Detailed Financial Policies (SFIs)

Please see below our Standing Financial Instructions.

Document Owner: Jane Payling
Document Author: Emily Bosley
Version 0.0

Authorised By Audit Committee
Date of Authorisation 01 July 2022
Date of Next Review 01 July 2024

Change History

Version	Date	Name	Revision Description
0.0	03/22	Emily Bosley	Initial Preparation
0.1	04/22	Emily Bosley	Audit Committee Review
1.0	07/22	Emily Bosley	Finalisation and Approval by ICB Board

1 Purpose and statutory framework

These Standing Financial Instructions (SFIs) shall have effect as if incorporated into the integrated Care Board’s (ICB) constitution. In accordance with the National Health Service Act 2006, as amended by the Health and Care Act 2022, the ICB must publish its constitution.

In accordance with the Act as amended, NHS England is mandated to publish guidance for ICBs, to which each ICB must have regard, in order to discharge their duties.

The purpose of this governance document is to ensure that the ICB fulfils its statutory duty to carry out its functions effectively, efficiently and economically. The SFIs are part of the ICB’s control environment for managing the organisation’s financial affairs as they are designed to ensure regularity and propriety of financial transactions.

SFIs define the purpose, responsibilities, legal framework and operating environment of the ICB. They enable sound administration, lessen the risk of irregularities and support commissioning and delivery of effective, efficient and economical services.
They should be used in conjunction with the scheme of reservation and delegation, as well as the standing orders and constitution as a whole.

The ICB is established under Chapter A3 of Part 2 of the National Health Service Act 2006, as inserted by the Health and Care Act 2022 and has the general function of arranging for the provision of services for the purposes of the health services in England in accordance with the Act.

Each ICB is to be established by order made by NHS England for an area within England, the order establishing an ICB makes provision for the constitution of the ICB.

All members of the ICB (its board) and all other officers should be aware of the existence of these documents and be familiar with their detailed provisions. The ICB SFIs will be made available to all officers on the intranet and internet website for each statutory body.

Should any difficulties arise regarding the interpretation or application of any of these SFIs, the advice of the chief executive or the Director of Finance must be sought before acting.

Failure to comply with the SFIs may result in disciplinary action in accordance with the ICBs applicable disciplinary policy and procedure in operation at that time.

2 Scope

All officers of the ICB, without exception, are within the scope of the SFIs without limitation. The term officer includes permanent employees, secondees and contract workers.

Within this document, words imparting any gender include any other gender. Words in the singular include the plural and words in the plural include the singular.

Any reference to an enactment is a reference to that enactment as amended.

Unless a contrary intention is evident, or the context requires otherwise, words or expressions contained in this document, will have the same meaning as set out in the applicable Act.

3 Roles and Responsibilities

The ICB Board

The ICB Board exercises financial supervision and control by:
a) formulating the financial strategy;
b) requiring the submission and approval of Budgets within approved allocations/overall income;
c) defining and approving essential features in respect of important procedures and financial systems (including the need to obtain value for money); and
d) defining specific responsibilities placed on Members of the ICB Board and employees as indicated in the Scheme of Reservation and Delegation.

Staff

All ICB officers are severally and collectively, responsible to their respective employer(s) for:

• abiding by all conditions of any delegated authority;
• the security of the statutory organisations property and avoiding loss;
• ensuring integrity, accuracy, probity and value for money in the use of resources; and
• conforming to the requirements of these SFIs, as well as the Standing Orders, Scheme of Reservation and Delegation, and any financial procedures.

For all Members of the ICB Board and any employees who carry out a financial function, the form in which financial records are kept and the manner in which Members of the ICB Board and employees discharge their duties must be to the satisfaction of the Director of Finance.

Accountable Officer

The ICB constitution provides for the appointment of the chief executive by the ICB chair. The chief executive is the accountable officer for the ICB and is personally accountable to NHS England for the stewardship of ICBs allocated resources.

The Accountable Officer has overall responsibility for the organisation’s systems of internal control.

The Accountable Officer is responsible for identifying and implementing cost improvements and income generation initiatives in accordance with the requirements of the Operational Plan and a balanced budget.

The Accountable Officer is responsible for ensuring that information relating to the ICB’s accounts, its income or expenditure, or its use of resources is provided to NHS England as requested.

The Director of Finance reports directly to the ICB chief executive officer and is professionally accountable to the NHS England regional finance director.

The chief executive will delegate to the Director of Finance the following responsibilities in relation to the ICB:

• preparation and arranging the audit of annual accounts, including ensuring that the Governance statement and annual accounts & reports are signed;
• adherence to the directions from NHS England in relation to accounts preparation;
• ensuring that the allocated annual revenue and capital resource limits are not exceeded, jointly, with system partners; and that the ICB meets the financial targets set for it by NHS England
• ensuring that there is an effective financial control framework in place to support accurate financial reporting, safeguard assets and minimise risk of financial loss;
• meeting statutory requirements relating to taxation;
• ensuring that there are suitable financial systems in place (see Section 6);
• use of incidental powers such as management of ICB assets, entering commercial agreements;
• planned budgets are approved by the relevant Board; developing the funding strategy for the ICB to support the board in achieving ICB objectives, including consideration of place-based budgets;
• making use of benchmarking to make sure that funds are deployed as effectively as possible;
• ensuring executive members (partner members and non-executive members) and other officers are notified of and understand their responsibilities within the SFIs;
• specific responsibilities and delegation of authority to specific job titles are confirmed;
• financial leadership and financial performance of the ICB;
• identification of key financial risks and issues relating to robust financial performance and leadership and working with relevant providers and partners to enable solutions;
• supporting a strong culture of public accountability, probity, and governance, ensuring that appropriate and compliant structures, systems, and process are in place to minimise risk;
• ensuring there are arrangements to review, evaluate and report on the effectiveness of internal financial control including the establishment of an effective Internal Audit function (see section 9); and
• without prejudice to any other functions of the ICB, and employees of the ICB, the provision of financial advice to other Members of the ICB Board and employees.
• Audit and risk assurance committee

The board and accountable officer should be supported by an audit and risk assurance committee, which should provide proactive support to the board in providing advice and ensuring effective systems are in place in relation to:
a) the management of key risks;
b) the strategic processes for risk;
c) the operation of internal controls;
d) control and governance and the governance statement;
e) the accounting policies, the accounts, and the annual report of the ICB;
f) the process for reviewing of the accounts prior to submission for audit, management’s letter of representation to the external auditors; and the planned activity and results of both internal and external audit;
g) Reviewing any incident of fraud or corruption or possible breach of ethical standards or legal or statutory requirements that could have a significant impact on the ICB’s published financial accounts or reputation;
h) Reviewing any objectives and effectiveness of the internal audit services including its working relationship with external auditors;
i) Reviewing major findings from internal and external audit reports and ensure appropriate action is taken;
j) Reviewing ‘value for money’ audits reporting on the effectiveness and efficiency of the selected departments or activities Reviewing the scope of both internal and external audit including the agreement on the number of audits per year for approval by the ICB Board; and
k) Investigating any matter within its terms of reference, having the right of access to any information relating to the particular matter under investigation.

4 Management accounting and business management

Management Accounting and Use of Resources

The Director of Finance is responsible for maintaining policies and processes relating to the control, management and use of resources across the ICB.

The Director of Finance will delegate the budgetary control responsibilities to budget holders through a formal documented process.

The Director of Finance will ensure:

• the promotion of long term financial heath for the NHS system (including ICS);
• budget holders are accountable for obtaining the necessary approvals and oversight of all expenditure incurred on the cost centres they are responsible for;
• the improvement of financial literacy of budget holders, including ensuring the appropriate level of expertise and systems training;
• that the budget holders are supported in proportion to the operational risk; and
• the implementation of financial and resources plans that support the NHS Long term plan objectives.

In addition, the Director of Finance should have financial leadership responsibility for the following statutory duties:

• the duty of the ICB, in conjunction with its partner NHS trusts and NHS foundation trusts, to exercise its functions with a view to ensuring that, in respect of each financial year;
  • local capital resource use does not exceed the limit specified in a direction by NHS England;
  • local revenue resource use does not exceed the limit specified in a direction by NHS England;
• the duty of the ICB to perform its functions as to ensure that its expenditure does not exceed the aggregate of its allotment from NHS England and its other income; and
• the duty of the ICB, in conjunction with its partner trusts, to seek to achieve any joint financial objectives set by NHS England for the ICB and its partner trusts.

The Director of Finance and all senior officers responsible for finance within the ICB should also promote a culture where budget holders and decision makers consult their finance business partners in key strategic decisions that carry a financial impact.

Budgetary Delegation

The Director of Finance may delegate the management of a budget to permit the performance of a defined range of activities. This delegation must be in writing and be accompanied by a clear definition of:
a) the amount of the budget;
b) the purpose(s) of each Budget heading;
c) individual and group responsibilities;
d) authority to exercise virement;
e) achievement of planned levels of service; and
f) the provision of regular reports.

The Director of Finance and delegated budget holders must not exceed the budgetary total or virement limits set by the ICB Board.

Any budgeted funds not required for their designated purpose(s) revert to the immediate control of the Accountable Officer, subject to any authorised use of virement.

Non-recurring Budgets should not be used to finance recurring expenditure without the authority in writing of the Director of Finance.

Capital Expenditure

The general rules applying to delegation and reporting shall also apply to capital expenditure. (The particular applications relating to capital are contained in Standing Financial Instruction No. 12).

5 Income, banking arrangements and debt recovery

Income

An ICB has power to do anything specified in section 7(2)(a), (b) and (e) to (h) of the Health and Medicines Act 1988 for the purpose of making additional income available for improving the health service²

The Director of Finance is responsible for:

• ensuring order to cash practices are designed and operated to support, efficient, accurate and timely invoicing and receipting of cash. The processes and procedures should be standardised and harmonised across the NHS System by working cooperatively with the Shared Services provider; and
• ensuring the debt management strategy reflects the debt management objectives of the ICB and the prevailing risks.

Banking

The Director of Finance is responsible for ensuring the ICB complies with any directions issued by the Secretary of State with regards to the use of specified banking facilities for any specified purposes.

The Director of Finance will ensure that:

• the ICB holds the minimum number of bank accounts required to run the organisation effectively. These should be raised through the government banking services contract;
• reporting is completed to the Board on any arrangements made with the organisation’s bankers for accounts to be overdrawn;
• the IBC monitors compliance with NHS England requirements on the level of cleared funds. and
• the ICB has effective cash management procedures in place.

In order to prevent Money Laundering, under no circumstances will the ICB accept cash payments in excess of €15,000 (approximately £12,500), in respect of any single transaction. Any attempts by an individual to effect payment above this amount should be notified immediately to the Director of Finance.

Debt management

The Director of Finance is responsible for the ICB debt management strategy. This includes:

• ensuring the ICB has appropriate debt management policies and procedures in place;
• that the debt management policy is reviewed and endorsed by the audit committee at least once every 3 years; and
• responsibility to appoint a senior office responsible for day to day management of debt.

6 Financial systems and processes

Provision of finance systems

The Director of Finance is responsible for ensuring systems and processes are designed and maintained for the recording and verification of finance transactions such as payments and receivables for the ICB.

The systems and processes will ensure, inter alia, that payment for goods and services is made in accordance with the provisions of these SFIs, related procurement guidance and prompt payment practice.

As part of the contractual arrangements for ICBs, officers will be granted access where appropriate to the Integrated Single Financial Environment (“ISFE”), which shall be the ICB’s accounting system.

The Director of Finance will, in relation to financial systems:

• design and supervise the implementation of the ICB’s financial systems and policies, ensuring arrangements are in place for regular review and reporting breaches;
• promote awareness and understanding of financial systems, value for money and commercial issues;
• ensure that transacting is carried out efficiently in line with current best practice – e.g. e-invoicing;
• ensure that the ICB meets the required financial and governance reporting requirements as a statutory body by the effective use of finance systems;
• ensure these systems enable the prevention and the detection of inaccuracies and fraud, and the reconstitution of any lost records;
• ensure that the financial transactions of the authority are recorded as soon as, and as accurately as, reasonably practicable;
• ensure publication and implementation of all ICB business rules and ensure that the internal finance team is appropriately resourced to deliver all statutory functions of the ICB;
• ensure that risk is appropriately managed;
• ensure the identification of the duties of officers dealing with financial transactions and division of responsibilities of those officers;
• ensure the ICB has suitable financial and other software to enable it to comply with these policies and any consolidation requirements of the ICB;
• ensure that contracts for computer services for financial applications with another health organisation or any other agency shall clearly define the responsibility of all parties for the security, privacy, accuracy, completeness, and timeliness of data during processing, transmission and storage. The contract should also ensure rights of access for audit purposes;
• ensure that new financial systems and amendments to current financial systems are developed in a controlled manner and thoroughly tested prior to implementation. Where this is undertaken by another organisation, assurances of adequacy must be obtained from them prior to implementation;
• where another health organisation or any other agency provides a computer service for financial applications, the Director of Finance shall periodically seek assurances that adequate controls are in operation; and
• ensure that data held for purposes of complying with these policies is held in compliance with the ICB’s Data Protection policies.

7 Procurement and purchasing

Procurement Principles

The ICB Board will approve the level of non-pay expenditure on an annual basis and the Accountable Officer will determine the level of delegation to Budget holders and set out the list of managers who are authorised to place requisitions/enter into contracts for the supply of goods and services.

The Director of Finance will take a lead role on behalf of the ICB to ensure that there are appropriate and effective financial, contracting, monitoring and performance arrangements in place to ensure the delivery of effective health services.

The ICB must have a Procurement Policy which sets out all of the legislative requirements, including any requirements such as use of the standard NHS contract.

The ICB must ensure that procurement activity is in accordance with the latest statutory requirements as noted in the ICB Procurement Policy and associated statutory requirements whilst securing value for money and sustainability.

The ICB must consider, as appropriate, any applicable NHS England guidance that does not conflict with the above.

All revenue and non-pay expenditure must be approved, in accordance with the ICB Procurement Policy, prior to an agreement being made with a third party that enters a commitment to future expenditure.

All officers must ensure that any conflicts of interest are identified, declared and appropriately mitigated or resolved in accordance with the ICB standards of business conduct policy.

Budget holders are accountable for obtaining the necessary approvals and oversight of all expenditure incurred on the cost centres they are responsible for. This includes obtaining the necessary internal and external approvals which vary based on the type of spend, prior to procuring the goods, services or works.

Undertake any contract variations or extensions in accordance with the ICB procurement policy.

Retrospective expenditure approval should not be permitted. Any such retrospective breaches require approval from any committee responsible for approvals before the liability is settled. Such breaches must be reported to the audit and risk assurance committee.

Procurements shall be conducted in line with the tender requirements set out in the Procurement Policy, summarised in appendix A.

8 Staff costs and staff related non pay expenditure

Director of HR and Workforce

The Director of HR and Workforce will lead the development and delivery of the long- term people strategy of the ICB ensuring this reflects and integrates the strategies of all relevant partner organisations within the ICS.

Operationally the Director of HR and Workforce will be responsible for defining and delivering the organisation’s overall human resources strategy and objectives and overseeing delivery of human resource services to ICB employees.

The Director of HR and Workforce will collaborate with the Director of Finance to ensure that the payroll system has adequate internal controls and suitable arrangements for processing deductions and exceptional payments.

Where a third-party payroll provider is engaged, the Director of HR and Workforce shall closely manage this supplier through effective contract management.

The Director of HR and Workforce is responsible for management and governance frameworks that support the ICB employees’ life cycle.

Appropriately nominated managers have delegated responsibility for: completing and submitting time records, and other notifications in accordance with agreed instructions and timetables; and submitting termination forms in the prescribed form immediately upon knowing the effective date of an officer’s resignation, termination or retirement.

Nominated Senior Officers may engage, re-engage, or re-grade employees, either on a permanent or temporary basis, or hire agency staff. Such engagement, re- engagement or re-grade must be in accordance with establishment control mechanisms, within available budgetary limits and approved in writing by senior members of both the HR and finance teams.

In the case of agency staff, engagement should be through NHS Employer approved agencies.

In the case of independent contractors, engagement should be on the basis of an independent contract agreement; in accordance with policy guidance approved by the Remuneration & HR Committee and in accordance with guidance approved by the Audit Committee to ensure IR35 compliance.

9 Annual reporting and Accounts

The Director of Finance will ensure, on behalf of the Accountable Officer and ICB board, that:

• the ICB is in a position to produce its required monthly reporting, annual report, and accounts, as part of the setup of the new organisation; and
• the ICB, in each financial year, prepares a report on how it has discharged its functions in the previous financial year, in line with the DHSC Group Accounting Manual Requirements and statute.

An annual report must, in particular, explain how the ICB has:

• discharged its duties in relating to improving quality of services, reducing inequalities, the triple aim and public involvement;
• review the extent to which the board has exercised its functions in accordance with its published 5 year forward plan and capital resource use plan; and
• review any steps that the board has taken to implement any joint local health and wellbeing strategy.

NHS England may give directions to the ICB as to the form and content of an annual report.

The ICB must give a copy of its annual report to NHS England by the date specified by NHS England in a direction, and publish the report as required by NHS England and statute.

Internal audit

The chief executive, as the accountable officer, is responsible for ensuring there is appropriate internal audit provision in the ICB. For operational purposes, this responsibility is delegated to the Director of Finance to ensure that:

• all internal audit services provided under arrangements are approved and regularly reviewed by the Audit and Risk Assurance Committee, on behalf of the ICB board;
• all internal audit services are professional and technically competent and meet the NHS mandatory audit standards;
• the ICB must have an internal audit charter. The internal audit charter must be prepared in accordance with the Public Sector Internal Audit Standards (PSIAS);
• the ICB internal audit charter and annual audit plan, must be endorsed by audit and risk assurance committee on behalf of the ICB Accountable Officer and Board;
• the head of internal audit must provide an annual opinion on the overall adequacy and effectiveness of the ICB Board’s framework of governance, risk management and internal control as they operated during the year, based on a systematic review and evaluation;
• the head of internal audit should attend audit and risk assurance committee meetings and have a right of access to all audit and risk assurance committee members, the Chair and chief executive of the ICB; and
• the appropriate and effective financial control arrangements are in place for the ICB and that accepted internal and external audit recommendations are actioned in a timely manner.

External Audit

The ICB Board is responsible for ensuring there are appropriate external audit arrangements in place for the ICB. For operational purposes, responsibility is delegated to the Director of Finance who is responsible for:

• liaising with external audit colleagues to ensure timely delivery of financial statements for audit and publication in accordance with statutory, regulatory requirements;
• ensuring that the ICB appoints an auditor in accordance with the Local Audit and Accountability Act 2014; in particular, the ICB must appoint a local auditor to audit its accounts for a financial year not later than 31 December in the preceding financial year; the ICB must appoint a local auditor at least once every 5 years (ICBs will be informed of the transitional arrangements at a later date); and
• ensuring that the appropriate and effective financial control arrangements are in place for the ICB and that accepted external audit recommendations are actioned in a timely manner.
• Where the external auditor is to be commissioned to provide non-audit services, the Audit Committee shall be informed so that appropriate consideration can be made as to whether auditor independence can be maintained.

The Director of Finance and designated auditors are entitled, without necessarily giving prior notice, to require and receive:
a) access to all records, documents and correspondence relating to any financial or other relevant transactions, including documents of a confidential nature;
b) access at all reasonable times to any land, premises or Members of the ICB Board or employee of the ICB;
c) the production of any cash, stores or other property of the ICB under a Member of the ICB Board or an employee’s control; and
d) explanations concerning any matter under investigation.

10 Losses and special payments

HM Treasury approval is required if a transaction exceeds the delegated authority, or if transactions will set a precedent, are novel, contentious or could cause repercussions elsewhere in the public sector.

The Director of Finance will support a strong culture of public accountability, probity, and governance, ensuring that appropriate and compliant structures, systems, and process are in place to minimise risks from losses and special payments.

NHS England has the statutory power to require an integrated care board to provide NHS England with information. The information, is not limited to losses and special payments, must be provided in such form, and at such time or within such period, as NHS England may require.

As part of the new compliance and control procedures, ICBs must submit an annual assurance statement confirming the following:

• details of all exit packages (including special severance payments) that have been agreed and/or made during the year;
• that NHS England and HMT approvals have been obtained before any offers, whether verbally or in writing, are made; and
• adherence to the special severance payments guidance as published by NHS England.

All losses and special payments (including special severance payments) must be reported to the ICB Audit and Risk Assurance Committee, noting that ICBs have delegated limits to approve losses or special payments which vary depending on the payment type. Losses have a delegated limit of £300k, while the limit for special severance and retention payments is £NIL. The table below gives further details and should be read in conjunction with the guidance detailed below:

Expenditure Type	Delegated Limit
All losses	Up to £300k
Special payments including extra contractual / statutory / regulatory / compensation and ex gratia	Up to £95k
Special severance and retention payments	£0
Consolatory payments	£500

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 Accountable Officer and the Director of Finance. Where a criminal offence is suspected, the Director of Finance must immediately inform the police if theft or arson is involved. In cases of fraud and corruption or of anomalies which may indicate fraud or corruption, the Director of Finance must inform the relevant counterfraud services in accordance with Secretary of State for Health’s Directions (see section 11).

For detailed operational guidance on losses and special payments, please refer to the ICB losses and special payment guide. This is available at: https://suffolkandnortheastessex.icb.nhs.uk

11 Fraud, bribery and corruption (Economic crime)

The ICB is committed to identifying, investigating and preventing economic crime.

The ICB Director of Finance is responsible for ensuring appropriate arrangements are in place to provide adequate counter fraud provision which should include reporting

requirements to the board and audit committee, and defined roles and accountabilities for those involved as part of the process of providing assurance to the board. These arrangements should comply with the NHS Requirements the Government Functional Standard 013 Counter Fraud as issued by NHS Counter Fraud Authority and any guidance issued by NHS England and NHS Improvement.

The ICB shall nominate a suitable person to carry out the duties of the Local Counter Fraud Specialist as specified by the NHS Counter Fraud Standards.

The Local Counter Fraud Specialist shall report to the Director of Finance and shall work with staff in the NHS Counter Fraud Authority (NHS CFA) in accordance with the NHS Counter Fraud Standards .

The Local Counter Fraud Specialist will provide a written report, at least annually, on counter fraud work within the ICB.

The ICB will cooperate with the NHS CFA and its nominated officers in the discharge of its functions, such as allowing the NHS CFA access to clinical commissioning group premises, members, employees, documents and information etc. in respect of the promotion of counter fraud measures and the appointment of local counter fraud specialists.

Any Board member, member of staff or agent of the ICB should comply with the requirements of the Counter Fraud, Anti-Corruption and Bribery Policy and shall raise any concerns regarding bribery or fraud immediately with the Local Counter Fraud Specialist, Director of Finance or use the NHS CFA independent Fraud and Corruption Reporting Line. Any concerns regarding conflict of interest shall be immediately raised with the Director of Finance.

The Local Counter Fraud Specialist must notify the NHS CFA and the Director of Finance or the Local Counter Fraud Specialist must notify the External Auditor of all frauds.

Acceptance of Gifts by Staff and Link to Standards of Business Conduct

The Director of Workforce and HR shall ensure that all Senior Officers, other members of the Board and staff are made aware of the ICB policy on acceptance of gifts and other benefits in kind by staff.

12 Capital Investments and Grants

The Director of Finance is responsible for:

• ensuring that at the commencement of each financial year, the ICB and its partner NHS trusts and NHS foundation trusts prepare a plan setting out their planned capital resource use;
• ensuring that the ICB and its partner NHS trusts and NHS foundation trusts exercise their functions with a view to ensuring that, in respect of each financial year local capital resource use does not exceed the limit specified in a direction by NHS England;
• ensuring the ICB has a documented property transfer scheme for the transfer of property, rights or liabilities from other bodies where relevant;
• ensuring that there is an effective appraisal and approval process in place for determining capital expenditure priorities and the effect of each proposal upon business plans;
• ensuring that there are processes in place for the management of all stages of capital schemes, that will ensure that schemes are delivered on time and to cost;
• ensuring that capital investment is not authorised without evidence of availability of resources to finance all revenue consequences; and
• ensuring, that for every capital expenditure proposal, there are processes in place to ensure that an appropriate business case is produced.

Capital commitments typically cover land, buildings, equipment, capital grants to third parties and IT, including:

• authority to spend capital or make a capital grant;
• authority to enter into leasing arrangements.

Advice should be sought from the Director of Finance or nominated officer if there is any doubt as to whether any proposal is a capital commitment requiring formal approval.

For operationpral purposes, the ICB shall have nominated senior officers accountable for ICB property assets and for managing property, where relevant.

Where material property is held, the ICB shall have a defined and established property governance and management framework, which should:

• ensure the ICB asset portfolio supports its business objectives; and
• comply with NHS England policies and directives and with this standard

Disposals of surplus assets should be made in accordance with published guidance and should be supported by a business case which should contain an appraisal of the options and benefits of the disposal in the context of the wider public sector and to secure value for money.

Grants

The Director of Finance is responsible for providing robust management, governance and assurance to the ICB with regards to the use of specific powers under which it can make capital or revenue grants available to;

• any of its partner NHS trusts or NHS foundation trusts; and
• to a voluntary organisation, by way of a grant or loan.

All revenue grant applications should be regarded as competed as a default position, unless there are justifiable reasons why the classification should be amended to non- competed.

13 Legal, insurance and Risk Management

This section applies to any legal cases threatened or instituted by or against the ICB. The ICB should have policies and procedures detailing:

• engagement of solicitors / legal advisors;
• approval and signing of documents which will be necessary in legal proceedings; and
• Officers who can commit or spend ICB revenue resources in relation to settling legal matters.

The ICB Board shall decide if the ICB will insure through the risk pooling schemes administered by NHS Resolution or self-insure for some or all of the risks covered by the risk pooling schemes. If the ICB Board decides not to use the risk pooling schemes for any of the risk areas (clinical, property and employers/third party liability) covered by the scheme this decision shall be reviewed annually. The ICB has been advised by NHS E not to buy commercial insurance to protect against risk unless it is part of a risk management strategy that is approved by the accountable officer.

Risk Management

The Accountable Officer shall ensure that the ICB has a risk management strategy, in accordance with current requirements, which must be approved and monitored by the ICB Board.

The risk management strategy shall include:
a) a process for identifying and quantifying risks and potential liabilities;
b) engendering a positive attitude towards the control of risk;
c) management processes to ensure all significant risks and potential liabilities are addressed including effective systems of internal control, cost effective insurance cover, and decisions on the acceptable level of retained risk;
d) contingency plans to offset the impact of adverse events;
e) audit arrangements and arrangements to review the risk management strategy.

The existence, integration and evaluation of the above elements will assist in providing a basis to make a statement on the effectiveness of Internal Control (Annual Governance Statement) within the Annual Report and Accounts as required by current DHSC guidance.

14 Appendix A – Procurement Appendix

For full details please read the full Procurement Policy, but the following appendix is designed to give you the key information and details you need to ensure you procure correctly.

Procurement is the act of obtaining or buying goods or services and covers all spend undertaken within the Integrated Care Board (ICB). Spend within the ICB is wide ranging and may be the purchase of information technology hardware, legal services, healthcare services or human resource, but every element of spend is regulated by the internal Standing Financial Instructions, internal policies and external regulations and guidance.

Competitive procurement is not seen as the default position, and procurement should be seen as expenditure to secure, goods, resources, services and works, with competitive procurement as an option available to the ICB.

The purpose of this policy is to outline the procedures to be followed when obtaining goods or services on behalf of the Integrated Care Board, either by outlining the processes, or by providing links to further information and support.

Purpose

The purpose of the Procurement Policy is to ensure that all procurement undertaken on behalf of the organisation:
a) Complies with relevant national legislation, policy and guidance, the ICB Constitution, Standing Orders, Schemes of Reservation and Standing Financial Instructions.
b) Acts with a view to deliver against the needs of the local population
c) Treats providers in a transparent, proportionate and non-discriminatory manner with equality of treatment a core requirement
d) Provides the best possible value for money
e) Maintains high standards of public trust and probity in its use of public funds
f) Uses best practice as standard
g) Complies with long- and short-term objectives of the ICB

Definition & Scope

Procurement can be defined as:

The act of obtaining or buying goods and services

Procurement is an all-encompassing term to describe the life cycle of a process for the acquisition of goods, services, people and works. It starts with identifying the need, through to obtaining the right supplies, works and/or services from the right provider, at the right time, in the right place, at the right price and quality, generally via a contract. The process then completes with the end of a contract or end of the useful life of an asset.

The procurement process aims to award work to the most suitable provider and this process can involve competition and tendering, but this is not a prerequisite to satisfy the obligations outlined within the Procurement Policy.

Taking the above into account and the diversity of regulations and guidance impacting on procurement the Procurement Policy covers the following routes to obtain goods and services:

• Tenders
• Quotations
• Framework agreements – call offs and direct awards
• Direct Award
• Most Capable / Suitable Provider
• Waivers

Note that procurement of people’s services via invoice (rather than on payroll) is still procurement under this policy but comes with additional requirements and responsibilities – please see the Off Payroll Worker Policy for details and next steps.

Legislation

Various Pieces of Legislation govern procurement. They have different impacts and may be modified over time. In order to meet the legislative requirements, we set rules and regulations internally to make sure the relevant information is recorded and processed followed.

Processes

When you need to procure goods or service, there are various processes you need to follow. An overview of these are outlined in the flow chart below. To ensure you are following the correct process contact the procurement team for support and advice.

The information conveyed in this flow chart (sign off procedures for procurement of goods and services) is duplicated in the table below the flow chart for ease of reference and to ensure everyone can access the information.

Flow chart showing the procedures for procurement of goods and services

Table showing the procedures for procurement of goods and services

If procuring human resource through a company, such as consultants, follow services procurement value for money requirements. Or, if recruiting individuals follow HR processes, including Off Payroll Worker Policy if required.

Value for money requirement	Healthcare Services	Non-Healthcare services	Goods
No value for money requirement	Up to £10k	Up to £10k	Up to £10k
Financial Quotation – set against a conformance specification	N/A	N/A	From and including £10k, up to £75k
Quotation process with technical questions regarding service or good being delivered, including a financial quotation.	From and including £10k, up to £75k	From and including £10k, up to £75k	N/A
Competition abiding by ethos of Public Contract Regulations	From and including £75k to £663,540	From and including £75k to £213,477	From and including £75k to £213,477
Tender following Public Contract Regulations	Above £663,540	Above £213,477	Above £213,477

All figures are inclusive of VAT.

Please note these requirements are separate from the spend sign of procedures which are detailed in the scheme of reservation and delegation.

When undertaking a quotation, competition or tender you are required to contact the procurement team and refer to the Procurement Policy to ensure you following the appropriate process and developing and storing the correct documentation and information.

Expenditure governance form

The Expenditure Governance Form is used to capture the correct level of information to satisfy legislative and audit requirements. The Integrated Care Board has a duty to be transparent, non-discriminatory and proportionate when procuring and the collation of information regarding processes and outcomes provides evidence and reassurance that the Integrated Care Board is acting appropriately when ensuring value for money.

Waiver of competition requirements

In accordance with the Standing Financial Instructions formal tendering procedures need not be applied where:
I. the estimated expenditure or income does not, or is not reasonably expected to, exceed £75,000; or,
II. where the supply is proposed under special arrangements negotiated by the Department of Health in which event the said special arrangements must be complied with; or,
III. regarding disposals where the total value of disposed assets is less than £75k; and

Formal tendering procedures may be waived in the following circumstances:
a) In very exceptional circumstances where the Accountable Officer decides that formal tendering procedures would not be practicable or the estimated expenditure or income would not warrant formal tendering procedures, and the circumstances are detailed in an appropriate CCG record;
b) Where the requirement is covered by an existing contract;
c) Where a Framework Agreement is in place and the Integrated Care Board has legitimate access;
d) Where a consortium arrangement is in place and a lead organisation has been appointed to carry out tendering activity on behalf of the consortium members;
e) Where the timescale genuinely precludes competitive tendering but failure to plan the work properly would not be regarded as a justification for a direct award;
f) Where specialist expertise is required and is available from only one source;
g) When the task is essential to complete the project, and arises as a consequence of a recently completed assignment and engaging different consultants for the new task would be inappropriate;
h) There is a clear benefit to be gained from maintaining continuity with an earlier project / service. However, in such cases the benefits of such continuity must outweigh any potential financial advantage to be gained by competitive tendering;
i) For the provision of legal advice and services providing that any legal firm or partnership commissioned by the CCG is regulated by the Law Society for England and Wales for the conduct of their business (or by the Bar Council for England and Wales in relation to the obtaining of Counsel’s opinion) and are generally recognised as having sufficient expertise in the area of work for which they are commissioned.

The waiving of competitive tendering procedures should not be used to avoid competition or for administrative convenience.

References

2 https://www.legislation.gov.uk/ukpga/1988/49/section/7