Board paper cover sheet - NHS Ayrshire and Arran.

NHS Board Meeting23 June 2010 Paper 5for PPRS. General dental services expenditure has risen by £3.7 million which maybe due to free check ups.3. Balance sheet3.1 Despite the completion of the £19 million Girvan Community Hospital, fixed assetshave reduced in value from £327 million at 31 March 2009 to £316.5 million at 31March 2010. A revaluation of the whole estate at 31 March 2010 saw a significantdownward movement due to the current economic climate, mostly adjusted throughthe revaluation reserve.3.2 Payments due to primary care contractors for family health services andprescriptions, which are paid around one month in arrears, result in a £17 millioncreditor at the year end. Total creditors due within one year amount to £61 million,which is about £6 million less than last year due to the Agenda for Change accrualbeing much lower. Because no debtor is shown for SGHD funding to coverpayments due to primary care contractors etc there are negative net currentassets/liabilities shown on the balance sheet. In addition, creditors due after morethan one year include £27.5 million related to Private Finance Initiative (PFI)hospitals.3.3 Note 17 to the accounts shows provisions and there is an increase of over £1 millionrelated to injury benefits and the clinical negligence increase is over £8 million dueto a number of high value cases. The impact of the latter is largely offset throughrecovery from Clinical Negligence and Other Risks Indemnity Scheme (CNORIS)and there is a corresponding debtor of £14.4 million in Note 13 to the accounts.3.4 Equal pay claims are shown as a contingent liability in Note 19 to the accounts asany liability cannot be quantified.4. Signing of statements4.1 The chief executive is required to sign the Directors’ Report, Statement ofAccountable Officer’s Responsibilities and Statement on Internal Control. Thedirector of finance and chairman would sign the Statement of Health BoardMembers’ Responsibilities in respect of the accounts.4.2 The signatures of the director of finance and chief executive are required on thebalance sheet and SFR 19.0 (patients’ private funds).5. Audit5.1 KPMG LLP (our external auditor) has completed its audit of the annual accounts andhas reported to the Audit Committee that the accounts are true and fair and that theywill issue a “clean” audit certificate.5.2 The audit fee for 2009/10 audit was £266,980. This is an increase of over 7% andreflects additional audit work around implementation of International FinancialReporting Standards (IFRS).Page 2 of 136