Key item commentary
19.1 These forms contain six sections which focus on key areas where variances have been noted. These require organisational review and explanation where the indicators are highlighted in red.
19.2 TRU_COM1 provides an overview of 2015/16 key metrics.
19.3 Section 1 – Key Data Commentary:
• shows each of the seven key RAG rated data metrics calculated on the TRU_KeyData form. A narrative explanation is required for each key data metric flagged with a Red or Amber Rating.
19.4 Section 2 – Continuity of Service Finance Ratings:
• shows the Liquidity Ratio and Capital Servicing Capacity Ratio
calculated on the TRU54 form. A narrative explanation is required for each data metric flagged with a Red for a ratio of one or two.
19.5 Section 3 – Governance:
• confirmation is required to ensure adequate governance arrangement are in place at the NHS Trust with regard to the financial planning data provided in the forms.
19.6 Section 4 – Significant Movements;
• compares the 2014/15 Adjusted Retained Surplus/(Deficit) included within the planning return with the 2014/15 Forecast Outturn value included within the 2014/15 Month 7 TFMS submission for initial plan.
• shows movements from one financial year to the next for each category of:
∗ revenue;
∗ expenditure;
∗ provisions.
• the tables of movements enable organisations to review all reported movements for reasonableness. Narrative is required for all material movements, where indicated with a red flag.
94 of 97
19.7 Section 5 – Contracts (for full plan submission):
• a narrative explanation is required for selected elements of contract revenue flagged as Red. The selected elements will flag as requiring narrative where they form a significant proportion of overall reported contract revenue.
19.8 Any further comments:
• we have also provided an open commentary section at the foot of TRU_COM1, to enable organisations to provide narrative relevant to the overall financial position of the NHS Trust that may not have been fully captured by the metrics detailed above.
95 of 96
20. Validations
20.1 The validations are designed to maintain the integrity of the planning forms;
by providing a series of data entry checks throughout the forms that are summarised on the validations tab.
20.2 Individual validation checks are shown in each tab on the right in columns AE onwards. If any of the relevant cells in these columns show a “1” value, then a validation failure has been flagged.
20.3 The validations tab further identifies the validation checks that have failed and provides a description of the rule being tested, as well as a hyperlink back to the source of the error.
20.4 All of the validation tests included in the forms can be categorised as follows:
• validations to flag data that has been input with the incorrect signage;
• validation tests to compare two separate data sets that should agree/correlate to each other;
• validation tests to ensure that data input follows specific principles described in the technical guidance;
• validations to flag incomplete data input;
20.5 The following validation rules check for the use of correct signage during data input:
• TRU01-01, TRU01-02, TRU02-01, TRU02-02, TRU04-01, TRU04-02, TRU05-01, TRU06-01, TRU19-01, TRU19-02, TRU20-01, TRU20-02, TRU55-01, TRU55-02, TRU56-01, TRU56-02, TRU63-01, TRU63-02, TRU64a-01, TRU64a-02, TRU64b-01, TRU64b-02, TRU65-01, TRU70-01, TRU71-01;
• these tests are only possible where data inputs should be only positive (or only negative) for a particular sub code as indicated in the ‘Sign’
field on each form.
20.6 The following validation tests compare two separate data sets that should agree/correlate to each other:
• TRU01-03 checks that the memorandum values entered for agency spend on TRU01 do not exceed the total value of employee benefit costs entered on TRU06;
• TRU02-03 checks that the Statement of Financial Position balances;
96 of 97
• TRU02-04 and TRU02-05 checks that the breakdown of cash balances provided in the memorandum table on TRU02 agreed to the cash balance reported in the Statement of Financial Position;
• TRU04-03 and TRU04-04checks that the cash flow entries for cash balances, borrowing and PDC in TRU04 reconcile to the balances reported in the Statement of Financial Position in TRU02;
• TRU05-02 checks that the sum of the monthly profiled CCG and LAT revenue values reported on TRU05 agree to the respective totals reported on TRU71 for 2015/16;
• TRU19-03 checks that the sum of the profiled opening balances for provisions on TRU19 for 2015/16 agrees to the total closing balance for 2014/15;
• TRU55-03 and TRU55-04 check that the two separate analyses of capital entries that are provided on TRU55 and TRU56 respectively correlate to each other;
• TRU55-05 checks that the dividends payable on PDC entered in TRU01 are within an acceptable range for the required capital cost absorption rate calculated on TRU55;
• TRU56-06 and TRU56-07 check that the analyses of backlog maintenance and PDC cash draw-downs are reported consistently throughout TRU56;
• TRU63-03 check that the values reported for depreciation and amortisation on TRU63 are consistent with the values reported in TRU06;
• TRU63-04 and TRU63-05 check that the values reported for financing repayments on TRU63 are consistent with the values reported in TRU04;
• TRU64c-01 and TRU64c-02 check that net value of ‘income’ and
‘expenditure’ reported for each year within TRU64c is consistent with the ‘Adjusted Retained Surplus/(Deficit)’ reported in sub code 390 of TRU01;
• TRU64a-03 and TRU64a-04 check that value of ‘income’ reported for each year within TRU64a is consistent with the value of ‘Turnover’
reported in sub code 100 of TRU_Key Data, which is derived from TRU01 sub codes 120,130 and 465;
• TRU64b-03 and TRU64b-04 check that value of ‘expenditure’ reported for each year within TRU64b is consistent with the ‘Adjusted Retained Surplus/(Deficit)’ reported in sub code 390 of TRU01, less the value of
‘Turnover’ described above.
97 of 97
• TRU64a-07 and TRU64b-07 check that the recurrent and non-recurrent splits equal the overall total.
20.7 The following validation rules ensure that data input follows specific principles described in the technical guidance:
• TRU64a-05 and TRU64b-05 checks that the underlying positions reported on TRU64a and TRU64b reflect only recurring ‘income’ and
‘expenditure’;
• TRU65-05 checks that all efficiency saving schemes that have been categorised as ‘Unidentified’ are also correctly categorised as ‘High Risk’.
20.8 The following validation rules check for incomplete data input:
• TRU01-04, TRU05-03, TRU06-02, TRU20-03, TRU56-03, TRU56-04, TRU56-05, TRU56-08, TRU64a-6, TRU64a-8, TRU64b-6, TRU64b-8, TRU65-02, TRU65-03, TRU65-04, TRU65-06, TRU65-07, TRU67-01, TRU71-02, TRU71-03, TRU71-04, TRUCOM1-01, Intro-01;
• many of these validations will only trigger errors where data has been partially input and serve to highlight any missing data entry for the NHS Trust.
20.9 Please ensure that you have cleared all validation errors before returning the forms. If you are experiencing difficulty in resolving a validation rule, please contact the NHS TDA by forwarding your query to the email address
TDA.TFMSqueries@nhs.net with clear reference to the planning forms in the subject header.
Introduction Clarification of requirements for approval of the planning form by Director of Finance or Executve Index For ease of navigation, a hyperlink at the the top of each tab returns the user to the index page
The index page includes hyperlinks to each tab in the planning form
The diagram of data flows illustrates the design of the 2015/16 TFMS plannng form Key Data Planning RAG ratings have been updated as follows:
Removal of metric testing for a Working Capital Support loan
The Continuity of Service Risk Rating has been incorporated as key metric P7 all I&E forms 2 years of data 14/15 Forecast Outturn
15/16 Plan all capital forms 5 years of data 15/16 to 19/20
Analysis categories have been updated to reflect current reporting requirements all forms 15/16 Plan data is profiled monthly
Various data entry lines and validations have been updated to reflect in-year developments (e.g. Q3) TRU05 Revenue from NHS England and CCG's for patient care activities:
to be profiled between tariff revenue and non-tariff revenue
TRU06 Value of drugs spend is now a mandatory input field which is included within validation checks
TRU54 The analysis of the Continuity of Services ratings has been expanded to clearly show all component values and calculations
TRU64A,B,C The Source and Application of Funds Statement has been split into three separate tabs:
TRU64A Revenue TRU64B Expenditure TRU64C Summary
New analysis codes reflect current developments New columns incorporating:
Technical guidance extracts Commentary field
Additional rows to provide a breakdown of service changes and volume changes Uplift commentary sections (these were previously incorporated in TRUCOM1)
TRU65 The full year effect of 2014/15 schemes which are delivered in 2015/16 are to be profiled monthly Validations Further development of section 6 relating to the Source and Application of Funds to improve visibility of
calculated values
Planning Forms 2015/16 Scope of Initial and Full Plans Appendix 2
2015/16 INITIAL PLANS 2015/16 FULL PLANS
2014/15 FOT Profiling 2014/15 FOT Profiling
2015/16 Plan of 15/16 2015/16 Plan of 15/16
Performance Statements
TRU_KeyData Key metrics fed automatically from other forms Annual Key metrics fed automatically from other forms Quarterly Primary Statements
TRU01_CNE Statement of Comprehensive Income Monthly Statement of Comprehensive Income Monthly
Reported NHS Financial Performance Monthly Reported NHS Financial Performance Monthly
Earnings Before Interest, Taxation, Deprn. and Amortisation (EBITDA) Monthly Earnings Before Interest, Taxation, Deprn. and Amortisation (EBITDA) Monthly
Memorandum - Agency/Contract Staff Analysis Monthly Memorandum - Agency/Contract Staff Analysis Monthly
TRU02_SFP Statement of Financial Position Annual Statement of Financial Position Monthly
Memorandum Items Annual Memorandum Items Monthly
Analysis of Cash Balances Annual Analysis of Cash Balances Annual
TRU04_CF Statement of Cash flows Annual Statement of Cash flows Monthly
Memorandum Items Annual Memorandum Items Monthly
Notes to the accounts
TRU05_REV Revenue from Patient Care Activities Monthly
Other Operating Revenue Monthly
Tariff / Non-Tariff Revenue Split Annual
TRU06_EXP Analysis of Gross Operating Expenses (excluding employee benefits) Monthly
Employee Benefits Monthly
TRU14_IMP Analysis of Impairments & Reversals Monthly
TRU19_PRV Provisions Annual
Explanation of Provisions in the "Other" Category
TRU20_PFI IFRIC12/UKGAAP DATA Monthly
Revenue Costs of IFRS Monthly
Capital consequences of IFRS Monthly
Memorandum Items Management Information
TRU54_MI Continuity of Services Ratings Annual Continuity of Services Ratings Quarterly
TRU55_MI Trust Annual Capital Cost Absorption Rate Annual Trust Annual Capital Cost Absorption Rate Annual
External Financing Limit (EFL) Annual External Financing Limit (EFL) Annual
Capital Expenditure by Programme and Type Annual Capital Expenditure by Programme and Type Monthly
IFRS Capital Expenditure IFRIC12 and Non IFRIC12 Annual IFRS Capital Expenditure IFRIC12 and Non IFRIC12 Monthly
Key Expenditure Items Annual Key Expenditure Items Monthly
TRU56_MI Capital Analysis of Projects Annual Capital Analysis of Projects Monthly
Memorandum - Business Cases for NTDA Approval Annual Memorandum - Business Cases for NTDA Approval Annual
Non Business Cases over Trust Delegated Limit Annual Non Business Cases over Trust Delegated Limit Annual
Centrally Funded Capital Schemes - 2015/16 Annual Centrally Funded Capital Schemes - 2015/16 Annual
TRU63_MI Capital Cash Management Plan Annual Capital Cash Management Plan Annual
Net Borrowing Requirement Annual Net Borrowing Requirement Annual
Capital Resource Limits (CRL) and External Financing Limits (EFL) Annual Capital Resource Limits (CRL) and External Financing Limits (EFL) Annual
TRU64_MI Sources and Application of Funds Annual Sources and Application of Funds Annual
Surplus Position and Underlying Position Annual Surplus Position and Underlying Position Annual
Memorandum Items Annual Memorandum Items Annual
Source and Application of Funds Review Summaries Annual Source and Application of Funds Review Summaries Annual
TRU65_MI Efficiency Programme Monthly Efficiency Programme Monthly
Efficiency Summary Tables Annual Efficiency Summary Tables Annual
TRU67_MI Efficiency / Sources and Application metrics Annual Efficiency / Sources and Application metrics Annual
Normalised Position Annual Normalised Position Annual
TRU70_MI 2014/15 FOT Revenue from Patient Care Activities with CCGs and LATs Annual
TRU71_MI
2015/16 Planned Revenue from Patient Care Activities including Contract
Position with CCGs and LATs Annual
TRU_COM1 Key Item Commentary 2015/16 Annual Key Item Commentary 2015/16 Annual
VALIDATIONS Validation checks Validation checks
The provision to management of objective advice and assistance relating to strategy, structure, management or operations of an organisation in pursuit of its purposes and objectives. Such assistance will be provided outside the
‘business as usual’ (BAU) environment when in-house skills are not available and will be of no essential consequence and time-limited. Services may include the identification of options with recommendations and/or assistance with (but not delivery of) the implementation of solutions. The consultancy category will include areas such as:
• Strategy: The provision of objective advice and assistance relating to corporate strategies, appraising business structures, value for money reviews, business performance measurement, management services, product design and process and production management;
• Finance: The provision of objective advice and assistance relating to corporate financing structures, accountancy, control mechanisms and systems. This does not include “auditor’s remuneration”, this is reported separately. It will include:
∗ Strategic Finance: Providing specialist services and support in the form of financial, legal, insurance advice to develop a Public Private partnership/Private Finance Initiative deal for
procurement requirement;
∗ Operational Finance: Procurement advice on risk management and internal control systems including audit arrangements.
Advice on the commercial viability of grant recipients, suppliers and partners; solvency checks.
• Organisation and Change Management: Provision to management of objective advice and assistance relating to the strategy, structure
management and operations of an organisation in pursuit of its purposes and objectives. Long range planning, re-organisation of structure, rationalisation of services, general business appraisal of organisation;
• IT/IS: The provision of objective advice and assistance relating to IT/IS systems and concepts, including strategic studies and development of specific projects. Defining information needs, computer feasibility studies and making computer hardware evaluations. Including consultancy related to e-business;
• Property and Construction: The provision of specialist advice relating to the design, planning and construction, tenure, holding and disposal strategies. This can also include the advice and services provided by surveyors and architects;
• Procurement: the provision of objective advice and assistance when establishing procurement strategies;
Appendix 3
• Legal Services: The provision of external specialist legal advice and opinion in connection with the policy formulation and strategy
development particularly on commercial and contractual matters;
• Marketing and Communication: The provision of objective advice, assistance and support in the development of publicising and the promotion of DH’s Business Support programmes, including advice on design, programme branding, media handling and advertising;
• Human Resource, training and education: The provision of objective advice and assistance in the formulation of recruitment, retention, manpower planning and HR strategies and advice and assistance relating to the development of training and education strategies;
• Programme and Project Management: The provision of advice relating to on-going programmes and one-off projects. Support in assessing, managing and or mitigating the potential risks involved in a specific initiative; work to ensure expected benefits of a project are realised.
• Technical: The provision of applied technical knowledge. To aid understanding, this can be sub-divided into;
∗ Technical Studies: Research based activity including studies, prototyping and technical demonstrators;
∗ Project Support: Project based activities including technical consultancy, concept, development and in-service support activities;
∗ Engineering Support: Task based support including Post Design Services, repair, calibration, analysis testing and integration.