Accounts deadline pushed back

The revised year-end arrangements follow last week’s announcement of a temporary financial regime for at least the first four months of 2020/21, which will see the suspension of the national tariff system and a move to block contract payments. The measures aim to ensure that money is not a barrier to the frontline response – ensuring core functions such as payroll and procurement are maintained, while also keeping financial control and accountability mechanisms in place.

Audited accounts are now due on 25 June. In a letter to the service this week, NHS England and NHS Improvement director of financial control Adrian Snarr said that new and changing working arrangements were affecting finance teams in organisations to varying degrees. The revised timetable was an attempt to provide certainty but also flexibility’.

Finance teams have moved swiftly to homeworking arrangements where possible and organisations are planning for how key requirements can be met, particularly as the number of finance staff is likely to reduce either because of illness, self-isolation or because people are transferred to support other critical functions.

The agreement of balances exercise involves a lot of work for finance teams, but organisations rely on it for the completion and audit of accounts. There are also other key data collections, for example to support the Provider Sustainability Fund. ‘We need to put processes in place that allow these functions for the wider NHS to continue, while lessening the impact for organisations that need more time,’ Mr Snarr said.

Under the revised timetable, the key data submission for providers is now 20 April. This will follow notification on 16 April of additional Covid-19 income to be included in 2019/20 accounts. The deadline for draft accounts is 27 April, although provider organisations can extend this to 11 May if necessary.

While providers are encouraged to submit draft accounts on the earlier date if possible, to assist local auditors in managing workloads, they do not need to inform the centre in advance which submission they are making.

The letter also confirms the Treasury’s decision to defer the introduction of IFRS 16, the international financial reporting standard on leasing, for another year.

Work is also ongoing to explore if the burden on NHS bodies and finance teams can be reduced further. For example, NHS England, NHS Improvement and the Department of Health and Social Care are examining whether the agreement of balances exercise can be simplified by raising the threshold for agreeing transactions and balances. More details are expected to be published this week. It is also possible that some annual report requirements will be streamlined for 2019/20.

The deadline for quality accounts preparation is set in legislation, however a possible amendment to regulations is being looked into. ‘We do not expect that providers will be subject to the 30 June deadline,’ the letter said.


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