Health and social care integration: finance guidance

Appendix 1 Illustrative Integration Joint Board Annual Accounts

All figures and text are for illustrative purposes only

MANAGEMENT COMMENTARY

1 Purpose and objectives

Integration Joint Board was established as a body corporate by order of Scottish Ministers…………….

Its purpose is to ……………………………………refer to the Integration Scheme for detail

Objective is to ………………………………………..refer to the Strategic Plan for detail

2 Financial review

High level review of financial outcome and any issues ……….reference to financial element of Strategic Plan, forward plans to address any issues arising.

3 Operational review

Highlights of the outcomes achieved in the year ……….refer to the performance report for more information

Chief Officer
Date

Chair
Date

Financial Officer
Date

STATEMENT OF RESPONSIBILITIES FOR THE STATEMENTS OF ACCOUNT

The Integration Joint Board is required:

• To make arrangements for the proper administration of its financial affairs and to secure that it has an officer responsible for the administration of those affairs. In this Integration Joint Board, that officer is the………………….;
• To manage its affairs to achieve best value in the use of its resources and safeguard its assets; and
• To approve the statement of accounts

Responsibilities of the financial officer

As financial officer I am responsible for the preparation of the Integration Joint Board's statement of accounts which, in terms of the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom ("the Code of Practice"), is required to give a true and fair view of the financial position of the Integration Joint Board at the financial year end and its income and expenditure for the year then ended.

In preparing the financial statements I am responsible for:

• Selecting suitable accounting policies and applying them consistently;
• Making judgements and estimates that are reasonable and prudent;
• Complying with the Code of Practice .

I am also required to:

• Keep proper accounting records which are up to date; and
• Take reasonable steps to ensure the propriety and regularity of the finances of the Integration Joint Board;

Statement of Accounts

The Statement of Accounts presents a true and fair view of the financial position of the xxxxxxxx Integration Joint Board as at 31 March 20xx, and its income and expenditure for the year then ended.

Financial Officer
Date

REMUNERATION REPORT

1 Integration Joint Board

The members of the Integration Joint Board are appointed by…….

2 Senior officers

The Chief Officer is appointed by the Integration Joint Board on consultation with the Health Board and Local Authority. The Chief Officer is employed by x…….and seconded to the Integration Joint Board. The financial officer is appointed by the Integration Joint Board and is ……………..per the local arrangements.

3 Remuneration policy

The board members are …………whatever the arrangement is for the board members re expenses etc..

The remuneration of the senior officer is set by ………………………………

4 Remuneration

The board members and senior officers received the following remuneration in the year:

			2016-17	2015-16
	Salary, fees and allowances	Taxable expenses	Total remuneration	Total remuneration
	£	£	£	£
A Another	Bands of £5k	Actual

5 Pension benefits

The senior officers are members of…………which is a …………..

Costs of the pension scheme contributions for the year to 31 March 2017 are shown in the table below:

	To 31 March 2017	To 31 March 2016
A Another	£	£
In-year pension contributions
Accrued pension benefits
Movement in accrued pension benefits

The information sections ………..is subject to the audit.

Chief Officer
Date

Chair
Date

ANNUAL GOVERNANCE STATEMENT

Scope of Responsibility

The Integration Joint Board is responsible for ensuring that its business is conducted in accordance with the law and appropriate standards, safeguarding public funds and assets and making arrangements to secure best value in their use.

In discharging this responsibility, the Chief Officer has put in place arrangements for governance which includes the system of internal control. This is designed to manage risk to a reasonable level, but cannot eliminate the risk to failure to achieve policies, aims and objectives and can therefore only provide reasonable but not absolute assurance of effectiveness.

Governance framework

The system of internal control is based on a framework of……………..description of the governance framework to include:

• Membership of the Integration Joint Board, committees (if relevant), and their role
• Management information
• Internal and external audit scrutiny
• Sources of reliance
• System of risk management

Review of Effectiveness

We have responsibility for reviewing the effectiveness of the governance arrangements including the system of internal control. Review to cover relevant areas as set out in the CIPFA guidance Good Governance Framework in Local Government.

Our review is informed by………..as per local arrangements and may include:

• Assurance from the Integration Joint Board financial officer on financial matters
• Assurance from partner Health Board and Local Authority
• Internal and external audit reports
• Scrutiny by Integration Joint Board/committee through meetings

Description of any issues from the review and action taken.

Certification

It is our opinion that reasonable assurance, subject to the matters noted above, can be placed upon the adequacy and effectiveness of the xxx Integration Joint Board's systems of governance.

Chief Officer
Date

Chair
Date

STATEMENT OF INCOME AND EXPENDITURE

2015-16				2016-17
Gross expenditure	Gross income	Net		Gross expenditure	Gross income	Net
£000	£000	£000		£000	£000	£000
109,950	(109,950)	0	Health and social care	109,900	(109,950)	(50)
50	(50)	0	Corporate services	50	(50)	0
110,000	(110,000)	0	(Surplus)/deficit on provision of services	109,900	(110,000)	(50)
110,000	(110,000)	0	Net income and expenditure	109,900	(110,000)	(50)

BALANCE SHEET

	Notes	31 March 2017	31 March 2016
		£000	£000
Current assets
Short term debtors	3	60	10
Current liabilities
Short term creditors	4	(10)	(10)
Net assets		0	0
Usable reserves	5	50	0
Unusable reserves
Total reserves		50	0

The Statement of Accounts present a true and fair view of the financial position of the Integration Joint Board as at 31 March 20xx and its income and expenditure for the year then ended.

The unaudited financial statements were authorised for issue on ww June 2017 and the audited financial statements were authorised for issue on vv September 2017

Financial Officer
Date

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting policies

1.1 General principles

The financial statements summarise the transaction of the Integration Joint Board for the 20yy-zz financial year and its position at the year end. The Integration Joint Board is required to prepare annual financial statements by the ……………………………….and section……of the………regulations

The financial statements are prepared under the historical cost convention as modified for the valuation of certain assets.

1.2 Accruals of income and expenditure

Activity is accounted for in the year that it takes place, not simply when the payments are made or received.

1.3 VAT status

The Integration Joint Board is a non-taxable person and does not charge or recover VAT on its functions.

1.4 Provisions, contingent liabilities and assets

1.5 Events after the reporting period

Events occurring after the………………………………

1.6 Debtors and creditors

1.7 Reserves

The reserves are………………………………….

2 Related party transactions

The xxx Integration Joint Board was established……. as a ….between………………. In the year the following financial transactions were made with the xxx Health Board and yyy Local Authority relating to integrated health and social care functions:

Income - payments for integrated functions

	2016-17	2015-16
	£000	£000
NHS Board	60,000	60,000
Local Authority	50,000	50,000
Total	110,000	110,000

Expenditure - payments for delivery of integrated functions

	31 March 2017	31 March 2016
	£000	£000
NHS Board	59,950	60,000
Local Authority	50,000	50,000
Total	109,950	110,000

A further £40 million of budget for certain hospital services were ………… refer to being part of integration arrangements and the Strategic Plan.

3 Corporate expenditure

	31 March 2017	31 March 2016
	£000	£000
Staff costs	45	45
Administrative costs
Audit fees	5	5
Total	50	50

4 Short Term Debtors

	31 March 2017	31 March 2016
	£000	£000
Central government bodies	50	0
Other local authorities	10	10
Total	60	10

5 Short Term Creditors

	31 March 2017	31 March 2016
	£000	£000
Central government bodies	0	5
Other local authorities	10	5
Total	10	10

6 Movement in reserves

Usable reserves - general fund	31 March 2017	31 March 2016
	£000	£000
Balance at 31 March brought forward	0	0
Surplus/(deficit) on provision of services	50	0
Other comprehensive expenditure and income	0	0
Total comprehensive expenditure and income	50	0
Balance at 31 March carried forward	50	0

7 Post balance sheet events

8 Contingent liabilities