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for at 10% (31 March 2017: 15%) to reflect recoverability when it receives notification from the Department of
of more recent incidents. Works and Pensions Compensation Recovery Unit
that the individual has lodged a compensation claim.
Holiday Pay Accrual The income is measured at the agreed tariff for the
treatments provided to the injured individual, less a
The accrual for outstanding leave has been calculated provision for unsuccessful claims and doubtful debts.
on an actual basis.
Revenue Grants and Other Contributions to
The amount of outstanding annual leave as at 31 March Expenditure
has been requested from all managers from across the
trust. The accrual is calculated based on the returns Government grants are grants from government bodies
from those managers. The trust’s annual leave policy other than income from commissioners or trusts for
clearly states that annual leave is expected to be taken the provision of services. Where a grant is used to fund
in the year it relates to and only carried forward on revenue expenditure it is taken to the Statement of
exceptional basis and with agreement from managers. Comprehensive Income to match that expenditure.
1.3 Interests in Other Entities The value of the benefit received when accessing
Joint Arrangements funds from the Government’s apprenticeship service
is recognised as income at the point of receipt of the
training service. Where these funds are paid directly
Arrangements over which the trust has joint control
to an accredited training provider, the corresponding
with one or more other entities are classified as
notional expense is also recognised at the point of
joint arrangements. Joint control is the contractually
recognition for the benefit.
agreed sharing of control of an arrangement. A joint
arrangement is either a joint operation or a joint venture.
A joint venture is a joint arrangement whereby the 1.5 Expenditure on Employee Benefits
parties that have joint control of the arrangement Short-Term Employee Benefits
have rights to the net assets of the arrangement.
Joint ventures are recognised as an investment and Salaries, wages and employment-related payments
accounted for using the equity method. such as social security costs and the apprenticeship
The trust has entered into a joint venture with Alder levy are recognised in the period in which the service
Hey Children’s Charity for the development of patient is received from employees. The cost of annual leave
experience. The transactions are not significant in entitlement earned but not taken by employees at
2017/18. the end of the period is recognised in the financial
statements to the extent that employees are permitted
1.4 Income to carry-forward leave into the following period.
Pension Costs
Income in respect of services provided is recognised
when, and to the extent that, performance occurs NHS Pension Scheme
and is measured at the fair value of the consideration
receivable. The main source of income for the trust is Past and present employees are covered by the
contracts with commissioners in respect of health care provisions of the NHS Pension Scheme. The scheme is
services. At the year end, the trust accrues income an unfunded, defined benefit scheme that covers NHS
relating to activity delivered in that year, where a patient employers, general practices and other bodies, allowed
care spell is incomplete. under the direction of Secretary of State, in England
and Wales. The scheme is not designed in a way that
Where income is received for a specific activity which would enable employers to identify their share of the
is to be delivered in a subsequent financial year, that underlying scheme assets and liabilities. Therefore, the
income is deferred. schemes are accounted for as though they are defined
contribution schemes.
Income from the sale of non-current assets is
recognised only when all material conditions of sale Employer’s pension cost contributions are charged to
have been met, and is measured as the sums due operating expenses as and when they become due.
under the sale contract.
Additional pension liabilities arising from early
The trust receives income under the NHS Injury Cost retirements are not funded by the scheme except
Recovery Scheme, designed to reclaim the cost of where the retirement is due to ill-health. The full amount
treating injured individuals to whom personal injury of the liability for the additional costs is charged to the
compensation has subsequently been paid, for operating expenses at the time the trust commits itself
instance by an insurer. The trust recognises the income to the retirement, regardless of the method of payment.
Alder Hey Children’s NHS Foundation Trust 163 Annual Report & Accounts 2017/18
