Fallside Road Bothwell G71 8BB Telephone:

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1 Lanarkshire NHS Board Kirklands Hospital Fallside Road Bothwell G71 8BB Telephone: Minute of Meeting of the Audit Committee held on Monday 22 nd June 2015 at 8.30am in the Board Room, Kirklands, Bothwell CHAIR: Mr T Steele, Non Executive Director (Chair) PRESENT: Mr P Campbell, Non Executive Director Miss M Morris, Non Executive Director Dr A Osborne, Non Executive Director Mrs L Macer, Employee Director IN ATTENDANCE: Mrs N Mahal, NHS Board Chair Mrs L Ace, Director of Finance Mr C Campbell, Chief Executive Mr M Fuller, Non Executive Director Dr A Docherty, Chair, Area Clinical Forum Mr G Smith, Head of Finance Mr C Brown, Scott-Moncrieff Mr M Lavender, Scott-Moncrieff Mrs K Hamilton, Head of Communications Mr N J Agnew, Board Secretary 1. WELCOME Mr. Steele welcomed members and attendees to the meeting. 2. EXTERNAL AUDIT i) ISA 260 Report The Committee considered a report from Scott-Moncrieff on the audit of the 2014/15 Financial Statements. Mr. Brown reported that the Financial Statements gave a true and fair view of the state of affairs of the Board as at 31 st March 2015, and of its consolidated net operating cost position, total recognised gains and losses and cash flows for the year. Scott-Moncrieff had confirmed that the Financial Statements and the part of the Remuneration Report to be audited, had been properly prepared in accordance with the NHS (Scotland) Act 1970 and the Accounts Direction from Scottish Ministers. The management commentary included

2 with the Annual Accounts was consistent with the Financial Statements. Scott-Moncrieff was satisfied that the Governance Statement complied with the Scottish Ministers Guidance, and that the content was not inconsistent with the information gathered during the course of normal audit work. Consequently, Scott-Moncrieff had issued an unqualified audit opinion on the Financial Statements and the regularity of transactions. THE COMMITTEE: 1. Noted the report from Scott-Moncrieff on the audit of the 2014/15 Financial Statements. ii) Letter of Representation The Committee considered a Letter of Representation to Scott-Moncrieff, and confirmed that this could now be signed by the Chief Executive. iii) Patients Private Funds Statement The Committee noted the Patients Private Funds Statement for the year ended 31 st March2015. iv) Patients Funds Management Letter The Committee considered a Management Letter from Scott-Moncrieff for the year ended 31 st March Mr. Brown explained that the letter drew attention to the weaknesses in systems and controls that came to the Auditors attention during examinations, and recommended ways in which the systems and controls could be improved. Mrs. Ace explained that new guidance on the management of Patients Private Funds had been developed and tested, and she reassured members that considerable improvement work had been undertaken. She explained that Mr. Smith would link with Internal Audit in developing and implementing a minor programme of targeted checking. 3. ANNUAL ACCOUNTS: YEAR ENDED 31 ST MARCH 2015 The Committee considered a report on the Annual Accounts for the year to 31 st March 2015, and draft Annual Accounts. Mrs. Ace referred to the earlier confirmation from Mr. Brown of an unqualified audit opinion on the Financial Statements and the regularity of transactions. She highlighted key elements of the report on the Annual Accounts, including the impact of Boundary Change. She reaffirmed that the Board had met all of its key targets for the year, including performance against the Revenue Resource Limit, which had already been reported to the NHS Board. She also highlighted the position with regard to assets, segmental analysis, and clinical negligence cases.

3 Mrs. Ace noted an issue raised by Mr. Fuller in relation to the increases in prescribing costs for hospital services and primary care services, with particular regard to the controls open to the Board in relation to hospital services. She explained that the increased prescribing costs for hospital services, largely, were attributable to the introduction of new, high-cost drugs, where availability based on clinical opinion was a requirement. She outlined some of the conditions, such as Hepatitis C and cancer, for which new high cost drugs had become available, and growth in prescribing in particular specialties. She also noted an observation about the provision for equal pay claims. She explained that this was based on advice from the Central Legal Office, and outlined some of the key issues which impacted on the position. Mrs. Ace noted a request from Mr. Fuller for clarification of the Scottish Government position about the implementation of a No Fault policy for medical negligence cases. She reminded members that this was the subject of a national consultation exercise, and explained that a No Fault policy had not yet been formally introduced to the Service. She also explained that where such a Policy was introduced, individuals would retain a right, also, to pursue actions for clinical negligence. Mr. Steele expressed his and members appreciation to Mrs. Ace and her staff, and to Mr. Campbell and the wider staff, for their contribution to the satisfactory Annual Accounts position. He also expressed appreciation to Scott-Moncrieff for their work during the year, and in relation to the Annual Accounts process. THE COMMITTEE: 1. Noted the draft Annual Accounts for the year ended 31 st March Noted the agreed underspend of 0.400m against the Revenue Resource Limit in line with the Local Delivery Plan. 3. Endorsed the Annual Accounts for submission to the NHS Board for formal approval. 4. DATE OF NEXT MEETING Tuesday 1 st September 2015 at 9.00am in Kirklands Hospital.

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