Health and social care integration: finance guidance

Section F Summary of Substantive Changes from First Version

The key changes to the first version of IRAG Guidance are as follows:

Section A Executive Summary

Section 2.2.4: amended to include reference to the Annual Governance Statement.

Section 2.3.3: amended to emphasise the need for due diligence.

Section 3.4: amended to include reference to VAT worked examples.

Section A Introduction

A3 Status

Sections 3.01 & 3.02: amended to clarify statutory guidance.

Section B Integration Joint Board

B1 Introduction

Sections 1.1.1 &1.1.4-1.1.6: to include a section on the Annual Financial Statement and finance provisions of the Annual Performance Report.

B2 Assurance and Governance.

Sections 2.2.3: the risk management section updated to reflect regulations.

Section 2.3.2: update to the insurance section.

Section 2.7.2 amended to clarify the "following the public pound".

Section 2.4.2.1,2.4.4, 2.4.5, 2.4.6 and 2.4.11: amended to reflect advice from Scottish Local Authority Chief Internal Auditors Group (SLACIAG) on the internal audit arrangements..

B3 Financial reporting

Sections 3.1.1.5-3.1.1.8: amended to include detail on the Accounts Timetable.

Section 3.1.1.9: to amended to note that future guidance on the management commentary may be issued by Local Government finance in SG.

Section 3.1.1.15: amended to note that advice on the financial statements may be issued by LASAAC in due course.

Sections 3.1.1.16-3.1.1.18: amended to clarify the requirement for accounts in the first year.

Sections 3.1.2.1-3.1.2.5: guidance on reporting in the Health Board and Local Authority accounts amended to reflect advice from a short life working group drawn from Local Authority Accounts Scotland Advisory Committee (LASAAC) and NHS Technical Accounting group (TAG) (included in full at Section D).

Sections 3.1.2.6-3.1.2.9: guidance on group accounts amended to reflect advice from LASAAC/TAG short life working group.

Sections 3.3.1 & 3.3.2: guidance on Whole of Government accounts updated for provisional classification.

B4 Financial planning and management

Sections 4.2.3-4.2.6: guidance on determining the initial payment amended to include material from, and reference, the financial assurance guidance.

Section 4.4: this whole section has been replaced by material from the "financial planning for large hospitals" joint guidance.

B5 VAT

Section 5.1.2: amended to include VAT treatment in cases where the Integration Joint Board directs the Health Board to provide social care services; and vice versa for the Local Authority.

Sections 5.1.5-5.1.7: updated to reflect agreement with HMRC on VAT treatment of Integration Joint Board if it is empowered to provide services.

Section 5.2: a new section with advice for VAT treatment of support services provided to the Integration joint Board.

Section 5.3.2: updated to include VAT treatment on capital expenditure should Integration Joint Board be empowered to provide services.

B7 Accounting Standards

Sections 7.1 & 7.2 amended to update the position on Accounting Standards.

Section C Lead Agency

C1 Introduction

Section 1.01 and 1.02: amended to reflect the role of the Integration Joint Monitoring Committee.

Sections 1.11-1.115: amended to include a section on the Annual Financial Statement and finance provisions of the Annual Performance Report.

Section 1.3.0.1 amended to clarify host partner role in financial governance.

C2 Assurance and Governance.

Section 2.1.1.4: amended to reflect regulations on membership of the Integration Joint Monitoring Committee.

Section 2.2.3 risk management section update to reflect regulations.

Sections 2.3.1, 2.3.2 & 2.3.4: amended to update the Insurance section.

Section 2.4.1: amended to clarify the role of host partner internal audit arrangements for delegated resources.

C4 Financial planning and management

Section 4.1.1: amended to refer to Strategic Planning guidance.

Section 4.2.2: amended to clarify that hospital services are conjunction functions where the Health Board is the host partner.

Sections 4.2.3-4.2.6: guidance on determining the initial payment amended to include material from, and to reference, the financial assurance guidance.

Section 4.4: this whole section has been replaced by material from the "financial planning for large hospitals" joint guidance.

C5 VAT

Sections 5.1.0.1-5.1.0.3: amended to clarify final agreement with HMRC on VAT treatment for lead agency arrangements, including worked examples.

Sections 5.1.1.7 and 5.1.1.8: updated to include final agreement with HMRC for the VAT treatment where the Local Authority is the host partner.

Section 5.3: a new section with worked examples for the lead agency VAT treatment.

Section D LASAAC/TAG guidance

To include advice in full.

Section E Where to get help

Section 1: updated for HSCDIIP contacts.

Section 2: amended for contact details for finance team learning and development.

Section 4: amended to include details of on-line facility for integration finance leads.