Part V Property and Finance
Finance and accounts
C1C285AAF1 Means of meeting expenditure of Health Boards out of public funds.
1
The Secretary of State shall pay to each Health Board sums equal to their general Part II expenditure.
2
“General Part II expenditure" is expenditure which—
a
is attributable to the payment of remuneration to persons providing services in pursuance of Part II; but
b
does not fall within paragraphs (b) to (e) of subsection (4).
3
4
In subsection (3) “ main expenditure ” means expenditure which is attributable to—
a
the performance by the Board of their functions F32or, as the case may be, by HIS of its health service functions, in that year, but—
i
is not general Part II expenditure; and
ii
does not fall within paragraphs (b) F2or (c);
b
the reimbursement of expenses of persons providing services in pursuance of Part II which are designated expenses incurred in connection with the provision of the services (or in giving instruction in matters relating to the services);
c
remuneration which is paid to persons providing additional pharmaceutical services (in accordance with directions under section 27A) in respect of such of those services as are designated;
d
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
e
remuneration which is referable to the cost of drugs for which the Health Board is accountable in that year (whether paid by it or by another Health Board).
5
In paragraphs (b) to (e) of subsection (4), “ designated ” means designated in writing by the Secretary of State for the purposes of that paragraph and in relation to the allotment in question.
6
An amount is allotted to a Health Board F33or to HIS for a year under this section when they are notified by the Secretary of State that it is allotted to them for that year; and the Secretary of State may make an allotment under this section increasing or reducing an allotment previously so made.
7
Where the Secretary of State proposes to pay any sum to a Health Board, he may, with the consent of the Treasury, instead pay that sum to an NHS trust in discharge of the whole or any part of any liability of the Health Board to the NHS trust.
8
9
The expenditure of a University Liaison Committee shall, for the purposes of this section, be deemed to be the expenditure of the Health Board for whose area it is constituted, and, where a University Liaison Committee is constituted for the areas of more than one Health Board, its expenditure shall be apportioned between the Boards concerned in such manner as may be determined by the Secretary of State.
10
Payments under this section shall be made at such times and in such manner, and subject to such conditions as to records, certificates or otherwise, as the Secretary of State may determine.
11
In this section and section 85AB, “ drugs ” includes medicines and listed appliances (within the meaning of section 27).
85ABF4 Further provision as to expenditure on drugs.
1
For each financial year, the Secretary of State shall apportion, in such manner as he thinks appropriate, among all Health Boards the total of the remuneration referable to the cost of drugs which is paid by each Health Board in that year.
2
A Health Board is accountable in any year for remuneration referable to the cost of drugs to the extent (and only to the extent) that such remuneration is apportioned to it under subsection (1).
3
Where in any financial year any remuneration referable to the cost of drugs for which a Health Board is accountable is paid by another Health Board, the remuneration is to be treated (for the purposes of this section) as having been paid by the first Health Board in the performance of its functions.
4
The Secretary of State may, in particular, exercise his discretion under subsection (1)—
a
so that any apportionment reflects, in the case of each Health Board, the financial consequences of orders for the provision of drugs, being orders which in his opinion are attributable to the Board in question;
b
by reference to averaged or estimated amounts.
5
The Secretary of State may make provision for any remuneration referable to the cost of drugs which is paid by a Health Board other than the Health Board which is accountable for the payment to be reimbursed in such manner as he may determine.
6
The Secretary of State shall determine what remuneration paid by Health Boards to persons providing pharmaceutical services is to be treated for the purposes of section 85AA and this section as remuneration referable to the cost of drugs.
C385F5 Expenses of certain bodies.
C41
There shall, in respect of each financial year, be paid by the Secretary of State sums not exceeding the amount allotted by him for that year to each of the following bodies towards meeting the expenditure attributable to the performance by that body of their functions in that year—
a
the Agency;
b
every Special Health Board;
c
F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d
the Dental Estimates Board;
e
the tribunal;
F36ea
HIS;
f
every local health council.
F371A
The reference in subsection (1) to the functions of HIS is to be construed as a reference to that body's health service functions only.
C42
The date on which an allotment under subsection (1) (including an allotment increasing or reducing an allotment previously made) takes effect is the date on which the body receiving the allotment are notified of its amount by the Secretary of State.
C43
The Secretary of State may give directions to a body referred to in subsection (1) with respect to the application of the sums paid to them under that subsection and it shall be the duty of any body to whom directions have been given under this subsection to comply with the directions.
C44
Payments under subsection (1) shall be made at such times and in such manner, and subject to such conditions as to records, certificates or otherwise, as the Secretary of State may determine.
85AF7 Financial duties of bodies referred to in section 85.
C5C6C7C81
It is the duty of each such body as is referred to in section F885AA(1) or 85(1), in respect of each financial year, so to perform their functions as to secure that the expenditure attributable to the performance of their functions in that year does not exceed the aggregate of—
a
b
any other sums received under this Act in that year by that body; and
c
any sums received otherwise than under this Act in that year by that body for the purposes of enabling them to defray any such expenditure.
F381A
References to “functions” in subsection (1) are, in the application of that subsection to HIS, to be construed as references to HIS's health service functions only.
2
F11Subsection (9) of section 85AA shall apply for the purposes of this section as it applies for the purposes of that section.
C5C6C7C93
The Secretary of State may give such directions to a body referred to in section F1285AA(1) or 85(1) as appear to him to be requisite to secure that the body comply with the duty imposed on them by subsection (1) and it shall be the duty of the body to comply with the directions.
Directions under this subsection may be specific in character.
C6C74
To the extent to which—
a
any expenditure of a Health Board F39, HIS or a local health council is defrayed by that body as trustee; or
b
any sums are received by such a body as trustee or under section 84A,
that expenditure and, subject to subsection (5), those sums shall be disregarded for the purposes of this section, and, for those purposes, sums which, in the hands of such a body, cease to be trust funds and become applicable by the body otherwise than as trustee shall be treated, on their becoming so applicable, as having been received by the body otherwise than as trustee.
5
Of the sums received by a body under section 84A so much only as accrues to the body after defraying any expenses incurred in obtaining them shall be disregarded under subsection (4).
6
Subject to subsection (4), the Secretary of State may, by directions, determine—
a
whether sums of a description specified in the directions are or are not to be treated for the purposes of this section as being receivable under this Act by a body of a description so specified;
b
whether expenditure of a description specified in the directions is or is not to be treated for the purposes of this section as being attributable to the performance of functions by a body of a description so specified; or
c
the extent to which and the circumstances in which sums received but not yet spent by a body under section F1385AA(1) 85(1) F14, or, as the case may be, section F1585AA(3) are to be treated for the purposes of this section as part of the expenditure of the body and to which financial year’s expenditure they are to be attributed.
C11 85B C10F16 Schemes for meeting losses and liabilities etc. of certain health service bodies.
1
The Secretary of State may by regulations made with the consent of the Treasury establish a scheme whereby any of the bodies mentioned in subsection (2) may make provision to meet—
a
expenses arising from any loss of or damage to their property; and
b
liabilities to third parties for loss, damage (including solatium) or injury arising out of the carrying out of the functions of the bodies concerned.
2
The bodies referred to in subsection (1) are—
a
Health Boards;
b
the Agency;
c
F17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
e
Special Health BoardsF20;
f
the Mental Welfare Commission for Scotland,
F49g
local authorities; and
h
integration joint boards established by order under section 9(2) of the 2014 Act,
but a scheme under this section may limit the class or description of bodies which are eligible to participate in it.
F412A
The reference—
a
in paragraph (a) of subsection (1) to property of HIS is to be construed as a reference to property held by HIS in connection with the exercise of its health service functions;
b
in paragraph (b) of that subsection to the functions of HIS is to be construed as a reference to the health service functions of that body.
F502B
The reference—
a
in paragraph (a) of subsection (1) to property of a local authority is to be construed as a reference to property held by a local authority in connection with the exercise of its relevant functions;
b
in paragraph (b) of that subsection to the functions of a local authority is to be construed as a reference to the relevant functions of a local authority.
2C
In subsection (2B), “ relevant functions ” means—
a
integration functions; and
b
such other functions as the Scottish Ministers may by order specify.
2D
In subsection (2C)(a), “ integration functions ” means functions which in pursuance of an integration scheme under the 2014 Act are—
a
delegated to the authority;
b
to be carried out in conjunction with functions delegated to the authority (that is, functions set out in the integration scheme in pursuance of section 1(3)(c) of that Act); or
c
to be carried out by the authority by virtue of a direction under section 26 of the 2014 Act.
3
Without prejudice to the generality of the power conferred by subsection (1), a scheme under this section may-
a
provide for the scheme to be administered by the Secretary of State, the Agency F42 HIS , or a Health Board or NHS trust specified in the scheme;
b
require any body which participates in the scheme to make payments in accordance with the scheme; and
c
provide for the making of payments for the purposes of the scheme by the Secretary of State.
4
Without prejudice to any other power of direction conferred on the Secretary of State,-
a
if the Secretary of State so directs, any body which is eligible to participate in a scheme shall do so; and
b
where a scheme provides for it to be administered by the Secretary of State, the Agency F43 , HIS or a Health Board or NHS trust shall carry out such functions in connection with the administration of the scheme as the Secretary of State may direct.
F514A
Subsection (4)(a) does not apply in relation to a local authority.
5
Neither the Secretary of State nor any body administering a scheme under this section shall, by virtue of their activities under the scheme, be regarded as F21effecting or carrying out contracts of insurance for the purposes of the Financial Services and Markets Act 2000.
F526
In this section, “ the 2014 Act ” means the Public Bodies (Joint Working) (Scotland) Act 2014.
C14C1586C12C13 Accounts of Health Boards and the Agency.
F221
The following bodies that is to say—
a
every Health Board;
b
the Agency; and
F44ba
HIS;
c
every NHS trust,
shall keep, in such form as the Secretary of State may, with the approval of the Treasury, direct, accounts of all moneys received or paid out by them F45(in the case of HIS, in connection with the exercise of that body's health service functions only), and F23shall send those accounts to the Scottish Ministers by such time as they may direct.
F241AA
The Scottish Ministers shall send the accounts to the Auditor General for Scotland for auditing.
F251A
F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1B
In preparing its annual accounts in pursuance of subsection (1), an NHS trust shall comply with any directions given by the Secretary of State with the approval of the Treasury as to—
a
the methods and principles according to which the accounts are to be prepared; and
b
the information to be given in the accounts.
1C
F26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F272
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Every F28body mentioned in paragraphs (a) to (c) of subsection (1) shall prepare and transmit to the Secretary of State in respect of each financial year accounts in such form as the Secretary of State may, with the approval of the Treasury, direct.
F294
The Scottish Ministers may if they think fit prepare, in respect of any financial year, summarised or consolidated accounts, in such form as they may determine, of such of the bodies mentioned in paragraphs (a) to (c) of subsection (1), or such groups of those bodies, as they may determine; and they shall transmit any such accounts to the Auditor General for Scotland for auditing
F265
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C1787C16Regulation of financial arrangements of Health Boards, the Agency and the Dental Estimates Board.
1
Regulations may provide, in the case of all or any of the following bodies, that is to say, Health Boards, the Agency F46HIS, and the Dental Estimates Board, for restricting the making of payments by or on behalf of the body otherwise than on such authorisation and subject to such conditions as may be specified in the regulations; but such provision may be made subject to such exceptions as may be so specified.
2
Regulations made under this section may contain such other provisions as to the making and carrying out by all or any of those bodies of such arrangements with respect to financial matters as the Secretary of State thinks necessary for the purpose of securing that the affairs of such bodies are conducted, so far as reasonably practicable, in such manner as to prevent financial loss and to ensure and maintain efficiency.
3
Without prejudice to the operation of the provisions of any such regulations, the Secretary of State may give to any of the said bodies such directions (which may be specific in character) as to any matter with respect to which regulations may be made under this section as it appears to him is requisite for the purpose of securing that the affairs of the body are conducted, so far as reasonably practicable, in such manner as is mentioned in subsection (2); and a body to whom any such directions are given shall comply therewith.
F474
In relation to HIS, the references—
a
in subsection (1) to payments;
b
in subsection (2) to arrangements and affairs; and
c
in subsection (3) to affairs,
are to be construed as references to payments, arrangements and affairs for or in connection with the exercise by HIS of its health service functions only.