Cash Management (Cashflow) Financial Policies and Procedures ME CCG Policy Reference: MECCG059

Transcription

1 Cash Management (Cashflow) Financial Policies and Procedures ME CCG Policy Reference: MECCG059 Target Audience Description Action Required All CCG Managers and Finance Staff High Level Policy and Procedures for Cash Management (Cashflow) To be approved and disseminated to all staff Document Information Version Number Version 1.0 Accountable Officer Chief Finance Officer Responsible Officer Senior Finance Manager (Financial Accounting) Date Approved Approved By Audit Committee 13 July 2015 Board - 13 August 2015 Review Date June 2017 Stakeholders engaged in development/review Head of Accounting Senior Finance Manager (Financial Accounting) Equality Impact Assessment EQUALITY IMPACT ASSESSMENT Amendment History This document has been assessed for equality impact on the protected groups, as set out in the Equality Act This Policy is applicable to the Board, every member of staff within the CCG irrespective of their age, disability, sex, gender reassignment, pregnancy, maternity, race (which includes colour, nationality and ethnic or national origins), sexual orientation, religion or belief, marriage or civil partnership, and those who work on behalf of the CCG Version Number Date Author Title Comment/Reason for Issue/Approving Body Senior Finance Mananger V1 23/06/15 (Financial Accounting) New policy

2 Version Number Date Author Title Comment/Reason for Issue/Approving Body

3 Contents 1 Introduction Monitoring Compliance... Error! Bookmark not defined. 2 Cash Management... Error! Bookmark not defined. 2.1 Cash Flow Forecast... Error! Bookmark not defined. 2.2 Daily Cash Reports... 6 Appendix 1 Quick Reference Guides... 6

4 1 Introduction The CCG has an obligation to remain within its annual budget and to maintain effective Cash Management processes to enable it to meet this obligation. The CCG is required to maintain its cash drawdown with the Maximum Cash Drawdown (MCD) determined by NHS England and to ensure that a minimal amount of cash is retained at the end of each financial year. (For , 1.25% of the March 15 drawdown). Cash management cannot be undertaken in isolation from resource management. Both need to be planned and managed throughout the year. The total cash available to the CCG is comprised of: Net resources as per approved budget for the current financial year Capital allocations for the current financial year Cash loans or repayments, if applicable Non-cash items (new provisions, depreciation, and impairments) for the current financial year Forecast decrease in creditors or forecast increase in debtors for the current financial year Payment of provisions (when the provision materialises) as a due payment. Actual cash balances from the previous financial year The CCG is required to conform to the Better Payments Practice Code (BPPC) and as such should pay at least 95% of its invoices within 30 days of receipt of valid invoice or receipt of goods. The CCG s Cash Management mechanisms include (but are not limited to): Income & Expenditure reconciliations Analysis of outstanding creditors and debtors Monitoring of Periodic Income and Payments Monthly submission of CFF1 forms Monitoring of payment runs to ensure the CCG does not become overdrawn

5 Year-end forecasts which are updated monthly 1.1 Monitoring Compliance SBS performance is monitored by NHS England by means of KPIs. 2 Cash Management. 2.1 Cash Flow Forecast The key document in the process is a cash drawdown and forecasting template (CFF1). The cash drawdown on the template is for the following month and the detailed cash forecast is for the month after i.e. the March 2015 submission is for April cash drawdown and includes a detailed forecast for May. This is submitted on a monthly basis to NHS SBS and NHS England. The payment is made to the CCG on the first working day of the following month. 2.2 Daily Cash Reports NHS SBS provide daily cash book and cash flow reports to monitor the cash situation. Each Wednesday and Friday (weekly payment run days), they also provide Cash Position Information, to ensure that the payment run value is within the total cash available.

6 Appendix 1 Quick Reference Guides Cash Drawdown and Forecasting Guidance Document Number: MECCG 59 Issue/Approval Date: Version Number: 1.00 Status: Draft Next Review Date: June 2017 Page 6 of 7