated by Scott & Moncrieff our internal auditors, reviewed the corporate risk register, identified new risks for the Service for the coming year and discussed the Organisation s Risk Appetite; The Risk Management Steering Group remained an integral part of the Senior Management Team; The Management of Risk strategy and policy was updated and approved at the Board to reflect the reviewed risk register format which includes current and forecast risk levels and the Organisations risk appetite; A regular programme of facilitated workshops to identify and keep up to date the record of risks facing the organisation; Managers and staff have been trained to use the Service s incident reporting system; Management of risk training courses for managers and staff; There is an ongoing review of the Incident Reporting System which is web-based across the organisation; Maintenance of a corporate risk register; All risks recorded in the organisational risk register are tracked to ensure they are appropriately managed; Building on National Clinical Governance and Clinical Advisory Group and embedding them into the corporate and clinical governance structures; Development of the Clinical Governance and Quality Managers across the Service and ensuring Clinical Governance and Patient Safety are fully embedded and integrated into the day to day activity of the Service; Continued monitoring of our clinical performance reporting capabilities through the cab based terminals on which electronic patient reports are prepared; Established governance arrangements for Clinical Advisors within the Ambulance Control Centres; Regular reports from the Chair of the organisation s Audit Committee to the Board, concerning the issues of internal control considered by the Audit Committee; Regular reports by internal audit, which include their independent opinion on the adequacy and effectiveness of the system of internal control together with recommendations for improvement; Further development of Scottish Patient Safety Programme work streams; Continued facilitation of the ongoing delivery of the Service s Infection Control programme and plan; Implementation of new Medicines Management Policy to include controlled medicines and ensure the safe storage, transport and appropriate recording and auditing of these medicines; Ensure robust Corporate and Clinical Governance is in place for the development of Scheduled and Un- Scheduled Care Services, including specific workstreams such as Single Clinical Triage Tool; Ensure funding streams are available to ensure core clinical services are fit for purpose and evidence based, for example issue of the new Joint Royal Colleges Ambulance Liaison Committee Guidelines; and Business Case was submitted to Scottish Government to enhance the Services capability to meet identified threats of the 2 Model Response sites in Scotland in line with the development of Hazardous Access Response Team (HART) in England. Proportionate funding was provided to incorporate the HART concept within existing Special Operations Response (SOR) Teams at Newbridge and Johnstone. Disclosures During the previous financial year, no significant control weaknesses or issues have arisen and no significant failures have arisen in the expected standards for good governance, risk management and control. Signed Date: 26 June 2013 Mrs Pauline Howie Chief Executive 25

28 Scottish Ambulance Service Board Annual Accounts Independent Auditor s Report to the Members of the Scottish Ambulance Service, the Auditor General for Scotland and the Scottish Parliament We have audited the financial statements of Scottish Ambulance Service for the year ended 31 March 2013 under the National Health Service (Scotland) Act The financial statements comprise the Statement of Comprehensive Net Expenditure and Summary of Resource Outturn, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Taxpayers Equity and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union, and as interpreted and adapted by the 2012/13 Government Financial Reporting Manual (the 2012/13 FReM). This report is made solely to the members of the Scottish Ambulance Service as a body, the Auditor General for Scotland and the Scottish Parliament, in accordance with Public Finance and Accountability (Scotland) Act Our audit work has been undertaken so that we might state to the members of the Scottish Ambulance Service as a body, the Auditor General for Scotland and the Scottish Parliament those matters we are required to state to them in an auditor s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than to the members of the Scottish Ambulance Service as a body, the Auditor General for Scotland and the Scottish Parliament, for our audit work, for this report, or for the opinions we have formed. Respective Responsibilities of Accountable Officer and Auditor As explained more fully in the Statement of the Chief Executive s Responsibilities as the Accountable Officer of the Health Board set out on page 20, the Accountable Officer is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and is also responsible for ensuring the regularity of expenditure and income. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) as required by the Code of Audit Practice approved by the Auditor General for Scotland. Those standards require us to comply with the Auditing Practices Board s Ethical Standards for Auditors. We are also responsible for giving an opinion on the regularity of expenditure and income. Scope of the Audit of the Financial Statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Board s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Accountable Officer; and the overall presentation of the financial statements. It also involves obtaining evidence about the regularity of expenditure and income. In addition, we read all the financial and non-financial information in the Directors' report and accounts to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on Financial Statements In our opinion the financial statements: give a true and fair view in accordance with the National Health Service (Scotland) Act 1978 and directions made thereunder by the Scottish Ministers of the state of the Board s affairs as at 31 March 2013 and of its net operating cost for the year then ended; have been properly prepared in accordance with IFRSs as adopted by the European Union, as interpreted and adapted by the 2012/13 FReM; and have been prepared in accordance with the requirements of the National Health Service (Scotland) Act 1978 and directions made thereunder by the Scottish Ministers. Opinion on Regularity In our opinion in all material respects the expenditure and income in the financial statements were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers. 26

29 Scottish Ambulance Service Board Annual Accounts Opinion on Other Prescribed Matters In our opinion: the part of the Remuneration Report to be audited has been properly prepared in accordance with the National Health Service (Scotland) Act 1978 and directions made thereunder by the Scottish Ministers; and the information given in the Operating and Financial Review and Directors Report for the financial year for which the financial statements are prepared is consistent with the financial statements. Matters on which we are required to report by exception We are required to report to you if, in our opinion: adequate accounting records have not been kept; or the financial statements and the part of the Remuneration Report to be audited are not in agreement with the accounting records; or we have not received all the information and explanations we require for our audit; or the Governance Statement does not comply with guidance from the Scottish Ministers; or there has been a failure to achieve a prescribed financial objective. We have nothing to report in respect of these matters. Deloitte LLP Appointed Auditors Edinburgh 26 June

30 Scottish Ambulance Service Board Annual Accounts SCOTTISH AMBULANCE SERVICE BOARD DIRECTION BY THE SCOTTISH MINISTERS 1. The Scottish Ministers, in exercise of the powers conferred by sections 86(1), (1B) and (3) of the National Health Service (Scotland) Act 1978, as read with article 5(1) of and the Schedule to the Health Education Board for Scotland Order 1990, (S.I. 1990/2639), and all powers enabling them in that behalf, hereby give the following direction. 2. The statement of accounts for the financial year ended 31 March 2007, and subsequent years, shall comply with the accounting principles and disclosure requirements of the edition of the Government Financial Reporting Manual (FReM) which is in force for the year for which the statement of accounts are prepared. 3. Subject to the foregoing requirements, the accounts shall also comply with any accounts format, disclosure and accounting requirements issued by the Scottish Ministers from time to time. 4. The accounts shall be prepared so as to give a true and fair view of the income and expenditure and cash flows for the financial year, and of the state of affairs as at the end of the financial year. 5. This direction shall be reproduced as an appendix to the statementt of accounts. The direction given on 30 December 2002 is hereby revoked. Signed by the authority of the Scottish Ministers 28

31 SCOTTISH AMBULANCE SERVICE STATEMENT OF COMPREHENSIVE NET EXPENDITURE AND SUMMARY OF RESOURCE OUTTURN Restated Note Clinical Services Costs 205,594 Hospital and Community 4 214,041 5,854 Less: Hospital and Community Income 8 6, , ,945 0 Family Health Less: Family Health Income ,740 Total Clinical Services Costs 207,945 1,812 Administration Costs 6 1,739 0 Less: Administration Income 8 0 1,812 1,739 2,037 Other Non Clinical Services 7 3,523 (19) Less: Other Operating Income 8 1,175 2,056 2, ,608 Net Operating Costs 212,032 OTHER COMPREHENSIVE NET EXPENDITURE '000 '000 (374) Net (gain)/loss on revaluation of Property Plant and Equipment (153) 0 Net (gain)/loss on revaluation of Intangibles 0 0 Net (gain)/loss on revaluation of available for sales financial assets 0 (374) Other Comprehensive Expenditure (153) 203,234 Total Comprehensive Expenditure 211,879 The Notes to the Accounts, numbered 1 to 32, form an integral part of these Accounts. Prior year figures restated - detail provided in Note 26 Note 6 - Elements of Health Planning, Commissioning and Performance Reporting reanalysed to Note 4 Hospital and Community Costs Note 8 - Outward Secondee income reanalysed to Note 4 Hospital and Community Costs to be consistent with currrent year Note 6 - Elements of Board members remuneration reanalysed to Note 4 Hospital and Community Costs 29

32 SCOTTISH AMBULANCE SERVICE STATEMENT OF COMPREHENSIVE NET EXPENDITURE AND SUMMARY OF RESOURCE OUTTURN (Cont.) SUMMARY OF CORE REVENUE RESOURCE OUTTURN '000 Net Operating Costs 212,032 Total Non Core Expenditure (see below) (14,311) FHS Non Discretionary Allocation SFR1 0 Donated Assets Income 0 Total Core Expenditure 197,721 Core Revenue Resource Limit 197,753 Saving/(excess) against Core Revenue Resource Limit 32 SUMMARY OF NON CORE REVENUE RESOURCE OUTTURN Capital Grants to / (from) Other Bodies 0 Depreciation/Amortisation 12,794 Annually Managed Expenditure - Impairments 852 Annually Managed Expenditure - Creation of Provisions 665 Annually Managed Expenditure - Depreciation of Donated Assets 0 IFRS PFI Expenditure 0 Total Non Core Expenditure 14,311 Non Core Revenue Resource Limit 14,311 Saving/(excess) against Non Core Revenue Resource Limit 0 SUMMARY RESOURCE OUTTURN Resource Expenditure Saving/(Excess) '000 '000 '000 Core 197, , Non Core 14,311 14,311 0 Total 212, ,

33 SCOTTISH AMBULANCE SERVICE BALANCE SHEET Note Non-current assets: 75,730 Property, plant and equipment 11 79,790 2,226 Intangible assets 10 1,819 Financial assets: 0 Available for sale financial assets ,155 Trade and other receivables 13 10,531 87,111 Total non-current assets 92,140 Current Assets: 0 Inventories Financial assets: 15,474 Trade and other receivables 13 16, Cash and cash equivalents Available for sale financial assets Derivatives financial assets Assets classified as held for sale 11c 0 15,534 Total current assets 16, ,645 Total assets 108,596 Current liabilities (959) Provisions 17 (739) Financial liabilities: (16,450) Trade and other payables 16 (14,223) 0 Derivatives financial liabilities 28 0 (17,409) Total current liabilities (14,962) 85,236 Non-current assets plus/less net current assets/liabilities 93,634 Non-current liabilities (4,047) Provisions 17 (4,912) Financial liabilities: 0 Trade and other payables 16 0 (4,047) Total non-current liabilities (4,912) 81,189 Assets less liabilities 88,722 Taxpayers' Equity 76,602 General fund SOCTE 84,128 4,587 Revaluation reserve SOCTE 4,594 0 Other reserves SOCTE 0 81,189 Total taxpayers' equity 88,722 Adopted by the Board on 26 June 2013 Director of Finance Chief Executive The Notes to the Accounts, numbered 1 to 32, form an integral part of these Accounts. 31

34 SCOTTISH AMBULANCE SERVICE STATEMENT OF CASHFLOWS Note Cash flows from operating activities (203,608) Net operating cost SOCNE (212,032) 11,431 Adjustments for non-cash transactions 3 13, Add back: interest payable recognised in net operating cost Deduct: interest receivable recognised in net operating cost 8 0 (1,522) (Increase) / decrease in trade and other receivables 18 (2,108) 0 (Increase) / decrease in inventories 18 (190) (1,377) Increase / (decrease) in trade and other payables 18 (504) (1,603) Increase / (decrease) in provisions (196,493) Net cash outflow from operating activities (200,392) Cash flows from investing activities (14,407) Purchase of property, plant and equipment (18,068) (412) Purchase of intangible assets (912) 0 Investment Additions Proceeds of disposal of property, plant and equipment Proceeds of disposal of intangible assets 0 0 Interest received 0 (13,853) Net cash outflow from investing activities (18,673) Cash flows from financing activities 210,532 Funding SOCTE 219,412 0 Movement in general fund working capital SOCTE 0 210,532 Cash drawn down 219,412 0 Capital element of payments in respect of finance leases and onbalance sheet PFI contracts 0 (186) Interest paid 3 (347) Interest element of finance leases and on-balance sheet PFI/PPP 3 0 contracts 0 210,346 Net Financing 219,065 0 Net Increase / (decrease) in cash and cash equivalents in the period 0 60 Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period 60 Reconciliation of net cash flow to movement in net debt/cash 0 Increase/(decrease) in cash in year 0 60 Net debt/cash at 1 April Net debt/cash at 31 March The Notes to the Accounts, numbered 1 to 32, form an integral part of these Accounts. 32

35 SCOTTISH AMBULANCE SERVICE STATEMENT OF CHANGES IN TAXPAYERS' EQUITY Note General Revaluation Other Total Fund Reserve Reserve Reserves Balance at 31 March ,602 4, ,189 Prior year adjustments for changes in accounting policy and material errors Restated balance at 1 April ,602 4, ,189 Changes in taxpayers' equity for Net gain/(loss) on revaluation/indexation of property, plant and equipment Net gain/(loss) on revaluation/indexation of intangible assets Net gain/(loss) on revaluation of available for sale financial assets Impairment of property, plant and equipment 11 (852) (852) Impairment of intangible assets Revaluation & impairments taken to operating costs Release of reserves to the statement of comprehensive net expenditure 11b 0 0 Transfers between reserves 146 (146) 0 0 Transfer of non current assets from other bodies Pension reserve movements 0 0 Transfer of Fixed Assets (to)/from other Boards 0 0 Net operating cost for the year (212,032) (212,032) Total recognised income and expense for (211,886) 7 0 (211,879) Funding: Drawn down 219, ,412 Movement in General Fund (Creditor) / Debtor cfs 0 0 Balance at 31 March 2013 BS 84,128 4, ,722 The Notes to the Accounts, numbered 1 to 32, form an integral part of these Accounts. 33

36 SCOTTISH AMBULANCE SERVICE STATEMENT OF CHANGES IN TAXPAYERS' EQUITY - PRIOR YEAR FOR THE YEAR ENDED 31 MARCH 2012 Note General Revaluation Other Total Fund Reserve Reserve Reserves Balance at 31 March ,608 4, ,847 Prior year adjustments for changes in accounting policy and material errors Restated balance at 1 April ,608 4, ,847 Changes in taxpayers' equity for Net gain/(loss) on revaluation/indexation of property, plant and equipment Net gain/(loss) on revaluation/indexation of intangible assets Net gain/(loss) on revaluation of available for sale financial assets Impairment of property, plant and equipment Impairment of intangible assets Revaluation & impairments taken to operating costs 3 (8) (8) Release of reserves to the statement of comprehensive net expenditure 11b 0 0 Transfers between reserves 26 (26) 0 0 Transfer of non current assets from other bodies Pension reserve movements 0 0 Other non cash costs [please specify] 0 0 Net operating cost for the year (203,608) (203,608) Total recognised income and expense for (203,538) (203,190) Funding: Drawn down 210, ,532 Movement in General Fund (Creditor) / Debtor 0 0 Balance at 31 March 2012 BS 76,602 4, ,189 The Notes to the Accounts, numbered 1 to 32, form an integral part of these Accounts

37 NOTE 1 - ACCOUNTING POLICIES 1. Authority NOTES TO THE ACCOUNTS Scottish Ambulance Service Board Annual Accounts In accordance with the accounts direction issued by Scottish Ministers under section 19(4) of the Public Finance and Accountability (Scotland) Act 2000 appended, these Accounts have been prepared in accordance with the Government Financial Reporting Manual (FReM) issued by HM Treasury and Health Board manual for accounts, which follows International Financial Reporting Standards as adopted by the European Union (IFRS as adopted by the EU), IFRIC Interpretations and the Companies Act 2006 to the extent that they are meaningful and appropriate to the public sector. They have been applied consistently in dealing with items considered material in relation to the accounts. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in section 30 below. Standards, Amendments and Interpretations of International Accounting Standards in There are no new standards, amendments and interpretations of International Accounting Standards adopted early or effective in Basis of Consolidation As directed by the Scottish Ministers, the financial statements do not consolidate the Scottish Ambulance Service Endowment Fund. Transactions between the Board and the Scottish Ambulance Service Endowment Fund are disclosed as Related Party Transactions, where appropriate, in Note 29 to the financial statements. 3. Prior Year Adjustment There was no prior year adjustment in 2012/ Going Concern The accounts are prepared on the going concern basis, which provides that the entity will continue in operational existence for the foreseeable future. 5. Accounting Convention The Accounts are prepared on a historical cost basis, as modified by the revaluation of property, plant and equipment, intangible assets, inventories, available-for-sale financial assets and financial assets and liabilities (including derivative instruments) at fair value. 6. Funding Most of the expenditure of the Health Board as Commissioner is met from funds advanced by the Scottish Government within an approved revenue resource limit. Cash drawn down to fund expenditure within this approved revenue resource limit is credited to the general fund. All other income receivable by the Board that is not classed as funding is recognised in the year in which it is receivable. Where income is received for a specific activity which is to be delivered in the following financial year, that income is deferred. Income from the sale of non-current assets is recognised only when all material conditions of sale have been met, and is measured as the sums due under the sale contract. 35

38 Scottish Ambulance Service Board Annual Accounts Non-discretionary funding outwith the Revenue Resource Limit is allocated to match actual expenditure incurred for the provision of specific pharmaceutical, dental or ophthalmic services identified by the Scottish Government. Non-discretionary expenditure is disclosed in the accounts and deducted from operating costs charged against the RRL in the Statement of Resource Outturn. Funding for the acquisition of capital assets received from the Scottish Government is credited to the general fund when cash is drawn down. Expenditure on goods and services is recognised when, and to the extent that they have been received, and is measured at the fair value of those goods and services. Expenditure is recognised in the Statement of Comprehensive Net Expenditure except where it results in the creation of a non-current asset such as property, plant and equipment. 7. Property, Plant and Equipment The treatment of capital assets in the accounts (capitalisation, valuation, depreciation, particulars concerning donated assets) is in accordance with the NHS Capital Accounting Manual. Title to properties included in the accounts is held by Scottish Ministers. 7.1 Recognition Property, Plant and Equipment is capitalised where: it is held for use in delivering services or for administrative purposes; it is probable that future economic benefits will flow to, or service potential be provided to, the Board; it is expected to be used for more than one financial year; and the cost of the item can be measured reliably. All assets falling into the following categories are capitalised: 1) Property, plant and equipment assets which are capable of being used for a period which could exceed one year, and have a cost equal to or greater than 5,000; 2) In cases where a new hospital would face an exceptional write off of items of equipment costing individually less than 5,000, the Board has the option to capitalise initial revenue equipment costs with a standard life of 10 years; and 3) Assets of lesser value may be capitalised where they form part of a group of similar assets purchased at approximately the same time and cost over 20,000 in total, or where they are part of the initial costs of equipping a new development and total over 20, Measurement Valuation: All property, plant and equipment assets are measured initially at cost, representing the costs directly attributable to acquiring or constructing the asset and bringing it to the location and condition necessary for it to be capable of operating in the manner intended by management. All assets are measured subsequently at fair value as follows: Specialised NHS land, buildings, equipment, installations and fittings are stated at depreciated replacement cost, as a proxy for fair value as specified in the FReM; Non-specialised land and buildings, such as offices, are stated at existing use value; Valuations of all land and building assets are reassessed by valuers under a 5-year programme of professional valuations and adjusted in intervening years to take account of movements in prices since the latest valuation. The valuations are carried out in accordance with the Royal Institution of Chartered Surveyors (RICS) Appraisal and Valuation Manual insofar as these terms are consistent with the agreed requirements of the Scottish Government; 36

39 Scottish Ambulance Service Board Annual Accounts Non-specialised equipment, installations and fittings are valued at fair value. Boards value such assets using the most appropriate valuation methodology available (for example, appropriate indices); a depreciated historical cost basis as a proxy for fair value in respect of such assets which have short useful lives or low values (or both); and Assets under construction are valued at current cost. This is calculated by the expenditure incurred to which an appropriate index is applied to arrive at current value. These are also subject to impairment review. To meet the underlying objectives established by the Scottish Government, the following accepted variations of the RICS Appraisal and Valuation Manual have been required: Specialised operational assets are valued on a modified replacement cost basis to take account of modern substitute building materials and locality factors only. Subsequent Expenditure: Subsequent expenditure is capitalised into an asset s carrying value when it is probable the future economic benefits associated with the item will flow to the Board and the cost can be measured reliably. Where subsequent expenditure does not meet these criteria the expenditure is charged to the Statement of Comprehensive Net Expenditure. If part of an asset is replaced, then the part it replaces is de-recognised, regardless of whether or not it has been depreciated separately. Revaluations and Impairment: Increases in asset values arising from revaluations are recognised in the revaluation reserve, except where, and to the extent that, they reverse an impairment previously recognised in the Statement of Comprehensive Net Expenditure, in which case they are recognised as income. Movements on revaluation are considered for individual assets rather than groups or land/buildings together. Decreases in asset values and impairments are charged to the revaluation reserve to the extent that there is an available balance for the asset concerned, and thereafter are charged to the Statement of Comprehensive Net Expenditure. Gains and losses recognised in the revaluation exercise are reported in the Statement of Other Comprehensive Expenditure. 7.3 Depreciation Items of Property, Plant and Equipment are depreciated to their estimated residual value over their remaining useful economic lives in a manner consistent with the consumption of economic or service delivery benefits. Depreciation is charged on each main class of tangible asset as follows: 1) Freehold land is considered to have an infinite life and is not depreciated. 2) Assets in the course of construction and residual interests in off-balance sheet PFI contract assets are not depreciated until the asset is brought into use or reverts to the Board, respectively. 3) Property, Plant and Equipment which has been reclassified as Held for Sale ceases to be depreciated upon the reclassification. 4) Buildings, installations and fittings are depreciated on current value over the estimated remaining life of the asset, as advised by the appointed valuer. They are assessed in the context of the maximum useful lives for building elements. 5) Equipment is depreciated over the estimated life of the asset. 6) Property, plant and equipment held under finance leases are depreciated over the shorter of the lease term and the estimated useful life. Depreciation is charged on a straight line basis. 37

40 Scottish Ambulance Service Board Annual Accounts The following asset lives have been used: 8. Intangible Assets 8.1 Recognition Asset Category/Component Useful Life (Years) Buildings Structure Engineering External Works Transport Equipment Emergency Vehicles 4-7 Patient Transport Vehicles 5-10 Leased Cars 4 Communications Equipment 5-10 IT Equipment 5-15 Plant & Machinery- Medical Equipment 5-10 Furniture and fittings 10 Furnishings 10 Intangible assets are non-monetary assets without physical substance which are capable of being sold separately from the rest of the Board s business or which arise from contractual or other legal rights. They are recognised only where it is probable that future economic benefits will flow to, or service potential be provided to, the Board and where the cost of the asset can be measured reliably. Intangible assets that meet the recognition criteria are capitalised when they are capable of being used in a Board s activities for more than one year and they have a cost of at least 5,000. The main classes of intangible assets recognised are: Internally Generated Intangible Assets: Internally generated goodwill, brands, mastheads, publishing titles, customer lists and similar items are not capitalised as intangible assets. Expenditure on research is not capitalised. Expenditure on development is capitalised only where all of the following can be demonstrated: the project is technically feasible to the point of completion and will result in an intangible asset for sale or use; the Board intends to complete the asset and sell or use it; the Board has the ability to sell or use the asset; how the intangible asset will generate probable future economic or service delivery benefits e.g. the presence of a market for it or its output, or where it is to be used for internal use, the usefulness of the asset; adequate financial, technical and other resources are available to the Board to complete the development and sell or use the asset; and the Board can measure reliably the expenses attributable to the asset during development. Expenditure so deferred is limited to the value of future benefits. Software: Software which is integral to the operation of hardware e.g. an operating system is capitalised as part of the relevant item of property, plant and equipment. Software which is not integral to the operation of hardware e.g. application software, is capitalised as an intangible asset. 38

41 Scottish Ambulance Service Board Annual Accounts Software Licences: Purchased computer software licences are capitalised as intangible fixed assets where expenditure of at least 5,000 is incurred. 8.2 Measurement Valuation: Intangible assets are recognised initially at cost, comprising all directly attributable costs needed to create, produce and prepare the asset to the point that it is capable of operating in the manner intended by management. Subsequently intangible assets are measured at fair value. Where an active (homogeneous) market exists, intangible assets are carried at fair value. Where no active market exists, the intangible asset is revalued, using indices or some suitable model, to the lower of depreciated replacement cost and value in use where the asset is income generating. Where there is no value in use, the intangible asset is valued using depreciated replacement cost. These measures are a proxy for fair value. Revaluation and Impairment: Increases in asset values arising from revaluations are recognised in the revaluation reserve, except where, and to the extent that, they reverse an impairment previously recognised in the Statement of Comprehensive Net Expenditure, in which case they are recognised in income. Decreases in asset values and impairments are charged to the revaluation reserve to the extent that there is an available balance for the asset concerned, and thereafter are charged to the Statement of Comprehensive Net Expenditure. Permanent impairments are charged to the Statement of Changes in Taxpayers Equity. Intangible assets held for sale are reclassified to non-current assets held for sale measured at the lower of their carrying amount or fair value less costs to sell. 8.3 Amortisation Intangible assets are amortised to their estimated residual value over their remaining useful economic lives in a manner consistent with the consumption of economic or service delivery benefits. Amortisation is charged to the Statement of Comprehensive Net Expenditure on each main class of intangible asset as follows: 1) Internally generated intangible assets: amortised on a systematic basis over the period expected to benefit from the project. 2) Software: amortised over their expected useful life. 3) Software licences: amortised over the shorter term of the licence and their useful economic lives. 4) Other intangible assets: amortised over their expected useful life. 5) Intangible assets which have been reclassified as Held for Sale cease to be amortised upon the reclassification. Amortisation is charged on a straight line basis. 39

42 Scottish Ambulance Service Board Annual Accounts The following asset lives have been used: Asset Category/Component Useful Life (Years) Software Licences 5 Information Technology Software 5 9. Non-current assets held for sale Non-current assets intended for disposal are reclassified as Held for Sale once all of the following criteria are met: the asset is available for immediate sale in its present condition subject only to terms which are usual and customary for such sales; the sale must be highly probable i.e.: management are committed to a plan to sell the asset; an active programme has begun to find a buyer and complete the sale; the asset is being actively marketed at a reasonable price; the sale is expected to be completed within 12 months of the date of classification as Held for Sale ; and the actions needed to complete the plan indicate it is unlikely that the plan will be dropped or significant changes made to it. Following reclassification, the assets are measured at the lower of their existing carrying amount and their fair value less costs to sell. Depreciation ceases to be charged and the assets are not revalued, except where the fair value less costs to sell falls below the carrying amount. Assets are de-recognised when all material sale contract conditions have been met. Property, plant and equipment which is to be scrapped or demolished does not qualify for recognition as Held for Sale and instead is retained as an operational asset and the asset s economic life is adjusted. The asset is de-recognised when scrapping or demolition occurs. 10. Donated Assets Non-current assets that are donated or purchased using donated funds are included in the Balance Sheet, initially at the current full replacement cost of the asset. The accounting treatment, including the method of valuation, follows the rules in the NHS Capital Accounting Manual. 11. Sale of Property, Plant and Equipment, Intangible Assets and Non-Current Assets Held for Sale Disposal of non-current assets is accounted for as a reduction to the value of assets equal to the net book value of the assets disposed. When set against any sales proceeds, the resulting gain or loss on disposal will be recorded in the Statement of Comprehensive Net Expenditure. Non-current assets held for sale will include assets transferred from other categories and will reflect any resultant changes in valuation. 40

43 Scottish Ambulance Service Board Annual Accounts Leasing Finance Leases Where substantially all risks and rewards of ownership of a leased asset are borne by the Board, the asset is recorded as Property, Plant and Equipment and a corresponding liability is recorded. The value at which both are recognised is the lower of the fair value of the asset or the present value of the minimum lease payments, discounted using the interest rate implicit in the lease. The implicit interest rate is that which produces a constant periodic rate of interest on the outstanding liability. Assets held under finance leases are valued at their fair values and are depreciated over the remaining period of the lease in accordance with IFRS. The asset and liability are recognised at the inception of the lease, and are de-recognised when the liability is discharged, cancelled or expires. The annual rental is split between the repayment of the liability and a finance cost. The annual finance cost is calculated by applying the implicit interest rate to the outstanding liability and is charged to interest payable in the Statement of Comprehensive Net Expenditure. Operating Leases Other leases are regarded as operating leases and the rentals are charged to expenditure on a straight-line basis over the term of the lease. Operating lease incentives received are added to the lease rentals and charged to expenditure over the life of the lease. Leases of Land and Buildings Where a lease is for land and buildings, the land component is separated from the building component and the classification for each is assessed separately. Leased land is treated as an operating lease unless title to the land is expected to transfer. 13. Impairment of Non-Financial Assets Assets that are subject to depreciation and amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset s fair value less costs to sell and value in use. Where an asset is not held for the purpose of generating cash flows, value in use is assumed to equal the cost of replacing the service potential provided by the asset, unless there has been a reduction in service potential. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets that suffer an impairment are reviewed for possible reversal of the impairment. Impairment losses charged to the Statement of Comprehensive Net Expenditure are deducted from future operating costs to the extent that they are identified as being reversed in subsequent revaluations. 14. General Fund Receivables and Payables Where the Health Board has a positive net cash book balance at the year end, a corresponding creditor is created and the general fund debited with the same amount to indicate that this cash is repayable to the SGHSCD. Where the Health Board has a net overdrawn cash position at the year end, a corresponding debtor is created and the general fund credited with the same amount to indicate that additional cash is to be drawn down from the SGHSCD. 15. Inventories Inventories are valued at the lower of cost and net realisable value. Taking into account the high turnover of NHS inventories, the use of average purchase price is deemed to represent current cost. Work in progress is valued at the cost of the direct materials plus the conversion costs and other costs incurred to bring the goods up to their present location, condition and degree of completion. 41

44 16. Losses and Special Payments Scottish Ambulance Service Board Annual Accounts Operating expenditure includes certain losses which would have been made good through insurance cover had the NHS not been bearing its own risks. Had the NHS provided insurance cover, the insurance premiums would have been included as normal revenue expenditure. 17. Employee Benefits Short-term Employee Benefits Salaries, wages and employment-related payments are recognised in the year in which the service is received from employees. The cost of annual leave and flexible working time entitlement earned but not taken by employees at the end of the year is recognised in the financial statements to the extent that employees are permitted to carry-forward leave into the following year. Pension Costs The Board participates in the NHS Superannuation Scheme for Scotland providing defined benefits based on final pensionable pay, where contributions are credited to the Exchequer and are deemed to be invested in a portfolio of Government Securities. The Board is unable to identify its share of the underlying notional assets and liabilities of the scheme on a consistent and reasonable basis and therefore accounts for the scheme as if it were a defined contribution scheme, as required by IAS 19 Employee Benefits. As a result, the amount charged to the Statement of Comprehensive Net Expenditure represents the Board s employer contributions payable to the scheme in respect of the year. The contributions deducted from employees are reflected in the gross salaries charged and are similarly remitted to Exchequer. The pension cost is assessed every five years by the Government Actuary and determines the rate of contributions required. The most recent actuarial valuation took place in the year to 31 March 2004, details of which are published by the Scottish Public Pensions Agency. Additional pension liabilities arising from early retirements are not funded by the scheme except where the retirement is due to ill-health. The full amount of the liability for the additional costs is charged to the Statement of Comprehensive Net Expenditure at the time the Board commits itself to the retirement, regardless of the method of payment. 18. Clinical and Medical Negligence Costs Employing health bodies in Scotland are responsible for meeting medical negligence costs up to a threshold per claim. Costs above the threshold are reimbursed to Boards from a central fund held as part of the Clinical Negligence and Other Risks Indemnity Scheme (CNORIS) by the Scottish Government. The Board provides for all claims notified to the NHS Central Legal Office according to the value of the claim and the probability of settlement. Claims assessed as Category 3 are deemed most likely and provided for in full, those in Category 2 as 50% of the claim and those in Category 1 as nil. The balance of the value of claims not provided for is disclosed as a contingent liability. This procedure is intended to estimate the amount considered to be the liability in respect of any claims outstanding and which will be recoverable from the Clinical Negligence and Other Risks Indemnity Scheme in the event of payment by an individual health body. The corresponding recovery in respect of amounts provided for is recorded as a debtor and that in respect of amounts disclosed as contingent liabilities are disclosed as contingent assets. 19. Related Party Transactions Material related party transactions are disclosed in the note 29 in line with the requirements of IAS 24. Transactions with other NHS bodies for the commissioning of health care are summarised in note 4. 42

45 20. Value Added Tax Scottish Ambulance Service Board Annual Accounts Most of the activities of the Board are outside the scope of VAT and, in general, output tax does not apply and input tax on purchases is not recoverable. Irrecoverable VAT is charged to the relevant expenditure category or included in the capitalised purchase cost of non-current assets. Where output tax is charged or input VAT is recoverable, the amounts are stated net of VAT. 21. Provisions The Board provides for legal or constructive obligations that are of uncertain timing or amount at the balance sheet date on the basis of the best estimate of the expenditure required to settle the obligation. Where the effect of the time value of money is significant, the estimated cash flows are discounted using the discount rate prescribed by HM Treasury. 22. Contingencies Contingent assets (that is, assets arising from past events whose existence will only be confirmed by one or more future events not wholly within the Board s control) are not recognised as assets, but are disclosed in note 19 where an inflow of economic benefits is probable. Contingent liabilities are not recognised, but are disclosed in note 19, unless the probability of a transfer of economic benefits is remote. Contingent liabilities are defined as: possible obligations arising from past events whose existence will be confirmed only by the occurrence of one or more uncertain future events not wholly within the entity s control; or present obligations arising from past events but for which it is not probable that a transfer of economic benefits will arise or for which the amount of the obligation cannot be measured with sufficient reliability. 23. Corresponding Amounts Corresponding amounts are shown for the primary statements and notes to the financial statements. Where the corresponding amounts are not directly comparable with the amount to be shown in respect of the current financial year, IAS 1 Presentation of Financial Statements, requires that they should be adjusted and the basis for adjustment disclosed in a note to the financial statements. 24. Financial Instruments Financial assets Classification The Board classifies its financial assets in the following categories: at fair value through profit or loss, loans and receivables, and available for sale. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. (a) Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss comprise derivatives. Assets in this category are classified as current assets. The Board does not trade in derivatives and does not apply hedge accounting. (b) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets. Loans and receivables comprise trade and other receivables and cash at bank and in hand in the balance sheet. (c) Available-for-sale financial assets Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless management 43

46 Scottish Ambulance Service Board Annual Accounts intends to dispose of the investment within 12 months of the balance sheet date. Available for sale financial assets comprise investments. Recognition and Measurement Financial assets are recognised when the Board becomes party to the contractual provisions of the financial instrument. Financial assets are derecognised when the rights to receive cash flows from the asset have expired or have been transferred and the Board has transferred substantially all risks and rewards of ownership. (a) Financial assets at fair value through profit or loss Financial assets carried at fair value through profit or loss are initially recognised at fair value, and transaction costs are expensed in the Statement of Comprehensive Net Expenditure. Financial assets carried at fair value through profit or loss are subsequently measured at fair value. Gains or losses arising from changes in the fair value are presented in the Statement of Comprehensive Net Expenditure. (b) Loans and receivables Loans and receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment of loans and receivables is established when there is objective evidence that the Board will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the loan and receivable is impaired. The amount of the provision is the difference between the asset s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the Statement of Comprehensive Net Expenditure. When a loan or receivable is uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited in the Statement of Comprehensive Net Expenditure. (c) Available-for-sale financial assets Available-for-sale financial assets are initially recognised and subsequently carried at fair value. Changes in the fair value of financial assets classified as available for sale are recognised in equity in other reserves. When financial assets classified as available for sale are sold or impaired, the accumulated fair value adjustments recognised in equity are included in the Statement of Comprehensive Net Expenditure. Dividends on available-for-sale equity instruments are recognised in the Statement of Comprehensive Net Expenditure when the Board s right to receive payments is established. Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are measured at cost less impairment. The Board assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of equity securities classified as available for sale, a significant or prolonged decline in the fair value of the security below its cost is considered as an indicator that the securities are impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss is removed from equity and recognised in the Statement of Comprehensive Net Expenditure. Impairment losses recognised in the Statement of Comprehensive Net Expenditure on equity instruments are not reversed through the income statement. 44

47 Financial Liabilities Scottish Ambulance Service Board Annual Accounts Classification: The Board classifies its financial liabilities in the following categories: at fair value through profit or loss, and other financial liabilities. The classification depends on the purpose for which the financial liabilities were issued. Management determines the classification of its financial liabilities at initial recognition. (a) Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss comprise derivatives. Liabilities in this category are classified as current liabilities. The NHS Board does not trade in derivatives and does not apply hedge accounting. (b) Other financial liabilities Other financial liabilities are included in current liabilities, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current liabilities. The NHS Board s other financial liabilities comprise trade and other payables in the balance sheet. Recognition and measurement: Financial liabilities are recognised when the NHS Board Scotland becomes party to the contractual provisions of the financial instrument. A financial liability is removed from the balance sheet when it is extinguished, that is when the obligation is discharged, cancelled or expired. (a) Financial liabilities at fair value through profit or loss Financial liabilities carried at fair value through profit or loss are initially recognised at fair value, and transaction costs are expensed in the income statement. Financial liabilities carried at fair value through profit or loss are subsequently measured at fair value. Gains or losses arising from changes in the fair value are presented in the Statement of Comprehensive Net Expenditure. (b) Other financial liabilities Other financial liabilities are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. 25. Segmental Reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments. This has been identified as the senior management of the Board. Operating segments are unlikely to relate to the analysis of expenditure shown in notes 4 to 7 for Hospital & Community, Family Health and Other Non-Clinical Services and Administration Costs, the basis of which relates to Scottish Government funding streams and the classification of which varies depending on Scottish Government reporting requirements. 26. Cash and Cash Equivalents Cash and cash equivalents includes cash in hand, deposits held at call with banks, cash balances held with the Government Banking Service, balance held in commercial banks and other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet. Where the Government Banking Service is using Citi and Royal Bank of Scotland Group to provide the banking services, funds held in these accounts should not be classed as commercial bank balances. 45

48 27. Foreign Exchange Scottish Ambulance Service Board Annual Accounts The functional and presentational currencies of the Board are sterling. A transaction which is denominated in a foreign currency is translated into the functional currency at the spot exchange rate on the date of the transaction. Where the Board has assets or liabilities denominated in a foreign currency at the balance sheet date: monetary items (other than financial instruments measured at fair value through income and expenditure ) are translated at the spot exchange rate on 31 March; non-monetary assets and liabilities measured at historical cost are translated using the spot exchange rate at the date of the transaction; and non-monetary assets and liabilities measured at fair value are translated using the spot exchange rate at the date the fair value was determined. Exchange gains or losses on monetary items (arising on settlement of the transaction or on re-translation at the balance sheet date) are recognised in income or expenditure in the period in which they arise. Exchange gains or losses on non-monetary assets and liabilities are recognised in the same manner as other gains and losses on these items. 28. Third Party Assets Assets belonging to third parties are not recognised in the accounts since the Board has no beneficial interest in them. However, they are disclosed in a separate note to the accounts in accordance with the requirements of HM Treasury s Financial Reporting Manual. 29. Key sources of judgement and estimation uncertainty Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Board makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The Board makes judgements in applying accounting policies. The estimates, assumptions and judgements that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the financial statements within the next financial year are addressed below. The organisation uses judgement to assess the relative years in which future liabilities fall for example the Managed Radio Network payments which fall due in less than one year and in more than one year. The organisation also relies on the professional judgement of specialists engaged for specific activities to estimate certain matters. For example the Service s property advisors who determine the likely value of property owned by the organisation (see 7.2) also legal advisors in determining the likely estimates of legal liabilities (see 18). The organisation therefore is dependent on these specialists and the advice they provide. The organisation also considers the asset lives of ICT equipment and intangible assets whilst historically, lives of between 5-10 years were given to these assets the rapid changing environment of technology means that judgements have to be taken at the initial capitalisation of the asset that may not materialise. Provisions are made for legal cases that are likely to settle in future years, here the organisation relies on information from our legal advisors as to the likely levels of any future settlements to create the general provision. 46

49 2. (a) STAFF NUMBERS AND COSTS Total Executive Board Members Non Executive Members Permanent Staff Inward Secondees Other Staff Outward Secondees Total ' s STAFF COSTS 123,163 Salaries and wages , (503) 126,267 9,708 Social security costs , (42) 9,886 14,312 NHS scheme employers' costs , (59) 14,243 0 Other employers' pension costs Inward secondees Agency staff , , (604) 151, Compensation for loss of office or early retirement Pensions to former board members , , ,133 TOTAL , ,685 (604) 152,735 0 Included in the total Staff Costs above were costs of staff engaged directly on capital projects, charged to capital expenditure of: 0 ANNUAL STAFF NUMBERS ANNUAL MEAN (EMPLOYEES BY WHOLE TIME EQUIVALENT) MEAN 28.5 Administration Costs ,946.7 Hospital and Community Services 4, Non Clinical Services Other, including recharge Trading Accounts Inward secondees Agency staff 8.9 (8.0) Outward Secondees (10.0) 3,979.4 Board Total Average Staff 4, Disabled staff 69.6 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 0.0 The total number of staff engaged directly on capital projects, included in Staff Numbers above and charged to capital expenditure was: 0.0 Note: Staff pension benefits are provided through the NHS Superannuation Scheme for Scotland. Details of the scheme in note 24 47

50 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 2. (b) HIGHER PAID EMPLOYEES REMUNERATION Number Number Other employees whose remuneration fell within the following ranges: Clinicians 79 50,001 to 60, ,001 to 70, ,001 to 80, ,001 to 90, ,001 to 100, ,001 to 110, ,001 to 120, ,001 to 130, ,001 to 140, ,001 to 150, ,001 to 160, ,001 to 170, ,001 to 180, ,001 to 190, ,001 to 200, ,001 and above 0 Other 10 50,001 to 60, ,001 to 70, ,001 to 80, ,001 to 90, ,001 to 100, ,001 to 110, ,001 to 120, ,001 to 130, ,001 to 140, ,001 to 150, ,001 to 160, ,001 to 170, ,001 to 180, ,001 to 190, ,001 to 200, ,001 and above 0 The salaries reported above exclude Employer's Superannuation and Employer's National Insurance Contributions. 48

51 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 3. OTHER OPERATING COSTS Note 000 Expenditure Not Paid In Cash 10,940 Depreciation 11 12, Amortisation Depreciation Donated Assets 11b Impairments on property, plant & equipment charged to SOCNE 11 1,281 0 Revaluation loss on property, plant & equipment charged to SOCNE 11 0 (520) Reversal of impairments on property, plant & equipment charged to SOCNE 11 (429) 0 Revaluation gains on property, plant & equipment charged to SOCNE Impairments on intangible assets charged to SOCNE Revaluation loss on intangible assets charged to SOCNE Reversal of impairments on intangible assets charged to SOCNE Revaluation gains on intangible assets charged to SOCNE Loss on remeasurement of non-current assets held for sale 11c 0 0 Funding Of Donated Assets 11b 0 0 Loss/(Profit) on disposal of intangible assets 0 (105) Loss/(Profit) on disposal of property, plant and equipment (196) 0 Impairment on available for sale financial assets charged to SOCNE Transfer of Fixed Assets (to)/from other Boards 0 0 Gain on remeasurement of non-current assets held for sale 0 11,431 Total Expenditure Not Paid In Cash CFS 13,450 Interest Payable 0 Interest on late payment of commercial debt 0 3 Bank and other interest payable 3 0 PFI Finance lease charges allocated in the year Other Finance lease charges allocated in the year Provisions - Unwinding of discount Other Interest Total 347 Statutory Audit 78 External auditor's remuneration and expenses 75 49

52 4. HOSPITAL AND COMMUNITY HEALTH SERVICES SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS Restated BY PROVIDER ,256 Treatment in Board area of NHSScotland Patients 213,728 0 Other NHSScotland Bodies 0 0 Health Bodies outside Scotland 0 0 Primary care bodies 0 0 Private sector 0 Community Care 0 Support Finance 0 0 Resource Transfer 0 0 Contributions to Voluntary Bodies and Charities 0 205,256 Total NHSScotland Patients 213, Treatment of UK residents based outside Scotland ,594 Total Hospital & Community Health Service 214,041 Prior year figures restated - Detail provided in Note 26 Elements of Health Planning, Commissioning and Performance Reporting reanalysed from Note 6 to be consistent with current year 50

53 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 5. FAMILY HEALTH SERVICE EXPENDITURE Unified Budget Non Disc TOTAL 000 Note Primary Medical Services Pharmaceutical Services General Dental Services General Ophthalmic Services Total

54 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 6. ADMINISTRATION COSTS Restated Board members' remuneration Administration of Board Meetings and Committees Corporate Governance and Statutory Reporting Health Planning, Commissioning and Performance Reporting Treasury Management and Financial Planning Public Relations Other 272 1,812 Total administration costs 1,739 Prior year figures restated - Detail provided in Note 26 Elements of Health Planning, Commissioning and Performance Reporting reanalysed to Note 4 Hospital and Community Costs to be consistent with current year 52

55 7. OTHER NON CLINICAL SERVICES SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS Nurse Teaching 0 0 Closed hospital charges 0 (860) Compensation payments - Clinical Compensation payments - Other Pension enhancement & redundancy 1,209 0 Patients' Travel Attending Hospitals 0 0 Patients' Travel Highlands and Islands scheme 0 0 Health Promotion 0 0 Public Health 0 0 Public Health Medicine Trainees 0 1,727 Emergency Planning 1,876 0 Post Graduate Medical Education 0 0 Shared Services Loss on disposal of non-current assets Other 139 2,037 Total Other Non Clinical Services SOCNE 3,523 53

56 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 8. OPERATING INCOME Restated Hospital and Community Health Services Income NHSScotland Bodies 0 SGHSCD 0 3,742 Boards 3,755 (6) NHS Non-Scottish Bodies 17 Non NHS 0 Private Patients Compensation Income 608 1,440 Other Hospital and Community Health Services income 1,716 5,854 Total Hospital and Community Health Services Income 6,096 Family Health Service Income 0 Unified 0 Non Discretionary 0 General Dental Services 0 0 General Ophthalmic Services 0 0 Total Family Health Services Income 0 0 Administration Income 0 Other Operating Income 0 NHS Scotland Bodies 0 0 NHS Non-Scottish Bodies 0 0 SGHSCD 0 (542) Contributions in respect of clinical and medical negligence claims Profit on disposal of non current assets Donated Asset Additions 0 0 Interest Received 0 0 Shared Services Other 703 (19) Total Other Operating Income 1,175 5,835 Total Income 7,271 3,742 Of the above, the amount derived from NHS bodies is 3,755 Prior year figures restated - Detail provided in Note 26 Outward Secondee income reanalysed from Note 4 Hospital and Community Costs to be consistent with current year 54

57 9. ANALYSIS OF CAPITAL EXPENDITURE SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS Note 000 EXPENDITURE 987 Acquisition of Intangible Assets ,747 Acquisition of Property, plant and equipment 11 16,920 0 Donated Asset Additions 11b 0 0 HUB 0 14,734 Gross Capital Expenditure 17,257 INCOME 0 Net book value of disposal of Intangible Assets Net book value of disposal of Property, plant and equipment 11a Net book value of disposal of Donated Assets 11b Value of disposal of Non-Current Assets held for sale 11c 0 0 Donated Asset Income Capital Income ,873 Net Capital Expenditure 17,146 SUMMARY OF CAPITAL RESOURCE OUTTURN 13,873 Core capital expenditure included above 17,146 13,881 Core Capital Resource Limit 17,150 8 Saving/(excess) against Core Capital Resource Limit 4 0 Non Core capital expenditure included above 0 0 Non Core Capital Resource Limit0 0 Saving/(excess) against Non Core Capital Resource Limit 0 13,873 Total Capital Expenditure 17,146 13,881 Total Capital Resource Limit 17,150 8 Saving/(excess) against Total Capital Resource Limit 4 55

58 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 10. INTANGIBLE ASSETS Software Licences Information technology - software EC Carbon Emissions Websites Other Intangible Assets Under Development Total Cost or Valuation: As at 1st April , ,914 Additions Donations Transfers Disposals Transfers (to)/from non-current assets held for sale Revaluation Impairment Charge Impairment Reversal At 31st March , ,251 Amortisation As at 1st April , ,688 Provided during the year Transfers Disposals Transfers (to)/from non-current assets held for sale Revaluation Impairment Charge Impairment Reversal At 31st March , ,432 Net Book Value at 1st April , ,226 Net Book Value at 31 March 2013 B S 127 1, ,819 Classification of Assets under development Information technology - software 279 Websites 0 Net Book Value '

59 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 10. INTANGIBLE ASSETS, cont. - PRIOR YEAR Software Licences Information technology - software EC Carbon Emissions Websites Other Intangible Assets Under Development Total Cost or Valuation: As at 1st April , ,394 Additions Donations Transfers Disposals 0 (467) (467) Transfers (to)/from non-current assets held for sale Revaluation Impairment Charge Impairment Reversal At 31st March , ,914 Amortisation As at 1st April , ,595 Provided during the year Transfers Disposals Transfers (to)/from non-current assets held for sale 0 (467) (467) Revaluation Impairment Charge Impairment Reversal At 31st March , ,688 Net Book Value at 1st April , ,799 Net Book Value at 31 March 2012 B S 144 2, ,226 Classification of Assets under development Information technology - software 0 Websites 0 Net Book Value '

60 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 11. (a) PROPERTY, PLANT AND EQUIPMENT (Purchased Assets) Land (including under buildings) Buildings (excluding dwellings) Dwellings Transport Equipment Plant & Machinery Information Technology Furniture & Fittings Assets Under Construction Total Cost or valuation At 1 April ,878 21, ,569 10,100 12,983 1,057 4, ,127 Additions , ,390 16,920 Completions 0 2, , (5,731) 0 Transfers (347) Transfers (to)/from non-current assets held for sale Revaluation 49 (159) (110) Impairment Charge 0 (1,345) (1,345) Impairment Reversal Disposals (28) (83) 0 (10,995) (24) (1,883) 0 0 (13,013) At 31 March ,899 22, ,521 11,678 11,539 1,103 4, ,613 Depreciation At 1 April ,415 2,615 7, ,397 Provided during the year ,080 1,411 1, ,050 Transfers (174) Transfers (to)/from non-current assets held for sale Revaluation 0 (263) (263) Impairment Charge 0 (64) (64) Impairment Reversal 0 (395) (395) Disposals (10,995) (24) (1,883) 0 0 (12,902) At 31 March ,326 4,176 7, ,823 Net book value at 1 April ,878 21, ,154 7,485 5, ,097 75,730 Net book value at 31 March 2013 B S 4,899 21, ,195 7,502 4, ,756 79,790 Open Market Value of Land in Land and Dwellings Included Above 0 0 Asset financing: Owned 4,899 21, ,195 7,502 4, ,756 79,790 Finance leased On-balance sheet PFI contracts Net Book Value at 31 March ,899 21, ,195 7,502 4, ,756 79,790 58

61 11. (a) PROPERTY, PLANT AND EQUIPMENT (Purchased Assets) - PRIOR YEAR SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS Land (including under buildings) Buildings (excluding dwellings) Dwellings Transport Equipment Plant & Machinery Information Technology Furniture & Fittings Assets Under Construction Total Cost or valuation At 1 April ,795 20, ,036 12,068 30, , ,212 Additions , , ,944 13,747 Completions 0 1, , (9,640) 0 Transfers Transfers (to)/from non-current assets held for sale Revaluation (1) Impairment Charge 0 (546) (546) Impairment Reversal Disposals (16) (624) 0 (8,488) (2,587) (19,778) 0 0 (31,493) At 31 March ,878 21, ,569 10,100 12,983 1,057 4, ,127 Depreciation At 1 April ,210 3,941 26, ,995 Provided during the year ,628 1,261 1, ,940 Transfers Transfers (to)/from non-current assets held for sale Revaluation 0 (243) (243) Impairment Charge 0 (34) (34) Impairment Reversal 0 (444) (444) Disposals 0 (29) 0 (8,423) (2,587) (19,778) 0 0 (30,817) At 31 March ,415 2,615 7, ,397 Net book value at 1 April ,795 20, ,826 8,127 4, ,775 73,217 Net book value at 31 March 2012 B S 4,878 21, ,154 7,485 5, ,097 75,730 Open Market Value of Land in Land and Dwellings Included Above 0 0 Asset financing: Owned 4,878 21, ,154 7,485 5, ,097 75,730 Finance leased On-balance sheet PFI contracts Net Book Value at 31 March ,878 21, ,154 7,485 5, ,097 75,

62 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 11. (b) PROPERTY, PLANT AND EQUIPMENT (Donated Assets) Land (land holdings and land underlying buildings) Buildings (excluding dwellings) Dwellings Transport Equipment Plant & Machinery Information Technology Furniture & Fittings Assets Under Construction Total Cost or valuation At 1 April Additions Completions Transfers Transfers (to)/from non-current assets held for sale Revaluation Impairment Charge Impairment Reversal Disposals (120) (120) At 31 March Depreciation At 1 April Provided during the year Transfers Transfers (to)/from non-current assets held for sale Revaluation Impairment Charge Impairment Reversal Disposals (120) (120) At 31 March Net book value at 1 April Net book value at 31 March 2013 B S Open Market Value of Land in Land and Dwellings Included Above 0 0 Asset financing: Owned Finance leased On-balance sheet PFI contracts Net Book Value at 31 March

63 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 11. (b) PROPERTY, PLANT AND EQUIPMENT (Donated Assets) - PRIOR YEAR Land (land holdings and land underlying buildings) Buildings (excluding dwellings) Dwellings Transport Equipment Plant & Machinery Information Technology Furniture & Fittings Assets Under Construction Total Cost or valuation At 1 April Additions Completions Transfers Transfers (to)/from non-current assets held for sale Revaluation Impairment Charge Impairment Reversal Disposals (17) (17) At 31 March Depreciation At 1 April Provided during the year Transfers Transfers (to)/from non-current assets held for sale Revaluation Impairment Charge Impairment Reversal Disposals (17) (17) At 31 March Net book value at 1 April Net book value at 31 March 2012 B S Open Market Value of Land in Land and Dwellings Included Above 0 0 Asset financing: Owned Finance leased On-balance sheet PFI contracts Net Book Value at 31 March

64 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 11 (c). ASSETS HELD FOR SALE There were no assets held for sale at the year end 31 March Property, Plant & Intangible Total Equipment Assets '000 '000 '000 At 1 April Transfers (to)/from property, plant and equipment 0 0 Transfers (to)/from intangible assets 0 0 Gain or losses recognised on remeasurement of non-current assets held for sale Disposals for non-current assets held for sale As at 31 March Property, Plant & Intangible Total Equipment Assets '000 '000 '000 At 1 April Transfers (to)/from property, plant and equipment 0 0 Transfers (to)/from intangible assets 0 0 Gain or losses recognised on remeasurement of non-current assets held for sale Disposals for non-current assets held for sale As at 31 March

65 11. (d) PROPERTY, PLANT AND EQUIPMENT DISCLOSURES SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS Net book value of property, plant and equipment at 31 March 75,730 Purchased 11a 79,790 0 Donated 11b 0 75,730 Total B S 79, Net book value related to land valued at open market value at 31 March 0 Net book value related to buildings valued at open market value at 31 March 0 Total value of assets held under: 0 Finance Leases 0 0 Hire Purchase Contracts 0 0 PFI and PPP Contracts Total depreciation charged in respect of assets held under: 0 Finance leases 0 0 Hire Purchase Contracts 0 0 PFI and PPP contracts Land and buildings were fully revalued by the Valuation Office Agency at 31 March 2013 on the basis of existing use value (EUV) for non specialised properties. Specialised Properties which are valued on a depreciated replacement cost (DRC) basis were indexed at that date using indices supplied by the Building Cost Information Service (BCIS). The valuation was in accordance with the Royal Institute of Chartered Surveyors Statement of Asset Valuation Practices and Guidance Notes, subject to the special requirements of the accounting policies of the NHS. The net impact was a reduction in value of 699k (2011/12: 382k increase), of which 153k (2011/12: 374k) was credited to the revaluation reserve and 852k (2011/12: 8k credited) charged to the Statement of Comprehensive Net Expenditure. The net charge of 852k to the Statement of Comprehensive Net Expenditure was comprised of 1,281k (2011/12: 512k) impairment losses and 429k (2011/12: 520k) reversal of previous impairment losses. 63

66 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 12. INVENTORIES Workshop Parts and Accessories Fuel 12 0 Work in Progress 0 0 Finished Goods 0 0 Total Inventories 190 The Scottish Ambulance Service has implemented a new stock recording system within its This has facilitated the Service in Accounting for stock of parts and accessories at the year The Service will continue to account for Parts and Accessories stock on this basis. 64

67 13. TRADE AND OTHER RECEIVABLES SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS Note 000 Receivables due within one year NHSScotland 0 SGHSCD 0 1,066 Boards SFR ,066 Total NHSScotland Receivables NHS Non-Scottish Bodies 17 0 General Fund Receivable 0 1,269 VAT recoverable SFR ,333 11,778 Prepayments 12,991 0 Accrued income Other Receivables Reimbursement of provisions Other Public Sector Bodies ,474 Total Receivables due within one year B S 16,206 Receivables due after more than one year NHSScotland 0 - SGHSCD Boards 0 0 Other Public Sector Bodies 0 9,155 Prepayments 10,495 0 Accrued income 0 0 Other Receivables 0 0 Reimbursement of Provisions 36 9,155 Total Receivables due after more than one year B S 10,531 24,629 TOTAL RECEIVABLES 26, The total receivables figure above 73 includes a provision for impairments of : WGA Classification 1,066 NHSScotland 708 1,269 Central Government Bodies SFR , Whole of Government Bodies SFR Balances with NHS Bodies in England and Wales 17 22,265 Balances with bodies external to Government 24,546 24,629 Total 26, Movements on the provision for impairment of receivables are as follows: At 1 April Provision for impairment 52 (6) Receivables written off during the year as uncollectible (20) (142) Unused amounts reversed (15) 56 At 31 March 73 65

68 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 13. TRADE AND OTHER RECEIVABLES The receivables assessed as individually impaired were mainly Football Clubs and Private Individuals and it was assessed that not all of the receivable balance may be recovered. Receivables that are less than three months past their due date are not considered impaired. As at 31 March 2013, receivables with a carrying value of 311, (2012: 1,198,281) were past their due date but not impaired. The aging of receivables which are past due but not impaired is as follows: Up to 3 months past due to 6 months past due Over 6 months past due 237 1, The receivables assessed as past due but not impaired were mainly NHS Boards and there is no history of default from these customers recently. Concentration of credit risk is limited due to customer base being large and unrelated/government bodies. Due to this, management believe that there is no future credit risk provision required in excess of the normal provision for doubtful receivables. The credit quality of receivables that are neither past due nor impaired is assessed by reference to external credit ratings where available. Where no external credit rating is available, historical information about counterparty default rates is used. Receivables that are neither past due nor impaired are shown by their credit risk below; Counterparties with external credit ratings A 0 0 BB 0 0 BBB 0 0 Counterparties with no external credit rating: 0 0 New customers 0 23,375 Existing customers with no defaults in the past 26,352 0 Existing customers with some defaults in the past 0 23,375 Total neither past due or impaired 26,

69 13. TRADE AND OTHER RECEIVABLES SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS The maximum exposure to credit risk is the fair value of each class of receivable. The NHS Board does not hold any collateral as security The carrying amount of receivables are denominated in the following currencies: ,629 Pounds 26,737 0 Euros 0 0 US Dollars 0 24,629 26,737 All non-current receivables are due within six years ( : seven years) from the balance sheet date. The carrying amount of short term receivables approximates their fair value. The fair value of long term other receivables is Nil ( : Nil) 67 65

70 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 14. AVAILABLE FOR SALE FINANCIAL ASSETS There were no available for sale financial assets for 2012/13 or 2011/12. 68

71 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 15. CASH AND CASH EQUIVALENTS Note At Cash At 01/04/12 Flow 31/03/ Government Banking Service account balance Cash at bank and in hand 10 (8) 2 Total cash and cash equivalents - balance sheet B S Overdrafts Total cash - cash flow statement CFS CFS Prior Year Note At Cash At 01/04/11 Flow 31/03/ Government Banking Service account balance Cash at bank and in hand Total cash and cash equivalents - balance sheet B S Overdrafts Total cash - cash flow statement CFS CFS Cash at bank is with major UK banks. The credit risk assocated with cash at bank is considered to be low. 69

72 16. TRADE AND OTHER PAYABLES SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS Note 000 Payables due within one year NHSScotland 0 SGHSCD SFR ,105 Boards SFR ,105 Total NHSScotland Payables NHS Non-Scottish Bodies 0 60 General Fund Payable 60 0 FHS Practitioners 0 3,362 Trade Payables 3,071 5,257 Accruals 3,364 0 Deferred income 30 0 Payments received on account 0 0 Interest payable 0 0 Net obligations under Finance Leases Net obligations under PPP/PFI Contracts Bank overdrafts ,262 Income tax and social security SFR ,050 1,721 Superannuation 1, Holiday Pay Accrual Clinical and medical negligence claims 0 0 VAT SFR (1) Other Public Sector Bodies 25 0 EC Carbon Emissions 0 97 Other payables 76 1,315 Short Term Pay Costs 1,721 0 Other Significant Payables 0 16,450 Total Payables due within one year B S 14,223 Payables due after more than one year NHSScotland 0 - SGHSCD SFR Boards 0 0 Other Public Sector Bodies 0 0 Net obligations under Finance Leases due within 2 years Net obligations under Finance Leases due after 2 years but within 5 years Net obligations under Finance Leases due after 5 years Net obligations under PPP/PFI Contracts due within 2 years Net obligations under PPP/PFI Contracts due after 2 years but within 5 years Net obligations under PPP/PFI Contracts due after 5 years EC Carbon Emissions Grant 0 0 Accruals 0 0 Deferred income 0 0 Other 0 0 Total Payables due after more than one year B S 0 16,450 TOTAL PAYABLES 14,223 70

73 16. TRADE AND OTHER PAYABLES SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS WGA Classification 1,105 NHSScotland 758 3,262 Central Government Bodies SFR ,074 0 Whole of Government Bodies SFR Balances with NHS Bodies in England and Wales 0 12,083 Balances with bodies external to Government 10,391 16,450 Total 14, Borrowings included above comprise: Bank overdrafts 0 0 Finance Leases 0 0 PFI Contracts The carrying amount and fair value of the non-current borrowings are as follows Carrying amount Finance Leases 0 0 PFI Contracts Fair value The carrying amount and fair value of the non-current borrowings are as follows Fair value 000 Fair value Finance Leases 0 0 PFI Contracts The carrying amount of short term payables approximates their fair value The carrying amount of payables are denominated in the following currencies: ,450 Pounds 14,223 0 Euros 0 0 US Dollars 0 16,450 14,

74 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 17. PROVISIONS Pensions and similar obligations Injury Benefit Clinical & Medical Employer Liability Motor Insurance Third Party Total At 1 April , ,006 Arising during the year ,325 Utilised during the year 0 (249) (20) (180) (99) 0 (548) Unwinding of discount Reversed unutilised 0 (246) (52) (78) (100) 0 (476) At 31 March , ,651 The amounts shown above are stated gross and the amount of any expected reimbursements are separately disclosed as receivables in note 13. Analysis of expected timing of discounted flows Pensions and similar obligations Injury Benefit Clinical & Medical Employer Liability Motor Insurance Third Party Total Payable in one year B S Payable between two to five years 1 1, ,146 B S Payable between six to ten years 2 1, ,222 B S More than ten years 0 2, ,544 B S At 31 March , ,651 72

75 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 17. PROVISIONS Pensions and similar obligations The Board has in the past met the cost of additional benefits beyond the normal National Health Service Superannuation Scheme for Scotland benefits in respect of employees who retired early in the interests of the service by paying the required amounts annually to the Scottish Public Pensions Agency with the estimated value of all future payments being provided in the year the premature retiral was approved. Only one premature retiral case remains in payment and due to the immaterial sum involved the payments have not been discounted but are currently projected over a remaining eleven year period. Injury Benefit The Board has provided for permanent injury benefit awards based upon advised annual rates supplied by the Scottish Public Pensions Agency under the National Health Service Superannuation Scheme for Scotland and estimated remaining lives of recipients derived from interim life tables for Scotland produced annually by National Statistics which give period life expectancy by age and sex. Each life table is based upon population estimates, births and deaths data for a period of three consecutive years. The sum provided for each individual is recalculated annually based upon changes in their annual rates and period life expectancy at the balance sheet date. As the period life expectancies are typically for a considerable number of years during which the claimants will receive payments the actuarially calculated amounts are discounted using the provision discount rate as set by HM Treasury, which was 2.35% as at the balance sheet date. As at the balance sheet date the shortest individual period life expectancy was twelve years and the longest was thirty-five years the others are distributed between these estimated remaining lives. Clinical & Medical The Board provides in full for Clinical & Medical Negligence claims designated by the Central Legal Office as being Category 3, provision is also made for 50% of the estimated settlement costs of claims categorised by the Central Legal Office as Category 2 claims. Claims provided for are not discounted as the timing of any settlements are unknown and the amount notified by the Central Legal Office is subject to change. All current claims have been advised by the Central Legal Office as likely to settle within a twelve months of the balance sheet date and hence have been classified as current. Employer Liability The Board provides in full for Employer's Liability claims designated by the Central Legal Office as being Category 3, provision is also made for 50% of the estimated settlement costs of claims categorised by the Central Legal Office as Category 2 claims. Claims provided for are not discounted as the timing of any settlements are unknown and the amount notified by the Central Legal Office is subject to change. All current claims have been advised by the Central Legal Office as likely to settle within a twelve months of the balance sheet date and hence have been classified as current. 73

76 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 17. PROVISIONS Motor Insurance Provision has been made for insurance reserve costs relating to third parties as notified by the Board's insurers on the basis of 100% of third party vehicle damage costs and third party personal injury costs. It has been assumed that outstanding claims will reach settlement with twelve months of the balance sheet date and therefore the costs have been classified as current. Third Party The Board provides in full for Third Party claims designated by the Central Legal Office as being Category 3, provision is also made for 50% of the estimated settlement costs of claims categorised by the Central Legal Office as Category 2 claims. Claims provided for are not discounted as the timing of any settlements are unknown and the amount notified by the Central Legal Office is subject to change. All current claims have been advised by the Central Legal Office as likely to settle within a twelve months of the balance sheet date and hence have been classified as current. 74

77 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 17. PROVISIONS Pensions and similar Injury Clinical & Employer Radio Motor Third obligations Benefit Medical Liability System Insurance Party Total At 1 April ,176 1, ,609 Arising during the year ,219 Utilised during the year 0 (221) (63) (116) (453) 0 0 (853) Unwinding of discount Reversed unutilised 0 (554) (1,047) (22) (529) 0 0 (2,152) At 31 March , ,006 The amounts shown above are stated gross and the amount of any expected reimbursements are separately disclosed as receivables in note 13. Analysis of expected timing of discounted flows Pensions and similar Injury Clinical & Employer Radio Motor Third obligations Benefit Medical Liability System Insurance Party Total Payable in one year Payable between two to five years Payable between six to ten years 2 1, ,065 More than ten years 0 2, ,018 At 31 March , ,006 75

78 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 18. MOVEMENT ON WORKING CAPITAL BALANCES Net Note Opening Closing Net Movement Balances Balances Movement INVENTORIES 0 Balance Sheet Net Decrease/(Increase) (190) TRADE AND OTHER RECEIVABLES (1,148) Due within one year 13 15,474 16,206 (374) Due after more than one year 13 9,155 10,531 24,629 26,737 0 Less: Property, Plant & Equipment (Capital) included in above (enter as negative) Less: Intangible Assets (Capital) included in above (enter as negative) Less: General Fund Debtor included in above (enter as negative) ,629 26,737 (1,522) Net Decrease/(Increase) (2,108) TRADE AND OTHER PAYABLES (1,462) Due within one year 16 16,450 14,223 0 Due after more than one year Less: Property, Plant & Equipment (Capital) included in above (1,640) (492) (575) Less: Intangible Assets (Capital) included in above (575) 0 0 Less: Bank Overdraft Less: General Fund Creditor included in above 16 (60) (60) 0 Less: Lease and PFI Creditors included in above Less: Interest payable included in above ,175 13,671 (1,377) Net (Decrease)/Increase (504) PROVISIONS (1,603) Balance Sheet 17 5,006 5,651 0 Transfer from Provision to General Fund 0 0 (1,603) Net (Decrease)/Increase 645 (4,502) NET MOVEMENT (Decrease)/Increase CFS (2,157) 76

79 19. CONTINGENT LIABILITIES SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS The following contingent liabilities have not been provided for in the Accounts: At Liabilities Obligation At April Increase crystallised expired in 31 March Value Nature 2012 in year in year year '000 '000 '000 '000 ' Clinical and medical compensation payments (74) (64) 771 The Service is currently contesting through the Central Legal Office a number of negligence claims arising from normal activities. These claims have been assessed by the Central Legal Office as at 31 March 2013 and for those which have been deemed likely to require settlement the estimated amount has been included within the provisions note. In addition to those claims provided for there are further claims with an estimated value of 771k which have not been provided for as they have been judged unlikely to result in any settlement. 267 Employer's liability (37) (40) 345 The Service is currently contesting through Central Legal Office a number of negligence claims arising from normal activities. These claims have been assessed by the Central Legal Office as at 31 March 2013 and for those which have been deemed likely to require settlement the estimated amount has been included within the provisions note. In addition to those claims provided for there are further claims with an estimated value of 345k which have not been provided for as they have been judged unlikely to result in any settlement. 25 Third party liability The Service is currently contesting through the Central Legal Office a number of negligence claims arising from normal activities. These claims have been assessed by the Central Legal Office as at 31 March 2013 and for those which have been deemed likely to require settlement the estimated amount has been included within the provisions note. In addition to those claims provided for there are further claims with an estimated value of 25k which have not been provided for as they have been judged unlikely to result in any settlement (111) (104) 1,141 The Board has also entered into the following unquantifiable contingent liabilities by offering guarantees, indemnities or by giving letters of comfort. None of these is a contingent liability within the meaning of IAS 37, since the possibility of a transfer of economic benefits in settlement is too remote. 77

80 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 19. CONTINGENT LIABILITIES Legal Claims for Equal Pay Disputes The basis of claims is as follows: * The claimant s job has been rated as being of equivalent to that of their comparator using a valid Job Evaluation Study, and/or is of equal value to that of their comparator. * Their comparator is currently paid or has been paid more than them. * They claim equal pay, back pay and interest (back pay is claimed for the statutory maximum of five years). Claims still do not provide sufficient detail about the comparator jobs to allow an estimate to be made of the likelihood of the success of the claims or of any financial impact that they may have. The NHS Scotland Central Legal Office and Equal Pay Unit are continuing to monitor the progress of all equal pay claims in NHS Scotland as well as developments relating to NHS equal pay claims elsewhere that may further inform the position. They continue to advise that it is not possible to provide any financial qualification at this stage because of the lack of information available. On the basis of their view the appropriate accounting treatment is to disclose the claims as a contingent liability that it is not possible to quantify. CONTINGENT ASSETS 2012 Value At 1 April 2012 Increase in year Liabilities crystallised in year Obligation expired in year At 31 March '000 '000 '000 '000 ' Clinical and medical compensation payments (25) 445 A contingent asset consisting of amounts recoverable from the CNORIS scheme associated with the contingent liability disclosed above in the value of 445k would be receivable if these claims had to be settled at their current estimated values. 35 Employer's liability rd Party ,170 Contractual Penalties Contingent Asset in respect of contractual penalties crystallised in year following resolution of discussions with third party supplier. 2,170 0 (2,170) 0 0 2,530 2, (2,170) (25)

81 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 20. EVENTS AFTER THE END OF THE REPORTING YEAR Events after the end of the reporting period having a material effect on the accounts are: There were no reporting events after year end. 79

82 21. COMMITMENTS Capital Commitments '000 Property, plant and equipment: Intangible assets: The Board has the following Capital Commitments which have not been included for in the accounts '000 '000 '000 Contracted SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 0 Prestonpans Blairgowrie Lockerbie ,387 Kilmarnock ,200 Vehicles Defibrillators T Portable Fuel Storage ,875 Total Total Authorised but not Contracted 30,600 Vehicles 21, , Defibrillators ,500 Galashiels 2, ,486 33,800 Total 24, ,368 Other financial commitments 2012 '000 The Board has not entered into any other non-cancellable contracts that are not leases The payments to which the Board is committed during , analysed by the period during which the commitments expire are as follows: 0 Expiry within 1 year 0 0 Expiry within 2 to 5 years 0 0 Expiry after 5 years 0 0 Total 0 '000 80

83 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 21. COMMITMENTS, cont. Financial Guarantees, Indemities and Letter of Comfort The Board did not hold any Financial Guarantees, Indemnites or Letters of Comfort in 2012/13 or 2011/

84 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 22. COMMITMENTS UNDER LEASES 2012 Operating Leases 2013 Total future minimum lease payments under operating leases are given the '000 in the table below for the each of the following periods. '000 Obligations under operating leases comprise: Land 162 Not later than one year Later than one year, not later than 2 years Later than two year, not later than five years 419 1,530 Later than five years 1,009 Buildings 1,023 Not later than one year 1, Later than one year, not later than 2 years 1,069 2,794 Later than two year, not later than five years 3,027 11,172 Later than five years 9,142 Other 1,721 Not later than one year 2, Later than one year, not later than 2 years 2, Later than two year, not later than five years 6,283 0 Later than five years 4,509 Amounts charged to Operating Costs in the year were: 2,095 Hire of equipment (including vehicles) 1,983 1,185 Other operating leases 1,496 3,280 Total 3,479 Contingent rents recognised as an expense in the period were: 0 Contingent rents Finance Leases Total future minimum lease payments under finance leases are given the in '000 the table below for the each of the following periods. '000 Obligations under Finance leases comprise: Buildings 0 Rentals due within one year Rentals due between one and two years (inclusive) Rentals due between two and five years (inclusive) Rentals due after five years Less interest element Other 0 Rentals due within one year Rentals due between one and two years (inclusive) Rentals due between two and five years (inclusive) Rentals due after five years Less interest element This total net obligation under finance leases is analysed in Note 16 (Creditors) Aggregate Rentals Receivable in the year 0 Total of finance & operating leases 0 82

85 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 23a. COMMITMENTS UNDER PFI CONTRACTS - Off Balance Sheet 23b. COMMITMENTS UNDER PFI CONTRACTS - On Balance Sheet The Board did not enter into any PFI contracts. 83

86 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 24. PENSION COSTS The NHS board participates in the National Health Service Superannuation Scheme for Scotland which is a notional defined benefit scheme where contributions are credited to the Exchequer and the balance in the account is deemed to be invested in a portfolio of Government securities. The pension cost was last assessed in 2004 by the Government Actuary; work is ongoing with the 2009 assessment. The National Health Service Superannuation Scheme for Scotland is a multi-employer scheme where the share of the assets and liabilities applicable to each employer is not identified. The NHS board will therefore account for its pension costs on a defined contribution basis as permitted by IAS 19. For the current year, normal employer contributions of 14,348,852 were payable to the SPPA (prior year 14,312,200) at the rate of 13.5% (prior year: 13.5%) of total pensionable salaries. In addition, during the accounting period the NHS board incurred additional costs of 278 (prior year 265) arising from the early retirement of staff. The most recent actuarial valuation discloses a balance of 370 million to be met by future contributions from employing authorities. Provisions amounting to 3,113 are included in the Balance Sheet and reflect the difference between the amounts charged to the Statement of Comprehensive Net Expenditure and the amounts paid directly. Changes to the scheme were implemented from 1 April Existing staff, and those joining the scheme up to 31 March 2008, will keep the benefits of the existing scheme. They were given the choice to transfer to the new scheme. Existing scheme: The scheme provides benefits on a final salary basis at a normal retirement age of 60. Annual benefits are normally based on 1/80th of the best of the last three years pensionable pay for each year of service. In addition, a lump sum equivalent to three years pension is payable on retirement. Members pay tiered contribution rates ranging from 5% to 10.9% of pensionable earnings. Pensions are increased in line with the Consumer Price Index. On death, pensions are payable to the surviving spouse at a rate of half the member s pension. On death in service, the scheme pays a lump-sum benefit of twice pensionable pay and also provides a service enhancement on computing the spouse s pension. The enhancement depends on length of service and cannot exceed 10 years. Child allowances are payable according to the number of dependant children and whether there is a surviving parent who will get a scheme widow/widower s pension. Medical retirement is possible in the event of serious ill health. In this case, pensions are brought into payment immediately where the member has more than 2 years service. Where service exceeds 5 years, the pension is calculated using specially enhanced service, with a maximum enhancement of 10 years. Members aged 50 or above may take voluntary early retirement and receive a reduced pension. Alternatively, if the employer agrees to this the member will be able to retire on the full pension and lump sum which they have earned. New 2008 arrangements: The scheme provides benefits on a final salary basis at a normal retirement age of 65. Pension will have an accrual rate of 1/60th and be calculated on the basis of the average of the best consecutive three years pensionable pay in the ten years before retirement. There is an option to exchange part of Pension benefits for a cash lump sum at retirement, up to 25% of overall Pension Value. Members pay tiered contribution rates ranging from 5% to 10.9% of pensionable earnings. Pensions and allowances are index linked to protect their value. Members aged 55 or above may take voluntary early retirement and receive a reduced pension. Alternatively, if the employer agrees to this the member will be able to retire on the full pension and lump sum which they have earned '000 '000 Pension cost charge for the year 14,349 14,312 Additional Costs arising from early retirement 0 0 Provisions/Liabiltities/Pre-payments included in the Balance Sheet

87 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 25. EXCEPTIONAL ITEMS AND PRIOR YEAR ADJUSTMENTS There were no exceptional items for 2012/13. Some items of income and expenditure have been analysed differently in the 2012/13 accounts from their treatment in the 2011/12 accounts. The effect of these changes are detailed in note

88 26. RESTATED SOCNE SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS Previous Adjustment Adjustment Adjustment These Accounts Accounts Clinical Services Costs Hospital and Community 204, ,594 Less: Hospital and Community Income 5, , , ,740 Family Health Services 0 0 Less: Family Health Services Income Total Clinical Services Costs 199, ,740 Administration Costs 2,502 (492) (198) 1,812 Less: Administration Income 0 0 2,502 (492) 0 (198) 1,812 Other Non Clinical Services 2,037 2,037 Less: Other Operating Income (19) (19) 2, ,056 Net Operating Costs 203, ,608 Adjustment 1 Note 6 - Elements of Health Planning, Commissioning and Performance Reporting reanalysed to Note 4 Hospital and Community Costs to be consistent with current year Adjustment 2 Note 8 - Outward Secondee income reanalysed to Note 4 Hospital and Community Costs to be consistent with current year Adjustment 3 Note 6 - Elements of Board members remuneration reanalysed to Note 4 Hospital and Community Costs to be consistent with current year 86

89 27. FINANCIAL INSTRUMENTS a FINANCIAL INSTRUMENTS BY CATEGORY SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS Financial Assets Assets at Fair Value Loans through Available and profit and for Receivables loss sale Total At 31 March 2013 Note Assets per balance sheet Investments Derivative financial instruments Trade and other receivables excluding prepayments, reimbursements of provisions and 13 VAT recoverable Cash and cash equivalents Assets at Fair Value Loans through Available and profit and for Receivables loss sale Total At 31 March 2012 Note Assets per balance sheet Investments Derivative financial instruments Trade and other receivables excluding prepayments, reimbursements of provisions and 13 VAT recoverable Cash and cash equivalents

90 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 27. FINANCIAL INSTRUMENTS Financial Liabilities Liabilities at Fair Value through Other profit and financial loss liabilities Total At 31 March 2013 Note Liabilities per balance sheet Finance lease liabilities PFI Liabilities Derivative financial instruments Trade and other payables excluding statutory liabilities (VAT and income tax and social security), deferred income and superannuation 16 8,533 8, ,533 8,533 Liabilities at Fair Value through Other profit and financial loss liabilities Total At 31 March 2012 Note Liabilities per balance sheet Finance lease liabilities PFI Liabilities Derivative financial instruments Trade and other payables excluding statutory liabilities (VAT and income tax and social security) and superannuation 16 10,362 10, ,362 10,

91 27. FINANCIAL INSTRUMENTS, cont. b FINANCIAL RISK FACTORS Exposure to Risk SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS The NHS Board's activities expose it to a variety of financial risks: Credit risk - the possibility that other parties might fail to pay amounts due. Liquidity risk - the possibility that the NHS Board might not have funds available to meet its commitments to make payments. Market risk - the possibility that financial loss might arise as a result of changes in such measures as interest rates, stock market movements or foreign exchange rates. Because of the largely non-trading nature of its activities and the way in which government departments are financed, the NHS Board is not exposed to the degree of financial risk faced by business entities. a) Credit Risk Credit risk arises from cash and cash equivalents, deposits with banks and other institutions, as well as credit exposures to customers, including outstanding receivables and committed transactions. For banks and other institutions, only independently rated parties with an minimum rating of 'A' are accepted. Customers are assessed, taking into account their financial position, past experience and other factors, with individual credit limits being set in accordance with internal ratings in accordance with parameters set by the NHS Board. The utilisation of credit limits is regularly monitored. No credit limits were exceeded during the reporting period and no losses are expected from non-performance by any counterparties in relation to deposits. b) Liquidity Risk The Scottish Parliament makes provision for the use of resources by the NHS Board for revenue and capital purposes in a Budget Act for each financial year. Resources and accruing resources may be used only for the purposes specified and up to the amounts specified in the Budget Act. The Act also specifies an overall cash authorisation to operate for the financial year. The NHS Board is not therefore exposed to significant liquidity risks. The table below analyses the financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet to contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant

92 Less than Between 1 and 2 years Between 2 1 year and 5 years Over 5 years At 31 March PFI Liabilities Finance lease liabilities Derivative financial instruments Trade and other payables excluding statutory liabilities 8, Total 8, Less than Between 1 and 2 years Between 2 1 year and 5 years Over 5 years At 31 March PFI Liabilities Finance lease liabilities Derivative financial instruments Trade and other payables excluding statutory liabilities 10, Total 10, c) Market Risk The NHS Board has no powers to borrow or invest surplus funds. Financial assets and liabilities are generated by day-today operational activities and are not held to manage the risks facing the NHS Board in undertaking its activities. i) Cash flow and fair value interest rate risk The NHS Board has no significant interest bearing assets or liabilities and as such income and expenditure cash flows are substantially independent of changes in market interest rates. ii) Foreign Currency Risk The Board's only exposure to foreign exchange rates is through the maintenance element of flying hour charges for the Air Ambulance Service. iii) Price risk The NHS Board is not exposed to equity security price risk. c FAIR VALUE ESTIMATION The fair value of financial instruments that are not traded in an active market (for example, over the counter derivatives) is determined using valuation techniques. (Provide details of the technique used). The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair value. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current HM Treasury interest rate that is available for similar financial instruments. 9087

93 28. DERIVATIVE FINANCIAL INSTRUMENTS SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS Assets 000 Forward foreign currency contract Balance at 1 April 0 0 Additions 0 0 Repayments and disposals 0 0 Revaluation 0 0 Balance at 31 March BS Liabilities 000 Forward foreign currency contract Balance at 1 April 0 0 Additions 0 0 Repayments and disposals 0 0 Revaluation 0 0 Balance at 31 March BS 0 0 Gain / loss recognised in SOCNE 0 0 The notional principal amounts of the outstanding forward exchange contracts at 31 March were: 0 91

94 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 29. RELATED PARTY TRANSACTIONS The Board had various material transactions with other government departments and other central government bodies which are detailed in SFR30, SFR30.1 and SFR30.2 No Board member, key manager or other related party has undertaken any material transactions with the Board during The Board members both Executive and Non-Executive members are also trustees of the Scottish Ambulance Service Endowment (charity) Accounts. Their in year transactions and closing balances are as follows: Year Income Expenditure Trade Receivables Balance Trade Payables Balance Year End Balance ( '000) ( '000) ( '000) ( '000) ( '000) 2012/ /

95 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 30. SEGMENT INFORMATION Segmental information as required under IFRS has been reported for each strategic objective Note West Central East Central South West South East North Division Division Division Division Division National Net operating cost 27,244 33,021 25,491 31,002 20,295 74, , SEGMENT INFORMATION - PRIOR YEAR Segmental information as required under IFRS has been reported for each strategic objective Note West Central East Central South West South East North Division Division Division Division Division National Net operating cost 26,734 32,969 25,963 30,831 20,336 66, ,608 93

96 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 31. THIRD PARTY ASSETS The Board does not have any third party fixed assets. 94

97 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS 32. EXIT PACKAGES Exit package cost band Number of compulsory redundancies Number of other departures agreed 2013 Total number of exit packages by cost band < 10, ,000-25, ,000-50, , , , , , , > 200, Total number exit packages by type Total resource cost ( '000) EXIT PACKAGES - PRIOR YEAR Exit package cost band Number of compulsory redundancies Number of other departures agreed 2012 Total number of exit packages by cost band < 10, ,000-25, ,000-50, , , , , , , > 200, Total number exit packages by type Total resource cost ( '000)

98 SCOTTISH AMBULANCE SERVICE SFR 1.0 ALLOCATIONS FROM SGHD ALLOCATIONS - UNIFIED BUDGET 191,149 Core Revenue Resource Limit 197,753 12,500 Non Core Revenue Resource Limit 14,311 0 Other Revenue Allocations 0 203,649 Total Unified Budget 212,064 0 FHS Non Discretionary Allocation 0 203,649 Total Revenue Allocation 212,064 Less Non RRL Allocations 0 FHS Non Discretionary Allocation 0 0 Other 0 203,649 Total Revenue Resource Limit 212,064 Of the above: Core Revenue Resource Limit 197,753 Non Core Revenue Resource Limit 14, CAPITAL RESOURCE ALLOCATIONS 501 Projects below 1 million 1, ,667 2,079 Projects above 1 million 1,183 11,300 Ring-fenced capital projects 14,300 13,880 Total Capital Allocations 9 17,150 96

99 SCOTTISH AMBULANCE SERVICE SFR 18.0 SUMMARY OF LOSSES AND SPECIAL PAYMENTS ITEM NO. OF TOTAL NO. CASES Theft / Arson / Wilful Damage 1 Cash Stores/procurement Equipment 16 11,568 4 Contracts Payroll Buildings & Fixtures Other 0 0 Fraud, Embezzlement & other irregularities (inc. attempted fraud- 8 Cash Stores/procurement Equipment Contracts Payroll Other Nugatory & Fruitless Payments Claims Abandoned: (a) Private Accommodation 0 0 (b) Road Traffic Acts 0 0 (c) Other 8 20,161 Stores Losses: Incidents of the Service 16 - Fire Flood Accident Deterioration in Store Stocktaking Discrepancies Other Causes 0 0 Losses of Furniture & Equipment and Bedding & Linen in circulation: 20 Incidents of the Service Fire Flood Accident Disclosed at physical check Other Causes 0 0 Compensation Payments - legal obligation 23 Clinical 4 27, Non-clinical ,581 Ex-gratia payments: 25 Extra-contractual Payments Compensation Payments - ex-gratia - Clinical Compensation Payments - ex-gratia - Non Clinical Compensation Payments - ex-gratia - Financial Loss Other Payments Damage to Buildings and Fixtures: 30 Incidents of the Service Fire - Fire Flood Accident Other Causes Extra-Statutory & Extra-regulationary Payments Gifts in cash or kind Other Losses 1 55,000 Total ,286

100 SCOTTISH AMBULANCE SERVICE SFR 18.1a Details of Delegated Authority of NHS Boards for Losses and Special Payments Item No. Category Delegated Authority (per case) Category 2 Category 3 Board Board Category 1 Board Theft / Arson / Wilful Damage 1 Cash 20,000 15,000 10,000 2 Stores/procurement 40,000 30,000 20,000 3 Equipment 20,000 15,000 10,000 4 Contracts 20,000 15,000 10,000 5 Payroll 20,000 15,000 10,000 6 Buildings & Fixtures 40,000 30,000 20,000 7 Other 20,000 15,000 10,000 Fraud, Embezzlement & other irregularities (inc. attempted fraud) Category 1 Board Category 2 Board Category 3 Board 8 Cash 20,000 15,000 10,000 9 Stores/procurement 40,000 30,000 20, Equipment 20,000 15,000 10, Contracts 20,000 15,000 10, Payroll 20,000 15,000 10, Other 20,000 15,000 10, Nugatory & Fruitless Payments 20,000 15,000 10, Claims Abandoned (a) Private Accommodation 20,000 15,000 10,000 (b) Road Traffic Acts 40,000 30,000 20,000 (c) Other 20,000 15,000 10, Stores Losses Incidents of the Service - Fire 40,000 30,000 20,000 - Flood 40,000 30,000 20,000 - Accident 40,000 30,000 20, Deterioration in Store 40,000 30,000 20, Stocktaking Discrepancies 40,000 30,000 20, Other Causes 40,000 30,000 20,000 Losses of Furniture & Equipment And Bedding & Linen in circulation: 20 Incidents of the Service - Fire 20,000 15,000 10,000 - Flood 20,000 15,000 10,000 - Accident 20,000 15,000 10, Disclosed at physical check 20,000 15,000 10, Other Causes 20,000 15,000 10,000 98

101 Compensation Payments - legal obligation 23 Clinical * 250, , , Non-clinical * 100, , ,000 Ex-gratia payments: 25 Extra-contractual Payments 20,000 15,000 10, Compensation Payments - Ex-gratia - Clinical * 250, , , Compensation Payments - Ex-gratia - Non 100, , ,000 Clinical * 28 Compensation Payments - Ex-gratia - 25,000 25,000 25,000 Financial Loss * 29 Other Payments 2,500 2,500 2, Damage to Buildings and Fixtures: Incidents of the Service Fire 40,000 30,000 20,000 - Flood 40,000 30,000 20,000 - Accident 40,000 30,000 20,000 - Other Causes 40,000 30,000 20, Extra-Statutory & Extra-regulationary Payments Nil Nil Nil 32 Gifts in cash or kind 20,000 15,000 10, Other Losses 20,000 15,000 10,000 Category 1 Boards - NHS Greater Glasgow and Clyde and NHS Lothian Category 2 Boards - Remaining Regional Boards, NSS and Scottish Ambulance Service Category 3 Boards - Island Boards and Remaining Special Health Boards All frauds and attempted frauds must be detailed on form SFR 18.1(c) * This delegated limit was revised as at 1st August 2001 HDL (2001)65 + those losses which do not broadly fall within the definitions of theft, arson, wilful damage, fraud, embezzlement and attem 9998

102 SCOTTISH AMBULANCE SERVICE SFR 18.1 (b) DETAILS OF LOSSES AND SPECIAL PAYMENTS ABOVE DELEGATED AUTHORITY OF NHS BOARD Value of Loss or Date of Authority by Item No. Brief Description of Each Case Payment ** 000 SGHSCD *** 1 Health and Safety Court Penalty 55 27/06/ Non Clinical Compensation Settlement /11/

103 SCOTTISH AMBULANCE SERVICE SFR 18.1 (c) DETAILS OF FRAUD, EMBEZZLEMENT AND OTHER IRREGULARITIES (INC. ATTEMPTED FRAUD) Case No. Definition No. (see Notes page) Loss Area No.(see Notes page) Value of Loss/Potential Loss Sanctions/Actions Taken/Recoveries (Type/ Outcome) There were no recorded frauds over the course of the year 101

104 SCOTTISH AMBULANCE SERVICE SFR 30.0 BALANCES WITH OTHER NHSSCOTLAND BODIES NHS Scotland Body Due to Due from Income From Expenditure With 000s 000s 000s 000s 110 Ayrshire and Arran Health Board HB Borders Health Board HB Dumfries and Galloway Health Board HB , Fife Health Board HB Forth Valley Health Board HB Grampian Health Board HB Greater Glasgow Health Board HB Highland Health Board HB Lanarkshire Health Board HB Lothian Health Board HB Orkney Health Board HB Shetland Health Board HB Tayside Health Board HB Western Isles Health Board HB NHS National Services Scotland HB Scottish Ambulance Service HB NHS Education for Scotland HB State Hospital HB NHS 24 HB Mental Welfare Commission MWC NHS Health Scotland SD Healthcare Improvement Scotland HB National Waiting Times Centre HB Total Boards and Special Health Boards ,755 3,

105 SCOTTISH AMBULANCE SERVICE SFR 30.1 BALANCES WITH CENTRAL GOVERNMENT BODIES CPID Here Due to Due from Income From Expenditure With 000s 000s 000s 000s Scottish Government Directorates SCT075 Learning and Justice SCT075 Finance SCT075 Enterprise, Environment & Digital SCT075 Health and Social Care SCT075 Governance and Communities SCT075 Strategy and External Affairs Executive Agencies SCT075 Communities Scotland SCT075 Historic Scotland SCT075 HM Inspectorate of Education SCT075 The Student Awards Agency for Scotland SCT075 Scottish Agricultural Science Agency SCT075 Fisheries Research Services SCT075 Scottish Fisheries Protection Agency SCT075 Scottish Court Service SCT075 Scottish Prison Service SCT075 Accountant In Bankruptcy SCT075 Registers of Scotland SCT075 Scottish Public Pensions Agency SNP914 Scottish NHS Pension Scheme Scottish Executive NDPBs CIS075 Care Commission CRE075 Creative Scotland HIE075 Highlands & Islands Enterprise NGS075 National Galleries of Scotland NLS075 National Library of Scotland NMU075 National Museums of Scotland RBG075 Royal Botanic Garden, Edinburgh CRA075 Scottish Children's Reporter Administration SEN075 Scottish Enterprise EPA075 Scottish Environment Protection Agency SFC075 Scottish Funding Council LAB075 Scottish Legal Aid Board SNH075 Scottish Natural Heritage SPA075 Scottish Police Services Authority SQA075 Scottish Qualifications Authority SSS075 Scottish Social Services Council SSO075 Skills Development Scotland SPS075 sportscotland STB075 VisitScotland 103

106 SCOTTISH AMBULANCE SERVICE SFR 30.1 BALANCES WITH CENTRAL GOVERNMENT BODIES Other UK Central Government Bodies ILR041 Inland Revenue 3, ,430 HMC015 HM Customs & Excise 1,333 5,388 1,282 Maritime and Coastguard Agency 7 26 Ministry of Defence Grampian Joint Fire Board 1 1 Social and Care Team Hawick 2 Social Work Dept 1 Argyll & Bute CHP 1 TOTAL 3,074 1,456 6,036 38,

107 SCOTTISH AMBULANCE SERVICE SFR 30.2 BALANCES WITH WHOLE of GOVERNMENT BODIES Due to Due from Income From Expenditure With CPID 000s 000s 000s 000s S001 Aberdeen City Council S002 Aberdeenshire Council S003 Angus Council S004 Argyll and Bute Council S005 Clackmannanshire Council S006 Comhairle nan Eilean Siar (Western Isles Council) S007 Dumfries and Galloway Council S008 Dundee City Council S009 East Ayrshire Council S010 East Dunbartonshire Council S011 East Lothian Council S012 East Renfrewshire Council S013 Edinburgh City Council S014 Falkirk Council S015 Fife Council S016 Glasgow City Council S017 Highland Council S018 Inverclyde Council S019 Midlothian Council S020 Moray Council S021 North Ayrshire Council S022 North Lanarkshire Council S023 Orkney Islands Council S025 Perth and Kinross Council S026 Renfrewshire Council S027 Scottish Borders Council S028 Shetland Islands Council S029 South Ayrshire Council S030 South Lanarkshire Council S031 Stirling Council S032 West Dunbartonshire Council S033 West Lothian Council NHS Trusts North Wales BSP Stoke on Trent PCT Nottingham University Hospital NHS Trust Other Whole of Government Bodies Glasgow City Council Social Work Total ,

108 SCOTTISH AMBULANCE SERVICE NOTES TO THE ACCOUNTS SFR 37 Analysis of Land, Buildings and Dwellings Land Buildings (exc Dwellings) Dwellings Valuation at 31 March 2013 '000 '000 '000 Freehold 4,899 21,607 Long leaseholds (+50yrs) Short Leasehold 4,899 21, The total of the 3 columns above should agree to the total of Land, Buildings and Dwellings as per Note 11a (Purchased Assets) and Note 11b (Donated Assets) Assets held under Finance leases Asset Gross Amount Accumulated Depn Asset held under hire purchase Asset Gross Amount Accumulated Depn Asset held on balance sheet PFI contracts Asset Gross Amount Accumulated Depn 106

109 SCOTTISH AMBULANCE SERVICE PAYMENT POLICY Average Number of Days credit taken Contractual 30 Day Payment Policy Total Number of Invoices 58,650 66,349 Total Number of Invoices paid within 30 days 47,438 50,993 % by volume of invoices paid within 30 days 80.88% 76.86% % by value of invoices paid within 30 days 71.34% 72.55% Aspirational 10 Day Target Total Number of Invoices 58,650 66,349 Total Number of Invoices paid within 10 days 21,497 11,808 % by volume of invoices paid within 10 days 36.65% 17.80% % by value of invoices paid within 10 days 28.45% 24.02% 107

110 SCOTTISH AMBULANCE SERVICE RESOURCE AND CASH OUTTURN Limit set by Variance SGHD Actual Outturn (over)/under '000 '000 '000 Revenue Resource Limit - Core 197, , Non-core 14,311 14,311 0 Capital Resource Limit - Core 17,150 17, Non-core Cash Requirement 220, , The figures entered above should agree with those presented in the Directors' Report 108

111 SCOTTISH AMBULANCE SERVICE SICKNESS ABSENCE Sickness absence rate 6.3% 5.7% 109