APPROVED

NHS GRAMPIAN

Minute of Meeting of GRAMPIAN NHS BOARD held in Open Session

on Tuesday 24th June 2008 at 2.00pm

in the Conference Room, Summerfield House, Aberdeen

Present

/

Dr David Cameron

/ Chairman
Councillor Lee Bell / Non-Executive Board Member
Mrs Barbara Bruce / Non-Executive Board Member
Ms Margaret Burns / Non-Executive Board Member
Mr Richard Carey / Chief Executive
Dr Roelf Dijkhuizen / Medical Director
Mr Alan Gall / Director of Finance
Mrs Judith Hendry / Non-Executive Board Member
Councillor Bill Howatson / Non-Executive Board Member
Mr Charles Muir / Non-Executive Board Member
Mr Mike Scott / Non-Executive Board Member
Dr Lesley Wilkie / Director of Public Health
By Invitation / Mr Barry Jenkins / Assistant Director of Finance
Mrs Linda Porter / Senior Audit Manager, Audit Scotland
Mr Ewan Robertson / Director of Performance Improvement/Board Secretary
Attending / Ms Deb Hoad / Assistant Board Secretary
Item / Subject / Action
1. / APOLOGIES
Apologies were received from Mrs Elizabeth McDade, Councillor Kate Dean, Mr Gordon Stephen, Professor Neva Haites, Mr Mark Sinclair, Mrs Elinor Smith and Professor Val Maehle.
2. /

CHAIRMAN’S WELCOME

Dr Cameron welcomed everyone to the meeting, particularly Mrs Linda Porter from Audit Scotland.
Dr Cameron explained that there were several items on the agenda that were all interlinked in that they related to the process of the Board seeking to approve NHS Grampian’s Annual Accounts 2007/08.
3. / STATEMENT TO THE GRAMPIAN NHS BOARD FROM THE AUDIT COMMITTEE CHAIR
Ms Burns, Chair of the NHS Grampian Audit Committee, advised that the adequacy and effectiveness of NHS Grampian’s systems of internal control had been considered by the Committee during their meeting that morning. During this process advice had been taken from both External and Internal Auditors. Ms Burns explained that some areas of weakness had been identified but, based on the information and advice provided, the Committee were confident that these were not indicative of pervasive problems and that the relevant issues were being appropriately addressed.
The Internal Auditors had provided the Committee with an Annual Statement to the Grampian NHS Board on the effectiveness and adequacy of the internal controls in place and following consideration of all relevant information the Committee members had confirmed acceptance of the Annual Statement to Grampian NHS Board, which Ms Burns had subsequently signed.
The Board accepted the Statement from the Audit Committee Chair.
4. / APPROVAL OF GRAMPIAN HEALTH BOARD’S ANNUAL ACCOUNTS 2007/08
Mr Gall presented the Annual Accounts, outlining that they were, in the main, self explanatory but that he would highlight some key issues for the benefit of Board Members. Page 8 indicated the financial position and performance of NHS Grampian and Mr Gall explained that the Scottish Government Health Directorate had set three individual financial limits for Health Boards and that NHS Grampian had met all of their three targets during 2007/08. The targets had been achieved by utilising effective means of financial and systems controls and it wasnoted that the Accounts highlighted further detail of NHS Grampian’s overall performance. It was explained that the Health Directorate required Health Boards to provide a mandatory Statement of Internal Control (SIC), signed by the Chief Executive. The Audit Committee had confirmed that they had received the requisite assurance to recommend that Mr Carey could sign the NHS Grampian SIC with absolute confidence.
Mr Gall outlined that page 20 of the Accounts detailed the Independent Auditor’s report on the Annual Accounts and invited Mrs Porter from Audit Scotland to provide further comment. Mrs Porter explained that she represented Mr David McConnell, Assistant Director of Audit at Audit Scotland, and was pleased to report that Audit Scotland had provided an unqualified opinion with regard to the NHS Grampian 2007/08 Annual Accounts. She reported that the accounts gave a true and fair view of the state of affairs and financial position of the Board as at 31st March 2008, that they had been properly prepared and that the income and expenditure shown had been applied or incurred appropriately. Mrs Porter offered thanks to NHS Grampian Finance staff for their assistance during the external audit process.
Ms Burns outlined that in reviewing the Annual Accounts the Audit Committee hadconsidered the letter of representation that had been sent to Mr McConnell at Audit Scotland, with regard to the NHS Grampian 2007/08 Annual Accounts and a copy of the letter was tabled for information. The Committee had also been assured by three reports from NHS National Services Scotland with regard to the aspects of work they had undertaken on behalf of NHS Grampian. This work had been independently audited and the Committee were assured as to the quality and regularity of the work undertaken.
On behalf of the Audit Committee, Ms Burns formally recommended the 2007/08 Annual Accounts to the Board for approval.
The Board approved the adoption of the Grampian Health Board (commonly known as NHS Grampian) Annual Accounts 2007-08.
5. / PATIENTS’ PRIVATE FUNDS FOR YEAR ENDED 31 MARCH 2008.
Mr Gall explained that there was a statutory responsibility for Health Boards to maintain records ofPatients’ Private Funds and that these had to be audited independently of both Internal and External Auditors. Mr Gall explained that the funds related to monies belonging to patients who were in hospital and community residential and healthcare facilities, in particular those in long term care, and that NHS Grampian had a responsibility to keep these funds safe. The amount of Patients’ Private Funds as at the financial year end was just over £700,000 and it was explained that this amount was expected to increase as a result of changes to the Benefits System relating to patients in long term care.
Mr Gall outlined that the information relating to Patients’ Private Funds had been independently audited by Williamson and Dunn who had confirmed that the mechanisms in place for these funds were robust and appropriate. Board Members were requested to consider the Abstract of Receipts and Payments and Mr Gall recommended these for approval by the Board.
Dr Cameron expressed a conflict of interest in that Williamson and Dunn were his personal accountants.
Councillor Howatson queried who was responsible for meeting the fees of the Independent Auditors. Mr Jenkins replied that it was his understanding that NHS Grampian was responsible for these costs but that he would check this and provide subsequent confirmation.
The Board approved the Abstract of Receipts and Payments, which were signed off by the Director of Finance and Chief Executive. / BJ
6. / AOCB
Dr Cameron highlighted that it was Ms Burns’ final Board meeting and thanked her for her considerable efforts both as a Board member and as Chair of the Audit Committee. Dr Cameron offered Ms Burns good wishes for the future on behalf of the Grampian NHS Board. Ms Burns thanked Dr Cameron, other Board Members and the NHS Grampian staff with whom she had worked during her period of office for their help and support and expressed how interesting and rewarding she had found the role. Ms Burns stated that she would have further contact with NHS Grampian in her role as Chair of NHS Health Scotland.
7. / DATE OF NEXT MEETING

Tuesday 5th August 2008 at 10.00am in Woodhill House, Aberdeen.

Signed …………………………..….

Chairman

Date…………………………………

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