National Health Service Act 1977

Finance and AccountsE+W+S

[F197 Means of meeting expenditure of health authorities out of public funds.E+W+S

(1)It is the Secretary of State’s duty to pay in respect of each financial year—

(a)to each Regional Health Authority or, in Wales, to each Area Health Authority and each District Health Authority sums not exceeding the amount allotted . . . F2 by him to the Authority for that year towards meeting the expenditure attributable to the performance by the Authority of their functions in that year [F3including, in the case of a Regional Health Authority, its functions with respect to such expenditure of Family Health Services Authorities in relation to which it is the relevant Regional Health Authority as—

(i)is attributable to the reimbursement of expenses of persons providing services in pursuance of Part II of this Act and is of a description specified in the allotment, and

(ii)is attributable to the performance by the Family Health Services Authority of their functions in that year];

[F4(aa)to each Regional Health Authority sums equal to any such expenditure of Family Health Services Authorities in relation to which it is the relevant Regional Health Authority as is attributable to the remuneration of persons providing services in pursuance of Part II of this Act and is not of a description specified as mentioned in paragraph (a) above]

[F5(b)to each [F6Family Practitioner Committee][F6Family Health Services Authority whose locality is in Wales]—

(i)sums not exceeding the amount allotted by him to the Committee for that year towards meeting the expenditure attributable to the performance by the Committee of their functions in that year;]

[F7(ii)for any kind of expenditure attributable to reimbursement of expenses of persons providing services in pursuance of Part II of this Act for which he allots an amount to the Committee, an amount not exceeding the amount so allotted;

(iii)for any other expenditure attributable to remuneration of persons providing such services, sums equal to that expenditure;]

(c)to each special health authority sums not exceeding the amount allotted . . . F2 by him to the authority for that year towards meeting the expenditure attributable to the performance by the authority in that year of their functions under this Act.

(2)Subject to subsection (3) below, it is the duty of every Regional Health Authority to pay in respect of each financial year [F8to each Area Health Authority and each District Health Authority whose area or district is included in the region sums not exceeding the amount allotted . . . F2 by the Regional Health Authority to the Area or District Health Authority for that year towards meeting the expenditure attributable to the performance by the Authority of their functions in that year.]

[F8(a)to each District Health Authority whose district is included in the region sums not exceeding the amount allotted by the Regional Health Authority to the District Health Authority for that year towards meeting the expenditure attributable to the performance by the District Health Authority of their functions in that year; and

(b)to each Family Health Services Authority in relation to which it is the relevant Regional Health Authority—

(i)sums equal to the expenditure referred to in subsection (1)(aa) above; and

(ii)sums not exceeding the amount allotted by the Regional Health Authority to the Family Health Services Authority for that year towards meeting other expenditure attributable to the reimbursement of expenses of persons providing services in pursuance of Part II of this Act and to the performance by the Family Health Services Authority of their functions in that year.]

[F9(2A)The date on which an allotment to an authority under subsection (1) or (2) above (including an allotment increasing or reducing an allotment previously made) takes effect is the date on which the authority are notified of its amount by the Secretary of State or, as the case may be, the Regional Health Authority.]

[F10(3)The Secretary of State may give directions

[F11(a)]to a Regional [F12or Special] Health Authority or Family [F13Practitioner Committee][F13Health Services Authority whose locality is in Wales] or to a District Health Authority whose district is in Wales with respect to the application of sums paid to them under subsection (1) above [F14and

(b)to a District Health Authority in England with respect to the payment of sums by them to the Regional Health Authority in respect of charges or other sums referable to the valuation or disposal of assets; and

(c)to a Regional Health Authority with respect to the application of sums received by them by virtue of paragraph (b) above or by virtue of section 15(7)(a) of the National Health Service and Community Care Act 1990.]]

(4)Where directions have been given under subsection (3) above to a Regional Health Authority with respect to the application of the sums paid to the Authority under subsection (1) above, the Regional Health Authority may give directions to [F15an Area Health Authority or District Health Authority whose area or district is in the region with respect to the application of any sums paid out of those sums to the Area Health Authority or District Health Authority under subsection (2) above][F15a District Health Authority whose district is included in the region or a Family Health Services Authority in relation to which it is the relevant Regional Health Authority with respect to the application of any sum paid out of those sums to the District Health Authority or the Family Health Services Authority under subsection (2) above].

(5)It shall be the duty of any health authority [F16or Family Practitioner Committee] to whom directions have been given under subsection (3) or (4) above to comply with the directions.

(6)Where an order establishing a special health authority provides for any expenditure of the authority to be met by a Regional, . . . F17 or District Health Authority or by two or more such Authorities in portions determined by or in accordance with the order, it is the duty of each Authority in question to pay to the special health authority sums equal to, or to the appropriate portion of, that expenditure.

(7)Sums falling to be paid under this section shall be payable subject to compliance with such conditions as to records, certificates or otherwise as the Secretary of State may determine.]

97A Financial duties of health authorities.E+W+S

(1)It is the duty of every Regional Health Authority, in respect of each financial year, so to perform their functions as to secure that [F18the expenditure attributable to the performance by the Regional Health Authority and the Area Health Authorities and District Health Authorities whose areas or districts are in the region of their functions in that year does not exceed the aggregate of—

(a)the amounts allotted to the Regional Health Authority for that year under section 97(1) above;

(b)any other sums received under this Act in that year by the Regional Health Authority or the Area Health Authorities or District Health Authorities whose areas or districts are in the region; and

(c)any sums received otherwise than under this Act in that year by any of those Authorities for the purpose of enabling the Authority to defray any such expenditure.]

[F18(a)the expenditure attributable to the performance by the Regional Health Authority of its functions in that year, and

(b)the expenditure attributable to the performance by the District Health Authorities whose districts are in the region of their functions in that year, and

(c)the expenditure attributable to the performance by each Family Health Services Authority in relation to which the Regional Health Authority is the relevant Regional Health Authority of the Family Health Services Authority’s functions in that year, other than expenditure falling within section 97(1)(aa) above,

does not exceed the aggregate of—

(i)the amounts allotted to the Regional Health Authority for that year under section 97(1)(a) above;

(ii)any other sums received under this Act, other than under section 97(1)(aa) above, in that year by the Regional Health Authority or by the District Health Authorities or Family Health Services Authorities concerned; and

(iii)any sums received otherwise than under this Act in that year by any of those Authorities for the purpose of enabling them to defray any such expenditure.]

(2)It is the duty of every [F19Area Health Authority and every District Health Authority][F19District Health Authority and every Family Health Services Authority], in respect of each financial year, so to perform their functions as to secure that the expenditure attributable to the performance of their functions in that year does not exceed the aggregate of—

(a)the amounts allotted to the Authority for that year under section 97(1) or (2) above [F20other than section 97(1)(aa)];

(b)any other sums received by the Authority under this Act in that year; and

(c)any sum received otherwise than under this Act in that year by the Authority for the purpose of enabling the Authority to defray any such expenditure.

(3)It is the duty of every special health authority, in respect of each financial year, so to perform their functions under this Act as to secure that the expenditure attributable to the performance of their functions in that year does not exceed the aggregate of—

(a)the amount allotted to the authority for that year under section 97(1) above;

(b)any other sums received by the Authority under this Act in that year; and

(c)any sums received otherwise than under this Act in that year by the authority for the purpose of enabling the authority to defray any such expenditure.

(4)The Secretary of State may give such directions to a health authority [F21or Family Health Services Authority] as appear to him to be requisite to secure that the authority comply with the duty imposed on them by subsection (1), (2) or (3) above and it shall be the duty of the authority to comply with the directions.

Directions under this subsection may be specific in character.

(5)To the extent to which—

(a)any expenditure is defrayed by a health authority as trustee or on a health authority’s behalf by special trustees; or

(b)any sums are received by a health authority as trustee or under section 96A above,

that expenditure and, subject to subsection (6) below, those sums shall be disregarded for the purposes of this section and, for those purposes, sums which, in the hands of an authority, cease to be trust funds and become applicable by the authority otherwise than as trustee shall be treated, on their becoming so applicable, as having been received by the authority otherwise than as trustee.

(6)Of the sums received by a health authority under section 96A above so much only as accrues to the authority after defraying any expenses incurred in obtaining them shall be disregarded under subsection (5) above.

(7)Subject to subsection (5) above, the Secretary of State may, by directions, determine—

(a)whether sums of a description specified in the directions are or are not to be treated for the purposes of this section as being receivable under this Act by an authority of a description so specified;

(b)whether expenditure of a description specified in the directions is or is not to be treated for the purposes of this section as being attributable to the performance of functions by an authority of a description so specified; or

(c)the extent to which and the circumstances in which sums received but not yet spent by an authority under section 97(1) or (2) above are to be treated for the purposes of this section as part of the expenditure of the authority and to which financial year’s expenditure they are to be attributed.

[F2397B Financial duties of Family Practitioner Committees.E+W+S

(1)It is the duty of every [F24Family Practitioner Committee][F24Family Health Services Authority whose locality is in Wales], in respect of each financial year, so to perform their functions as to secure that the expenditure attributable to the performance of those functions in that year, other than expenditure [F25such as is mentioned in section 97(1)(b)(iii) above], does not exceed the aggregate of—

(a)the amounts allotted to the Committee for that year under section 97(1) above;

(b)any other sums received by the Committee under this Act in that year; and

(c)any sums received otherwise than under this Act in that year by the Committee for the purpose of enabling the Committee to defray any such expenditure

[F26and any reference in subsections (2) and (4) below to a Family Health Services Authority is a reference to an Authority whose locality is in Wales].

(2)The Secretary of State may give such directions to a Family Practitioner Committee as appear to him to be requisite to secure that the Committee comply with the duty imposed on them by subsection (1) above and it shall be the duty of the Committee to comply with the direction.

(3)Directions under subsection (2) above may be specific in character.

(4)The Secretary of State may, by directions, determine—

(a)whether sums of a description specified in the directions are or are not to be treated for the purposes of this section as being receivable under this Act by a Family Practitioner Committee for the purpose of their functions;

(b)whether expenditure of a description specified in the directions is or is not to be treated for the purposes of this section as being attributable to a Family Practitioner Committee’s performance of their functions; or

(c)the extent to which and the circumstances in which sums received but not yet spent by a Family Practitioner Committee under section 97(1) above are to be treated for the purposes of this section as part of the expenditure of the Committee attributable to the performance of their functions and to which financial year’s expenditure in the performance of such functions they are to be attributed.]

98 Accounts and audit.E+W+S

(1)Accounts, in such form as the Secretary of State may with the approval of the Treasury direct, shall be kept by—

(a)every Regional Health Authority;

(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F31

[F32(bb)every District Health Authority;]

[F33(bbb)every NHS trust]

(c)every special health authority;

[F34(cc)every Family Practitioner Committee;]

(d)all special trustees appointed in pursuance of section 29(1) of the National Health Service Reorganisation Act 1973 and section 95(1) above;

[F35(dd)any trustees for an NHS trust appointed in pursuance of section 11 of the National Health Service and Community Care Act 1990; and]

(e)the Dental Estimates Board

Those accounts shall be audited by auditors [F36appointed by the Audit Commission for Local Authorities and the National Health Service in England and Wales and the Comptroller] and Auditor General may examine all such accounts and any records relating to them, and any report of the auditor on them.

(2)Every such body shall prepare and transmit to the Secretary of State in respect of each financial year annual accounts in such form as the Secretary of State may with the approval of the Treasury direct.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F37

[F38(2A)The accounts prepared and transmitted by a District Health Authority in pursuance of subsection (2) above shall include annual accounts of a Community Health Council if—

(a)the Council is established for the Authority’s district; or

(b)the Authority is the prescribed Authority in relation to the Council.]

[F39X1(2B)in preparing its annual accounts in pursuance of subsection (2) above, and NHS trust shall comply with any directions given by the Secretary of State with the approval of the Treasury as to—

(a)the methods and principles according to which the accounts are to be prepared; and

(b)the information to be given in the accounts.]

[F40X1(2B)So far as relates to allotted sums paid to the members of a fund-holding practice—

(a)accounts shall be kept in such form as the Secretary of State may with the approval of the Treasury direct;

(b)the Comptroller and Auditor General may examine the accounts and records relating to them and any report of the auditor on them;

(c)in respect of each financial year, annual accounts in such form as the Secretary of State may with the approval of the Treasury direct shall be prepared and submitted to the relevant Family Health Services Authority; and

(d)in respect of each financial year, each Family Health Services Authority shall prepare in such form as the Secretary of State may with the approval of the Treasury direct, and include in its own accounts, a summarised version of the accounts submitted to the Authority under paragraph (c) above.]

(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F41

(4)The Secretary of State shall prepare in respect of each financial year—

(a)in such form as the Treasury may direct, summarised accounts of [F42the bodies mentioned in subsection (1) above, other than the Dental Estimates Board]

(b)in such form and containing such information as the Treasury may direct, a statment of the accounts of the Dental Estimates Board;

and shall transmit them on or before 30th November in each year to the Comptroller and Auditor General, who shall examine and certify them, and lay copies of them together with his report on them before both Houses of Parliament.

[F43(5)In subsection (2B) above “recognised fund–holding practice” and “allotted sum” have the same meaning as in section 15 of the National Health Service and Community Care Act 1990.]

99 Regulation of financial arrangements.E+W+S

(1)The Secretary of State may by regulations provide, in the case of all or any of the following bodies—

(a)Regional Health Authorities,

(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F44

[F45(bb)District Health Authorities;]

(c)special health authorities,

(d)Family Practitioner Committees,

(e)Community Health Councils, and

(f)the Dental Estimates Board,

for restricting the making of payments by or on behalf of the body otherwise than on such authorisation and subject to such conditions as may be specified in the regulations.

(2)Such provision may be made subject to such exceptions as may be so specified, and those regulations may contain such other provisions as to the making and carrying out by all or any of those bodies of such arrangements with respect to financial matters as the Secretary of State thinks necessary for the purpose of securing that the affairs of such bodies are conducted, so far as reasonably practicable, in such manner as to prevent financial loss and to ensure and maintain efficiency.

(3)The Secretary of State may give directions to any of those bodies as to any matter with respect to which those regulations may be made; and those directions may be specific in character and shall be—

(a)such as appear to him requisite to secure that the affairs of the body are conducted in such a manner as is mentioned in subsection (2) above,

(b)without prejudice to the operation of any such regulation,

and shall be complied with by the body to whom they are given.

100 Other Payments.E+W+S

(1)There shall be paid out of moneys provided by Parliament such expenses incurred by—

(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F46

(b)any standing advisory committee constituted under section 6 above,

(c)the Medical Practices Committee,

(d)the Tribunal constituted under section 46 above, and

(e)the Dental Estimates Board,

as may be determined by the Secretary of State with the approval of the Treasury.

(2)Payments made under this section shall be . . . F47 made at such times and in such manner as the Treasury may direct, and subject to such conditions as to records, certificates, or otherwise as the Secretary of State may with the approval of the Treasury determine.

101 Secretary of State’s receipts.E+W+S

Any sums received by the Secretary of State under this Act shall be paid into the Consolidated Fund, . . . F48