AH ANNUAL REPORT 2018

Recommendations

Info

NOTES TO THE ACCOUNTS 1. ACCOUNTING POLICIES AND OTHER INFORMATION 1.1 Basis of Preparation NHS Improvement, in exercising the statutory functions conferred on Monitor, has directed that the financial statements of the trust shall meet the accounting requirements of the Department of Health and Social Care Group Accounting Manual (GAM), which shall be agreed with HM Treasury. Consequently, the following financial statements have been prepared in accordance with the GAM 2017/18 issued by the Department of Health and Social Care. The accounting policies contained in the GAM follow International Financial Reporting Standards to the extent that they are meaningful and appropriate to the NHS, as determined by HM Treasury, which is advised by the Financial Reporting Advisory Board. Where the GAM permits a choice of accounting policy, the accounting policy that is judged to be most appropriate to the particular circumstances of the trust for the purpose of giving a true and fair view has been selected. The particular policies adopted are described below. These have been applied consistently in dealing with items considered material in relation to accounts. 1.1.1 Accounting Convention These accounts have been prepared under the historical cost convention modified to account for the revaluation of property, plant and equipment, intangible assets, inventories and certain financial assets and financial liabilities. 1.1.2 Going Concern These accounts have been prepared on a going concern basis. The trust is planning to be financially sustainable over the next five year NHS planning horizon. The trust is planning a trading surplus of £4.4m in 2018/19. 1.2 Critical Accounting Judgements and Key Sources of Estimation Uncertainty In application of the trust’s accounting policies, management is required to make judgements, estimates and assumptions. These are regularly reviewed. The following are the critical judgements that management have made in the process of applying the trust’s accounting policies, together with the key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year. Asset Valuation and Lives The value and remaining useful lives of land and buildings have been estimated by Cushman & Wakefield. The valuations are carried out in accordance with the Royal Institute of Chartered Surveyors (RICS) Valuation Standards. The valuations for land and buildings were carried out during 2017/18 and were applied to the 31 March 2018 land and buildings values. Asset values have been uplifted to reflect latest BCIS “All in” Tender Price Indices. Valuations are carried out using the Modern Equivalent Asset basis to determine the Depreciated Replacement Cost for specialised operational property and Existing Use Value for nonspecialised operational property. The value of the retained land and buildings at 31 March 2018 reflect that most of the hospital buildings are in the process of being demolished. The lives of equipment assets are estimated using historical experience of similar equipment lives with reference to national guidance and consideration of the pace of technological change. Operational equipment is carried at current value. Where assets are of low value and/or have short useful economic lives, these are carried at depreciated historical cost as this is not considered to be materially different from fair value. Software licences are depreciated over the shorter of the term of the license and the useful economic life. Provisions Pensions provisions relating to former employees, including Directors, have been estimated using the life expectancy from the Government’s actuarial tables. Other legal claims provisions relate to employer and public liability claims and expected costs are advised by NHS Resolution. Provision for Impairment of Receivables A provision for the impairment of receivables has been made for amounts which are uncertain to be received from organisations at 31 March 2018. The provision is £ 1,238,000 (31 March 2017: £996,000) and includes a provision of £318,000 (31 March 2017: £389,000) against the Injury Costs Recovery debt. The recoverability of the Injury Costs Recovery debt has been assessed and the trust has fully provided for incidents that are over 10 years old. The balance of the Injury Costs Recovery Scheme debt has been provided Alder Hey Children’s NHS Foundation Trust 162 Annual Report & Accounts 2017/18
for at 10% (31 March 2017: 15%) to reflect recoverability of more recent incidents. Holiday Pay Accrual The accrual for outstanding leave has been calculated on an actual basis. The amount of outstanding annual leave as at 31 March has been requested from all managers from across the trust. The accrual is calculated based on the returns from those managers. The trust’s annual leave policy clearly states that annual leave is expected to be taken in the year it relates to and only carried forward on exceptional basis and with agreement from managers. 1.3 Interests in Other Entities Joint Arrangements Arrangements over which the trust has joint control with one or more other entities are classified as joint arrangements. Joint control is the contractually agreed sharing of control of an arrangement. A joint arrangement is either a joint operation or a joint venture. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint ventures are recognised as an investment and accounted for using the equity method. The trust has entered into a joint venture with Alder Hey Children’s Charity for the development of patient experience. The transactions are not significant in 2017/18. 1.4 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 health care services. At the year end, the trust accrues income relating to activity delivered in that year, where a patient care spell is incomplete. Where income is received for a specific activity which is to be delivered in a subsequent financial year, that income is deferred. Income from the sale of non-current assets is recognised only when all material conditions of sale have been met, and is measured as the sums due under the sale contract. The trust receives income under the NHS Injury Cost Recovery Scheme, designed to reclaim the cost of treating injured individuals to whom personal injury compensation has subsequently been paid, for instance by an insurer. The trust recognises the income when it receives notification from the Department of Works and Pensions Compensation Recovery Unit that the individual has lodged a compensation claim. The income is measured at the agreed tariff for the treatments provided to the injured individual, less a provision for unsuccessful claims and doubtful debts. Revenue Grants and Other Contributions to Expenditure Government grants are grants from government bodies other than income from commissioners or trusts for the provision of services. Where a grant is used to fund revenue expenditure it is taken to the Statement of Comprehensive Income to match that expenditure. The value of the benefit received when accessing funds from the Government’s apprenticeship service is recognised as income at the point of receipt of the training service. Where these funds are paid directly to an accredited training provider, the corresponding notional expense is also recognised at the point of recognition for the benefit. 1.5 Expenditure on Employee Benefits Short-Term Employee Benefits Salaries, wages and employment-related payments such as social security costs and the apprenticeship levy are recognised in the period in which the service is received from 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 employees are permitted to carry-forward leave into the following period. Pension Costs NHS Pension Scheme Past and present employees are covered by the provisions of the NHS Pension Scheme. The scheme is an unfunded, defined benefit scheme that covers NHS employers, general practices and other bodies, allowed under the direction of Secretary of State, in England and Wales. The scheme is not designed in a way that would enable employers to identify their share of the underlying scheme assets and liabilities. Therefore, the schemes are accounted for as though they are defined contribution schemes. Employer’s pension cost contributions are charged to operating expenses as and when they become due. Additional pension liabilities arising from early retirements are not funded by the scheme except where the retirement is due to ill-health. The full amount of the liability for the additional costs is charged to the operating expenses at the time the trust commits itself to the retirement, regardless of the method of payment. Alder Hey Children’s NHS Foundation Trust 163 Annual Report & Accounts 2017/18
Page 1:
A E H E LD Y R ANNUAL REPORT & ACCO
Page 4 and 5:
©2018 Alder Hey Children’s NHS F
Page 6 and 7:
A MESSAGE FROM OUR CHAIR AND CHIEF
Page 8 and 9:
PERFORMANCE REPORT OVERVIEW The fol
Page 10 and 11:
Teenage Cancer Trust Honorary Patro
Page 12 and 13:
OUR CQC RATINGS The Trust’s curre
Page 14 and 15:
• Applied clinical research perfo
Page 16 and 17:
The Trust’s performance against n
Page 18 and 19:
‘Alder Play’ A new approach to
Page 20 and 21:
KEY RISKS TO DELIVERY IN 2017/18 Th
Page 22 and 23:
Regulatory Ratings NHS Improvement
Page 24 and 25:
Expenditure Operating expenses tota
Page 26 and 27:
ALDER HEY USES MRI/ CT DATA TO CREA
Page 28 and 29:
Louise Shepherd CBE - Chief Executi
Page 30 and 31:
Mags Barnaby - Interim Chief Operat
Page 32 and 33:
NHS IMPROVEMENT’S WELL LED FRAMEW
Page 34 and 35:
Clinical Educators The Trust has ag
Page 36 and 37:
All complainants are offered the op
Page 38 and 39:
have resulted in Memoranda of Under
Page 40 and 41:
The Community Cluster Developed wit
Page 42 and 43:
Alder Hey’s collaborative campaig
Page 44 and 45:
accordance with Non-Executive remun
Page 46 and 47:
(R) Indicates that the individual i
Page 48 and 49:
SALARY AND PENSION ENTITLEMENTS OF
Page 50 and 51:
STAFF REPORT Analysis of Trust staf
Page 52 and 53:
approach to internal materials and
Page 54 and 55:
EXIT PACKAGES 2016/17 Exit Package
Page 56 and 57:
As in 2016, we surveyed all staff i
Page 58 and 59:
NHS FOUNDATION TRUST CODE OF GOVERN
Page 60 and 61:
Governor Constituency Class Term of
Page 62 and 63:
Throughout our membership activitie
Page 64 and 65:
Attendance at Board of Directors an
Page 66 and 67:
External Audit In April 2017 new re
Page 68 and 69:
Segmentation Alder Hey has been pla
Page 70 and 71:
STATEMENT OF THE CHIEF EXECUTIVE’
Page 72 and 73:
During the year the Trust sustained
Page 74 and 75:
The Divisions report against CQC Fu
Page 76 and 77:
organisation’s ability to continu
Page 78 and 79:
Nursing, Deputy Director of Nursing
Page 80 and 81:
THE YOUNG PEOPLE’S CANCER UNIT RE
Page 82 and 83:
PART 2: PRIORITIES FOR IMPROVEMENT
Page 84 and 85:
2.1.2 Quality Improvements in 2017/
Page 86 and 87:
National Confidential Enquiries Par
Page 88 and 89:
2.2.4 Actions arising from Local Cl
Page 90 and 91:
Local Audit Retrospective Audit of
Page 92 and 93:
Local Audit How often are high ferr
Page 94 and 95:
Local Audit Emollient and bath pack
Page 96 and 97:
Local Audit Has the introduction of
Page 98 and 99:
The Quality Account deals with rese
Page 100 and 101:
Indicator Indicator Description Tar
Page 102 and 103:
• A Data Quality dashboard is emb
Page 104 and 105:
in improved ward to board reporting
Page 106 and 107:
Clinical Incidents Reported 2013/14
Page 108 and 109:
Reducing Hospital Acquired Infectio
Page 110 and 111:
3.3.2 PRIORITY 2 - Increase Engagem
Page 112 and 113: Are you: 95 17% 8 1% Parent/Carer P
Page 114 and 115: • Improved the quality of room bo
Page 116 and 117: When a child has an asthma attack t
Page 118 and 119: The awards and review schedule is h
Page 120 and 121: F. The Alder Play App Aims: • To
Page 122 and 123: Developing a System of 7 Day Workin
Page 124 and 125: of staff and governors, assess each
Page 126 and 127: • Working with external organisat
Page 128 and 129: the Tate Exchange programme during
Page 130 and 131: experience. Medication errors are t
Page 132 and 133: • To complete and roll out the ne
Page 134 and 135: 3.3.8 Peri-operative Care The focus
Page 136 and 137: 3.3.9 Best in Operative Care The Be
Page 138 and 139: Improvements: • Increased the Bla
Page 140 and 141: and continues to work towards findi
Page 142 and 143: In November 2017, the National Qual
Page 144 and 145: 3.3.14 Management of Complaints and
Page 146 and 147: Target or Indicator (per 2013/14 Ri
Page 148 and 149: I would recommend the Trust’s app
Page 150 and 151: Commentary from Clinical Commission
Page 152 and 153: STATEMENT OF DIRECTORS’ RESPONSIB
Page 154 and 155: • feedback from local Healthwatch
Page 156 and 157: AN EVENING CELEBRATING THE PASSION,
Page 158 and 159: STATEMENT OF COMPREHENSIVE INCOME N
Page 160 and 161: STATEMENT OF CHANGES IN EQUITY FOR
Page 164 and 165: 1.6 Expenditure on Other Goods and
Page 166 and 167: of Financial Position’ by the tru
Page 168 and 169: through the expected life of the fi
Page 170 and 171: Exchange gains or losses on monetar
Page 172 and 173: 3.3 Overseas Visitors (Relating to
Page 174 and 175: 5.1 Operating Expenses 2017/18 £00
Page 176 and 177: 7.1 Retirements Due to Ill-Health D
Page 178 and 179: 11. FINANCE EXPENDITURE Finance exp
Page 180 and 181: 15. PROPERTY, PLANT AND EQUIPMENT 1
Page 182 and 183: 15.3 Property, Plant and Equipment
Page 184 and 185: 20. TRADE RECEIVABLES AND OTHER REC
Page 186 and 187: 24. OTHER LIABILITIES 26. FINANCE L
Page 188 and 189: 30. OTHER FINANCIAL COMMITMENTS The
Page 190 and 191: 32.2 Carrying Values of Financial A
Page 192 and 193: 32.5 Maturity of Financial Liabilit
Page 194 and 195: 34. RELATED PARTIES (CONT’D) In a
Page 196 and 197: KEY AUDIT MATTERS Key audit matters
Page 198 and 199: AN OVERVIEW OF THE SCOPE OF OUR AUD
Page 200 and 201: “A matter is significant if, in t
Page 202: Alder Hey received visits from both
show all

AH ANNUAL REPORT 2018

Create successful ePaper yourself

Delete template?

Save as template?