Guidance for the annual planning review 2014 15 financial template

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Guidance for the Annual Planning Review 2014/15 financial template

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Who we are Monitor is the sector regulator for health services in England. Our job is to protect and promote the interests of patients by ensuring that the whole sector works for their benefit. For example, we make sure foundation hospitals, ambulance NHS foundation trusts and mental health and community care organisations are run well, so they can continue delivering good quality services for patients in the future. Critical to this will be the ability of NHS foundation trusts, now and in the future, to develop and implement effective and sustainable plans capable of responding to the challenges facing the sector well into the longer term.

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Contents

1 Executive summary........................................................................................................ 4 2 Practical guidance.......................................................................................................... 5

2.1 Other key information.............................................................................................. 5 3 Key changes from prior years ........................................................................................ 7

3.1 Risk Assessment Framework has superseded the Compliance Framework............ 7 3.2 Resubmission ......................................................................................................... 7 3.3 Reconciliation ......................................................................................................... 7 3.4 Other changes to the financial template content ..................................................... 8 4 Reference guidance ....................................................................................................... 9 4.1 Completing the financial template ........................................................................... 9

4.1.1 Key considerations .......................................................................................... 9 4.1.2 Suggested approach to populating the financial template .............................. 10 4.2 Technical considerations....................................................................................... 11 4.2.1 Public Dividend Capital .................................................................................. 11 4.2.2 Reserve transfers .......................................................................................... 12 4.2.3 Impairments ................................................................................................... 12 4.3 Administrative worksheets .................................................................................... 12 4.3.1 Cover ............................................................................................................. 13 4.3.2 Index.............................................................................................................. 13 4.3.3 Information..................................................................................................... 13 4.3.4 Checks........................................................................................................... 13 4.4 Primary Statements .............................................................................................. 14 4.4.1 SoCI .............................................................................................................. 14 4.4.2 SoCF ............................................................................................................. 14 4.4.3 SoFP ............................................................................................................. 15 4.4.4 Reserves ....................................................................................................... 16 4.5 Continuity of Services Risk Rating ........................................................................ 17 4.6 Financial plan input worksheets ............................................................................ 18 4.6.1 Inflation .......................................................................................................... 18 4.6.2 Revenue worksheets ..................................................................................... 19 4.6.3 Expenditure worksheets................................................................................. 20 4.6.4 Service developments, transactions, CIPs and revenue generation sheets ... 23 4.6.5 Developments................................................................................................ 23 4.6.6 Transactions .................................................................................................. 24

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4.6.7 CIP ................................................................................................................ 25 4.6.8 Revenue generation....................................................................................... 26 4.6.9 Contracts ....................................................................................................... 26 4.6.10 Capital expenditure ........................................................................................ 27 4.6.11 Charities ........................................................................................................ 28 4.6.12 Activity ........................................................................................................... 28 4.6.13 Workforce worksheet ..................................................................................... 29 4.6.14 DH Budgeting ................................................................................................ 32 4.7 Sensitivities, Downside and Mitigations................................................................. 32 4.7.1 Sensitivity Input.............................................................................................. 32 4.7.2 Sensitivity Output ........................................................................................... 33 4.8 Governance worksheets ....................................................................................... 33 4.8.1 Targets and indicators ................................................................................... 33 4.8.2 Membership ................................................................................................... 34 4.8.3 Elections ........................................................................................................ 35

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1 Executive summary

This document is supplementary to our primary APR 2014/15 guidance document and outlines the technical aspects of the 2014/15 Annual Planning Review financial template ("financial template"). We would not expect this document to be read in full, but rather used as a reference guidance for specific queries. Should you require further assistance please contact compliance@.uk. The document is formed of three key sections:

1. Introduction and practical guidance; 2. Key changes from prior years; and 3. Reference guide and technical issues that should be referred to when

populating the financial template. We remind all NHS foundation trusts that there have been significant upgrades to the APR process for 2014/15, which have led to fundamental changes to the broader process and therefore the financial template. In particular there are now two submissions for APR 2014/15 supported by a single financial template return:

1. 4 April 2014 ? Submission of financial template with first two years completed on a broadly quarterly basis; and

2. 30 June 2014 ? Submission of remaining three years of the financial template, completed on an annual basis. For this submission date the first two year submission made on 4 April 2014 will be locked apart from exceptional circumstances.

Apart from these changes the financial template has in general been kept largely consistent with prior years.

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2 Practical guidance

APR 2014/15 comprises two sets of submissions (one for each phase of the review), supported by a single financial template. Full guidance on these submissions is available here.

Both submissions should be returned via the MARS portal (guidance on uploading your template can be found here):

1. On or before 4 April 2014 NHS foundation trusts should submit the financial template with year one and two completed and an accompanying two year operational plan; and

2. On or before 30 June 2014 NHS foundation trusts should submit a completed five year financial template (with the final three years completed), an accompanying strategic plan and a publishable summary of the plan.

During this second phase submission, the data submitted as part of the first phase submission 4 April 2014 should not be changed, unless done so as part of a resubmission approved by Monitor.

Financial template submissions must accurately support the operational and strategic plans of NHS foundation trusts and those made within the unit of planning that the NHS foundation trust sits.

We also remind NHS foundation trusts of the importance of ensuring the phasing of financial plans is accurately recorded. This is especially important for the first submission phase and the need for NHS foundation trusts to report performance on a quarterly basis, which they will be monitored against going forward.

2.1 Other key information

The plan templates can be downloaded from the 2014/15 APR website. The financial template and this supporting guidance will be made available to NHS foundation trusts on 7 January 2014 via the MARS portal.

The financial template continues to be an Excel based file and is a similar format to that provided in previous years and also to the quarterly reporting templates. The template has an inbuilt ?0.1m tolerance level for all sheets except the SoCF which has a tolerance of ?0.01m.

The financial template is password protected and any queries or issues regarding the structure of the template should be forwarded to the APR queries team at compliance@.uk.

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