Our support has resulted in a significant improvement in the quality of financial information held.
The Finance Department at University Hospitals of North Midlands NHS Trust required support to implement a new accounting standard (IFRS 16 Leases), a new capital asset and lease register (Asset4000 and Lease4000) and to undertake an asset verification exercise. The NHS Midlands and Lancashire CSU (MLCSU) was approached to lead these projects and provide technical and operational support.
We reviewed the work to date and worked with the trust capital team to:
– Implement IFRS 16 Leases:
- interpret and apply guidance from the Department of Heath and Social Care (DHSC)
- work with the estates, IT, finance and procurement teams to identify and register leases
- collate information to prepare and submit a return to DHSC forecasting the impact of the IFRS 16
- provide training to finance and non-finance teams
- populate templates for the new Lease4000 system and test
- provide IFRS 16 information for year-end planning and for the year-end accounts
– Implement Asset4000. We worked with the capital accountant to implement the new asset register, verifying the data to be uploaded to the system, testing and reconciling reports.
– Undertake an asset verification exercise. We analysed the asset register at 31 March to establish the scope and to determine a timeline and plan. We generated reports for budget holders, providing support and collating results to enable the capital accountant to update the asset register and process any disposals in line with trust policy. We also determined future steps to ensure asset verification is regularly undertaken in line with trust policies.
Our support enabled the trust to successfully implement the new IFRS16 lease standard in accordance with the requirements of DHSC. The trust was able to submit the mandated returns accurately and timely for the financial year ending 31 March 2022. The training we provided and the production of a lease register and templates helped establish processes and procedures for the new standard.
The new successfully implemented Capital Asset and Lease Register will facilitate accurate and timely reporting, at both month and year end.
The asset verification exercise has provided the Trust with further information on its assets and also assurance that the information held in the Asset Register is accurate and correctly stated. This is an ongoing project but our support to date has resulted in a significant improvement in the quality of information held in the Asset Register which meets the requirements of external audit.
Additionally, our support was able to provide extra capacity to a small capital team which would not have had the resource to deliver the project in time for the year-end of 31 March 2022.
“MLCSU demonstrated strong leadership skills to ensure the projects were finished on time and the goals achieved. They collaborated fantastically well with finance and non-financial colleagues.
“MLCSU were able to use their technical knowledge, experience and worked hard to break the complex projects into manageable pieces, this enabled Hilary to organise, lead and support the team to deliver.
“Without their professionalism we would not have been able to deliver these projects. I can highly recommend them, I would have them back tomorrow.”
Dylan Davies, Deputy Director of Finance, University Hospitals of North Midlands NHS Trust