Fallside Road Bothwell G71 8BB Telephone:

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1 Lanarkshire NHS Board Kirklands Hospital Fallside Road Bothwell G71 8BB Telephone: Minute of Meeting of the Audit Committee held on Wednesday 25 th June 2014 at 8.30am in the Board Room, NHS Lanarkshire Headquarters, Kirklands Hospital, Bothwell CHAIR: Mrs. S Smith, Non Executive Director PRESENT: IN ATTENDANCE: APOLOGIES Mr P Campbell, Non Executive Director Mrs L Macer, Employee Director Mr T Steele, Non Executive Director Mrs L Ace, Director of Finance Mr N J Agnew, Board Secretary Councillor J Burns, Non Executive Director Dr A Docherty, Chair, Area Clinical Forum Mr D Eardley, Scott-Moncrieff Mr M Fuller, Non Executive Director Mr M Lavender, Scott-Moncrieff Mrs N Mahal, NHS Board Chair Dr A Osborne, Non Executive Director Mr I A Ross, Chief Executive Mr R Spencer, Head of Support Services Miss M Morris, Non Executive Director Mr C Brown, Scott-Moncrieff 1. WELCOME Mrs. Smith welcomed fellow Members and attendees to the meeting. 2. MATTERS ARISING i) Notification from NHS Lanarkshire Audit Committee to Sponsor Body Audit and Risk Committee Mrs. Ace confirmed that, as agreed at the meeting of the Audit Committee on 10 th June 2014, the letter of notification from the NHS Lanarkshire Audit Committee to the Health and Wellbeing Audit and Risk Committee at the Health Finance and Information Directorate within the Scottish Government would be revised and sent that day.

2 3. EXTERNAL AUDIT i) ISA 260 Report Mr. Eardley highlighted the principal elements of the circulated Report by Scott- Moncrieff on the Audit of the 2013/14 Financial Statements. He advised that the Financial Statements gave a true and fair view in accordance with the National Health Service (Scotland) Act 1978 and Directions made thereunder by the Scottish Ministers, and that the Audit Opinion was unqualified. He also confirmed that NHS Lanarkshire had met all of its key financial targets in 2013/14. He expressed appreciation to Mrs. Ace and her staff for their contribution to the conduct of the Audit. Mr. Eardley reported on the one issue highlighted within the Action Plan, relating to PFI financial models. Mrs. Ace noted a request from Mr. Fuller for further clarification in relation to the action point. She explained that, largely, this related to assumptions and the way in which they were reflected in the Accounts. She confirmed that addressing the action point was relatively straightforward. She also confirmed that action would be taken to further strengthen the related documentation of procedures. Mrs. Smith expressed satisfaction at the Audit Opinion. 1. Noted the report by Scott-Moncrieff on the audit of the 2013/14 Financial Statements, and the single action reflected in the Action Plan. ii) Letter of Representation The Committee considered a draft Letter of Representation dated 25 th June 2014 to Scott-Moncrieff. Mrs. Ace highlighted the principal elements of the Letter. 1. Noted the draft Letter of Representation. 2. Approved the Letter of Representation for signing. iii) Patients Private Funds Statement and Patients Funds Management Letter The Committee considered a Patients Private Funds Statement and a Patients Funds Management Letter. Mrs. Ace highlighted the principal elements of the documents. She explained that the issues to be addressed would be reflected in an Action Plan, which would be the subject of a follow-up report to the Audit Committee. Mr. Eardley noted questions from Mrs. Macer about the coverage of the site visits by Scott-Moncrieff, and the alignment of the visit reports with the total number of sites for which the Board had a designated responsibility. He explained that site visits were based on sampling, but undertook to pursue further clarification about the issues raised with relevant colleagues, and to confirm the position thereafter. Mrs. Ace Mr. Eardley

3 Mrs. Ace noted, and acknowledged, a view from Mr. Fuller that the display of signs about valuables being held at patient s own risk, did not completely negate liability on the part of the Board in cases of negligence by the Board. However, she stressed that the signs were intended to reflect the fact that the Board would not be liable where, despite the notices, individuals chose to retain valuables, and there had been no negligence on the part of the Board. 1. Noted the Patients Private Funds Statement and Patients Funds Management Letter. 4. ANNUAL ACCOUNTS: YEAR ENDED 31 ST MARCH 2014 The Committee received the Annual Accounts for the year end 31 st March 2014, and a paper presenting the Annual Accounts. Mrs. Ace highlighted the principal elements of the Annual Accounts. She explained that there had been some presentational amendments to the Annual Accounts, postissuing to Members, but she stressed that these did not affect materiality and were reflected in the final version of the Annual Accounts which would be signed following approval by the NHS Board. Mrs. Ace noted questions from Councillor Burns about the increase in agency costs and the upward trend in the number of administrative and clerical staff. She explained that the increase in agency costs was, in the main, due to the appointment of medical locums, which were required to maintain medical staff rotas and the delivery of safe care. She explained that there had been a fluctuation between years in the total number of administrative and clerical staff. She would undertake an analysis of administrative and clerical costs as classified in the Annual Accounts and circulate this information to Members. Mrs. Ace noted a request from Mr. Campbell for clarification of the figures relating to the cost to the Board for settling negligence claims, including details of the cases contributing to the 6.6m paid during the year under the CNORIS scheme, and those claims which, individually, had a value under 25,000. She undertook to circulate to Members a breakdown of those payments and an explanation about the operation of the CNORIS arrangements, including information about the indicative norm for a year in terms of the number and value of claims. Mrs. Ace Mrs. Ace Mr. Ross reported that recent work on benchmarking, confirmed that the Lanarkshire position in relation to the number of claims was not inconsistent with other NHS systems in Scotland. 1. Noted the draft Annual Accounts for the year ended 31 st March Noted confirmation from Mrs. Ace that the agreed underspend against the Revenue Resource Limit of 3.540m (and not 4.530m as stated in the paper), was in line with the Local Delivery Plan. 3. Endorsed the Annual Accounts for submission to the NHS Board for formal approval.

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