Annual report and accounts 2008/09...The Health and Social Care Information Centre Presented to...

Annual report and accounts 2008/09The Health and Social Care Information Centre

Annual report and accounts 2008/09The Health and Social Care Information Centre

Presented to Parliament pursuant to Paragraph 6(3), Section 232,

Schedule 15 of the National Health Service Act (2006)

Ordered by the House of Commons to be printed on 21 July 2009

HC727London: The Stationery OfficePrice £14.35

© Crown Copyright 2009

The text in this document (excluding theRoyal Arms and other departmental oragency logos) may be reproduced free ofcharge in any format or medium providingit is reproduced accurately and not used ina misleading context. The material must beacknowledged as Crown copyright and thetitle of the document specified.

Where we have identified any third partycopyright material you will need to obtainpermission from the copyright holdersconcerned.

For any other use of this materialplease write to Office of Public SectorInformation, Information Policy Team, Kew,Richmond, Surrey TW9 4DU or e-mail:[email protected]

ISBN: 9 78 010296 1492

The NHS Information Centre provides accessible,high quality and timely information to helpfrontline health and social care deliver better care.

www.ic.nhs.uk

Annual report and accounts 2008/09

Contents

1Annual report and accounts 2008/09

2

3

4

6

8

10

11

18

21

26

27

29

30

33

35

36

37

38

Foreword

Highlights 2008/09

Who we are

Focusing on quality

Our role within the health and socialcare market

Our strategic focus

Board member profiles

Management commentary

Governance and public interest

Remuneration report

Emoluments of board directors

Statement of the board and chiefexecutive’s responsibilities

Statement on internal control

The certificate and report of theComptroller and Auditor General tothe Houses of Parliament

Operating cost statement

Balance sheet

Cash flow statement

Notes to the accounts

Foreword

I am pleased once again to present The NHS Information Centre’s (The NHS IC)annual report and accounts. The past year has been both a challenging andhighly productive one in terms of strengthening our role as the recognised,authoritative source of health and social care information. We have continuedto focus on the information needs of frontline organisations by developingproducts and services that they need to plan and deliver better care.

2 Annual report and accounts 2008/09

By setting the measures and standards of bestpractice in information collection, managementand usage, we have continued to promote andraise awareness of the production of qualitydata collections for interpretation and analysisboth internally and externally by health caretrusts and local authorities.

We have encouraged NHS and social careorganisations to make better use of informationby promoting the use of our informationresources such as the Secondary Uses Service(SUS) data, national benchmarking andcomparison services e.g. NHS Comparators andthe National Adult Social Care IntelligenceService which will be launching later thissummer.

Last year’s Joint Strategic Needs Assessments(JSNA) also revealed that some commissionersare not familiar with core sources of data andwhere to access them. As a result, we areworking to develop a web based portal servicethat will signpost them to the information theyneed whether it is from within the NHS oroutside.

We have continued to ensure that allinformation is handled securely and effectively –protecting patient confidentiality at all timesand that the quality of information that iscollected and utilised is consistent, credible andreliable, not least through greaterstandardisation across care organisations. TheNHS IC has also launched a national dataquality programme to raise awareness of theimportance of quality data and is supporting

key health and social care professionals toimprove the quality of data across the NHS.

The past year also witnessed a large number ofsuccessful events and roadshows for the NHS.A good example was the extremely successfulcommissioning analytical conference hosted byThe NHS IC in association with NHS South EastStrategic Health Authority (SHA). 332 delegatesattended the event and found our informationof vital importance to the World ClassCommissioning agenda.

Finally I would like to take this opportunity tothank each and every member of staff for theirsignificant contribution to The NHS IC and itswork programmes. Without their hard work,dedication and expertise, the organisationwouldn’t be the growing success that it is.

We hope this annual report is useful andinformative and inspires you to put high qualityinformation at the heart of your decisionmaking.

Mike Ramsden Tim Straughan10 July 2009

Highlights 2008/09


4,111 unique visitors tothe Indicators for QualityImprovement site in thefirst week after launch

82% of social careprofessionals believe

that The NHS IC isproviding highly relevant

products and services11,689 patientscompleted thepatient surveyfor the NationalKidney CareAudit

6,675 registered users ofNHS Comparators 76.5% stating that it is‘very useful’ or ‘fairly useful’

Over 1,000 usersof NHS iViewworkforce byApril 2009

65% ofour targetaudiencenow knowus well

Over 4.5 millionpage views on

the website overthe past year

3,580 people visitedour stand and

attended our events

693 senior PrimaryCare Trust (PCT)

contacts made atevents in the past year

500 data qualitypractitioners have

joined the DataQuality Guild

34% increase invisits to websitesince refresh andaddition oftheme areas

Our strategic objectives

Improving information quality and datastandards

• Ensuring the right quality information isprovided, using clear governance andstandards in data and data collections

Improving access to information

• Improving access to and interpretation ofinformation through better presentation andreporting

• Ensuring fair and equal access to theinformation

Providing relevant information services

• Delivering the information frontline servicesneed to meet their priorities

• Being the source of data for official statisticspublished by Department of Health (DH), CareQuality Commission (CQC) and other bodiesfor the purposes of accountability.

Our customers

We believe our information resources can have areal impact in supporting frontline organisationsin delivering better care.

Our information is of value to a wide range ofhealth and social care decision makers, includingcommissioners, public health analysts, cliniciansand informatics professionals in health andsocial care, as well as the public.

Our partnerships

We recognise the value of collaborativepartnerships with a wide range of leadingproviders including Doctor Foster IntelligenceLimited and have an active supplier’s forumwhere we share informatics developments. Itactively encourages new entrants into themarket place.

Who we are

We are England’s central, authoritative source of health and social careinformation. Acting as a ‘hub’ for high quality, national, comparative data forall secondary uses, we deliver information for local decision makers toimprove the quality and efficiency of frontline care. Our primary aim is to drivethe use of information to improve decision making and deliver better care.


The NHS Information Centre has a primary aim to drive the use of informationto improve decision making and deliver better care.

High quality, relevant information iscrucial to enable the NHS to deliverworld class services and to enablepatients to make decisions about theirhealth and care. The NHS IC has asignificant role to play in addressing thequality, innovation and productivitychallenges that the NHS and social caresystem now faces.

Tim Straughan, Chief Executive, The NHSInformation Centre


“”

Information is vital to the new health and socialcare vision. Timely information on the quality ofcare is of direct relevance to local services. Itwill also empower patients to make informedchoices about the services they receive.

The wide range of information providedthrough The NHS IC from population healthanalysis through to ‘accessible’ data on clinicalindicators of care, workforce information andchoice will provide the foundation to drive thisvision.

We take the quality of our information veryseriously. Across all of our collections,publications and information services, we applyrigorous standards to collecting and validatingdata.

The majority of our publications are national orofficial statistics, and we apply nationalstatistics protocols to all of the information weproduce. If we make any changes to ourcollections or publications we follow atransparent consultation process.

In addition, all of our information is governedand approved by the independently runInformation Standards Board for Health andSocial Care, the Strategic Information Groupfor Social Care, or the Review of CentralReturns.

We provide feedback to the primary care trustsand local authorities that submit data to usabout this and where it can be improved.

Supporting clinical quality

Quality of care is the first priority of bothclinicians and patients. It is at the heart of LordDarzi’s Next Stage Review vision for the NHStoo. It is only through the measurement ofquality that you can improve the quality ofservices. These are just some of the ways thatour clinical programme is focused on helpingthe clinical community:

Focusing on quality

The Health Informatics Review (HIR) of 2008 highlighted the importance ofdata standards and data quality across the NHS. It identified data standardsgaps and inadequacies in the data used to support policy, service planning,commissioning and performance management decisions.

6

7

Indicators for Quality Improvement

Supporting the Next Stage Review vision ofquality care for all. The Indicators for QualityImprovement provide a resource of robustindicators, assured for both clinical use anddesign methodology, which can be used tosupport local improvement andbenchmarking.

Patient Reported Outcome Measures (PROMs)

Measuring quality from the perspective of thepatients themselves. Initially covering fourclinical procedures, PROMs calculate thehealth gain after surgical treatment for hipand knee replacements, hernia and varicoseveins. Using pre and post operative surveys,PROMs leads us towards a more rounded wayof measuring positive outcomes fortreatment.

National Clinical Audit Support Programme

Clinically auditing a wide range of clinicalconditions, including diabetes, kidney care,cancer and heart disease.

Medical Research Information Service

Providing demographic information tosupport your research.


The information we provide supportspolicy, service planning,commissioning and performancemanagement decisions, so it isimportant that we work with dataproviders to improve the quality ofthe data that they provide to us. Weare doing this in a number of ways,including developing data qualitycomparators and raising awareness ofthe impact and importance of basingdecisions on timely standardised andgood quality data.

Clare Sanderson, Director of Information Governance

“”

Our role within the health and social care market

Information is vital to the new health and social care vision. Timely informationon the quality of care is of direct relevance to local services. It will also empowerpatients to make informed choices about the services they receive.

The wide range of information provided through The NHS IC from populationhealth analysis through to ‘accessible’ data on clinical indicators of care,workforce information and choice will provide the foundation to drive this vision.

8

Commissioning

• Information to support local commissionersat every stage of the commissioning cycleincluding assessment of local health and careneeds

• Information supplied to NHS Choices for itsdata directories

Workforce

• Statistics on the NHS workforce profileincluding Electronic Staff Record

• Doctors and dentists statistics andremuneration

• NHS iView online service providingaggregated health data to authorised userswithin the NHS. Information includes staffnumbers, workforce earnings andcomposition


Finance and performance

• Healthcare Resource Groups to supportPayment by Results policy

• Access to NHS practice-level comparators andindicators

• 18 weeks referral to treatment reportingapplication

Clinical

• Indicators for Quality Improvement

• Clinical audits for a wide range of conditions,including diabetes, kidney care, cancer andheart disease

• Support and advice on managing the primarycare drugs bill

• Medical Research Information Service

Public health

• National statistics on alcohol, drugs,smoking, obesity and health inequalities

• Area based assessments with robust datafrom a range of sources using Compendiumof Public Health Indicators (NCHOD)

• National Health Survey for England

• Online GP Quality and Outcomes Framework(QOF) database

• NHS Central Register of all NHS patientdetails, from cradle to grave

Social care

• Development of a new National Adult SocialCare Intelligence Service to enablebenchmarking and analysis of national trends

• Statistics on the money spent on socialservices, direct payments and individualbudgets for each local authority

• Publications covering many aspects of socialcare to help decision makers provide the bestpossible care services

• delivering projects that actively promoteinformation to help the NHS and social carefrontline provide better care and drive servicereform and improvement

• enabling patients and the public to exercisechoice by being a key supplier of qualityinformation for the website NHS Choices

• strengthening The NHS IC capacity and skillsto deliver these projects via an organisationaldevelopment and business change plan

• building the capacity of frontline services tomake best use of information throughworking with NHS Connecting for Health andother key partners through a structuredprogramme to enable better use of existinglocal resources, support and training.

For more information on the latest programmedevelopments, visit

www.ic.nhs.uk

Our strategic focus

We understand that NHS and social care professionals need timely, goodquality benchmarking and comparative personal data at a local, rather thannational, level. The NHS IC will provide data and information to help localorganisations plan better local care and our products and services will helpreduce the burden on NHS and social care frontline staff.


From 2009/10 The NHS IC will focus on:

Key programmes of work The business plan will be delivered through 14 programmes of work which can be arranged asfollows:

Information quality

• Information governance

• Information and datastandards

• Data quality

• Streamlining datacollections

Access to information

• Syndication service

• Signposting portal

• NHS Choices website

• Information reportingservices

Information for thefrontline

• Commissioning

• Workforce

• Finance and performance

• Clinical

• Public health

• Social care

Mike Ramsden, Chairman

Mike began his career inthe NHS in 1977 andwent on to become chiefexecutive of WakefieldFamily Health ServicesAuthority in 1989, chiefexecutive of Leeds FamilyHealth Services Authorityin 1992 and chief executive of Leeds HealthAuthority in 1999.

In 2002, he left the NHS to become a director oftwo companies specialising in consultancy andmanagement services. At the same time heestablished Smartrisk Foundation (UK), a charitydedicated to preventing injuries, particularlyamongst children. Mike was also appointed aspart-time chief executive of the NationalAssociation of Primary Care with effect from 1 October 2007.

Tim Straughan, Chief Executive

Tim Straughan wasappointed chief executiveof The Information Centrefor health and social careon 7 December 2007.

He originally joined TheNHS IC as director offinance and corporate services and deputy chiefexecutive six months after its creation in April2005 and was responsible for the recruitment andmigration programme that established The NHS ICin its new headquarters in Leeds.

Tim joined The NHS IC from NHS Estates where hewas acting chief executive and, prior to that,finance director. He led the closure of the agencywhich resulted from the DH’s arm’s length bodiesreview. As acting chief executive, Tim had directaccountability to ministers for all issues relating to

NHS estates and facilities.

Tim has a number of years of frontline NHSexperience working in Leeds Teaching HospitalsTrust. There he developed a specialist workingknowledge about private finance initiatives andpublic private partnerships

Tim is a chartered accountant and trained withKPMG. He is also a qualified dentist withexperience of working in general practice, hospitaland community facilities.

Phil Wade, Director of Business Development andCommunications

Phil joined The NHS ICfrom the University forIndustry, where as groupdirector of marketing,research and policy, heplayed a pivotal role inestablishing learndirect asa national brand.

By introducing classic marketing andsegmentation techniques he was able to attractrecord numbers to e-learning and to learndirect’sinformation and advice call centre.

Previously he has worked entirely in thecommercial sector where he has a strong trackrecord of successfully developing and marketingproducts and services for leading blue chipcompanies such Mars, Del Monte and Pfizer.

In the mid 1990s he worked in a smallmanagement team turning around the financialperformance of the European division of theworld’s leading fire safety company.

Earlier in his career Phil worked across numeroussectors with Nielsen Research, the global marketresearch leader.

Phil graduated from York University with a First inHistory and currently lives there with his wife andthree children.

Board member profiles


Stephen Leathley,Acting Director ofFinance andPerformance

Steve was appointedthe acting director offinance andperformance on 2 July2007, havingpreviously headed up the finance team. Hejoined The NHS IC from the now closed NHSEstates where he was ultimately responsiblefor closing down the agency’s finances,alongside Tim Straughan.

Steve is a chartered accountant and trainedwith Ernst and Young. Before joining thepublic sector, Steve worked within thedistribution sector at Graham BuildersMerchants Limited and Maccess limited. Stevegraduated from Warwick University with a firstin Mathematics. He also runs a familyrestaurant and bunk barn business in theYorkshire Dales.

Clare Sanderson,Interim Director ofInformationGovernance and Policy

Clare started workinglife as a scientific civilservant with theMinistry of Defenceworking for the RoyalAir Force. Since then she has gained extensiveexperience in NHS information managementboth as an employee and as a managementconsultant. Covering a range of issuesincluding system procurement, developmentof outline and full business cases, informationstrategy, corporate reporting, managementinformation requirements, review ofinformation services and data quality.

In July 2007 Clare became the interim directorof information governance at the NHSInformation Centre and in September 2008was appointed to the permanent role. It wasevident that The NHS IC needs to demonstratethe highest standards of informationgovernance and be a respected leader interms of good practice across the NHS andsocial care sector. Information governance hasan increasingly high profile area acrossgovernment and there are many challengesahead but Clare hope to continue to drive theagenda forward in a constructive and positiveway.

Clare graduated from Leeds University with anOperational Research and Statistics degree.

Brian Derry, Executive Director ofInformation Services

Brian Derry wasappointed as our newexecutive director ofinformation serviceson 1 November 2008.Brian is a professionalstatistician and has held a senior-levelinformatics post in a number of Governmentdepartments, including DH and in the NHS. He is also currently the chair of the nationalcouncil of ASSIST (The Association ofinformatics professionals in health and socialcare) and is a chartered statistician, charteredIT professional and is registered with the UKCouncil of Health informatics professions.

Most recently he was the director ofinformatics at Leeds Teaching Hospitals NHSTrust but before joining The NHS IC was onsecondment for 4 months at NHS Connectingfor Health, as programme director forimplementing the Health Informatics Review.


Tony Allen, Vice Chairman

Tony was a partner atPriceWaterhouseCoopers between 1984and 2005, advising awide range ofcorporations, bothpublic and private. From2001 he was the leadpartner for the firm's services to the NHS and tothe Department of Health. He also led ongovernance and the effectiveness of boards. Heis an independent member of the Departmentfor Children, School and Families (DCFS) Audit &Risk Committee (from 1 July 2005), anindependent member of DH Audit Committee(from March 2007) and chairman of TheChislehurst Society (from April 2008).

Lucinda Bolton, Non-executive Director

Lucinda is a formerexecutive director of aninvestment bank andhas held a number ofpublic and voluntarysector appointments.She is also a member ofthe NHS Pay ReviewBody (Ministerial appointment from June 2004,remuneration £300 per day). In addition she is anindependent public appointments assessor forDepartment for Culture, Media and Sport(DCMS), a governor of Thames Valley Universityand chair of its Audit & Risk Committee and anindependent member of the Audit Committee ofthe Commission for Local Administration inEngland. Lucinda has also held several privatesector non-executive directorships.

Dr Mark Davies, Executive Medical Director

Dr Mark Davies, principal GPin Hebden Bridge, WestYorkshire, joined The NHS ICin 2008 as the organisation’sfirst executive medicaldirector on secondment fromNHS Connecting for Health(CfH). Previously he wasnational clinical director for NHS Connecting forHealth, establishing the clinical contents service, forwhich he remains senior responsible officer. He hasbeen medical director for the NHS Connecting forHealth Choose and Book programme and clinicaladvisor to the Department of Health.

Prior to this he was medical director of one thelargest GP urgent care organisations in the country,and was involved in the reforming emergency careagenda for West Yorkshire.

Rachael Allsop, Executive Director ofWorkforce

Rachael Allsop wasappointed as executivedirector of workforce inJanuary 2009.

Prior to that, she was thedirector of human resourcesat Leeds Teaching Hospitals’ Trust, having previouslyworked at a senior level in a variety of humanresource functions across all sectors of the NHS. Inthat role she led a team which won awards forinnovation, recruitment and retention, and diversity.

A member of the Chartered Institute of Personneland Development, Rachael initially read economics atuniversity, subsequently specialising in employmentlaw at post-graduate level. She is a visiting lecturer atLeeds University where her teaching interests haveincluded equality and diversity, organisationalchange, HR strategy and practice and employmentlaw.

Rachael is currently chair of the Yorkshire branch ofthe Healthcare People Management Association(HPMA).


Roger Clarkson, Non-executive Director

Roger was formerly asenior manager with ICLand IBM's governmentconsultancy businesses,he has led majorcustomer focusedchange programmeswithin a wide range of organisations. In 2004he joined the Office of the Deputy PrimeMinister as a national advisor for localgovernment modernisation and hadresponsibility for the local government onlineprogramme. In January 2006 Roger wasappointed as a non-executive director of DrFoster Intelligence to represent The NHS IC’s 50per cent shareholding in this joint venture.Other directorships include 3rd PhaseConsulting. Previous directorships include theLancashire Ambulance Trust and Learning PoolLtd.

Anthony Land, Non-executive Director

Over the past ten years,Anthony has completeda range of interim andadvisory board-levelassignments at theKensington and ChelseaPrimary Care Trust inLondon, the General Social Care Council, theSocial Care Institute for Excellence, theCommission for Social Care Inspection and theEqual Opportunities Commission. This work hasincluded business and corporate planning andthe development and review of new riskmanagement systems, financial and IT systemsand corporate governance. He has been a non-executive director of Book Trust, the Brussels-

based European Office of ConsumerOrganisations, and the Kensington Society. InJanuary 2006 Anthony Land was appointed asa non-executive director of Dr FosterIntelligence (DFI) to represent The NHS IC’s 50per cent shareholding in this joint venture.

Professor MichaelPearson, Non-executive Director

Michael is professor ofclinical evaluation atUniversity of Liverpooland honorary consultantphysician at UniversityHospital Aintree. Otherdirectorships include Respiratory EducationTraining Centre (trustee director of charity) andLung Health (a company set up to developpatient focused software for ChronicObstructive Pulmonary Disease (COPD) care).He has previously served on the NationalClinical Advisory Board of the NationalProgramme for IT and on the interim executiveof the NHS Care Records Development Board.



Public Health Observatories (PHOs) make greatuse of The NHS Information Centre’s informationresources, including statistics from surveys, suchas the Health Survey for England and productslike the Compendium of Clinical and HealthIndicators. The Association of PHOs is working inpartnership with The NHS Information Centre todeliver high quality public health intelligence tohelp improve health and reduce healthinequalities.

David Meechan, Director, East Midlands Public Health Observatory

“”

16

Commissioning is all about ensuring theprovision of quality services for patients. TheNHS Information Centre have the data andinformation, and also the expertise to supportcommissioners and answer all of their questions,and much more. I wish I’d known about TheNHS Information Centre’s services when I wasactively commissioning services in Surrey.

Sandra Hills, Director for Commissioning, The NHSInformation Centre for health and social care

“”


17

Data can be very powerful. When usedcorrectly, data becomes information andthen knowledge. Knowledge is theenemy of disease, and it can help usbring about changes and improvementsto the quality of care we provide. Byembracing the use of information, Ibelieve we clinicians can bring about realimprovements for patients and I thinkThe NHS Information Centre has valuableresources to help us with this task.

Dr Donal O’Donoghue,National Director for Kidney Care

“”

Principal activities

The NHS Information Centre for health and socialcare (The NHS IC) was created in 2005 and is aspecial health authority that provides facts andfigures to help the NHS and social services runeffectively.

Our data and information helps localorganisations provide better local care, nationalpolicy development and delivery, and local andnational accountability.

During 2008/09 The NHS IC has:

• increasingly focused on the needs of frontlineNHS and social care customers

• delivered programmes of work designed tosupport social care, commissioning, workforceand clinical requirements

• worked with the commercial sector includingour joint venture, Dr Foster Intelligence Limited,to produce relevant products and valuedservices which support the provision of highquality care

• strengthened all elements of informationgovernance processes.

On 1 April 2008 the NHS Central Registry basedin Southport was transferred to The NHS IC fromthe Office of National Statistics. The main purposeof the Central Registry is to be responsible forcreating and maintaining details of everyoneresident in England and Wales registered with aNHS general practitioner. The service alsogenerates data used by health researchers.

The strategy for The NHS IC in 2009/10 reaffirmsthe priority to focus on delivering products andservices that meet the information needs offrontline staff in health and social care. The visionis to become the central authoritative source ofhealth and social care information, providingservices as a one stop shop for high quality,national comparative data for all secondary usesof operationally gathered information. Pivotal tothis will be our role in ensuring the rightinformation quality, governance and standardsare applied to data systems and data collections,analysis, reporting and official statistics.

In 2009/10, The NHS IC will focus on 14programmes which collectively:

• deliver projects that actively promoteinformation to help the NHS and Social Carefrontline provide better care and drive servicereform and improvement

• inform patients and the public, includingenabling them to exercise choice by being a keysupplier of quality information for the websiteNHS Choices

• strengthen The NHS IC’s capacity and skills todeliver the above through an organisationaldevelopment and business change plan.Together with NHS Connecting for Health andother key partners, build the capacity of thefrontline services to make the best use ofinformation.

Management CommentaryFor the year ended 31 March 2009


Accounts Preparation

The accounts have been prepared under adirection issued by the Secretary of State inaccordance with Section 232 (Schedule 15,paragraph 3) of the National Health Service Act2006 and have been prepared in accordancewith the guidelines set out in the GovernmentFinancial Reporting Manual (FReM).

Financial results

The Department of Health allocated The NHS ICa revenue resource limit for 2008/09 of £38.1million including £2.0 million to cover capitalcharges and depreciation. The actual results havegenerated a small surplus of £0.1m.

Similarly an underspend of £0.4m has arisenfrom the capital resource limit of £7.8m. TheNHS IC has invested significant amounts on:

• developing and improving systems such asHospital Episode Statistics, NHS Comparatorsand iView which allow customers to bothsubmit and access data

• improving The NHS IC website to incorporatesignposting technology

• transferring the IT infrastructure in housewhich will enable greater flexibility and control.

Like many arms length bodies, central fundinghas been reduced and further efficiencies will beexpected over the next few years. The NHS ICcontinues to manage its cost base and generate

improved value for money by:

• maintaining a sensible balance betweenpermanent and temporary staff andcontractors in a year when project anddevelopment work increased significantly.There was a slight increase in the ratio oftemporary to permanent staff costs from 27per cent in 2007/08 to 34 per cent in 2008/09

• negotiating improved terms with its suppliers,in particular several large and complex OfficialJournal of European Union (OJEU)procurements were completed

• subletting spare desk capacity in offices toother public sector bodies generating incomeof £40,000

• reviewing all areas of business to ensure thatall work is of value and does not duplicateactivities carried out elsewhere.

Outstanding sales ledger balances were £1.9m,of which £33k was more than 90 days overdue.Debts amounting to £16k have been providedfor as irrecoverable. Other debtors largely relateto VAT for February and March transactions.

Deferred income relates to programme moniesreceived from the Department of Health andother related bodies as a contribution towardssurvey costs, specific capital projects or othermajor areas of work in advance of the workbeing completed. This will be released asexpenditure is incurred, or in the case of capitalexpenditure, as depreciation is charged.


Fixed asset investments

The NHS IC entered into a joint venturepartnership arrangement known as Dr FosterIntelligence Limited (DFI) on 17 January 2006.The NHS IC initially invested £12 million topurchase a 50 per cent stake in DFI and provideinitial working capital, of which £9.5 million waspaid immediately and a further £2.5 million waspaid in July 2007. Subsequently, the issue of astaff share option scheme has reduced The NHSIC share of the company to 48.6 per cent.

DFI has grown considerably with more NHSTrusts using its services for the first time andexisting customers using a greater number ofproducts. Turnover has increased from £9m atinception to over £39m in 2008 includingincome from undertaking the NHS Choiceswebsite development. The NHS IC accounts forthe joint venture as a fixed asset investment andtherefore does not account for the tradingresults.

In accordance with the financial reportingstandard, FRS 9 Associates and Joint Ventures, avaluation of DFI has been undertaken to supportthe value of the investment stated in the balancesheet. This valuation carried out byPricewaterhouseCoopers LLP supports theboard’s opinion that the carrying value of £12mremains appropriate.

Prior Year Comparatives

The prior year comparatives have been adjustedfor the transfer of the NHS Central Registry fromthe Office of National Statistics on 1 April 2008in accordance with the requirements of FRS 6Accounting for Acquisitions and Mergers. Netassets of £1.2m were acquired, made up ofcomputer equipment, debtors and creditors. Thecomputer equipment acquired was fullydepreciated and disposed of during the year inorder to comply with the NHS IC’s accountingpolicies of treating such items as revenueexpenditure.

The prior year comparatives have also beenrestated on a comparable basis in accordancewith FRS 28 Corresponding Amounts followinga change in basis of receiving income for clinicalaudit services. Sales invoices of £3.1m wereraised during 2008/09 and the prior year figureshave been restated on the same basis.


Governance and public interest

Corporate governance

The NHS IC is committed to ensuring a high standard of corporate governance. The board hasresponsibility for defining strategy and determining resource requirements to ensure the delivery ofThe NHS IC’s objectives. The board has three committees to assist it, namely the audit and riskcommittee, the remuneration committee and the information governance committee.

The composition, role and main activities of the Board and its principal committees during the yearunder review are outlined below:


Composition MeetingsAttended

Role

BoardNon executive directors

M Ramsden (Chairman)A AllenL BoltonR ClarksonA LandM Pearson

Executive directors

T StraughanS LeathleyP WadeC SandersonR Dewhurst (resigned June 08)B Derry (appointed November 08)M Davies (appointed July 08)R Allsop (appointed January 09)

666566

66641332

The role of the board is to:

• provide continuous effective leadership

• ensure appropriate controls are in place to assess, manage andmonitor risk and operational and financial performance

• setting the organisation’s strategic aims and ensuring thatappropriate financial and human resources are in place

• reviewing management’s performance and setting theorganisation’s values and standards.

Board meetings are made up of a public session, where membersof the public are able to attend and all papers and minutes areavailable to view on The NHS IC website, together with a privatesection, where commercial matters that are not consideredappropriate for disclosure are discussed.

Audit and risk committeeNon executive directors

A Allen (Chairman)L BoltonR ClarksonM PearsonA Land (Reserve)

Executive directors

T StraughanS Leathley

In addition, both the internal andexternal auditors attend meetings.

55442

45

The audit and risk committee, is responsible for:

• monitoring the integrity of the financial statements

• reviewing internal financial controls, internal control and riskmanagement systems

• monitoring and reviewing the effectiveness of the internalaudit function

• making recommendations to the board concerning theappointment of the external auditors.

Composition MeetingsAttended

Role

Information governancecommitteeNon executive directors

M Pearson (Chairman)A LandL Bolton

Executive directors

T StraughanC SandersonP WadeS LeathleyM Davis

With effect from December 2008,membership of the informationgovernance committee waschanged to limit executivemembership to T Straughan, C Sanderson and M Davies

663

66352

The information governance committee is responsible for:

• approving information governance and quality policies,strategies, procedures, codes of best practice and supportingdocumentation

• monitoring the adoption of the policies and compliance withlegislative and statutory requirements

• advising on the strategic direction on opportunities for thedevelopment of external information governance services andcommunication strategies for promoting and disseminating thiswork

• managing and reporting on information governance andquality risks to the audit & risk committee.

During 2008/09, 6 meetings were held in order to ensure that theemerging policy and procedural improvements were approvedand implemented quickly. It is expected that from 2009/10 therewill be approximately 4 meetings per year.

Remuneration committeeNon executive directors

M Ramsden (Chairman)A AllenL Bolton

Executive director

T Straughan

444

4

The role of the remuneration committee is to:

• advise the board about the appointment, performance,development and succession planning for executive directors

• set the level of executive directors remuneration packages

• oversee the implementation and development of the Agendafor Change terms and conditions for all staff

• agree the principles and policy for any performance related payand approve any subsequent performance pay awarded

• approve on behalf of the board all voluntary and compulsoryredundancies.

22

The board and each of its committees, other than the remuneration committee, undertake aneffectiveness review each year. This review consists of a questionnaire which each regular attendeecompletes, assessing the performance using a scoring mechanism with the opportunity tocomment. An anonymised consolidated schedule is then reviewed by the relevant board orcommittee to which it relates.


Register of Interests

The NHS Code of Accountability requires boardmembers to declare any interests that arerelevant and material to the NHS body of whichthey are a member. Board members are expectedto declare any changes to their interests at eachboard meeting and on any particular topic on theagenda prior to discussion commencing.

The register of declarations of interest is kept andmaintained by the corporate secretary and isavailable for public inspection.

Of particular note are the directorships of RClarkson, A Land and T Straughan in Dr FosterIntelligence Ltd as part of the governancestructure of the joint venture investmentdescribed in note 5.3 to the financial statements.

Risks

The NHS IC board has overall responsibility forrisk management and has nominated theDirector of Finance and Performance as thedirector responsible. The audit and riskcommittee ensures that systems are in place toensure effective risk management. The internalaudit function forms part of the review processand provides assurance on the risk managementprocess, and advises the audit and riskcommittee accordingly.

Individual directors manage risk at the day-to-day operational and project level, and maintaindepartmental risk registers. Key risks from thedepartmental risk registers are consolidated ontothe corporate assurance framework which isreviewed on a regular basis by seniormanagement through the performancemanagement committee and the audit and riskcommittee. Information governance related risksare managed by the information governancecommittee who provide assurance to the auditand risk committee through an annualstatement.

Information Governance

The main purpose of The NHS IC is to collect,analyse and disseminate health related data.Some of this information, notably about patientsand NHS employees, is of a personal andsensitive nature and The NHS IC has stringentcontrols in place to ensure the security of thisdata.

An information governance committee, chairedby a non-executive director, and which reports tothe board, specifically oversees the policies andprocedures in this area and manages risks. Aninformation governance toolkit assessment wasundertaken in the year, where a high score wasattained. During 2009/10, The NHS IC will createan “honest broker” service and compliance unitwhich will develop policies on behalf of thewider health service and manage sensitivepatient identifiable data within the databasesmanaged by The NHS IC.

In the Cabinet Office’s Interim Progress Reporton Data Handling Procedures, published on 17December 2007, Official Report, column 98WS,the Government made a commitment that it’sdepartments will report information riskmanagement in their annual accounts, inparticular whether there have been any personaldata related incidents.

There are no protected personal data incidentsto report either in 2008 or 2009 to the date ofsigning these accounts. This includes thoseincidents that would need to be formallyreported to the Information CommissionersOffice (ICO) and those that would be deemednot to require reporting to the ICO.


The NHS IC is subject to the Data Protection Act1998 and has filed the appropriate notificationwith the ICO.

Complaints and adverse incidents

The NHS IC takes all complaints and adverseincidents seriously. The existing processesassociated with such incidents have beenstrengthened during the year to incorporate anew adverse incident reporting system whichenables all staff to report an incident in acommon format and allow it to be reportedupon and its root causes investigated. Regularlearning groups review each incident tounderstand the reasons and put in placemeasures that will mitigate a future repeat. Thelevel of adverse incidents is a key performanceindicator for the organisation and is reviewedregularly by the board.

Freedom of Information Act

As a special health authority The NHS IC isrequired to comply with the Freedom ofInformation Act 2000. This means that allrequests for information are responded to withinthe provisions of the Act, typically within 20working days. During 2008/09, 161 Freedom ofInformation requests were received of which justone was not responded to within the 20 workingday timeframe.

Better Payments Practice Code

The NHS IC seeks to comply with the BetterPayments Practice Code by paying our supplierswithin 30 days of the receipt of goods orservices, or within 30 days of receipt of aninvoice. Further refinements to processes havebeen implemented to comply with the revisedguidelines introduced during 2008/09 to paysmaller suppliers within 10 working days. Theperformance in meeting these objectives isdisclosed in note 2.3 to the financial statements.

Sustainable development

The NHS IC acknowledges its roles andresponsibilities towards the sustainabledevelopment agenda. The working environmentin which the organisation operates ispredominantly office based and thusopportunities to impact on the environment arerelatively limited. However, a number of stepsand initiatives have been put in place and will befurther developed in 2009/10 and these include:

• confidential waste disposal through a greenwaste contractor

• using public transport for business travelwherever possible and putting in place a metroscheme allowing staff to purchase tickets forcommuting at a discount and to spreadpayments

• promoting cycling by providing cycle storage,shower and changing facilities

• disposing of old equipment in a socially andenvironmentally friendly manner

• use of video conferencing in an effort toreduce the amount of travel

• working with the various building landlords topurchase utility services from sustainable,environmentally friendly sources (the electricityin Trevelyan Square was recently transferred tosuch a supplier).


Employee policies

Pension liabilities

The NHS IC participates in both the NHS and thecivil service pension schemes and in doing somakes contributions based on the salary ofindividual members. Both schemes are unfundedmulti-employer defined benefit schemes in whichthe employer is unable to identify its share ofunderlying assets and liabilities. The schemes aretherefore accounted for as if they were definedcontribution schemes.

Equality and diversity

The NHS IC is committed to equality of opportunityfor all employees and potential employees. It aimsto create an environment in which individualdifferences and the contributions of all employeesare recognised and valued and ensure that noeligible job applicant or employee receives lessfavourable treatment on the grounds of race,colour, nationality or ethnic origin, age, gender,sexual orientation, marital status, disability, religionor religious affiliation, or is disadvantaged byconditions or requirements which cannot beshown as justifiable.

All staff are required to attend an equality anddiversity awareness training course and this is alsoincorporated into the induction process for newemployees.

Learning and development

The NHS IC is committed to providing employeeswith proper training and development to enhancetheir professionalism in supporting The NHS IC’soverall objectives. A comprehensive trainingprogramme has been developed andimplemented.

Employee consultation

The NHS IC is committed to consulting andcommunicating with staff and theirrepresentatives. A Joint Negotiating andConsultative committee meets bi-monthly to

discuss organisation wide issues and localconsultation takes place over areas of specificinterest.

An internal communications manager maintainsan intranet site to ensure staff have access to awide range of information relevant to The NHS ICand the health sector at large. In addition, regularstaff briefings are held where senior managementupdate staff and receive feedback on key issues.

Health and safety

The NHS IC recognises and accepts its legalresponsibilities in relation to the health, safety andwelfare of its employees and for all people usingits premises. The NHS IC complies with the Healthand Safety at Work Act (1974) and all otherlegislation as appropriate. A new on line selfassessment tool has been introduced in 2008/09which incorporates a range of Health and Safetyissues.

Auditors

The accounts have been audited by theComptroller and Auditor General, who has beenappointed under statute and is responsible toParliament. The cost of the audit was £70,000. TheNational Audit Office also undertook a review ofthe initial work associated with theimplementation of Information Financial ReportingStandards (IFRS) as directed by the Department ofHealth for which a fee of £10,000 has beencharged.

The internal audit service during the financial yearwas provided by Bentley Jennison RiskManagement Ltd.

The accounting officer has undertaken all steps toensure he is aware of any relevant auditinformation and to ensure that The NHS IC’sauditors are aware of that information. As far asthe accounting officer is aware, there is no relevantaudit information of which The NHS IC’s auditorsare not aware.


Remuneration committee

The pay of the executive board directors is set bythe remuneration committee and is reviewed onan annual basis. The remuneration committeeconsists of three non-executive directors(including the chairman) and all are required to bepresent. It is chaired by the board chairman MikeRamsden.

The chief executive and other executive directorsare not present for discussions about their ownremuneration and terms of service, but mayattend meetings of the committee at thechairman’s invitation to discuss other employees’terms.

The work of the committee is supported andadministered by the chief executive andappropriate staff.

In reaching its recommendations, theremuneration committee took into account:

• the need to recruit, maintain and motivatesuitably able and qualified people to exercisetheir responsibilities

• variations in the labour market and their effectson the recruitment and retention of staff

• recommendations of relevant Department ofHealth guidelines.

Remuneration policy

The NHS IC aims to pay employees on a fair andequitable basis for the role and responsibilitiesthey undertake in line with best practice withinthe NHS. All posts have been evaluated under theAgenda for Change (AfC) programme.

Staff who continue on civil service terms andconditions will continue to receive performancerelated pay (PRP) in line with the Department ofHealth collective agreements. Staff on NHS termsand conditions may receive increments withintheir pay-scale under AfC guidelines. This willeither be the annual increment or the gatewayreview depending on an individual’s service andtheir point within the band.

Both PRP and AfC increments are linked to asingle individual performance and developmentreview mechanism.

Service contracts

The chief executive and all other permanentlyemployed executive directors are employed underpermanent employment contracts with a sixmonth notice period and work for The NHS ICfull-time. If their contracts are terminated forreasons other than misconduct, they will comeunder the terms of the NHS compensationscheme.

Non-executive directors are appointed throughthe NHS Appointments Commission and its termsand conditions apply to them. All of the non-executive directors (other than the Chair) werereappointed on 1 April 2009 with furthercontracts ranging from 3 to 4 years. They are notentitled to compensation for loss of office or theearly termination of appointment.

Remuneration Report


Emoluments of Board Directors


Salaryincluding

performancepay

2008/09£000

Salaryincluding

performancepay

2007/08£000

Realincrease in

pensionand

relatedlump sumat age 60

£000

Totalaccrued

pension atage 60 at31/3/09

and relatedlump sum

£000

CETV at31/3/09£000

CETV at31/3/08£000

Real increasein CETV after

adjustment forand changes in

marketinvestment

factors £000

Tim StraughanChief executive

145 – 150 130 – 135 7.5 – 10 20 – 25 92 42 34

Phil WadeDirector of business developmentand communications

100 – 105 95 – 100 5 – 7.5 10 – 15 65 32 22

*Roger DewhurstDirector of operations (Resigned 18th June 2008)

210 – 215 90 – 95 5 – 7.5 125 – 130 – 400 –

Stephen LeathleyActing director of finance andperformance

70 – 75 45 – 50 2.5 – 5 5 – 10 40 16 16

Brian DerryDirector of information services(appointed 1st November 2008)

40 – 45 – 2.5 – 5 160 – 165 905 702 130

**Mark DaviesMedical director(appointed 2nd July 2008)

100 – 105 – – – – – –

Rachael AllsopDirector of workforce(appointed 1st January 2009)

25 – 30 – 0 – 2.5 145 – 150 641 494 95

***Clare SandersonInterim director of informationgovernance

150 – 155 105 – 110 17.5 – 20 25 – 30 112 35 53

Amounts paid to non-executivedirectors were as follows:

Mike Ramsden (chairman) 60 – 65 60 – 65

Anthony Allen 10 – 15 10 – 15

Lucinda Bolton 5 – 10 5 – 10

Roger Clarkson 5 – 10 5 – 10

Anthony Land 5 – 10 5 – 10

Michael Pearson 5 – 10 5 – 10

The remuneration relating to all directors in post during 2008/09 is detailed on the tables below whichidentifies the salary, other payments, allowances and pension benefits applicable to executives andnon executives and are subject to audit.

* The costs for Roger Dewhurst relate to the period until heresigned as a director on 18th June 2008 and includetermination costs of £195k but exclude employment costsfrom July 2008 whilst acting in a different role.

** The costs for Mark Davies refer to secondee charges fromNHS Connecting for Health

***The costs for Clare Sanderson include fees from an externalagency until October 2008 and basic pay subsequently fromwhen she joined as a permanent employee.

Brian Derry, Rachael Allsop and Clare Sanderson joined The NHSIC having previously been members of the NHS Pension scheme.

Emoluments of executive directors consist of basic pay. No non-cash remuneration or benefits in kind were paid.

Cash equivalent transfer values

A cash equivalent transfer value (CETV) is theactuarially assessed capitalised value of thepension scheme benefits accrued by a memberat a particular point in time. The benefits valuedare the member’s accrued benefits and anycontingent spouse’s pension payable from thescheme. A CETV is a payment made by a pensionscheme or arrangement to secure pensionbenefits in another pension scheme orarrangement when the member leaves a schemeand chooses to transfer the benefits accrued intheir former pension scheme. The pensionfigures shown relate to the benefits that theindividual has accrued as a consequence of theirtotal membership of the pension scheme, notjust their service in a senior capacity to whichdisclosure applies.

The CETV figures, and from 2003/04 the otherpension details, include the value of any pensionbenefit in another scheme or arrangement whichthe individual transferred to the civil servicepension arrangements and for which the civilservice vote received a transfer paymentcommensurate to the additional pensionliabilities being assumed. They also include anyadditional pension benefit accrued to themember as a result of their purchasing additionalyears of pension service in the scheme at theirown cost. CETV’s are calculated within theguidelines and framework prescribed by theInstitute and Faculty of Actuaries and do not takeaccount of any actual or potential reduction tobenefits resulting from Lifetime Allowance Taxwhich may be due when pension benefits aredrawn.

Real increase in CETV

This reflects the increase in the CETV effectivelyfunded by the employer. It does not include theincrease in accrued pension due to inflation,contributions made by the employee (includingthe value of any benefits transferred fromanother pension scheme or arrangements) anduses common market valuation factors for thestart and end of the period.

Tim Straughan

Chief Executive

10 July 2009


Under the National Health Service Act 2006 anddirections made thereunder by the Secretary ofState with the approval of Treasury, The NHS ICis required to prepare a statement of accountsfor each financial year in the form and on thebasis determined by the Secretary of State. Theaccounts are prepared on an accruals basis andmust give a true and fair view of The NHS IC’sstate of affairs at the year end and of its incomeand expenditure, recognised gains and lossesand cash flows for the financial year.

In preparing the accounts, the board andaccounting officer are required to comply withthe requirements of the Government FinancialReporting Manual and in particular to:

• observe the accounts direction issued by theSecretary of State, including the relevantaccounting and disclosure requirements, andapply suitable accounting policies on aconsistent basis

• make judgements and estimates on areasonable basis

• state whether applicable accounting standardsas set out in the Government FinancialReporting Manual have been followed anddisclosed and explain any material departuresin the financial statements

• prepare the financial statements on a goingconcern basis, unless it is inappropriate topresume that The NHS IC will continue inoperation.

The accounting officer for the Department ofHealth has appointed the chief executive of TheNHS IC as the accounting officer, withresponsibility for preparing The NHS IC’saccounts and for transmitting them to theComptroller and Auditor General. Specificresponsibilities include the responsibility for thepropriety and regularity of the public finances forwhich the accounting officer is answerable, forkeeping proper records and for safeguarding TheNHS IC’s assets.

Statement of the board and chief executive’sresponsibilities


Scope of responsibility

As accounting officer, I have responsibility,together with the board of The NHS IC formaintaining a sound system of internal controlthat supports the achievement of theorganisation’s policies, aims and objectiveswhilst safeguarding the public funds andorganisation’s assets including data andinformation for which I am personallyresponsible, in accordance with theresponsibilities assigned to me in ManagingPublic Money.

The senior departmental sponsor for theDepartment of Health is responsible for ensuringthat The NHS IC procedures operate effectively,efficiently and in the interest of the public andThe NHS and I have regular dialogue with theDepartment of Health sponsor in which the keyissues affecting The NHS IC are discussed indetail. I provide regular business and financialreports to The NHS IC Board.

The purpose of the system of internalcontrol

The system of internal control is designed tomanage risk to a reasonable level rather than toeliminate all risk of failure to achieve policies,aims and objectives; it can therefore only providereasonable and not absolute assurance ofeffectiveness. The system of internal control isbased on an ongoing process designed to:

• identify and prioritise the risks to theachievement of the organisation’s policies,aims and objectives

• evaluate the likelihood of those risks beingrealised and the impact should they berealised, and to manage them efficiently,effectively and economically.

The system of internal control has been in placewithin The NHS IC for the year ended 31 March2009 and up to the date of approval of theannual report and accounts, and accords withTreasury guidance.

Capacity to handle risk

The board and its committees take an active rolein risk management and ensure there areeffective risk management processes to supportthe achievement of The NHS IC’s policies, aimsand objectives. The approach to riskmanagement is continually under review by theboard. The risk strategy defines the way in whichrisks are identified, measured and managed.

The NHS IC maintains an assurance frameworkcontaining all principal risks whilst operationalteams maintain their own functional riskregisters. In particular;

• both the performance committee and theaudit and risk committee review the fullassurance framework as a standing item

• the information governance committee reviewall information governance, security andquality risks on which it reports to the audit &risk committee

• the board reviews strategic and high risk areas.

Statement on internal control


The NHS IC continues to make significantprogress in developing its capabilities to managerisk and the whole risk process is to beconsolidated through the ProgrammeManagement Office using a newly acquiredEnterprise Project Management system. This willintroduce a common methodology used withinthe organisation centred on the principles of theOffice of Government and CommerceManagement of Risk guidance. Several trainingcourses on risk methodologies have been heldtogether with a risk appetite workshop.

Progress continues to be made in strengtheningthe wider governance arrangements through:

• a balanced scorecard approach to reportingperformance which is now well embeddedwithin the organisation

• inclusion of senior managers on thePerformance Management Committee whichincludes the review of governance and riskissues

• the implementation across several keyprogrammes of the IT Information Library (ITIL),a recognised set of standards for servicemanagement. It is planned to implement thisacross the organisation as a whole during2009/10

• the implementation of a central programmeoffice to manage and report in a standardmanner on all programme and project activity

• the implementation of a development plan tobuild on the improvements made with respectto data and information security processes andenhance compliance with the standards set outin the information governance toolkit.

The risk and control framework

The audit and risk committee has responsibilityfor reviewing the establishment and maintenanceof an effective system of integrated governance,risk management and internal control across thewhole of The NHS IC’s activities. It does this byreceiving regular reports on the assurancesreceived together with reports from internalaudit, external audit and other systems of internalcontrol.

The audit and risk committee reports to the boardon:

• the effectiveness of the system of integratedgovernance, risk management and internalcontrol

• areas where controls need to be strengthenedto ensure that principal risks are being managedeffectively

• areas where new assurances are required.

The information governance committee overseesall information governance, security and dataquality issues and evaluates and manages allassociated risks. It provides the audit and riskcommittee with a written assurance of controlsin place for the year as a whole.

The NHS IC is committed to managing risks to anacceptable level on all aspects of the businessactivity with a clear intention to align The NHSIC’s governance framework with its businessplan.


Review of effectiveness

As accounting officer, I have responsibility,together with the board, for reviewing theeffectiveness of the system of internal control. Myreview is informed in a number of ways. The headof internal audit provides me with an opinion onthe overall arrangements for gaining assurancethrough the assurance framework and on thecontrols reviewed as part of the internal auditwork. The internal audit assurance statementconcluded that:

“Based on the work undertaken in 2008/09,significant assurance can be given that there is agenerally sound system of internal control,designed to meet the organisation’s objectives,and that controls are generally being appliedconsistently.”

Executive managers within the organisation whohave responsibility for the development andmaintenance of the system of internal controlprovide me with assurances. The assuranceframework itself provides me with evidence thatthe effectiveness of controls that manage the risksto the organisation achieving its principalobjectives have been reviewed. My review is alsoinformed by the findings of the National AuditOffice as the organisation’s external auditors. Ihave been advised on the implications of theresult of my review of the effectiveness of thesystem of internal control by the board and theaudit and risk committee and am accordinglyaware of the significant issues that have beenraised. A plan to address these weaknesses andensure continuous improvement of the systemhas been formulated and is progressively beingimplemented.

Significant internal control issues

There are not considered to be any significantcontrol issues left outstanding at the 31 March2009.

During 2008/09 The NHS IC key risk managementpriorities included:

• further development of, and theimplementation across, the organisation of allrelevant information governance policies toensure that processes over information securityissues are as strong as possible

• reviewing with NHS Connecting for Health theresponsibilities for the structure andmanagement of the Secondary Uses Service(SUS) in order to ensure that the service wouldbe fit for purpose in the future

• ensuring that all relevant information issuesidentified in the informatics review have beenaddressed and incorporated into The NHS ICstrategy

• ensuring that The NHS IC delivered on a rangeof high profile projects and programmes

• ensuring the transfer of IT services to an inhouse management solution was undertaken inan effective manner with minimal disruption toservices

• improving communications with the NHS andother stakeholders many of whom were notfully aware of The NHS IC’s role and serviceoffering.

I believe that The NHS IC has continued todevelop and employ an appropriate controlenvironment throughout 2008/09 which will befurther developed to meet changing priorities orrequirements in the years ahead.

Tim Straughan

Chief Executive

10 July 2009


I certify that I have audited the financialstatements of the Health and Social CareInformation Centre (the authority) for the yearended 31 March 2009 under the National HealthService Act 2006. These comprise the operatingcost statement, the balance sheet, the cashflowstatement and the related notes. These financialstatements have been prepared under theaccounting policies set out within them. I havealso audited the information in the remunerationreport that is described in that report as havingbeen audited.

Respective responsibilities of theauthority, chief executive and auditor

The authority and chief executive as accountingofficer are responsible for preparing the annualreport, the remuneration report and the financialstatements in accordance with the NationalHealth Service Act 2006 and directions made bythe secretary of state with the approval of HMTreasury and for ensuring the regularity offinancial transactions. These responsibilities areset out in the statement of the board and chiefexecutive’s responsibilities.

My responsibility is to audit the financialstatements and the part of the remunerationreport to be audited in accordance with relevantlegal and regulatory requirements, and withInternational Standards on Auditing (UK andIreland).

I report to you my opinion as to whether thefinancial statements give a true and fair view andwhether the financial statements and the part ofthe remuneration report to be audited have beenproperly prepared in accordance with theNational Health Service Act 2006 and directionsmade by the secretary of state with the approvalof HM Treasury. I report to you whether, in my

opinion, the information which comprises themanagement commentary is consistent with thefinancial statements. I also report whether in allmaterial respects the expenditure and incomehave been applied to the purposes intended byParliament and the financial transactionsconform to the authorities which govern them.

In addition, I report to you if the authority hasnot kept proper accounting records, if I have notreceived all the information and explanations Irequire for my audit, or if information specifiedby HM Treasury regarding remuneration andother transactions is not disclosed.

I review whether the statement on internalcontrol reflects the authority’s compliance withHM Treasury’s guidance, and I report if it doesnot. I am not required to consider whether thisstatement covers all risks and controls, or forman opinion on the effectiveness of the authority’scorporate governance procedures or its risk andcontrol procedures.

I read the other information contained in theannual report and consider whether it isconsistent with the audited financial statements.I consider the implications for my report if Ibecome aware of any apparent misstatements ormaterial inconsistencies with the financialstatements. My responsibilities do not extend toany other information.

The certificate and report of the Comptroller andAuditor General to the Houses of Parliament


Basis of audit opinions

I conducted my audit in accordance withInternational Standards on Auditing (UK andIreland) issued by the Auditing Practices Board.My audit includes examination, on a test basis,of evidence relevant to the amounts, disclosuresand regularity of financial transactions includedin the financial statements and the part of theremuneration report to be audited. It alsoincludes an assessment of the significantestimates and judgments made by the authorityand the accounting officer in the preparation ofthe financial statements, and of whether theaccounting policies are most appropriate to theauthority’s circumstances, consistently appliedand adequately disclosed.

I planned and performed my audit so as toobtain all the information and explanationswhich I considered necessary in order to provideme with sufficient evidence to give reasonableassurance that the financial statements and thepart of the remuneration report to be audited arefree from material misstatement, whethercaused by fraud or error, and that in all materialrespects the expenditure and income have beenapplied to the purposes intended by Parliamentand the financial transactions conform to theauthorities which govern them. In forming myopinion I also evaluated the overall adequacy ofthe presentation of information in the financialstatements and the part of the remunerationreport to be audited.

Opinions

Audit opinion

In my opinion:

• The financial statements give a true and fairview, in accordance with the National HealthService Act 2006 and directions made by thesecretary of state with the approval of HMTreasury, of the state of the authority’s affairs

as at 31 March 2009 and of its net resourceoutturn, cashflows, and recognised gains andlosses for the year then ended;

• The financial statements and the part of theremuneration report to be audited have beenproperly prepared in accordance with theNational Health Service Act 2006 anddirections made by the Secretary of State withthe approval of HM Treasury; and

• Information which comprises the managementcommentary is consistent with the financialstatements.

Opinion on regularity

In my opinion, in all material respects theexpenditure and income have been applied tothe purposes intended by Parliament and thefinancial transactions conform to the authoritieswhich govern them.

Report

I have no observations to make on these financialstatements.

Amyas C E Morse

Comptroller and Auditor General

National Audit Office151 Buckingham Palace RoadVictoriaLondon SW1W 9SS

16 July 2009



Restated2008/09 2007/08

Notes £000 £000

Operating costs 2.1 47,684 42,777

Operating income 4 (9,669) (6,158)

Net operating cost 38,015 36,619

Net resource outturn 38,015 36,619

Operating cost statementFor the year ended 31 March 2009

35

All activities are from continuing operations. The machinery of government change reflected inthese financial statements is disclosed at note 20.

There are no recognised gains or losses other than the net operating cost for the year.

The notes on pages 38 to 53 form part of this account.


RestatedAt 31 March At 31 March

2009 2008Notes £000 £000

Fixed assetsIntangible assets 5.1 391 30Tangible assets 5.2 10,537 5,261Investment 5.3 12,000 12,000

22,928 17,291Current assets

Debtors 6 3,449 4,543Cash at bank and in hand 7 5,057 4,279

8,506 8,822Current Liabilities

Creditors - amounts falling due within one year 8 (13,652) (12,116)

Net current liabilities (5,146) (3,294)

Total assets less current liabilities 17,782 13,997

Provisions for liabilities and charges 9 (2,096) (2,233)

Net assets 15,686 11,764

Taxpayers' equityGeneral fund 10.1 15,661 11,735Revaluation reserve 10.2 25 29

15,686 11,764

Balance sheetAs at 31 March 2009

36

The notes on pages 38 to 53 form part of this accountThe financial statements were approved by the Board on 10 June 2009and signed on its behalf by

Dated 10 July 2009

T Straughan

Chief ExecutiveThe NHS Information Centre

Cash flow statementFor the year ended 31 March 2009


Restated2008/09 2007/08

Notes £000 £000

Net operating cost for the year (38,015) (36,619)

Depreciation and amortisation 2.1 1,812 1,575

Capital charges 2.1 317 162

Decrease / (increase) in debtors 1,094 (2,934)

Increase in creditors 806 3,283

Decrease in provisions (137) (2,820)

Net cash outflow from operating activities (34,123) (37,353)

Capital expenditure and financial investment

Payments to acquire intangible fixed assets 5.1 (276) (20)

Payments to acquire tangible fixed assets 5.2 (6,443) (3293)

Net cash outflow from investing activities (6,719) (3,313)

Net cash outflow before financing (40,842) (40,666)

Financing

Net parliamentary funding 10.1 41,620 39,475

Increase / (decrease) in cash 778 (1,191)

The notes on pages 38 to 53 form part of this account

1 Accounting Policies

The financial statements have beenprepared in accordance with theGovernment Financial Reporting Manualissued by HM Treasury. The particularaccounting policies adopted by The NHSInformation Centre (NHS IC) are describedbelow. They have been consistently appliedin dealing with items considered material inrelation to the accounts.

1.1 Accounting Conventions

These financial statements have beenprepared under the historical costconvention, modified to account for therevaluation of fixed asset investments. Thisis in accordance with directions issued bythe Secretary of State for Health andapproved by HM Treasury.

1.2 Transfer of functions and restatements

The prior year comparisons have beenrestated in respect of the transfer of theNHS Central Registry from the Office ofNational Statistics to the NHS IC on 1 April2008 in line with FRS 6 Acquisitions andMergers. In addition, the prior yearcomparisons have also been adjustedfollowing a change in basis of receivingincome for clinical audit services to ensurethat the prior year numbers were stated ona comparable basis in accordance with FRS28 Corresponding Amounts.

1.3 Income

The main source of funding is aparliamentary grant from the Departmentof Health within an approved cash limit,which is credited to the general fund.Parliamentary funding is recognised in thefinancial period in which it is received.

Operating income is accounted for byapplying the accruals convention andprimarily comprises of fees and charges forservices provided on a full cost basis toexternal customers and the NHS.

Deferred income refers to:

• income received or credited in the year forwhich the related costs have not beenincurred and

• monies received as a grant or contributiontowards capital expenditure which is thenwritten down and released to the operatingcost statement in line with the depreciationcharged on the assets.

1.4 Taxation

The NHS IC is not liable to pay corporationtax. Expenditure is shown net ofrecoverable VAT. Irrecoverable VAT ischarged to the most appropriateexpenditure heading or capitalised if itrelates to an asset.

Notes to the accounts


1.5 Capital Charges

The treatment of fixed assets in theaccount is in accordance with the principalcapital charges objective to ensure thatsuch charges are fully reflected in the costof capital. A charge reflecting the cost ofcapital utilised by The NHS IC is includedwithin operating costs. The charge iscalculated at the real rate set by HMTreasury, currently 3.5% (2007/08 3.5%),on the average carrying value of all assetsand liabilities except for cash balances withthe Office of the Paymaster General, wherethe charge is nil.

1.6 Losses and Special Payments

Losses and special payments are items thatParliament would not have contemplatedwhen it agreed funds for the health serviceor passed legislation. By their nature theyare items that ideally should not arise. Theyare therefore subject to special controlprocedures compared with the generalityof payments. They are divided into differentcategories, which govern the way eachindividual case is handled.

Losses and special payments are charged tothe relevant functional headings in theoperating cost statement.

1.7 Joint Venture

The investment in the Joint Venture isaccounted for under the principles of FRS9 Associates and Joint Ventures. Thecarrying value for the 2008/09 accountshas been reviewed following anindependent revaluation of the investment.

In accordance with the provisions of FRS 9and the FReM we have treated theinvestment in the Dr Foster IntelligenceLimited (DFI) joint venture as a fixed asset

investment shown at cost, less anyamounts written off. This has been subjectto a valuation at the balance sheet date.

1.8 Fixed Assets

a. Capitalisation

All assets falling into the followingcategories are capitalised:

1) Intangible assets, including purchase ofcomputer software licences, where they arecapable of being used for more than oneyear and have a cost, individually or as agroup, equal to or greater than £5,000

2) Tangible assets which are capable ofbeing used for more than one year, andthey:

• individually have a cost equal to or greaterthan £5,000

• collectively have a cost of at least £5,000,where the assets are functionallyinterdependent, they had broadlysimultaneous purchase dates, areanticipated to have simultaneous disposaldates and are under single managerialcontrol: or

• form part of the initial equipping andsetting up cost of a new buildingirrespective of their individual cost

Personal IT equipment such as desk topcomputers, laptops and local printers aretreated as revenue items.

b. Valuation

Intangible fixed assets are valued athistorical cost. The carrying value ofintangible assets is reviewed forimpairment at the end of the first full yearfollowing acquisition and in other periodsif events or changes in circumstancesindicate the carrying value may not berecoverable.


Tangible fixed assets are stated at the lowerof replacement cost and recoverableamount.

On initial recognition, assets are measured atcost, including any costs such as installationdirectly attributable to bringing them intoworking condition.

c. Depreciation

Depreciation is charged on each asset asfollows:

1) Intangible assets are amortised, on astraight line basis, over the estimated lives ofthe asset

2) Purchased computer software licences areamortised over the shorter of the term of thelicence and their useful economic life

3) Each equipment asset is depreciated on astraight line basis over its expected useful lifeas follows

• Fixtures and fittings 7 - 13 years

• Office, information technology, short lifeequipment 3 - 5 years

In accordance with HM Treasury directions,no indexation has been applied in 2008/09.

1.9 Leases

Assets held under finance leases and hirepurchase contracts are capitalised in thebalance sheet and are depreciated over theiruseful lives or primary lease term. Rentalsunder operating leases are charged on astraight line basis over the terms of the lease.

1.10 Provisions

The NHS IC provides for legal or constructiveobligations that are of uncertain timing oramount at the balance sheet date on thebasis of the best estimate of the expenditurerequired to settle the obligation.

1.11 Accounting for government grants

The development of fixed assets, notablysoftware and IT systems is sometimes madein collaboration with other health sectororganisations, for which those otherorganisations make a contribution towardsthe cost. In line with SSAP 4 Accounting forGovernment Grants, the income is creditedto the deferred income account and isreleased against the expected useful life ofthe related assets.



2.1 Operating costs

2.2 Staff numbers and related costs

Restated2008/09 2007/08

£000 £000

Non-executive directors' remuneration 119 113

Salaries and wages 24,398 19,499

External contractors 13,213 15,328

Training and conferences 759 674

Travel 1,202 877

Accommodation costs 2,025 1,838

Personal IT equipment 1,049 531

IT maintenance and support 1,342 1,096

Office services 544 498

Advertising and publicity 512 419

Capital: Depreciation and amortisation 1,812 1,575

Capital Charges 317 162

External audit services 70 70

Other fees to external auditors – adoption of IFRS 10 –

Miscellaneous 312 97

47,684 42,777

Permanently Temporary Restated2008/09 Employed & Contract 2007/08

Total Staff Staff Total£000 £000 £000 £000

Salaries and wages 21,390 14,048 7,342 16,811

Social Security Costs 1,089 1,089 – 971

Employer superannuation contributions - NHSPA 1,236 1,236 – 1,001

Employer superannuation contributions - other 802 802 – 829

24,517 17,175 7,342 19,612

Permanently Temporary RestatedEmployed & Contract 2007/08

2008/09 Staff Staff TotalNumber Number Number Number

Total 508 429 79 490

The average number of employeesduring the year was:

Expenditure on staff benefits

The amount spent on staff benefits during theyear totalled £NIL (2007/08: £NIL).

Retirements due to ill health

During 2008/09 there were no early retirementsfrom The NHS IC on the grounds of ill health(2007/08: £NIL).

Staff costs capitalised

During 2008/09 staff costs of £193,435 werecapitalised (2007/08: £NIL).

Principal Civil Service Pension Scheme (PCSPS)

From 1 October 2002, civil servants may be in oneof three statutory based ‘final salary’ definedbenefit schemes (classic, premium and classicplus). The schemes are unfunded, with the costsof benefit met by monies voted by Parliamenteach year. Pensions payable under classic,premium and classic plus are increased annuallyin line with changes in the retail prices index. Newentrants after 1 October 2002 may choosebetween membership of premium or joining agood quality ‘money purchase’ stakeholderarrangement with a significant employercontribution (partnership pension account).

Employee contributions are set at the rate of 1.5per cent of pensionable earnings for classic and3.5 per cent for premium and classic plus.Benefits in classic accrue at the rate of 1/80th ofpensionable salary for each year of service. Inaddition a lump sum equivalent to three years’pension is payable on retirement. For premium,benefits accrue at the rate of 1/60th of finalpensionable earnings for each year of service.Unlike classic, there is no automatic lump sumbut members may give up (commute) some oftheir pension to provide a lump sum. Classic plusis essentially a variation of premium, but with thebenefits in respect of service before 1 October2002 calculated broadly as per classic.

The partnership pension account is a stakeholderpension arrangement. The employer makes abasic contribution of between 3 per cent and12.5 per cent (depending on the age of themember) into a stakeholder pension productchosen by the employee. The employee does nothave to contribute but where they do makecontributions, the employer will match these upto a limit of 3 per cent of pensionable salary (inaddition to the employer’s basic contribution).The employer also contributes a further 0.8 percent of pensionable salary to cover the cost ofcentrally-provided risk benefit cover (death inservice and ill health retirement).

PCSPS is an unfunded multi-employer definedbenefit scheme in which the employer is unableto identify its share of underlying assets andliabilities. A full actuarial valuation wasundertaken on 31 March 2007. Details can befound in the resource accounts of the CabinetOffice: (www.civilservice-pensions.gov.uk). For2008/09, employer’s contributions of £882,000were paid at one of four rates in the range 17.1per cent to 25.5 per cent. The contribution ratesreflect benefits as they accrue, not the costs asthey are incurred, and reflect past experience ofthe scheme.

NHS Pension Scheme

Past and present employees are covered by theprovisions of the NHS Pension Scheme. Thescheme is an unfunded, defined benefit schemethat covers NHS employers, general practices andother bodies, allowed under the direction of theSecretary of State for England and Wales. Thescheme is not designed to be run in a way thatwould enable NHS bodies to identify their sharein the underlying Scheme assets and liabilities.Therefore the Scheme is accounted for as if it wasa defined contribution scheme.

The Scheme is subject to a full actuarial valuationevery four years (until 2004, based on a five yearvaluation cycle), and a FRS 17 Retirement Benefitsaccounting valuation every year.


An outline of these follows:

a) Full actuarial (funding) valuation

The purpose of this valuation is to assess the levelof liability in respect of the benefits due underthe scheme (taking into account its recentdemographic experience), and to recommendthe contribution rates to be paid by employersand scheme members. The last such valuation,which determined current contribution rates wasundertaken as at 31 March 2004 and coveredthe period from 1 April 1999 to that date.

The conclusion from the 2004 valuation was thatthe Scheme had accumulated a notional deficitof £3.3 billion against the notional assets as at31 March 2004. However, after taking intoaccount the changes in the benefit andcontribution structure effective from 1 April2008, the Scheme actuary reported thatemployer contributions could continue at theexisting rate of 14 per cent of pensionable pay.On advice from the Scheme actuary, schemecontributions may be varied from time to time toreflect changes in the scheme’s liabilities. Up to31 March 2008, the vast majority of employeespaid contributions at the rate of 6 per cent ofpensionable pay. From 1 April 2008, employeescontributions are on a tiered scale from 5 percent up to 8.5 per cent of their pensionable paydepending on total earnings.

b) FRS17 Accounting valuation

In accordance with FRS17, a valuation of theScheme liability is carried out annually by theScheme Actuary as at the balance sheet date byupdating the results of the full actuarialvaluation.

Between the full actuarial valuations at a two-year midpoint, a full and detailed member data-set is provided to the Scheme Actuary. At thispoint the assumptions regarding the compositionof the Scheme membership are updated to allowthe Scheme liability to be valued.

The valuation of the Scheme liability as at 31March 2009, is based on detailed membershipdata as at 31 March 2006 (the latest midpoint)updated to 31 March 2009 with summary globalmember and accounting data.

The latest assessment of the liabilities of theScheme is contained in the Scheme Actuaryreport, which forms part of the annual NHSPension Scheme (England and Wales) ResourceAccount, published annually. These accountscan be viewed on the NHS Pensions website.Copies can also be obtained from The StationeryOffice.

The Scheme is a "final salary" scheme. Annualpensions are normally based on 1/80th of thebest of the last 3 years pensionable pay for eachyear of service. A lump sum normally equivalentto three years pension is payable on retirement.Annual increases are applied to pensionpayments at rates defined by the Pensions(Increase) Act 1971, and are based on changesin retail prices in the twelve months ending 30September in the previous calendar year. Ondeath, a pension of 50 per cent of the member'spension is normally payable to the survivingspouse.

Early payment of a pension, with enhancement,is available to members of the scheme who arepermanently incapable of fulfilling their dutieseffectively through illness or infirmity. Additionalpension liabilities arising from early retirementare not funded by the scheme except where theretirement is due to ill-health. For earlyretirements not funded by the scheme, the fullamount of the liability for the additional costs ischarged to the operating cost statement at thetime The NHS IC commits itself to the retirement,regardless of the method of payment.

A death gratuity of twice final years pensionablepay for death in service, and up to five times theirannual pension for death after retirement, lesspensions already paid, subject to a maximumamount equal to twice the member's final years


pensionable pay less their retirement lump sumfor those who die after retirement is payable.

The scheme provides the opportunity formembers to increase their benefits throughmoney purchase Additional VoluntaryContributions (AVCs) provided by an approvedpanel of life companies. Under the arrangementthe employee can make contributions to enhancetheir pension benefits. The benefits payable relatedirectly to the value of the investments made.

Scheme provisions from 1 April 2008

From 1 April 2008 changes have been made tothe NHS Pension Scheme contribution rates andbenefits. Further details of these changes can befound on the NHS Pensions website.

www.pensions.nhsbsa.nhs.uk.

2.3 Better Payment Practice Code - measure of compliance


Number £000

Total non NHS bills paid 2008/09 7,374 37,739

Total non NHS bills paid within target 6,904 30,698

Percentage of non NHS bills paid within target 93.6% 81.3%

Total NHS bills paid 2008/09 72 803

Total NHS bills paid within target 49 526

Percentage of NHS bills paid within target 68.1% 65.5%

The Better Payment Practice code requires all valid invoices to be paid by the due date or within 30 days ofreceipt of goods or a valid invoice, whichever is later. During the year, a further target was introducedrequiring small suppliers to be paid within 10 working days.

Interest totalling £339 was paid under the Late Payment of Commercial Debt (Interest) Act 1998. (2007/08 £100).


3.1 Reconciliation of net operating cost to net resource outturn

Restated2008/09 2007/08

£000 £000

Net resource outturn 38,015 36,619

Revenue resource limit 38,144 38,553

Underspend against revenue resource limit 129 1,934

3.2 Reconciliation of gross capital expenditure to capital resource limit

2008/09 2007/08£000 £000

Gross capital expenditure 7,449 3,310

Net capital resource outturn 7,449 3,310

Capital resource limit 7,832 6,500

Underspend against capital resource limit 383 3,190

4 Operating Income

Restated2008/09 2007/08

£000 £000

Income towards clinical audit programme 3,116 2,903

Income towards programme activities 4,096 1,262

Income from data related services 634 644

Contributions towards surveys and publications 1,291 308

Other income 532 1,041

9,669 6,158

In 2007/08 income towards the clinical audit programme was previously shown in the net resource fundingas it was received directly from the Department of Health in addition to the Grant in Aid. During 2008/09the arrangements for transferring funding has changed and thus the prior year comparatives have beenamended on a comparable basis in accordance with FRS 28.


5.1 Intangible fixed assets

SoftwareLicences

£000

Gross cost at 1 April 2008 111

Additions - purchased 411

Gross cost at 31 March 2009 522

Accumulated amortisation at 1 April 2008 81

Provided during the year 50

Accumulated amortisation at 31 March 2009 131

Net Book value at 1 April 2008 30

Net Book value at 31 March 2009 391

5.2 Tangible fixed assets

Information Software Fixtures & Equipment TotalTechnology Fittings

£000 £000 £000 £000 £000

Cost or Valuation

At 1 April 2008 2,831 6,031 1,341 14 10,217

Additions 390 5,781 867 0 7,038

Disposals (368) (93) (37) (14) (512)

At 31 March 2009 2,853 11,719 2,171 0 16,743

Depreciation

At 1 April 2008 1,272 3,348 327 9 4,956

Provided during the year 607 945 205 5 1,762

Disposals (368) (93) (37) (14) (512)

At 31 March 2009 1,511 4,200 495 0 6,206

Net Book value at 1 April 2008 1,559 2,684 1,014 5 5,261

Net Book value at 31 March 2009 1,342 7,519 1,676 0 10,537

The total amount of depreciation charged in the operating cost statement in respect of assets held underfinance leases and hire purchase contracts was £nil.

The disposal of information technology assets includes certain equipment acquired as part of the transfer of theNHS Central Registry to bring into line with the NHS IC capitalisation policy.

5.3 Fixed Asset investments


31 March 2009 31 March 2008£000 £000

Investment in Joint Venture 12,000 12,000

On 17 January 2006, The NHS IC entered into ajoint venture arrangement known as Dr FosterIntelligence Limited (DFI). The NHS IC acquired 50per cent of the ordinary share capital and alsoprovided working capital. The remaining sharecapital is owned by Dr Foster Holdings LLP.

The accounting date for Dr Foster IntelligenceLimited is 31 December.

An employee share option scheme has beenimplemented allowing employees a joint shareholding to a maximum of 5 per cent of the issuedshare capital. At 31st December 2008, 2.8 percent of these shares had been awarded and thusThe NHS IC's proportionate shareholding hasreduced to 48.6 per cent.

The purpose of DFI is to transform the quality andefficiency of the health and social care informaticsmarket by providing authoritative, timely and

comparable information presented and marketedin a way that engages managers, clinicians,patients and citizens.

In accordance with the provisions of FRS 9(Associates and Joint Ventures) and the FReM wehave treated our investment in the DFI jointventure as a fixed asset investment shown at cost,less any amounts written off. This has beensubject to a valuation at the balance sheet date.

The NHS IC engaged PricewaterhouseCoopers LLP(“PwC”) to estimate the value of its investment inDFI as at 31 March 2009. PwC prepared avaluation on the assumption that Dr FosterHoldings LLP, The NHS IC’s joint venture partner,would agree to a sale of the whole company’sshares and that the NHS IC would receive a 48.6per cent pro rata share of DFI’s current marketvalue.

The NHS IC's share in the accounts of DFI is as follows:

Year to Year to31 December 2008 31 December 2007

£000 £000

Turnover 19,095 12,876

Profit / (Loss) before tax 817 (189)

Taxation 454 (42)

Profit / (Loss) after tax 1,271 (231)

Fixed Assets 9,048 9,605

Current Assets 7,905 4,857

Liabilities due within one year (5,582) (4,093)


Amounts falling due within one year Restated

31 March 2009 31 March 2008

£000 £000

DH and related bodies 1,448 3,277

Prepayments 1,199 603

Other debtors 802 663

3,449 4,543

6 Debtors

8 Creditors

31 March 2008 Changes during 31 March 2009the year

£000 £000 £000

Cash at the Office of HM Paymaster General 4,279 778 5,057

7 Analysis of changes in cash

Restated31 March 2009 31 March 2008

£000 £000

DH and related bodies 478 41

Tax and social security 431 283

Other creditors 4,047 4,700

Deferred income 3,088 2,586

Accruals 5,608 4,506

13,652 12,116

All creditors are due within one year.


Injury Lease Dilapidations Staff TotalBenefit Surrender Termination

£000 £000 £000 £000 £000

At 31 March 2008 172 111 640 1,310 2,233

Arising during the year – 5 50 200 255

Utilised during the year (16) – – (303) (319)

Released – – – (73) (73)

At 31 March 2009 156 116 690 1,134 2,096

Expected timing of cash flows

Within 1 year 16 – 130 438 584

1-5 years 63 – – 625 688

Over 5 years 77 116 560 71 824

9 Provisions for liabilities and charges

Restated

31 March 2009 31 March 2008

£000 £000

Balance at 1 April 2008 11,735 8,717

Net operating costs for the year (38,015) (36,619)

Net parliamentary funding 41,620 39,475

Non cash item - capital charge 317 162

Transfer from revaluation reserve 4 –

Balance at 31 March 2009 15,661 11,735

10 Movements on reserves

10.1 General fund

Restated31 March 2009 31 March 2008

£000 £000

Balance at 1 April 2008 29 29

Transfer to general reserve (4) –

Balance at 31 March 2009 25 29

10.2 Revaluation Reserve

11 Contingent assets and liabilities

The joint venture contract includes a put option whereby if, anytime from 1 January 2009 to31 December 2013, Dr Foster Holdings LLP shareholders wish to sell their share in theinvestment, The NHS IC would be obliged to buy out their share of the business, at marketvalue, if no other buyer can be found.

12 Capital Commitments

Capital commitments amount to £347,422 (2007/08 £NIL) and relates to the purchase of ITequipment.


31 March 2009 31 March 2008Land & Office Land & Office

Buildings Equipment Buildings Equipment£000 £000 £000 £000

Within one year 31 2 0 2

One to five years 889 58 893 31

More than five years 181 0 20 3

1,101 60 913 36

13 Commitments under operating leases

The NHSIC is committed to making the following operatinglease payments during the next financial year for leases expiring:

14 Other Commitments

The NHS IC has entered into non-cancellable contracts (which are not operating leases) forthe provision of services totalling £NIL as at 31 March 2009 (2007/08 £NIL)

15 Losses and Special Payments

There were five losses and special payments in 2008/09 amounting to £209,187 (2007/08£118,617).


Creditor at Debtor at Income in Expenditure31 March 2009 31 March 2009 2008/09 in 2008/09

£000 £000 £000 £000

Department of Health 357 1,390 5,526 713

Dr Foster Intelligence Limited – – 172 –

London Strategic Health Authority 20 – – 63

Yorkshire and The Humber Strategic Health Authority – 8 27 25

Bradford & Airedale PCT – 3 206 63

Hampshire PCT – – 20 –

National Patient Safety Agency 10 – 18 –

NHS Business Services Authority 75 – 83

NHS Institute of Innovation and Improvement 16 16 48 –

East Midlands Ambulance Service NHS Trust – – 15 –

East of England Ambulance Service NHS Trust – – 18 –

Imperial College Healthcare NHS Trust – – – 20

North West Ambulance Service NHS Trust – – 27 –

Portsmouth Hospitals NHS Trust – – – 23

South Central Ambulance Service NHS Trust – – 12 –

South East Coast Ambulance Service NHS Trust – – 15 –

West Midlands Ambulance Service NHS Trust – – 19 –

Yorkshire Ambulance Service NHS Trust – – 23 –

Barnsley Hospital NHS Foundation Trust – 26 41 –

Leeds Partnerships NHS Foundation Trust – – – 15

University College London NHS Foundation Trust – – – 45

Health Protection Agency – – 3 58

The Appointments Commission – – 19 –

Ministry of Defence (MoD) – 45 178 –

Welsh Assembly Government – – 265 –

Office for National Statistics 437 83 237 1,288

Department of Communities and local government – – – 46

16 Related Parties

The NHS IC is a Special Health Authority established under the National Health Service Act2006 and directions made thereunder by the Secretary of State for Health. The Departmentof Health is regarded as a controlling related party.

During the year The NHS IC has had a number of material transactions with the department,and with other entities for which the department is regarded as the parent department.Transactions with these organisations include the provision of software enhancements,maintenance and support, seconded staff, training courses and conferences.

17 Financial Instruments

As the cash requirements of The NHS IC are met through grant-in-aid and programme moniesprovided by the Department of Health, financial instruments play a more limited role in creatingand managing risk than would apply to a non-public sector body. The majority of financialinstruments relate to contracts to buy non-financial items in line with The NHS IC’s expectedpurchase and usage requirements and The NHS IC is therefore exposed to little credit, liquidityor market risk.


Central government bodies 1,390 2,786 357 616

NHS Trusts & PCT's 32 786 121 58

Other external bodies 2,027 971 13,174 11,442

At 31 March 2009 3,449 4,543 13,652 12,116

18 Intra-government balances

Debtors CreditorsAmounts falling Amounts falling

due within one year due within one year2008/09 2007/08 2008/09 2007/08

£000 £000 £000 £000

19 Authorised date for issue

The NHS IC’s Annual Report and Accounts are laid before the Houses of Parliament by the NHSIC. FRS 21 Events after the Balance Sheet date requires The NHS IC to disclose the date onwhich the Annual Report and Accounts are authorised for issue.

The authorised date for issue is 16 July 2009.

20 Transfer of functions and restatements

FRS 28 sets out the requirements for disclosure of corresponding amounts in the primaryfinancial statements and the notes to the financial statements.

Due to the transfer of functions to The NHS IC on 1 April 2008 and changes in accountingtreatment, balances for the year ended 31 March 2009 are not directly comparable with thosepublished in the financial statements for the year ending 31 March 2008. In order to provide atrue and fair view the comparative balances have been restated as follows:

The NHS Central Register (NHSCR) transferred from the Office for National Statistics to the NHSIC on 1 April 2008. The income and operating costs of the NHS Central Registry are includedwithin the NHS IC’s results for 2008/09 as shown in the operating cost statement. In order thatthe prior year comparatives are stated on a comparable basis, both the 2007/08 operating coststatement and the 31 March 2008 balance sheet have been adjusted for this machinery ofgovernment transfer.

From 1 April 2008 income for the clinical audit programme (NCASP) has been through theraising of a sales invoice and has been included within operating income. In 2007/08 theincome was received directly from the Department of Health in addition to Grant in Aid andwas shown in net resource funding. In order that the prior year comparatives are stated ona comparable basis, the 2007/08 operating cost statement has been adjusted to reflect thisas operating income as shown below.


Per 2007/08 Transfer NCASP Restated at

Accounts of NHSCR Funding 31 March 2008£000 £000 £000 £000

OPERATING COST STATEMENT

Operating costs 39,538 3,239 - 42,777

Operating income (2,124) (1,131) (2,903) (6,158)

Net operating cost 37,414 2,108 (2,903) 36,619

BALANCE SHEET

Fixed assets

Intangible assets 26 4 - 30

Tangible assets 5,090 171 - 5,261

Investment 12,000 - - 12,000

17,116 175 - 17,291

Current assets

Debtors 3,398 1,145 - 4,543

Cash at bank and in hand 4,279 - - 4,279

7,677 1,145 - 8,822

Current LiabilitiesCreditors - amounts falling due within one year (12,102) (14) - (12,116)

Net current assets

Provisions for liabilities and charges (2,233) - - (2,233)

Net assets 10,458 1,306 - 11,764

Taxpayers' equity

General fund 10,433 1,302 - 11,735

Revaluation reserve 25 4 - 29

10,458 1,306 - 11,764

Printed in the UK for The Stationery Office Limitedon behalf of the Controller of Her Majesty’s Stationery Office

ID6183673 07/09

Printed on Paper containing 75% recycled fibre content minimum.

Published by TSO (The StationeryOffice) and available from:

Online www.tsoshop.co.uk

Mail, Telephone Fax & E-MailTSOPO Box 29, Norwich, NR3 1GNTelephone orders/General enquiries0870 600 5522Order through the ParliamentaryHotline Lo-Call 0845 7 023474Fax orders: 0870 600 5533E-mail: [email protected]: 0870 240 3701

The Parliamentary Bookshop12 Bridge Street, Parliament Square,London SW1A 2JXTelephone orders/ General enquiries:020 7219 3890Fax orders: 020 7219 3866Email: [email protected]:http://www.bookshop.parliament.uk

TSO@Blackwell and otherAccredited Agents

Customers can also orderpublications fromTSO Ireland16 Arthur Street, Belfast BT1 4GD028 9023 8451 Fax 028 9023 5401

9 780102 961492

ISBN 978-0-10-296149-2

Annual report and accounts 2008/09...The Health and Social Care Information Centre Presented to...

Documents

Transcript of Annual report and accounts 2008/09...The Health and Social Care Information Centre Presented to...