Practical Guide - Agreement of NHS Balances 2012/13

Developed by the HFMA's Accounting and Standards Committee this guide is designed to provide practical help to all those involved in the agreement of year end balances for 2012/13. With all NHS organisations now required to participate in the agreement of balances and given the forthcoming dissolution of organisations and the transfer of assets and liabilities to new or existing bodies, there is even more reason to have robust systems and processes in place to ensure that public money is safeguarded and that accountability for its use remains constant. The purpose of this guide is to explain the reasons for the agreement of balances, the reconciliation process, why it is necessary, and make recommendations in terms of good practice including what can be done in-year to make the whole process easier. This includes recommendations on the ways that the different parts of the finance function as a whole can work together to improve overall performance in this area. The guide will be particularly suitable for commissioners, NHS trusts, foundation trusts and arm's length bodies.