Losses and Special Payments

Version 1.0 April 2017

Losses and Special Payments

Target Audience

Who Should Read This Policy

All Trust Staff

Losses and Special Payments Policy


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Ref. Contents Page

1.0 Introduction 4

2.0 Purpose 4

3.0 Objectives 4

4.0 Process 4

4.1 Categories of Losses and Special payments 4

4.2 Identifying and Reporting a Loss or Special Payment 5

5.0 Procedures connected to this Policy 6

6.0 Links to Relevant Legislation 6

6.1 Links to Relevant National Standards 6

6.2 Links to other Key Policies 7

6.3 References 7

7.0 Roles and Responsibilities for this Policy 8

8.0 Training 9

9.0 Equality Impact Assessment 9

10.0 Data Protection and Freedom of Information 9

11.0 Monitoring this Policy is Working in Practice 10

Appendices

1.0 Form to Record Loss or Damage to Trust Property and Personal Effects 11



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Explanation of terms used in this policy

Procedural Documents - The collective term for policies, procedures or guidelines

Policy – Sets out the aims and principles under which services, divisions, or units will operate. A

policy outlines roles and responsibilities, defines the scope of the subject covered, and provides a high

level description of the controls that must be in place to ensure compliance

Special Payment – A payment that is outside of the normal activity of the Trust which the Trust

does not have a legal obligation to pay e.g. special severance pay over and above the normal terms

and conditions

Loss - The permanent deprivation of cash, property or assets of the Trust



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1.0 Introduction

All NHS Trusts are required to have procedures in place to record both details of losses incurred by the Trust and any special payments made outside the normal

activities of the Trust. A register of such losses and special payments must be kept. The register is kept by the Finance Team and forms part of the Trust’s annual

accounts which are subject to scrutiny by the external auditors. The Trust’s Standing Financial Instructions (Paragraph 14.2.2) states that any

employee or officer discovering or suspecting a loss of any kind must either immediately inform their head of department, who must immediately inform the Chief

Executive and the Director of Finance or inform an officer charged with responsibility for responding to concerns involving loss.

This procedure does not apply to losses and special payments covered by the Trusts participation in NHS Litigation Authority risk pooling schemes. This should be

referred to the Health and Safety Manager. 2.0 Purpose

The purpose of this policy is to give guidance to the Trusts Groups on how to deal with losses and special payments. 3.0 Objectives

To ensure the Trust has a standard approach in managing losses and special

payments To provide standardised documentation to ensure consistency across the Trust

To provide a framework that enables employees to be aware of the expected processes for them to adhere to

To mitigate the risk of potential claims against the Trust and to safeguard

patients and employees for any losses/damage incurred while carrying out activities

To work collaboratively as a Trust involving relevant parties to avoid any conflict of interest and to use external agencies as necessary

To follow legal and statutory process when sharing information and

communicating with others in matters relating to property

4.0 Process 4.1 Categories of Losses and Special payments

The Department of Health has classified losses and special payments under nine categories as follows: 4.1.1 Losses

Category Type of Loss Further Detail

1 Loss of Cash due to: a) theft, fraud etc.

b) overpayment of salaries etc.

c) Other causes. 2 Fruitless Payments and constructive

losses

including abandoned capital

schemes and constructive losses

3 Bad Debts and claims

abandoned due to:

a) private patients

b) over-seas visitors

c) others



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Category Type of Loss Further Detail

4 Damage to buildings,

property (including stores losses) due to

a) theft, fraud etc.

b) stores losses

c) other

4.1.2 Special Payments

Category Type of Special Payment Further Detail

5 Compensation payments made under legal obligation

6 Extra contractual payments to contractors

7 Ex gratia payments sub defined as

follows:

7a Loss/damage of personal effects Staff and Service Users

7b Clinical Negligence with advice 7c Personal injury with advice 7d Other negligence and injury

7e Other employment payments Should not include special severance payments cat (see cat 8).

7f Patient referrals outside the UK and

EEA guidance

7g Other 7h Maladministration, no financial loss 8 Special Severance payments requiring HMT approval 9 Extra Statutory or Extra Regulatory

Payments

4.2 Identifying and Reporting a Loss or Special Payment

It is the duty of all staff to report (a) any incident which may or may not result in the

Trust being held liable and therefore subject to claims for compensation and (b) any instance which may have a resultant loss of property which the Trust owns or has liability for.

In every case the employee reporting the incident must immediately inform their

manager. In cases of suspected theft or fraud, the reporting Officer should immediately contact

the Trusts Local Counter Fraud Specialist or the Director of Finance.

It is the duty of the reporting person and their manager to complete Appendix 1 in

full and send to the Head of Financial Services.

The Head of Financial Services will:

Review the documentation and seek clarification where required

Add claim details onto the Trusts Losses and Special payments register

Pass to the relevant signatory for review and authorisation

Ensure payments are made to the relevant claimant

It is a management decision as to whether to replace equipment or replenish stock.



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The cost of compensating individuals, replacing equipment or replenishing stock will be charged to Divisional budgets.

Delegated authorisation as per the Trusts Standing Financial Instructions (see extract

table below).

Board

Investment/

Board Sub

Committee

GROUP A

(Chief

Executive

and Director

of Finance)

SFI Ref Notes

Losses and cash due to theft, fraud and

overpayment>=£50k <£50k <£50k 14 Board and External Auditors to be advised

Abandoned Capital Schemes/ Damage to

buildings and capital assets>=£50k <£50k <£50k 14

In accordance with the procedure for disposal of

assets, including condemnations

Bad debts >=£50k <£50k <£50k 14In accordance with the Management of

Receivables Policy

Ex-gratia payments for loss of personal effects >=£1k <£1k <£1k 14Director of Finance to report to the Board of

Directors for approval

Ex-gratia payments for loss of clinical

negligence/ personal injury>=£250k <£250k <£250k 14

Director of Finance to report to the Board of

Directors for approval Finance will maintain a losses and special payments register and use the information recorded to report to the relevant committees as per the cycles of businesses.

5.0 Procedures connected to this Policy

There are currently no Standard Operating Procedures connected to this policy. 6.0 Links to Relevant Legislation

Fraud Act 2006

The Act sets out provisions for a general offence of fraud, defining it in three classes, fraud by false representation; fraud by failing to disclose information; fraud by abuse of position. In all three classes of fraud, it requires that for an offence to have

occurred, the person must have acted dishonestly, and in law a person acts dishonestly if:

Their ‘fraudulent act’ is deemed to be dishonest by the ordinary standards of reasonable and honest people

The fraudster realised that what he was doing was, by the standards of

reasonable and honest people, dishonest

Secondly, a person must act either with intent to gain for himself or another, or with intent to cause loss to another or expose another to a risk of loss. It does not matter whether any gain, loss, or exposure to risk of loss occurs – all that matters is that the

fraudster acts with the requisite intent. A ‘gain’ or a ‘loss’ is defined to consist only of a gain or a loss in money or property (including intangible property), but could be

temporary or permanent. 6.1 Links to Relevant National Standards

There are currently no relevant national standards which apply to this policy.

https://en.wikipedia.org/wiki/Dishonestly



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6.2 Links to other Key Policies Claims Management Policy

The purpose of this policy is to provide guidance to both managerial and clinical staff on the Trust’s procedure for handling clinical negligence and personal injury litigation

in accordance with NHSLA requirements and relevant legislation. Standing Financial Instructions

These Standing Financial Instructions detail the financial responsibilities, policies and procedures adopted by the Trust. They are designed to ensure that the Trust's

financial transactions are carried out in accordance with the law and with Government policy in order to achieve probity, accuracy, economy, efficiency and effectiveness. Standards of Business Conduct Policy

The purpose of this policy is to ensure exemplary standards of conduct are adhered to by all employees of the Trust and that staff are aware of their individual responsibilities to maintain strict ethical standards in the conduct of NHS business. Anti-Fraud, Bribery and Corruption Policy

The aim of this policy is to set out clearly for staff, the framework and controls in place for dealing with all forms of detected or suspected fraud, bribery and corruption. 6.3 References

HM Treasury (2013) Managing Public Money



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7.0 Roles and Responsibilities for this Policy

Title Role Key Responsibilities

All Clinical and

operational Staff

Adherence

- Safeguard Trust property and personal effects

- Follow the procedures and processes in place for the effective administration and management of Trust property and

personal effects at all times

- Comply with all Trust policies, this is a condition of employment and a breach of this policy may result in disciplinary action

- Raise any concerns about the way this policy is being implemented or about this area of practice in general with their line

manager. If they feel unable to raise the matter with them, he/she may write to an Executive Director. If they feel unable

to raise the matter with an Executive Director, he/she may write to the Chairman or a Non-Executive Director. If he/she is

unsure about raising a concern or requires independent advice or support, they can contact:

- their Trade Union representative

- the relevant professional body

- the NHS Whistleblowing Helpline - 08000 724 725

Corporate Finance Staff

Adherence

- Follow the procedures and processes in place for the effective administration and management of Trusts property and

personal effects set out on this policy at all times

- Comply with all Trust policies, this is a condition of employment and a breach of this policy may result in disciplinary action

- Raise any concerns about the way this policy is being implemented or about this area of practice in general with their line

manager. If they feel unable to raise the matter with them, he/she may write to an Executive Director. If they feel unable

to raise the matter with an Executive Director, he/she may write to the Chairman or a Non-Executive Director. If he/she is

unsure about raising a concern or requires independent advice or support, they can contact:

- their Trade Union representative

- the relevant professional body

- the NHS Whistleblowing Helpline - 08000 724 725

Head of Financial

Services

Implementation

Lead

- Update this policy as necessary for approval by the Investment Committee

- Lead responsibility for the day to day implementation of this policy

Investment Committee Assurance - Oversee the implementation of a systematic and consistent approach

- Approve all policies and procedures that relate to their subject matter or area of practice

- Provide exception and progress reports to the Quality and Safety Steering Group



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8.0 Training

What aspect(s)

of this policy will require staff

training?

Which staff groups

require this training?

Is this training covered in the

Trust’s Mandatory and Risk Management Training Needs

Analysis document?

If no, how will the training be delivered?

Who will deliver the training?

How often will

staff require training

Who will ensure and

monitor that staff have this training?

There are no

specific aspects

of this policy that

require staff

training

All Clinical Staff

No, staff will receive training

in relation to this policy where

it is identified in their

individual training needs

analysis as part of their

development for their

particular role and

responsibilities

This will be determined

on a case by case basis

This will be

determined on a case

by case basis

This will be

determined on

a case by case

basis

Ward/Team Managers

Corporate Finance

staff

Corporate Financial

Controller

9.0 Equality Impact Assessment

Black Country Partnership NHS Foundation Trust is committed to ensuring that the way we provide services and the way we recruit and treat staff reflects individual needs, promotes equality and does not discriminate unfairly against any particular individual or group. The Equality Impact Assessment for this policy has been completed and is readily available on the Intranet. If you require this in a different format e.g . larger print,

Braille, different languages or audio tape, please contact the Equali ty & Diversity Team on Ext. 8067 or email [email protected] 10.0 Data Protection and Freedom of Information

This statement reflects legal requirements incorporated within the Data Protection Act and Freedom of Information Act that ap ply to staff who work within the public sector. All staff have a responsibility to ensure that they do not disclose information about the Trust’s activities in respect of service

users in its care to unauthorised individuals. This responsibility applies whether you are currently employed or after your employment ends and in certain aspects of your personal life e.g. use of social networking sites etc. The Trust seeks to ensure a high level of transparency in all its business

activities but reserves the right not to disclose information where relevant legislation applies.



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11.0 Monitoring this Policy is Working in Practice

What key elements will be monitored?

(measurable policy objectives)

Where described in

policy?

How will they be monitored?

(method + sample size)

Who will undertake this

monitoring?

How

Frequently?

Group/Committee that will receive and

review results

Group/Committee to ensure actions

are completed

Evidence this has

happened

Accuracy of form completion 4.2 Identifying

and Reporting

a Loss or

Special

Payment

As per each claim

received

Head of Financial

Services

This will be

undertaken as

part of their

annual cycle

of internal

control work

Audit Committee Audit Committee Minutes of

meetings and

reports

Type of Claim and values of

claim

4.1 Categories

of Losses and

Special

payments

As per each claim

received

Head of Financial

Services

This will be

undertaken as

part of their

annual cycle

of internal

control work

Audit Committee Audit Committee Minutes of

meetings and

reports



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Appendix 1

Form to Record Loss or Damage to Trust Property and Personal Effects

PLEASE NOTE THESE FORMS WILL BE INSPECTED BY EXTERNAL REGULATORS

SECTION 1

Name of person

reporting loss or damage

Contact Details

Location

Division

Date of Loss or Damage

Loss or Damage to: (please tick relevant box):

Trust Property: Personal Effects:

SECTION 2

Category of Loss /

Special payment from section 4.1

Details of the items lost or damaged

Value of items at time of loss or

damage (not replacement cost)

Total value to replace items

PLEASE ATTACH 3 QUOTES AND ANY OTHER SUPPORTING DOCUMENTATION TO THE FORM



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SECTION 3

Details on how the

items were lost or damaged

SECTION 4

Name, address and telephone number

of any witnesses

I confirm that the details recorded above are complete and accurate

Signature of Reporting Person

Job Title

Date



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SECTION 5

Managers Name

Contact Details

Date informed of loss or damage

Details on the cause

of the loss (identified from undertaking investigations)

Details on correction

action taken to prevent recurrence, including addressing

any weaknesses in control

or supervision

Details and Date of reporting loss or

damage to other departments (e.g.

Directors, Human Resources, Counter Fraud)

I propose the sum of £…………………………………..is to be written off / compensated.

Signature of Reporting Person

Job Title

Date



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SECTION 6

Director’s Name

Director’s contact details

Date informed of loss or damage

Insurance Claim required

Is there a need for further investigation

and referral to HR?

I hereby authorise the write off / compensation payment of £

Signature of Director authorising

payment

Job Title

Date

Finance Use Only:

Reference No on

register

Method of Payment (Cheque, or BACS)

Date Processed

Payment Made to

Please send completed forms to the Head of Financial Services, Delta House.



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Policy Details

* For more information on the consultation process, implementation plan, equality impact assessment,

or archiving arrangements, please contact Corporate Governance

Review and Amendment History

Version Date Details of Change

1.0 Apr 2017 New policy for BCPFT

Title of Policy Losses and Special Payments Policy

Unique Identifier for this policy BCPFT-FIN-POL-08

State if policy is New or Revised New

Previous Policy Title where applicable n/a

Policy Category

Clinical, HR, H&S, Infection Control etc. Finance

Executive Director

whose portfolio this policy comes under Finance Director

Policy Lead/Author

Job titles only Head of Financial Services

Committee/Group responsible for the approval of this policy Investment Committee

Month/year consultation process completed * February 2017

Month/year policy approved April 2017

Month/year policy ratified and issued May 2017

Next review date April 2020

Implementation Plan completed * Yes

Equality Impact Assessment completed * Yes

Previous version(s) archived * n/a

Disclosure status ‘B’ can be disclosed to patients and the public

Losses and Special Payments

Documents

Transcript of Losses and Special Payments