Annual Report and Accounts - The Great Western Hospital

Great Western Hospitals NHS Foundation Trust
Accounts for the year ended 31 March 2012
ACCOUNTING POLICIES
1
Basis of Preparation
Monitor has directed that the financial statements of NHS Foundation Trusts shall meet the accounting requirements of the NHS Foundation
Trust Annual Reporting Manual which shall be agreed with HM Treasury. Consequently, the following financial statements have been prepared
in accordance with the FT ARM 2011/12 issued by Monitor. The accounting policies contained in that manual follow International Financial
Reporting Standards (IFRS) and HM Treasury's Financial Reporting Manual to the extent that they are meaningful and appropriate to NHS
Foundation Trusts. The accounting policies have been applied consistently in dealing with items considered in relation to the accounts.
1.1
1.1.1
1.1.2
Accounting Convention
These accounts have been prepared under the historical cost convention, on a going concern basis modified to account for the revaluation of
property, plant and equipment, intangible assets, inventories and certain financial assets and financial liabilities.
Subsidiaries
Subsidiary entities are those over which the Trust has the power to exercise control or a dominant influence so as to gain economic or other
benefits. The income, expenses, assets, liabilities, equity and reserves of subsidiaries are consolidated in full into the appropriate financial
statement lines. The capital and reserves attributable to minority interests are included as a separate item in the Statement of Financial
Position.
Until 31st March 2013, NHS Charitable Funds considered to be subsidiaries are excluded from consolidation in accordance with the
accounting direction issued by Monitor.
TCS Merger Note
The Trust acquired the contract to run Wiltshire Community Health Services (WCHS) from NHS Wiltshire with effect from 1st June 2011. This
is operated under two commissioning contracts - one for Adult and Community Services and one for Maternity Services.
The Foundation Trust Annual Reporting Manual requires that all transfers of functions between public sector bodies will be accounted for using
full merger accounting. As a result a full 12 months of WCHS has been included within the SOCI. The Department of Health has considerd it
impracticable to restate the comparative information.
The Department of Health does not require Trusts to include prior year comparators for transfers under TCS (Transferring Community Services)
and the amendments to the 2011/12 Opening Balances are shown by an adjustment to 1 April 2011 opening balances in the line 'Adjustment
for transfer of functions' The following current and non-current assets were transferred to the Trust at book value, which also reflects their fair
value, are included in the opening balances.
Non-Curent Assets
Current Assets
Non-current liabilities
Current liabilities
At 1 April
2011
£'000
At 1 June 2011
£'000
0 0
1,492 0
0 0
(1,492) 94
It should be noted that the information in the annual accounts includes 12 months results for WCHS, even though it was only unde the
Operational management of the Trust for 10 months of the year. The actual value of the contract from the date of transfer (1st June 2011) for
2011/12 is £66.2m.
The current year reported results of the Trust can be analysed as follows:
1 April 2011- 31 May 2011
Great Western
Hospitals NHS
FoundationTrust
Wiltshire
Community
Health Services
1 June - 31
March 2012
Total
Combined
Organisation
Total for the
Year
1.2
Operating Income
Operating Expenses
Finance Costs
Surplus/Deficit for the period
Other Comprehensive Income
£'000 £'000 £'000 £'000
33,854 12,964 243,657 290,475
(31,397) (12,954) (230,923) (275,274)
(2,442) 0 (12,223) (14,665)
15 10 511 536
Total comprehensive income for the
15 10 511 536
period
Income
Income in respect of services provided is recognised when, and to the extent that, performance occurs, and is measured at the fair value of the
consideration receivable. The main source of income for the Trust is contracts with commissioners in respect of healthcare services.
-
1.3
1.3.1
Income relating to patient care spells that are part-completed at the year end are apportioned across the financial years on the basis of length
of stay at the end of the reporting period compared to expected total length of stay.
Where income is received for a specific activity which is to be delivered in the following financial year, that income is deferred.
Expenditure on Employee Benefits
Short term Employee Benefits
Salaries, wages and employment-related payments are recognised in the period in which the service is received from the employees. The
cost of annual leave entitlement earned but not taken by employees at the end of the period is recognised in the financial statements to the
extent that the employees are permitted to carry forward leave into the following period.
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