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Annual Report & Accounts 2013–14

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Annual Report & Accounts 2013–14 National Health Service Commissioning Board Annual Report & Accounts 2013–14 National Health Service Commissioning Board is known as NHS England Presented to Parliament pursuant to the National Health Service Act 2006 (as amended) Ordered by the House of Commons to be printed 22 July 2014 HC 408 10021-TSO-2901843-NHS Commissioning Board.indb 1 16/07/2014 15:37 Publications Gateway Ref No 01803 © Crown copyright 2014 You may re-use this information (excluding logos) free of charge in any format or medium, under the terms of the Open Government Licence v.2. To view this licence visit www.nationalarchives.gov.uk/doc/open-government-licence/version/2/ or email [email protected] Where third party material has been identified, permission from the respective copyright holder must be sought. This publication is available at www.gov.uk/government/publications Any enquiries regarding this publication should be sent to us at NHS England, Quarry House, Quarry Hill, Leeds, LS2 7UE Print 9781474108379 Web 9781474108386 Printed in the UK by the Williams Lea Group on behalf of the Controller of Her Majesty’s Stationery Office ID 2901843 07/14 Printed on paper containing 75% recycled fibre content minimum 10021-TSO-2901843-NHS Commissioning Board.indb 2 16/07/2014 15:37 Contents Contents Chair’s Introduction ......................................................................................................................... 2 Introduction by the Chief Executive ............................................................................................... 4 Annual Report .................................................................................................................................. 7 Strategic Report ........................................................................................................................... 9 Directors’ Report ....................................................................................................................... 57 Remuneration Report ................................................................................................................ 63 Statements by the Accounting Officer ......................................................................................... 87 Statement of Accounting Officer’s Responsibilities ..................................................................... 88 Governance Statement .............................................................................................................. 89 Annual Accounts .......................................................................................................................... 129 The Certificate & Report of the Comptroller & Auditor General to the Houses of Parliament .... 130 Statement of Comprehensive Net Expenditure for the year ended 31 March 2014 ................... 132 Statement of Financial Position as at 31 March 2014 ............................................................... 133 Parent Statement of Changes in Taxpayers’ Equity for the year ended 31 March 2014 ............. 134 Consolidated Statement of Changes in Taxpayers’ Equity for the year ended 31 March 2014 ... 135 Statement of Cash Flows for the year ended 31 March 2014 ................................................... 136 Notes to the Financial Statements ............................................................................................ 137 Annexes ............................................................................................................................................. i Annex A: Business Model .............................................................................................................ii Annex B: 2013–14 Business Plan Deliverables ..............................................................................iii Annex C.1: Authorisation & Assurance Committee Report ........................................................... x Annex C.2: Commissioning Support Committee Report .............................................................. xi Annex C.3: Directly Commissioned Services Committee Report ................................................. xiii Annex C.4: Efficiency Controls Committee Report ..................................................................... xv Annex C.5: Finance & Investment Committee Report ................................................................ xvi Annex C.6: Quality & Clinical Risk Committee Report ...............................................................xviii National Health Service Commissioning Board Annual Report & Accounts 2013–14 1 10021-TSO-2901843-NHS Commissioning Board.indb 1 16/07/2014 15:37 Chair’s Introduction Chair’s Introduction Malcolm Grant Chair to clinical commissioning groups, who High quality care for all, now and for future generations commission services at local level. Launching the new NHS commissioning structure The creation of NHS England – one of the has involved one of the most ambitious and reforms made by the Health & Social Care Act complex public sector reforms ever seen. Some 2012 – has opened up a new era in the 211 new clinical commissioning groups have leadership of the NHS. It is our responsibility to now taken on their full responsibilities, and great bring about continually improving health progress has been made. I have been deeply outcomes for individuals, communities and impressed by the refreshing energy, enthusiasm society as a whole, by investing the NHS budget and expertise of the local clinical leaders I have strategically to ensure real value for money. met and their determination to bring about long We were established in shadow form in October overdue improvement in the quality of services 2011 and assumed our formal statutory across the country, tackling inefficiency and responsibilities in April 2013. These include outmoded working practices, all in the interests stewardship of £96bn of public funds to provide of ensuring that patients get the highest quality comprehensive health and care services available care. And all of this against the backcloth of to all, where there is clinical need and regardless unremitting increases in demand for NHS services of an individual’s ability to pay. We are also at a time of acute financial stringency. custodians of the values of the NHS Constitution. It has been a huge honour and responsibility to We are committed to putting patients at the chair NHS England through this exceptional heart of everything we do, promoting period, and I am grateful to all members of the transparency and accountability of our work to NHS England Board for their dedication and citizens, and ensuring the most efficient, fair and commitment throughout the year. I am also inclusive use of finite taxpayer resources. profoundly grateful to all our staff who have Central to our role is the commissioning of health worked so hard to make NHS England a success. services. We commission some services directly The achievements outlined in this Annual Report (mainly specialised and primary care services), but are testament to their efforts and commitment. allocate the majority of the resources we receive Grateful thanks are due to Sir David Nicholson, our first Chief Executive, who retired at the end National Health Service Commissioning Board 2 Annual Report & Accounts 2013–14 10021-TSO-2901843-NHS Commissioning Board.indb 2 16/07/2014 15:37 Chair’s Introduction of March 2014. Sir David played a leading role in steering the reforms that Parliament had prescribed, overcoming and managing the exceptional risks involved, and succeeding in creating a solid foundation on which we now must build a sustainable future for our NHS. Simon Stevens, an outstanding successor, brings great vision and experience to what is undoubtedly the most significant leadership role in healthcare in the world. A note on our name: we adopted the name NHS England in April 2013 with the agreement of the Secretary of State for Health, although in statute we remain the National Health Service Commissioning Board. We use the name NHS England throughout this document. National Health Service Commissioning Board Annual Report & Accounts 2013–14 3 10021-TSO-2901843-NHS Commissioning Board.indb 3 16/07/2014 15:37 Introduction by the Chief Executive Introduction by the Chief Executive Simon Stevens Chief Executive This annual report describes NHS England’s first These challenges are quite well understood. full year of operation. It highlights the substantial The focus now needs to shift to developing work required to establish a new commissioning solutions. As steward of nearly £100 billion of system for England from 1st April 2013. I want NHS funding, NHS England – in close partnership to add my personal thanks to all the staff of NHS with local NHS clinical commissioning groups England and its predecessor bodies who worked – exists to unleash more health and care ‘bangs so diligently on this major transition. The result for the buck’. Our job is partly to catalyse and – unique in the western world – is that two support improvement and creativity, as local thirds of our health service funding is now communities develop new ways of future- entrusted to local groups of family doctors and proofing services. In doing so we aim at all times other clinicians. to “think like a patient, and act like a taxpayer”. Having taken up post as Chief Executive of NHS We want to see an NHS that is more flexible, England on 1st April 2014, and five years into more adaptable, where national and local
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