Guidance

FTC data publications: background information

Updated 20 July 2017

Applies to England

1. Introduction

The foundation trust consolidation (FTC) process has operated with the sole purpose of collecting the information to prepare the consolidated NHS foundation trust accounts in that year (and, since 2012, to report to the Department of Health (DH)).

The data was not intended to drive multi-year comparisons, and maincode and subcode combinations (as explained in the data instructions) may change or be re-used between years. As the user, you should therefore see these data publications for separate years as individual tools and should use the illustrative FTC file in each year’s publication to ensure that code referencing has stayed consistent.

Since 2013 we have been mindful that some users may wish to use FTC data for multi-year comparison. Therefore where possible maincodes and subcodes are used consistently year on year. However care should still be taken to check the references between individual years.

2. Accounting policy changes and other significant developments

We have listed below the major changes in accounting policy or other significant developments that affect the data each year compared to the previous year. This list is not intended to be exhaustive and we cannot assure the accuracy of any multi-year analysis a user may wish to perform.

2.1 2009/10 and 2010/11

Financial information for the 2009/10 financial year is contained within the 2010/11 FTC data set as comparative information. These 2009/10 comparatives were restated for any significant changes in accounting policy in 2010/11. There are therefore no accounting policy changes that need to be considered when comparing the 2010/11 data set against the prior period. It should be noted that 2009/10 was the first year of International Financial Reporting Standards (IFRS) in the NHS.

The accounting policies applicable in 2010/11 are set out in the FT Annual Reporting Manual 2010/11.

The FTC data for 2009/10 and 2010/11 can be found here.

2.2 2011/12

Transforming community services transactions were accounted for using merger accounting. There was an adaptation to merger accounting for these transactions in the NHS, and comparatives were not restated. The transactions were accounted for as at 1 April 11, regardless of the date of transaction during the year. There were 77 transfers of services during 2011/12, which is estimated to have added £2.6 billion to foundation trust sector income compared to the prior year.

A new accounting policy for government grants and donated assets was introduced. Under the new policy donation and grant income relating to assets is recognised in income when the trust becomes entitled to it rather than deferred over the life of the asset. As a change in accounting policy, the prior year was restated.

Further information on changes in 2011/12 can be found in the FT Annual Reporting Manual 2011/12, with changes shown in bold italics.

The FTC data for 2011/12 can be found here.

2.3 2012/13

The concept of absorption accounting was introduced by HM Treasury from 2012/13. This is the accounting approach for transfers of functions to or from NHS foundation trusts where the other party is another DH body or a local government body. A gain or loss corresponding with the value of net assets transferred is recognised within non-operating income and expenditure.

Further information on changes in 2012/13 can be found in the FT Annual Reporting Manual 2012/13, with changes shown in bold italics.

The FTC data for 2012/13 can be found here.

2.4 2013/14

From 2013/14 onwards, NHS foundation trusts have been required to consolidate linked NHS charities where they deem that they ‘control’ the charity as defined in accounting standards. In 2013/14 53 foundation trusts consolidated charities. In these cases the results of the charity is included in the foundation trusts’ accounts data.

The NHS underwent a reorganisation on 1 April 2013 under the provisions of the Health and Social Care Act 2012. Primary care trusts (PCTs) and strategic health authorities (SHAs) ceased to exist at this date and their assets and liabilities transferred to successor bodies. Where the transferring body ceased to exist on 1 April 2013, the transfers were effected by modified absorption accounting. The modification to absorption accounting required the gain or loss corresponding with the value of net assets transferred to be recognised in reserves, rather than in income and expenditure. The modification only applied to these transactions and did not apply to 2014/15 or subsequent years.

Further information on changes in 2013/14 can be found in the FT Annual Reporting Manual 2013/14, with changes shown in bold italics.

The FTC data for 2013/14 can be found here.

2.5 2014/15

New accounting standards for group accounts and interests in other entities were adopted in 2014/15. This included the removal of the option to use proportionate consolidation in accounting for joint ventures.

Further information on changes in 2014/15 can be found in the FT Annual Reporting Manual 2014/15, with changes in bold italics.

The FTC data for 2014/15 can be found here.

2.6 2015/16

The international financial reporting standard for fair value accounting was implemented for the first time in 2015/16. HM Treasury adapations to standards dealing with property and intangible assets limited the circumstances in which property and intangible assets are valued at ‘fair value’ to be only assets designated as surplus assets.

Further information on changes in 2015/16 can be found in the FT Annual Reporting Manual 2015/16.

The FTC data for 2015/16 can be found here.

2.7 2016/17

There were no significant changes to accounting standards applicable from 2016/17. We implemented some minor changes to how the Statement of Comprehensive Income is presented for foundation trusts, particularly gains and losses on disposal of assets and reversals of impairments. These are explained in our consultation document for the FT Annual Reporting Manual 2016/17.

The FTC data for 2016/17 can be found here.