NHS providers can refer to this page for the latest updates on financial accounting and reporting. We also email updates to finance teams.

Quick links

• 2024/25 year end timetable
• DHSC Group Accounting Manual (GAM)
• DHSC IFRS 17 training materials
• FT Annual Reporting Manual (ARM)
• DHSC agreement of balances (provider portal login required)
• PFMS – Trust Portal Submission Guide
• Special payments letter – April 2021

International Financial Reporting Standard (IFRS) 16 Leases

Current form and submission issues – updated 23 April 2025

Latest template version: 1.24.12.2  (updater issued 23 April)

Latest financial reporting updates

Accounting policies update: Standards not yet adopted – changes to non-investment asset measurement – 9 April 2025

On 21 March we confirmed that the Financial Reporting Advisory Board (FRAB) agreed to the approach set out in the DHSC GAM consultation for 2025/26 regarding the measurement of property assets. There are no changes to the policy on the treatment or frequency of property valuations in 2025/26.

To aid providers in preparing the Standards in issue not yet adopted disclosure in their accounting policies (Note 1.28 in the NHS provider example accounting policies), we have updated and expanded upon paragraph 1.34 of the 2024/25 DHSC GAM to include details of the asset measurement changes and how adoption of these changes in the NHS will differ to the rest of public sector. We have also updated the reference to IFRS 17 insurance contracts given it is now after 1 April 2025. This update is prepared by NHS England as an example to assist providers preparing this disclosure and does not form part of the DHSC GAM or relevant accounts direction.

• Standards not yet adopted – changes to non-investment asset measurement

NHS pension scheme disclosure for 2024/25 – 9 April 2025

The template disclosure on the NHS pension scheme for inclusion in 2024/25 accounts is now available.

A PDF version is also available which tracks changes compared to the version included in the optional provider accounts templates issued on 11 March to aid providers in updating those templates locally.

TAC Completion Instructions: month 12 2024/25 – 25 March 2025

Guidance on completing the Trust Accounts Consolidation (TAC) schedules for month 12 2024/25: TAC Completion Instructions month 12 2024/25

NHS trusts: 2024/25 annual governance statement and certificates for year end accounts – 11 March 2025

The following document provides guidance to NHS trusts preparing annual governance statements (AGS) for their 2024/25 annual reports. It also contains the required formats for other certificates/statements for year end accounts.  A Word document is also provided to facilitate copying. This does not apply to NHS foundation trusts who should follow the formats prescribed by the FT ARM.

• NHS trusts – AGS and year end requirements 2024-25
• NHS trusts – AGS and year end requirements 2024-25 – extracts in Word

NHS foundation trust annual reporting manual (FT ARM) 2024/25 – 11 March 2025

The FT ARM for 2024/25 is available at NHS foundation trust annual reporting manual (FT ARM).

To facilitate copying, a Word document of the model Annual Governance Statement (AGS) and other certificates/statements needed for the annual report and accounts is also available below.

• FTs – year end statements 2024-25

2024/25 year end accounts timetable – updated 3 February 2025

On 20 November we issued the accounts timetable for 2024/25. Accounts timetable 2024-25

• A staggered audit completion approach for ICBs and providers has been agreed for 2024/25.  ICBs will submit audited accounts by 23 June. NHS providers will submit audited accounts by 30 June.  For full dates and submission requirements please refer to timetable.
• For NHS providers we have introduced suggested deadlines for draft annual reports for the first time. This is about setting an expectation for when the remuneration report and other parts of the annual report should be provided to external auditors; draft annual reports for providers are not required to be submitted to NHS England unless regional colleagues specifically request them. Providers can continue to agree this timing with their auditor, but our timetable now specifies an expectation to base this from. Deadlines for the submission of draft accounts to NHS England remain fixed.

The timetable was updated on 3 February 2025 to include NHS BSA ‘Greenbury’ information request dates.

DHSC IFRS 17 training materials – 13 January 2025

This IFRS 17 slide deck has been produced by the Department of Health and Social Care to provide training materials for the new standard and simple implementation tools.

Local audit consultations – 23 December 2024

There are two current consultations on local matters affecting NHS bodies. The FRC has published interim findings on its market study, and issued a consultation on questions for the second phase of the study. The outcome of the study is expected to be the FRC making recommendations to the government. Separately MHCLG has launched a consultation on aspects of local audit reform, which is a consultation on government policy. Some areas of this also impact NHS bodies.

FRC market study

Over recent months the Financial Reporting Council (FRC) has been conducting a market study into the operation of the NHS audit market. The FRC has now published its emerging findings as it moves into the second of two phases of the work. The emerging findings document is hosted on this page. The FRC report comments on potential constraints on market supply, concerns about the procurement process, and different views on the value of NHS audits. In particular we draw your attention to section 6 of the emerging findings document which outlines 7 further questions to inform the second phase of the study. NHS bodies are invited to reply directly, or feed in via the HFMA. The invitation to comment closes on 6 February 2025 and the email address for responses is on page 21 of the FRC’s document.

MHCLG

The Ministry of Housing, Communities and Local Government (MHCLG) has launched a consultation on local audit reforms. The key proposal affecting NHS bodies is the establishment of a new statutory body named the Local Audit Office. It is proposed this body would take on the following functions which have an impact on the NHS:

• a system leader role – this is currently undertaken by the FRC in shadow form;
• setting the Code of Audit Practice, which sets the framework for auditors to follow – this is currently set by the NAO;
• oversight of audit quality – audit inspection currently happens directly through the FRC and ICAEW for most NHS bodies;
• oversight of professional bodies on the eligibility, registration and conduct of local auditors – this currently sits with the FRC;
• reporting on the local audit sector and findings – this is currently undertaken by the FRC in shadow form.

The matters under proposal here are not individually significant for NHS bodies, however taken together they are intended to bring together currently disparate functions and consider policy aspects in the round. The document also raises the question of the Local Audit Office directly providing audit services in the future (questions 18 to 21), and contains proposals about ‘major local audits’, which does affect NHS bodies (paragraphs 110 to 112 and 115 to 123).

The Local Audit Office would also take on responsibility for mandatory audit contract management for local government; currently this is performed by Public Sector Audit Appointments (PSAA) for the 99% of bodies opted in. There are no changes proposed for local audit procurement in the NHS at the present time; DHSC and NHS England will consider this matter further next year following the conclusion of the FRC’s market study and any proposed changes would be subject to a separate consultation issued by DHSC and NHS England.

There are other parts of the document which do not apply to NHS bodies, around financial reporting in local government and the role of audit committees.

The consultation closes on 29 January and the MHCLG webpage contains a link to where responses can be submitted online.

HM Treasury discount rates update – 6 December 2024

HM Treasury has issued its annual update to discount rates.  This detail will be repeated formally in the DHSC GAM update when issued in the new year.

• 2025 Discount rates (HMT)

Audited accounts and annual report submission checklist 2023/24 – 7 June 2024

We have prepared our annual year end checklist to aid providers with preparations for submitting the audited annual report and accounts. This checklist contains no new information but is available to download if useful.

• Submissions-checklist-2023-24

NHS foundation trust annual reporting manual (FT ARM) 2023/24 clarification – 7 June 2024

There is an error in the FT ARM 2023/24 which causes an inconsistency in the requirements for TCFD disclosures.  Footnote 10 on page 25 (accompanying paragraph 2.22) is correct: the TCFD disclosure requirements from HM Treasury apply to entities that have more than 500 employees or have operating income exceeding £500m. All NHS foundation trusts have more than 500 employees; therefore the disclosure requirements apply to all NHS foundation trusts.

However in error annex 7 to chapter 2 refers to the requirements apply to all entities with operating income exceeding £500 million. Given the late stage of the annual reports and accounts process, we are not changing the FT ARM. If any NHS foundation trust with income below £500m has followed annex 7 to chapter 2 in good faith and has omitted inclusion of TCFD disclosures in its annual report, this is permissible for 2023/24 annual reports.  The error will be corrected in the annex for the 2024/25 FT ARM.

Letter on payments to NHS charities – 3 May 2024

Last week NHS England issued a letter to NHS provider chief finance officers regarding payments to NHS charities. A copy of this letter is available here. Any queries relating to it should be raised with the Assurance mailbox as detailed in the letter.

Accounts template: minor error in accounting policies – 3 May 2024

An error has been identified in accounting policy 1.6 (provisions) in the optional NHS provider accounts templates. Beneath the table of discount rates, the prior year rate for post-employment benefits has been quoted as ‘minus 1.7%’. The ‘minus’ is erroneous. Please correct this locally if you have used one of these templates. This error appears in both the group and single entity templates but does not affect the standalone accounting policies issued in Microsoft Word format.

Clarification on prior year approach for small discretionary awards to staff – 3 May 2024

Section 2.1.5 of the TAC Completion Instructions offers updated guidance for 2023/24 on whether arrangements like this constitute special payments. The third paragraph explains the changed guidance from NHS England compared to that issued during the 2022/23 year end process. The TAC Completion Instructions suggests that providers ‘may wish to revisit comparatives in their accounts’. To clarify, this is not intended to suggest NHS England is mandating a prior period adjustment. As ever, the Trust should consider whether it thinks this change is material (by value or by nature) to warrant a restatement of the prior year, and as ever would make this judgement in consultation with its auditors. Where we have removed cases from comparatives in TAC 29 upon customisation of files but the Trust does not restate its accounts, this is a permissible inconsistency between accounts and TACs for the prior year comparative.

Clarification on disclosures on environmental matters in 2023/24 annual reports – 12 April 2024

The DHSC GAM and FT ARM for 2023/24 require NHS trusts and NHS foundation trusts respectively to include in the annual report performance report information on environmental matters.

• For NHS foundation trusts for 2023/24: The FT ARM includes a specific requirement to disclose a summary of progress on delivery of the Green Plan and contains a footnote cross reference to the NHS Standard Contract. The TCFD section of the FT ARM sets out the approach to emissions reporting for 2023/24 and supersedes the specific reference to reporting of emissions reporting in the standard contract Section 18.2.3 for 2023/24. There is not a specific mandatory requirement to disclose emissions data for 2023/24, although trusts can include this if they wish; the Standard Contract does not define annual report requirements.
• For NHS trusts for 2023/24: In the DHSC GAM, disclosures on environmental matters are included in paragraph 3.38, with annex 5 to chapter 3 adding TCFD recommended disclosures. In making disclosures on environmental matters for 2023/24, NHS trusts are encouraged to disclose a summary of progress on delivery of their Green Plan, covering actions taken and planned, and quantitative progress data.
• In 2024/25 the wording in the Standard Contract, GAM and FT ARM will be fully aligned.

NHS pension scheme disclosure for 2023/24 – 3 April 2024

The template disclosure on the NHS pension scheme for inclusion in 2023/24 accounts is now available.

A PDF version is also available which tracks changes compared to the version included in the optional provider accounts templates issued on 12 March to aid providers in updating those templates locally.

Mapping FT Code of Governance disclosures – 19 February 2024

The FT ARM contains disclosure requirements stemming from the updated Code of governance for NHS provider trusts.  This document provides additional guidance to help NHS foundation trusts map from the disclosure requirements in the former FT Code of governance to the current Code of governance document. It does not form part of the FT ARM and is optional for use.

• Code of Governance – FT mappings

Update to DHSC IFRS 16 PFI accounting model – 15 December 2023

A minor update to the DHSC PFI model has been issued to include additional memorandum calculations that identify the maturity analysis of the closing gross and net lease obligation for accounts disclosure. For more information please refer to FAQ A12 in the updated FAQ document. Both updates can be found on our IFRS 16 webpage.

Determination over NHS Trust annual reports – 6 June 2023

The Health and Care Act 2022 transferred the power to determine the form of an NHS trust’s annual report from the Secretary of State to NHS England. This document formalises the arrangements. There is no new action required for NHS trusts – this document confirms that NHS trusts should follow DHSC’s Group Accounting Manual in the same way as they previously have and currently do.

• Determination of form for NHS Trust annual reports

2022/23 remuneration reports: additional disclosure for pension entitlements – update to DHSC GAM and FT ARM – 2 June 2023

HM Treasury recently issued guidance to confirm that discount rate guidance it issued for public sector pensions at the end of March does not apply to pension entitlements disclosures in 2022/23 annual reports. The information provided to NHS bodies by NHS BSA is on the correct basis; this means there is no action NHS providers need to take except for adding a brief disclosure below the pension entitlements table (the ‘Greenbury’ information) to explain the basis of calculation.

• For NHS foundation trusts – the added disclosure requirement is contained in an update to the FT ARM which is available at NHS foundation trust annual reporting manual
• For NHS trusts – the added disclosure requirement is contained in an Additional Guidance update to the DHSC GAM which is available at DHSC group accounting manual 2022 to 2023

Reminder: regularity approvals and subsidiaries – emailed to providers on 3 March 2023

Our timetable letter for 2022/23 included a summary of approvals that must be sought by providers over special payments and non-contractual exit packages. Providers are reminded that this control framework applies equally to subsidiaries that are controlled by the entity: that is, subsidiaries that should be consolidated within local group accounts on the basis of control. The principle is established by Managing Public Money (paragraph 3.10.3). The accounting/accountable officer of a provider with a subsidiary should have meaningful oversight of the subsidiary.

Referencing directions in late 2021/22 accounts – 6 July 2022

The following text provides guidance on references in 2021/22 accounts finalised after 1 July 2022. In summary no changes to template disclosures are required.

NHS trusts

There are no changes to the template disclosures provided for NHS trust annual reports and accounts for 2021/22.

• For annual reports, the change in the Health and Care Act transferring this power to NHS England commences on 1 July. However, a saving provision in regulations will mean that the changes do not apply to annual reports for the financial year 2021/22 – so the existing Secretary of State power continues to apply to those reports.
• For accounts, DHSC has reissued its accounts direction to update a legislative reference. This will be published in the 2022/23 Group Accounting Manual (GAM) and is attached here for reference. There are no changes in substance and NHS trusts’ disclosures should continue to refer to a direction from the Secretary of State

NHS foundation trusts

There are no changes to the template disclosures provided for NHS foundation trust annual reports and accounts for 2021/22.

• While Monitor is abolished as entity from 1 July 2022, its functions transfer to NHS England and directions issued by Monitor continue in force. As such 2021/22 annual reports and accounts finalised after 1 July 2022 should continue to refer to directions issued by Monitor.
• New directions will be issued for the 2022/23 financial year by NHS England.

CCGs

(This guidance is included here for ease of reference for local auditors to publish in one place.)

There are no changes to the template disclosures provided for CCG annual reports and accounts for 2021/22.

• Directions were originally issued in the legal name of the NHS Commissioning Board. It is now in force that the legal name of the entity is NHS England, but this name change does not affect the legal status of the directions, and references to the Board should now to be read as references to NHS England.
• Transitional provisions in regulations require ICBs to finalise their predecessor CCG(s) reports and accounts for 2021/22. ICBs will also be responsible for producing CCG annual reports and accounts for the period 1/4/22 to 30/6/22. Directions for these are available separately via NHS England Sharepoint.

Accounts payable addresses for ICBs from 1 July – 15 June 2022

NHS SBS has been working closely with NHS England to ensure accounts payable processes are up and running for ICBs from 1 July. Accounts payable addresses for all ICBs from 1 July can be found here. Please use this information to update local finance systems.

A mapping document of CCGs to ICBs is also available here. Any outstanding invoices on CCG ledgers are expected to be transferred to ICB ledgers during July.

Reminder: special payments  – 10 June 2022

NHS providers are reminded that all special severance payments of any value require approval in advance of agreeing the payment. The NHSE&I team has guidance at https://www.england.nhs.uk/publication/severances/ and can be contacted at nhsi.vsmcases@nhs.net

In addition all special payments (not special severance payments) above £95k – and those of any value that may be considered novel, contentious or repercussive – require approval as explained in our letter of April 2021. The mailbox for these matters is England.assurance@nhs.net . Guidance on the definition of special payments is provided in Managing Public Money, annex 4.13: https://www.gov.uk/government/publications/managing-public-money (second file). Providers are reminded this includes retention payments to staff or a group of staff.

Please ensure special payment disclosures in 2021/22 accounts and TAC schedules are complete.

Month 9 2021/22 TAC feedback on common errors – 8 March 2022

This document lists common errors made in Trust Accounts Consolidation (TAC) schedules at month 9 2021/22. Providers are asked to please ensure any issues impacting your Trust are addressed at month 12.

• Feedback on month 9 TACs

Injury Cost Recovery (ICR): probability percentage – 7 December 2021

The Compensation Recovery Unit (CRU) advises a percentage probability of entities not receiving ICR income. The CRU advises the percentage for 2021/22 is 23.76%. For 2020/21 the percentage was 22.43%. Updated guidance has been published here.

Impact of auditor value for money arrangements conclusions on audit certificates – 4 June 2021 (updated 27 August 2021)

NHS foundation trusts: laying of annual reports and accounts

From 2020/21, NHS local auditors will issue the ‘auditor’s annual report’, replacing the previous annual audit letter (not previously applicable to all NHS foundation trusts), which will include the auditor’s commentary on use of resources (value for money) arrangements. For NHS bodies this would usually be issued at the same time as the audit report containing the audit opinion on the accounts. For 2020/21, as part of the response to the coronavirus pandemic, the NAO has said that auditors at NHS trusts and NHS foundation trusts can issue the auditor’s annual report at a later point than the audit opinion on accounts, by 20 September.

When the auditor issues the audit report on the accounts (containing the audit opinion, and included within the annual report and accounts), this also includes a certificate that the auditor has completed their work. Where the auditor’s work on VFM arrangements is not complete at the time of issuing the opinion on the financial statements, or in some cases where the auditor is still drafting their auditor’s annual report, the audit certificate will not be issued at the same time as the audit opinion. This means that the audit report and certificate is not final, so the annual report and accounts (in which it is included) is also not final. Paragraph 1.10 of the FT ARM 2020/21 lists the required components of an FT’s annual report and accounts, and this incorporates the auditors’ report including certificate.

Therefore an NHS foundation trust cannot lay its annual report and accounts before Parliament until the auditor has issued the audit certificate. It is the Trust’s responsibility to ensure that its annual report and accounts document is complete. Paragraph 1.20 of the FT ARM explains that laying before Parliament must precede local publication.

For NHS foundation trusts able to lay their document before the summer Parliamentary recess, e-laying arrangements (i.e. no printed copies) are still in force. Arrangements for laying after the summer have not yet been communicated. We hope to set out the deadlines and arrangements for laying for FTs next week.

Guidance for NHS trusts

While NHS trusts do not lay their annual report and accounts before Parliament, NHS trusts are advised that their annual report and accounts document is not complete until the audit report (opinion) is accompanied by the audit certificate, as explained for NHS foundation trusts above.

Inclusion of the audit certificate in annual reports

Where later completion of the auditor’s use of resources work means the audit certificate is finalised at a later date than the true and fair audit opinion, we understand that the audit certificate will be issued as a separate document at that later date and both should be included within the annual report. The annual report will include the audit report (with audit opinion) at the original date, and the audit certificate signed at the later date. Please do not attempt to merge the two.

Special payments – 22 April 2021

Following this letter, organisations are reminded that proposed special payments that are either (i) above £95,000 and/or (ii) considered potentially novel, contentious or could cause repercussions elsewhere in the public sector, should be submitted for HM Treasury approval. Please contact england.assurance@nhs.net with any queries over this process.

Year end accounting guidance for 2020/21 items – updated 26 March 2021

A third version of guidance on accounting for 2020/21 items has been issued. The main update is adding the process for communicating details of testing equipment. The trusts to which this applies received a listing from Provider Accounts on 26 March. The guidance in this document remains applicable for the 2021/22 year end.

• Guidance for 20-21 accounts – issue v3

Accounting for additional employer pension contributions 2020/21 – 22 January 2021

The employer contribution rate for the NHS Pension Scheme increased from 14.38% to 20.68% from 2019/20, but NHS providers have continued to pay over at the old rate with the additional 6.3% being settled centrally on their behalf by NHS England. As was the case for 2019/20, in 2020/21, the full 20.38% needs to be reflected in local provider accounts, with notional income from NHS England being recognised for the 6.3% element.

For the purposes of accounts NHS England will again compute the full year 6.3% figure for each provider, extrapolating from data provided by NHS BSA at month 10. We will communicate this figure to providers and populate a validation in month 12 TAC schedules. Based on previous analysis, the impact of using an estimate in this way will be highly immaterial. In the rare circumstances that the estimate leads to a more significant difference for any particular provider, there is a process where entities can ask for the national figures to be updated. More details are available in the guidance document below.

• Accounting for central employer pension contributions 2020/21

IFRS 17 Insurance Contracts – 8 August 2019

IFRS 17 on insurance contracts (replacing IFRS 4) is expected to apply to the public sector from 2022. An insurance contract is defined as “a contract under which one party (the issuer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specific uncertain future event (the insured event) adversely affects the policyholder”.

IFRS 17 brings a number of changes to accounting compared to IFRS 4; a useful summary is available here. But the first step for HM Treasury and DHSC is to identify what contracts might be held that would fall under IFRS 17. It’s possible that there may be items currently considered as provisions or contingent liabilities which are in reality insurance contracts. There are a number of important parts of the definition (this list is not complete):

• The compensation from the issuer to the policyholder could be in money or in-kind: for example fixing a broken machine
• The future event is uncertain – which means at least one of the probability of the event occurring, when it will occur, or how much would be paid if it occurs.
• The future event is specific to the insured party (e.g. flood damage to a building owned or used by the policyholder is specific to that party).
• The risk around the future event existed for the policyholder before the agreement was made, and it is not financial risk such as a future change in an index.
• Warranties provided in connection with the sale of goods and services are specifically excluded by the standard as they fall under IFRS 15. So for example we would see readmissions in the NHS as affecting IFRS 15 measurement, and not considered the provision of insurance. Employer pensions and insurance contracts where the entity is the policyholder are also excluded from IFRS 17.

We request that all NHS providers think about whether they are likely to have contracts which are likely to fall under IFRS 17, with the provider as the issuer (rather than the policyholder). If you do have, or have matters that you’re unsure about and would like to discuss further, please get in touch with us.

New accounting standards in 2018/19 – April 2019 (re-packaged December 2019)

The TAC Completion Instructions in 2018/19 contained additional annexes explaining how the disclosure requirements in IFRS 7 (upon adoption of IFRS 9) and IFRS 15 had been addressed in the TAC schedules, with additional guidance on considerations for local accounts. These are now (from December 2019) retained separately as a future reference for providers.

• Addressing disclosure requirements of IFRS 7 under IFRS 9 – This document was prepared to accompany TAC schedules in 2018/19
• Addressing disclosure requirements of IFRS 15 – This document was prepared to accompany TAC schedules in 2018/19

Central review of NHS standard contract for IFRS 15 – 29 January 2019

The Department of Health and Social Care has led on a project to provide a review of the main features of the NHS standard contract and how IFRS 15 thinking should be applied. Chapter 5 will be the most useful part of this, explaining key elements of the NHS standard contract. Please note that chapter 7 on disclosure requirements is very focused on the requirements of the standard, rather than considering materiality for the NHS. The disclosures in our TAC schedules are designed to meet the most relevant disclosure requirements of IFRS 15, as explained in the TAC Completion Instructions.

• DHSC – IFRS 15 and NHS Standard Contract

NHS England centralised inventory procurement – 26 February 2018

NHS England operates a national centralised system for purchasing high-cost medical devices and implants used in specialised services. These items are paid for by NHS England but physically held by providers until they are used. This stock is seen as being owned by NHS England and so is reflected in its Statement of Financial Position. NHS providers are reminded to ensure that they exclude this consignment stock from their inventory counts and it should not be included within providers’ balance sheets.