DATE: 25 July 2013

Title Schedule of Matters Delegated to Officers Update

Recommended action for the Governing Body

That the Governing Body: Agree that the Chief Financial Officer and Director of Commissioning can have delegated authority to increase the CSU approval limit for NCAs to £2,500 if necessary. APPROVE delegation to the Chief Financial Officer to approve additional budgetary requirements up to £25k.

Executive Summary

The CCG’s Governing Body has previously approved the Schedule of Matters Delegated to Officers. As a new organisation this has been kept under review to ensure that it is fit for purpose for the new organisation. Two issues have now been raised as follows: 1) The South London CSU (SLCSU) acute multi-disciplinary

team (mdt) has raised a potential issue with the approval level for Non Contracted Activity invoices (NCAs). The approved schedule currently includes the following in this respect:

7

ii)

Commissioning Expenditure Contract Exclusions (NHS and Non-NHS) c) Non Contracted Activity (NCAs) i) Approval of invoices up to

£1,000 ii) Approval of invoices Over

£1,000

c) i) Acute Contracts Manager (CSU) or Finance Manager (CSU) ii) Assistant Director of Health Commissioning & Contracting

The £1,000 limit was set in discussion with the Deputy Director of Finance of the SLCSU. However, an analysis provided by the mdt on NCAs for the Care Trust in 2012/13 shows that the average value of an invoice is £1,800. Their view is that 30% of NCA invoices will be over £1,000. As the mdt team is best placed to validate these invoices, this implies that the approval

ENCLOSURE: G Agenda Item: 72/13

Governing Body (Public) Meeting

limit has been set too low. However, the Head of Finance, who has been approving invoices, has stated that to date no invoice has been above £1,000. The Chief Financial Officer and Director of Commissioning will therefore continue to monitor the situation. The Governing Body are asked to agree that the Chief Financial Officer and Director of Commissioning can have delegated authority to increase the CSU approval limit for NCAs to £2,500 if necessary to ensure that the majority of invoices are appropriately validated and approved by the CSU mdt team. 2) There is sometimes a requirement to approve additional

budgetary requirements for small amounts where there is a genuine need due to an unforeseen cost pressure or for an invest to save pilot. The current Schedule of Matters Delegated to Officers currently requires all such requests up to £100k to be approved by the Finance Working group (Sub Committee).

On discussion, Directors feel that small amounts may not warrant the time of the Finance Sub Committee (FSC), to discuss, and it may be best to delegate authority to the Chief Financial Officer (CFO) in such circumstances. A deminimus limit of £25k is therefore being proposed. This would also speed up the process of approval which would not have to wait until the monthly FSC meeting. Requestors would still need to provide appropriate documentation on which the CFO can make an informed decision. Approvals would then be reported to the next meeting of the FSC. Members are asked to consider this proposal and approve delegation to the CFO Officer to approve additional budgetary requirements up to £25k.

Which objective does this paper support?

Patients: Improve the health and wellbeing of people in Bexley in partnership with our key stakeholders

People: Empower our staff to make BCCG the most successful CCG in (south) London

X

Pounds: Delivering on all of our statutory duties and become an effective, efficient and economical organisation

X

Process: Commission safe, sustainable and X

equitable services in line with the operating framework and which improves outcomes and patient experience

Organisational implications

Key Risks (corporate and/or clinical)

That the Schedule of Matters includes inadequate provision for approval of CCG expenditure, in this case in respect of NCAs. This will be continually reviewed and updated as required.

Equality and Diversity

Not applicable

Patient impact

Not applicable

Financial

Considering the deminimus limit recommended the financial risk is considered low. All approvals will be reported to the FSC.

Legal Issues

Not applicable

NHS constitution

Not applicable

Consultation (Public, member or other)

This potential change to NCA limits has been discussed with the CSU mdt team and the CSU Deputy Director of Finance and Head of Finance, after analysis of data. The proposal has been debated between the Chief Financial Officer and the Director of Commissioning. The recommendation for the deminimus approval limit to the CFO has been discussed between directors.

Audit (Considered / Approved by Other Committees / Groups)

Not applicable

Communications Plan If it is decided that the NCA approval limit should be changed this will be communicated to the relevant staff.

Author Theresa Osborne Chief Financial Officer

Clinical Lead Dr S Deshmukh, Finance lead

Executive Sponsor Theresa Osborne Chief Financial Officer

Date 21st June 2013