NHS foundation trust finance staff should check this page for updates on year-end accounts, the foundation trust consolidation (FTC) process and the agreement of balances process.

This page replaces the Accounts Process page. You may want to bookmark it for your convenience.

Monitor on Twitter

Monitor is keen to engage with the foundation trust sector in ways that work for the sector. One initiative is to use Twitter to share updates and encourage discussion and debate. You can now follow @Ian_Monitor for updates on foundation trust accounting.

August 2016

Month 6 agreement of balances timetable, 25 August 2016

The detailed timetable for month 6 agreement of balances exercise has now been published. As in previous years the scope of the exercise will be limited to the agreement of receivables/payables. There will not be a full FTC template to complete at month 6.

DH consultation on IFRS 9 & 15 exposure drafts, 23 August 2016

The new accounting standards ‘IFRS 9 Financial Instruments’ and ‘IFRS 15 Revenue from Contracts’ are expected to apply to the public sector from 2018/19. HM Treasury has now prepared exposure drafts on how it proposes the standards will apply to the public sector, and are consulting on these until late September.

DH will respond to the consultation and wishes to incorporate views from NHS bodies and so has prepared a consultation document for the NHS. DH wishes to take this opportunity to explore the implementation issues that will be encountered and seek views on what would be useful application guidance for the DH Group Accounting Manual. The consultation document contains links to the HM Treasury exposure drafts so please read these before responding.

Please return your response,on the pro-forma by Friday 16 September to the relevant mailbox given in paragraph 5 of the attached consultation document.

We look forward to receiving your input.

June 2016

Updated guidance for laying papers before Parliament, 1 June 2016

NHS foundation trusts are required by law to lay their accounts before Parliament. The procedural requirements are set out in annex 2 to chapter 1 of the FT Annual Reporting Manual (FT ARM). DH’s Parliamentary team has now been advised by the Journal Office of a minor change in the requirements for laying papers. We have pushed back on the lateness of this notification but we have been told that this is a change in the requirements which should be followed.

The change is that the reverse of the title page should contain some copyright text. We have updated the guidance in the FT ARM and have highlighted changes in red text. If you have any queries as a result of these updates please contact the DH Parliamentary Office using the email address provided in the guidance.

May 2016

Update to FT Annual Reporting Manual, 12 May 2016

The Department of Health has recently updated its FAQs for its Manual for Accounts. Three parts of this are also relevant for NHS foundation trusts and so we have published a short update to the FT ARM. The updates relate to:

  • a clarification on how to disclose the medical director’s remuneration in the remuneration report (no change to existing requirements)
  • a new short disclosure to add to explain the change in discount rate for CETV calculations (the update provides text to copy across)
  • an update on requirements brought in by the Modern Slavery Act (not an annual report requirement)

There are no updates relating to the accounts part of the FT ARM.

The May 2016 FT ARM update is now available.

DH Group Accounting Manual 2016/17 consultation, 11 May 2016

DH has launched a consultation on its new Group Accounting Manual (GAM) for 2016/17. This will also apply to NHS foundation trusts for 2016/17, (apart from the chapter relating to annual report requirements). NHS Improvement has issued a letter explaining the impact of this for NHS trusts and NHS foundation trusts.

NHS Pension Scheme example disclosure, 6 May 2016

Paragraph 4.56 of the FT Annual Reporting Manual refers to NHS foundation trusts including a disclosure relating to the NHS Pension Scheme in their accounts. The updated example disclosure for 2015/16 accounts is attached.

April 2016

Important FTC fixer, 18 April 2016

All NHS foundation trust finance contacts have now been provided with an important FTC fixer, which will update the version to V1.11.3A. Files submitted on Friday must have this version number. Please contact us at FT.Accounts@monitor.gov.uk if you have not received this fixer.

Organisational changes for agreement of balances, 18 April 2016

The Department of Health (DH) has published an update to provide advance information on organisational changes affecting 2016/17. These do not affect 2015/16.

The update is available here.

Year end accounts information, 18 April 2016

Over the past 2 weeks we have emailed NHS foundation trust finance contacts with DH loan statements, DH PDC statements, DH cash statements and ill health retirements figures. If you’ve not received any of these please contact us at FT.Accounts@monitor.gov.uk.

Year end supplementary DH guidance, 1 April 2016

The Department of Health (DH) has published a document which provides additional guidance for preparation of the year end accounts for DH group bodies including NHS foundation trusts.

We ask you to please pay attention to this document as part of your role in preparing accounts within the DH group. The document is available on this page.

March 2016

Month 12 agreement of balances guidance and contact list, 23 March 2016

Earlier this week DH accidentally removed the FinMan page with the month 12 agreement of balances guidance and contacts. This has been reinstated, but under a different URL to that previously provided to you – please use this updated link.

The contacts list password remains ‘MarContacts16’.

Month 12 template issue: Tab 8B (remuneration report), 23 March 2016

We are aware of some circumstances where the checks on tab 8B can report errors when they shouldn’t. This occurs in 2 scenarios:

  • when the free entry column is towards the upper end of what would be a £5,000 band
  • when all of the other columns are all at the bottom of a £5,000 band

We’ll issue a fixer to change these checks. As this is a minor issue we will wait to see if any further issues arise with the FTC rather than supply a fixer immediately.

Please continue to fill in tab 8B as normal in the interim.

Update to FT Annual Reporting Manual 2015/16, 23 March 2016

We’ve made a small number of updates to the FT ARM 2015/16. Rather than reissue the document, we’ve published a separate short document which details the changes.

Requirements for content and assurance for quality reports 2015/16

Following our consultation in February, the requirements for content and assurance for quality reports in 2015/16 have now been published. These documents contain a summary of responses to the consultation. Please pass on this information to your trust secretary and quality governance teams.

Summary of quality reports assurance 2014/15

We’ve also published a sector-wide summary of the results of quality reports assurance in 2014/15 using the auditors’ private governors’ report for each trust. This review may be of interest to your quality governance teams.

Changes to Monitor e-mail addresses

Individual Monitor email addresses are changing to nhs.net from 1 April. The FT.Accounts@monitor.gov.uk mailbox will be unaffected by these changes through the year end process. We will communicate in the future when this changes, which is likely to be in July.

Release of month 12 FTC template, 9 March 2016

We’ve released the month 12 Foundation Trust Consolidation (FTC) template today. Customised templates are now available on the inbox of each NHS foundation trust’s Monitor Portal.

This file will be submitted 3 times. The first deadline is for the submission of unaudited FTCs by Friday 22 April at 9am. Please refer to the accounts timetable letter issued in October 2015 for details of the required submissions together with the ‘Annual Reporting Manual’ for full details.

The month 12 FTC Completion Instructions should be read in conjunction with the template. This contains a full list of changes to the template since month 9 and part 2 of this document should therefore be essential reading for all foundation trusts. Section 4 contains standing guidance on key aspects of the form, with section 4.6 providing information on the Private Finance Initiative (PFI) notes.

If you identify any issues with the template, please first check this website for updates, and then notify us by email to ft.accounts@monitor.gov.uk. As usual, any minor fixers will be uploaded to this webpage, and any major fixers will be distributed by email as well as being posted on Monitor’s website.

Month 12 accounts templates, 9 March 2016

We’ve updated the 2 optional accounts templates for use by NHS foundation trusts:

  • one for preparers of group accounts
  • one preparers of trust only accounts

These templates have been provided to foundation trusts’ ‘FTC contacts’ by email and include links to the month 12 FTC form. Please ensure you read the guidance sheet contained within these templates in full before attempting to use them. This includes guidance for redirecting links to your trust’s locally saved FTC file.

The templates have been developed to assist foundation trusts in keeping abreast of changing requirements but will still require tailoring for local circumstances. The templates do not form part of Monitor’s accounts direction to foundation trusts and we have no current intention of mandating use of these templates in future periods.

Month 12 agreement of balances contact lists, 4 March 2016

DH has now posted updated contact lists for month 12 to the FinMan website. The lists contain local contact details, including telephone numbers for area teams and CSUs within NHS England. In order to access the contact list you will need to use the password ‘MarContacts16’.

These files have been password protected in response to feedback from bodies who expressed concern that public availability increases the chance of spam emails using these addresses.

Updated agreement of guidance will be issued on FinMan soon.

December 2015

Month 9 agreement of balances (AOB) guidance and contacts lists, 18 December 2015

Updated AOB guidance, contact lists, appendices and update documents for month 9 have now been posted on FinMan. These include local contact details including telephone numbers for area teams and commissioning support units (CSUs) within NHS England.

To access the contact lists please use the password ‘JanContacts16’. These files have been password protected in response to feedback from bodies who expressed concern that public availability increases the chance of spam emails using these addresses.

Release of optional 2015/16 accounts templates (indicative at month 9), 18 December 2015

We’ve developed 2 optional accounts templates to assist you with year-end planning. These were introduced for the first time last year and have been updated for 2015/16. You are not required to prepare accounts at month 9; only an FTC submission is needed.

The versions issued do not link to your FTC. At month 12 we will issue updated versions of the accounts templates including links to the month 12 FTC form. Where a cell is highlighted in pink in the template this indicates that that the narrative will link to the FTC form at month 12.

The guidance sheet contained within these templates has little relevance at month 9 as you are unable to link your month 9 FTC. However, it is important that the guidance be read in full before attempting to use the templates at month 12.

These templates are entirely optional for use. They have been developed to assist foundation trusts in keeping abreast of changing requirements but will still require tailoring for local circumstances. The templates do not form part of Monitor’s accounts direction to FTs and we have no current intention of mandating use of these templates in future periods.

We plan to continue developing these templates in future periods therefore if you have any relevant feedback, please email ft.accounts@monitor.gov.uk.

There are 2 versions available; one for preparers of group accounts and one for preparers of single entity accounts. If you have not received the templates, please email ft.accounts@monitor.gov.uk.

Discount rates, 18 December 2015

HM Treasury have issued a Public Expenditure System (PES) paper on discount rates to be used for this year’s accounts. The Department of Health has also prepared a summary document which compares these rates to those used last year.

Release of month 9 FTC template, 9 December 2015

We’ve released the month 9 FTC template and uploaded it your individual trust inboxes on the Monitor Portal. You’ll need to submit this file 3 times and the first deadline is midday on Thursday 21 January 2016. Please refer to the accounts timetable, published below on 15 October 2015 for full details of the required submissions.

The month 9 FTC template contains a number of minor changes compared to prior year. It is essential that before using this template you read the FTC completion instructions in full. Section 2 explains the key changes to the FTC and section 3 provides standing guidance on key aspects of the FTC file.

If you identify any issues with the template, please first check this website, and then notify us by email to FT.Accounts@monitor.gov.uk. As in previous years, all fixers will be uploaded to our website, and any major fixers will also be distributed by email.

Thank you again to the NHS foundation trust contacts who volunteered to test the month 9 FTC template.

Requests for information from NHS Pensions, 9 December 2015

Last year the deadline for requesting information from NHS Pensions for use in disclosures was in early to mid-January 2015. The NHS BSA website has not yet been updated with deadlines for January 2016 and so we advise you to refer to the NHS BSA website and any employer bulletins for these.

Discount rates, 9 December 2015

HM Treasury has recently published a public expenditure system (PES) paper providing notification of the discount rates to be used in valuing post-employment benefits liabilities and general provisions as at 31 March 2016. We will publish a summary of this on this web page in the coming days.

NHS foundation trust annual reporting manual 2015/16 (FT ARM), 2 December 2015

The NHS Foundation Trust Annual Reporting Manual (FT ARM) for 2015/16 has now been published. A summary of responses to the consultation and an explanation of changes made since the draft FT ARM is also available.

Thank you to all those who took the time to respond to the consultation.

November 2015

Month 9 FTC comparatives, 18 November 2015

We are finalising a test version of the month 9 FTC and plan to issue the final version of the template during the week commencing 7 December.

FTC templates will be pre-populated by default with foundation trusts’ 2014/15 comparatives. As in previous years these will not be locked and can be edited. Alternatively if a trust would like their month 9 FTC template to have no prior year comparatives pre-populated, please let us know by Friday 4 December 2015 by emailing FT.Accounts@monitor.gov.uk.

International Financial Reporting Standards (IFRS) 15 survey update, 18 November 2015

Thank you to those NHS foundation trusts who took the time to respond to our IFRS 15 survey earlier this month. We used your comments in determining the Department of Health (DH) group response to HM Treasury’s initial consultation on IFRS 15. Some of the points raised by foundation trusts are already covered in IFRS 15 or its application guidance, but we have made a note of these points to potentially cover in future guidance to the NHS when the standard applies from 2018/19. As part of the next steps for this standard, HM Treasury will prepare an exposure draft in 2016.

October 2015

Month 6 agreement of balances resubmission exercise, 26 October 2015

DH has confirmed that a resubmission will not be required on 6 November; however given the high level of mismatch, organisations are encouraged to investigate issues arising on their reports in order that mismatches can be minimised at month 9.

Agreement of balances counterparty update, 19 October 2015

We’ve been made aware that in some responses to foundation trusts’ agreement of balance statements, there have been cases of the counterparty in NHS England being identified as 13Q.

This is a new sub-body for NHS England Central Specialised Commissioning. The NHS England central team had believed that this sub-body would not be paying invoices this year but there does appear to be a low level of such transactions taking place.

For month 6 any balances with this new sub-body should be recorded against NHS England Core, CBA033. From month 9 onwards 13Q will be listed as a separate sub-body in the FTC and other forms.

Timetable for 2015/16 accounts, 15 October 2015

Monitor has worked with DH, NHS England and the NHS Trust Development Authority to develop the accounts timetable for 2015/16 and we are now in a position to publish this.

The key submissions are on similar dates to 2014/15, but adjustments have been made to allow for the timing of Easter and bank holidays to preserve the number of working days and/or calendar days between key dates as much as possible. We’ve also included more detail in this timetable letter compared to last year to include all of the submissions relating to the annual report and accounts over the year end period.

If there are any changes required to this timetable we will communicate these to you as soon as possible, and updates will also be posted to this Accounts Process page.

Survey on IFRS 15 revenue, 9 October 2015

The new revenue accounting standard, IFRS 15, will apply to the public sector from 2018/19.

Over the summer HM Treasury established a cross departmental working group to assess the adoption issues for IFRS 15 for the public sector. DH and Monitor have been part of this group and have been taking forward an assessment with HFMA of the impact on the NHS and in particular the NHS standard contract.

HM Treasury has issued a consultation to departments relating to this standard and we are keen to get your views for us to feed into this. Please see the attached letter from Keith Morton at DH and Ian Ratcliffe at Monitor, which includes survey questions on which your views are requested.

Download the Letter, Annex A and Annex B

Monitor’s response to NAO consultation on guidance for auditors’ work on use of resources

The National Audit Office (NAO) is now responsible for setting the Audit Code for local public audit (from 1 April 2015), including NHS foundation trusts.

Auditors follow this Code when performing their work and to provide further assistance the NAO will be producing a series of Auditor Guidance Notes (AGN), containing additional detail on particular topics.

The NAO consulted on a draft AGN that covers auditors’ work on value for money / use of resources arrangements. See Monitor’s response to the consultation.

September 2015

FTC data publications, 30 September 2015

NHS foundation trusts will be aware that in recent years we have published NHS foundation trusts’ accounts data on our website. This is taken from FTC submissions but is limited to the information published as part of foundation trusts’ accounts. We’ve now published data back to 2010/11, including 2009/10 comparatives.

This data and accompanying information can be found on Monitor’s website.

Injury cost recovery scheme update, 21 September 2015

DH has updates its guidance on the Injury Cost Recovery scheme. Please be aware that the Compensation Recovery Unit has advised that the percentage to use for the probability of not receiving the income is now 21.99%. This is an increase from the previous rate of 18.9%.

Month 6 Agreement of Balances contact list updated, 21 September 2015

DH has updated its agreement of balances contacts list with updated details for arm’s length bodies, special health authorities and non-departmental public bodies.

Month 6 Agreement of Balances counterparty list, 11 September 2015

The updated counterparty list of group bodies participating in the month 6 exercise is now available.

This reflects changes to the NHS England structure earlier this year. New bodies are highlighted in purple and changes to existing bodies in red text (the same convention as used in the FTC form). As part of these changes we wish to highlight that specialised commissioning hubs are now listed as separate bodies for agreement of balances.

Former area teams have moved onto new ledgers and old balances have transferred with them. Details of which old sub-bodies merged to form new sub-bodies in the revised structure are shown in the updated counterparty list.

This is largely the same for CSUs but there are some cases where there is no successor sub-body and old balances have not transferred. In these cases the old ledgers are still listed in the FTC form to allow balances to be recorded. These are not legal entities in their own right and are part of the NHS England statutory entity.

Month 6 Agreement of Balances guidance, 11 September 2015

NHS foundation trusts are reminded that providers are required to send statements directly to sub-bodies in NHS England (including CSUs) rather than centrally to NHS England.

The agreement of balances guidance document has now been updated for 2015/16 and is available on the FinMan website, alongside an update paper and updated contacts lists.

In response to feedback, all contact lists now contain consistent columns to aid local compilation and lookups.

Month 6 Agreement of Balances timetable, 3 September 2015

The detailed timetable for month 6 agreement of balances exercise has now been published. As in previous years the scope of the exercise will be limited to the agreement of receivables/payables. There will not be a full FTC template to complete at month 6.

July 2015

Letter on closure of accounts process 2014/15, 29 July 2015

Monitor wrote to all NHS foundation trusts on 29 July to provide feedback on the accounts process for 2014/15.

May 2015

NHS Pension Scheme example disclosure, 5 May 2015

Paragraph 4.65 of the FT Annual Reporting Manual refers to NHS foundation trusts including a disclosure relating to the NHS Pension Scheme in their accounts.

Read this updated example disclosure for 2014/15 accounts.

Guidance to accompany Government Banking Service (GBS) statements, 5 May 2015

Monitor distributed GBS bank confirmations to auditors on 20 April 2015.

This guidance document explains how trusts and auditors can reconcile between the cleared balance included on the auditor confirmations and the ledger balance shown on the trust’s Bankline statement.

April 2015

Clinical commissioning group and commissioning support unit changes, 16 April 2015

NHS England has provided details of 1 clinical commissioning group (CCG) merger and a number of commissioning support unit (CSU) mergers taking effect from 1 April.

See NHS England’s list containing details of the changes. NHS England has also provided a mapping of the CSU mergers.

Paragraph 6.12 of the FT Annual Reporting Manual (FT ARM) provides a list to be considered related parties of an NHS foundation trust. To support this, a list of related parties of ministers and senior managers at DH is provided below, this is in addition to other group bodies and local related parties:

  • Age UK
  • British Telecom
  • Cambridge University
  • Cumberland Lodge
  • London School of Economics
  • Medical Research Council
  • National Society for Epilepsy
  • Whitehall and Industry Group
  • Medicines and Healthcare products Regulatory Agency

For listings of other bodies (such as NHS trusts), an up-to-date listing is provided in the month 12 FTC file.

NHS England structure changes from 1 April 2015 update, 2 April 2015

NHS England or NHS Shared Business Services should now have written to all NHS providers providing more details of the NHS England structure changes and some practical steps to be taken.

For reference, please see the template letter. The NHS England organisation changes shown in Appendix 1 can be seen in detail on the HSCIC website.

If you have any generic supplier queries please contact SBS-W.Payables@nhs.net. Alternatively for queries specific to intra NHS accounting issues with NHS England sub-bodies please contact agreementofbalances.cba@nhs.net.

March 2015

Changes to NHS England structure from 1 April, 24 March 2015

From 1 April there will be some changes to the way that NHS England is structured. This will involve current area teams being integrated into the existing regional structures to form a single regional tier.

The Organisation Data Service (ODS) has liaised with NHS England to compile the details of the integration, including mappings from the outgoing Area Teams to the new regions, and old and new Organisation identifiers.

Further details on these changes can be found on the HSCIC website.

FTC file: automatic/manual formulas, 16 March 2015

If you experience an issue with the FTC file not updating formulas or feeds between tabs appearing not to work, please check that Excel isn’t set to apply manual formula updating to the file. This appears to be the case for a small number of foundation trusts, for reasons we cannot currently ascertain.

All you need to do is change your excel settings by going to ‘File’ -> ‘Options’ -> ‘Formulas’ and selecting ‘automatic’ under the workbook calculation options.

Publication of updated 2014/15 FT Annual Reporting Manual (FT ARM), 10 March 2015

Monitor has now published an updated FT Annual Reporting Manual for 2014/15. The update contains minor changes and clarifications. The updated manual and a full listing of updates can be found on NHS foundation trusts: annual reporting manual 2014/15.

February 2015

Quality reports: content and assurance requirements for 2014/15, 25 February 2015

We have published our requirements for foundation trusts’ 2014/15 quality reports. The changes from the 2013/14 arrangements are minor and can be found in the section ‘Statement of Directors’ Responsibilities’. We have also clarified that the disclosure of referral to treatment performance indicators in the quality report should be based on the average for the year.

We have also published guidance for NHS foundation trusts and their auditors on how external assurance should be provided on the quality reports. Section 1.3 of the guidance explains the major changes compared to 2013/14.

QAD review of 2013/14 foundation trust audits, 25 February 2015

Monitor commissioned the quality assurance department (QAD) of the Institute of Chartered Accountants of England and Wales to review the work of selected NHS foundation trust auditors.

The aim of these reviews is to assure Monitor that the audits were performed in accordance with auditing standards and Monitor’s Audit Code.

The work is performed on a sample basis: 9 audits were reviewed for the 2013/14 financial year - this reportprovides an anonymised summary of the QAD’s findings.

December 2014

Discount rates, 4 December 2014

HM Treasury has recently published a PES (public expenditure system) paper providing notification of the discount rates to be used in valuing post employment benefits liabilities and general provisions as at 31 March 2015. These are referred to in paragraph 5.59 of the 2014/15 FT ARM.

A public version of this paper is attached for your reference. NHS foundation trusts should ignore references in these papers to Departments returning their estimates to Treasury: these do not apply to NHS foundation trusts at a local level.

In summary the key points are:

General provisions

Timing of Cash Flows Real Rate
0 to 5 years inclusive Minus 1.5% (previous rate: -1.90%)
6 to 10 years inclusive Minus 1.05% (previous rate -0.65%)
Over 10 years Plus 2.20% (unchanged)

Post-employment benefits provisions

The real discount rate applicable on 31 March 2015 is 1.30% (the previous year’s rate was 1.80%). The rate is applicable for all provisions arising from continuing obligations arising from previous employment service.

May 2014

Update on VAT on invoices from NHS Property Services, 6 May 2014

Following queries received regarding VAT on invoices from NHS Property Services (NHSPS), DH has provided the following note.

The key principles are:

  • VAT is only charged where it legally has to be. In most cases it is only charged where the services supplied are not related to the supply of buildings. (PFI and Local Improvement Finance Trust (LIFT) are different)
  • No additional VAT burden should be placed on the NHS, so any VAT charged where it wasn’t before should be recoverable under contracted out services (COS) rules
  • Any truly new VAT should be suffered by the company and not passed on to tenants. This is relevant to NHSPS only, and has been funded by DH.

So from the point of view of the tenant, they may find that an invoice contains VAT when it didn’t previously, but we believe that the VAT should be recoverable by the organisation (provided they are s41 bodies) under COS.

Due to the complexity of individual entities’ tax affairs, detailed individual guidance has not been issued to tenants/customers and this is the responsibility of each individual organisation.

If you have any further queries please contact your trust’s VAT contact or NHS Property Services.

January 2014

NEST pensions, 31 January 2014

At a recent HFMA event in Leeds, questions arose regarding the accounting treatment of the National Employment Savings Scheme (NEST).

NEST is a defined contribution pension scheme that was created as part of the government’s workplace pensions reforms under the Pensions Act 2008. As a defined contribution scheme, NHS foundation trusts should make disclosures in their accounts as required by paragraph 50 onwards of IAS 19.

FTs are reminded that FTC tab 34 is only for defined benefit pension schemes that are accounted for as such. Therefore for the NEST scheme, assets and liabilities should not be recorded within your statement of financial position, and FTC tab 34 should not be completed for this scheme.

December 2013

NHS TDA guidance on consolidation of charities, 13 December 2013

The NHS Trust Development Authority has issued guidance to NHS trusts on materiality considerations for the consolidation of NHS charitable funds.

While this is not formal Monitor guidance, NHS foundation trusts may find the contents of this document helpful to form a basis for conversations with their auditor.

November 2013

Non-contract activity for Northern Ireland, 6 November 2013

Please see the attached letter providing information to NHS foundation trusts which advises of a change in invoicing arrangements for non-contract activity invoices for patients from Northern Ireland and highlights the criteria under which the Health and Social Care Board will be responsible for payment for treatment.

Any queries should be addressed to the Health and Social Care Board directly.