Invitation to eahsn.org. Eastern Academic Health Science Network Finance Function Date of issue: 4 September 2017

Transcription

1 Invitation to Tender Eastern Academic Health Science Network Finance Function Date of issue: 4 September 2017

2 About the Eastern Academic Health Science Network Galvanising people to advance health and wealth Eastern Academic Health Science Network is one of 15 Academic Health Science Networks (AHSNs) set up to spread innovation at pace and scale across the healthcare system in order to achieve the ultimate goals of both improving health and generating economic growth. We are the only bodies that connect all partners across sectors: NHS and academic organisations, local authorities, the third sector and industry. We are catalysts that work to create the right conditions to facilitate change across whole health and social care economies, improving outcomes for patients.

3 Contents Table of Contents About the Eastern Academic Health Science Network... 2 Galvanising people to advance health and wealth... 2 Contents... 3 Timetable and Process... 5 Specification and Deliverables... 6 Lot 1: Finance Director A: Strategic Advice B: Financial management system C: Banking and Treasury Management D: Taxation E: Performance Standards, Contract Review... 9 Lot 2: Financial Control A: Financial returns B: Financial planning, management and reporting C: Enquiries and training D: Performance Standards, Contract Review Assessment Method Preliminary Checks Shortlisting Final Presentation and Assessment Confirmation and Feedback Further information Website Context Enquiries... 16

4 4 P a g e

5 Timetable and Process The following table sets out the intended timetable for the submission of bids, their assessment and the conclusion of the contractual arrangements. Eastern AHSN will use its best endeavours to work to this timescale but reserves the right to vary the proposed process if necessary. This might include, but is not restricted to, extending the deadline for the submission of bids. Friday September 4 Monday 25 September, 10am Monday September 25- Tuesday September 26 Tuesday September 26 Date to be confirmed between 27 September and 5 October 2017 Friday October 6 October 6 onwards Issue of invitation to tender. Circulation to known interested parties and others as identified by Eastern AHSN. Deadline for submission of bids from providers Preliminary Checks and Shortlisting Confirm invitation and timing for assessment panel presentations Assessment Panel (dependent on availability) Agree preferred suppliers for both lots Provisional Deadline to advise all bidders of outcome of process and arrange initial meetings for transition process. Agree and confirm transition planning 5 P a g e

6 Specification and Deliverables The proposed function is being treated in three parts: 1. The provision of a Finance Director to provide the necessary board level advice and both strategic and commercial financial expertise to Eastern AHSN s board and senior management. It is anticipated that this function will require a time commitment of no more than 12 days per annum, and we anticipate agreed a per diem rate for that work to be carried out by a named individual with suitable experience and qualifications. 2. A financial control function to support the Finance Director, senior managers and other staff to manage and monitor financial performance on an ongoing basis. We are looking to agree a service contract with an external provider of this function on the basis of a fixed monthly fee. 3. Eastern AHSN will provide an in-house book-keeping function to support the day to day transactional business of the AHSN. They will work closely with the Finance Controller and the Finance Director, but will be line-managed by a member of the AHSN staff. The deliverables required of the two advertised functions are set out in the tables below. In the case of Lot 1 the Finance Director it is a requirement that a named individual be identified to be the designated Finance Director for the organisation, to support the Board and the Senior Management Team and provide strategic financial advice. For Lot 2, the Finance Control function, it is not necessarily the case that the service provider will name an individual to be the AHSN s Finance Controller but there will be a need to have an identified individual who will be the lead contact for the function and suitable arrangements will need to be in place to deputise for that contact in the case of their absence or unavailability whether planned or unexpected. Neither the Finance Director nor those providing the Finance Control function will be employees of the Eastern AHSN. Additional services may be requested from time to time and, if they are beyond the scope of the deliverables described below, a separate fee may be agreed for the provision of that service. However, the AHSN will reserve the right to seek such services from alternative providers if circumstances, costs or timescales suggest it may be beneficial. Similarly, it may be the case that staff within Eastern AHSN have the necessary skills or capacity to carry out related elements of the work of the AHSN and it might therefore be decided to use existing resources for those purposes. Regular liaison will be required between the service providers for both lots described below, the in-house bookkeeping function, related staff and the designated client-side manager of these functions to ensure their smooth operation and that different elements of the workload are being appropriately managed. From time to time it may be beneficial to adjust the processes by which different aspects of the financial function are operated and how they interact with other elements of the function including interactions that cross the boundaries of the lots described below. It is not expected that minor adjustments to those boundaries, or the associated description of deliverables, will give rise to the need to review the price or contract. The contract to provide the two lots is being offered for three years, with an option to renew for a further three years subject to satisfactory performance subject to any changes in the national framework in which AHSNs operate. Eastern AHSN has been advised that its license from NHS England will be renewed following the expiry of the current five-year license period in March 2018, but the contractual arrangements for that renewal have not yet been concluded. 6 P a g e

7 Task Lot 1: Finance Director 1A: Strategic Advice (to be provided personally by the Finance Director) 1. Attendance at meetings of Eastern AHSN Board, Audit Committee and other bodies as required and preparation to make a full contribution. Frequency/Current Volume/ Examples Board and Audit Committee quarterly. Others as required. Standard Designated individual will be fully qualified, and have demonstrated experience of fulfilling a similar role in an organisation of comparable scale and complexity. 2. Advice to Eastern AHSN Board on its financial position, strategy, plans, risks and liabilities, including attendance and participation in associated committees/bodies on behalf of AHSN and the Board, or the provision of advice and guidance to those representing the AHSN in such forums. 3. Review of company accounts and other returns and reports prepared by financial control function. 4. Oversee financial control function to ensure effective support to SMT and others as required for the preparation of financial plans Where feasible, AHSN representation at other bodies (e.g. the SBRI Finance & Risk Committee or the Med Tech Accelerator Board) will be carried out by members of AHSN staff, but if capacity does not exist within the staff team then it may fall to the Finance Director to do so. Quarterly/ Annually as required As required at least annually Expectation that advice offered will be informed, up to date and based on a full understanding of Eastern AHSN s role, its strategy and its appetite for risk. Eastern AHSN is looking for a strategic relationship with the provider of their finance function. The provider will be expected to be able to demonstrate understanding of the innovation funding arena and the needs that arise from it, or the capacity to rapidly assimilate such understanding. All to be delivered to an agreed timetable to meet the need for internal scrutiny and approval before submission to statutory bodies concerned. Finance Director will be expected to ensure that both the Board and the Senior Management Team have access to high quality financial information and guidance and to advise both or either groups on the operation of the overall financial management systems within the AHSN, offering recommendations for any changes that might be required. 7 P a g e

8 Task Frequency/Current Volume/ Standard Examples 1B: Financial management system Finance Director to oversee delivery of system by Finance Control function 5. Work with financial control function and with Eastern AHSN board and managers to review and if required amend coding structure to a. support management control of expenditure and income, to include actual expenditure incurred, full year and phased income and expenditure plans, forecast/estimate of full year outturn b. establish spending control regime based on agreed budgets and the standard operating procedures adopted by the company. To be carried out as a one-off exercise at start of contract period and then kept under review thereafter. Coding structure should be: - Comprehensible to non-financial managers; - Capable of providing information on budgets, income and expenditure based on: o Management structure who is the budget holder o Programme/project o Nature of goods/services being bought/provided - Flexible to allow changes in structure, programmes etc to be incorporated without redesigning structure - Backwards-compatible with previous structure (as much as feasible) to allow historic comparisons to be made - System to support control by budget code (whose budget is it?) as well as by value (how big is the amount?) and appropriate separation of ordering and authorising payments. 6. Oversee financial control function s production of monthly finance reports to budget holders Periodic review to ensure that reporting is accurate and is meeting the operational needs of budget holders. 7. Review the quarterly finance reports to budget holders and the board prepared through the financial control function. 1C: Banking and Treasury Management 8. Manage and report on Eastern AHSN s banking arrangements to the Senior Management Team, Audit Committee, Board Quarterly Quarterly reporting To include all elements above at an appropriate level of detail to allow Board to discharge their strategic governance and assurance functions. Possibility of moving to 6 board meetings per annum with consequent increase in frequency. To retain the confidence of the Board in the quality and timeliness of the advice offered. 8 P a g e

9 Task 9. Monitor performance of Eastern AHSN s bank deposits including periodic review of options for holding funding for which instant liquidity is not currently required. 1D: Taxation 10. Taxation a. Ensure that any queries or issues arising out of tax information, enquiries or returns are resolved in consultation with the financial control function, appropriate individuals, managers or government agencies. b. Advise AHSN Board and Senior Management on the implications of any changes (confirmed, proposed or rumoured) to the national taxation regime for the AHSN and make recommendations as to any action that the AHSN should take in response or anticipation of such changes. Frequency/Current Volume/ Examples Annual review As required 1E: Performance Standards, Contract Review 11. All the above functions to be delivered according to agreed standards and formats and to an agreed schedule. To be reviewed after three months, annually thereafter. Standard May involve recommendation to seek more specialised advice depending on scale of deposits, rate of return required etc. To eliminate risk of incorrect information, charges or penalties arising and to ensure that the Board retains confidence in the strategic position of the AHSN. Review meetings to be scheduled, minuted and any changes, or the absence of any changes, recorded as agreed additions to the service contract signed by both parties. 9 P a g e

10 Task Lot 2: Financial Control 2A: Financial returns 1. Completion of Company Accounts, liaison with auditors, completion of all required annual and quarterly returns to HMRC, assistance as required with publication of the annual review required by NHS England, annual report including financial information and associated returns, and annual returns to Companies House, etc. 2B: Financial planning, management and reporting 2. Support to SMT and others as required for the preparation of financial plans Frequency/Current Volume/ Examples Quarterly/ Annually as required As required at least annually Standard All to be delivered to an agreed timetable to meet the need for internal scrutiny and approval by Finance Director and others as required (e.g. Board) before submission to statutory bodies concerned. Working alongside Finance Director to provide necessary information and options analysis 3. Implementation of spending control based on agreed budgets and the standard operating procedures adopted by the company. Initial review to be carried out at outset of contract, and be kept under review continuously thereafter. System to support control by budget code (whose budget is it?) as well as by value (how big is the amount?) and appropriate separation of ordering and authorising payments. Advise Finance Director and Senior Management on the implementation of the AHSN s standard operating procedures and the extent to which they can or cannot be replicated in the financial control system. 10 P a g e

11 Task 4. Administration of online accountancy service enabling budget holders to directly interrogate information in respect of their budgets in collaboration with bookkeeping function. 5. Production of monthly finance reports to budget holders under supervision and approval of Finance Director 6. Production of quarterly finance reports to budget holders and the board under supervision and approval of Finance Director 7. Undertake all necessary year and monthend procedures to enable sound reporting of financial positions and in preparation for necessary returns etc. 8. Manage drawdown of funding from deposits to cash holdings, and reverse, as required. Frequency/Current Volume/ Examples The current scale of the system is modest but there may be significant growth in coming years. There exist approximately 125 budget cost codes, with a monthly average of 35 purchase orders, 75 payments, across five main departments, and a larger number of individual projects or programmes. Monthly Reports to each member of SMT and function heads up to 8 individuals either by specific report production or (preferably) by ensuring availability of reports in an accessible form within online accountancy service. Quarterly Monthly/ Quarterly/ Annually as required (Book-keeping function will carry out month-end process to trial balance stage). As required Standard Current system is Xero cloud-based accountancy. This or an equivalent system would be acceptable, data transfer would be necessary from old system to new if it is to be changed. Modules purchased may change from current provision to support implementation of Eastern AHSN s standard operating procedures and to ensure that ability to view accounts can be restricted as required by those procedures. Advice and support must be readily available to managers, budget holders and project leads either in person, online or by telephone. Attendance at Eastern AHSN offices as required. To be delivered/available within 7 days of last working day of each month Full report of expenditure and income against budget codes and commitments made but not yet spent - profiled against phased expenditure plans, historic comparisons and projected full year outturn. To include all elements above at an appropriate level of detail to allow Board to discharge their strategic governance and assurance functions. Possibility of moving to 6 board meetings per annum with consequent increase in frequency. As required to support preparation of reports and returns detailed above. Error free movements of funding within timescale required to meet AHSN s financial plans. 11 P a g e

12 Task 2C: Enquiries and training 9. Response to ad-hoc queries from budget holders arising out of reports, online accounting system or other financial information 10. Resolution of any errors/inconsistencies in the financial records with appropriate record-keeping and auditable trail for any corrective steps taken in the resolution of those errors. Frequency/Current Volume/ Examples As required As required Standard Prompt (within 1 working day) response to minor queries, or clarification arising out of reports provided etc. Agreed timescale for queries that require more in-depth work. Queries in excess of an agreed threshold (working time required to complete) to be subject to additional charge based on time taken (at a preferential hourly rate) Errors to be resolved in collaboration with budget holders within one week of their identification and an approach to their resolution agreed. 11. Training/briefing of budget holders on use of chosen accounting system and associated internal financial management systems 2D: Performance Standards, Contract Review 12. All the above functions to be delivered according to agreed standards and formats and to an agreed schedule. Annually or on induction of new staff To be reviewed after three months, annually thereafter. Informal briefings should be sufficient with periodic refreshment sessions to resolve any difficulties. Part of normal contract relationship management. If there are online training modules, these may be of value. Review meetings to be scheduled, minuted and any changes, or the absence of any changes, recorded as agreed additions to the service contract signed by both parties. 12 P a g e

13 Assessment Method Preliminary Checks All bidding individuals or organisations will be assessed to ensure that: All required information has been provided in the correct form; The proposed delivery arrangements confirm that the bidder is able to provide suitably qualified individuals to carry out the service required; The bidder has, or has committed to obtain, the necessary insurance; It is clear from the information provided that the bidder has the necessary capacity to deliver the required service with an appropriate level of resilience; That any individuals identified in the bid have the right to work in the United Kingdom; That details of appropriate referees have been provided. In the event that any of the above criteria are not satisfied, the bidder may be excluded from further consideration. Shortlisting A panel of assessors will each be asked to score the remaining bids on the following criteria: The quality of the proposed approach to the delivery of each element of the service in the lot(s) bid for; The level of qualification and experience that the bidder proposes to make available to the AHSN; The extent to which the bidder has demonstrated an understanding of the needs of Eastern AHSN and the flexibility necessary to meet changing needs over the period of the contract; The extent to which the bidder has demonstrated the ability to support staff in the AHSN to selfsupport in the management of financial information as well as providing the appropriate service to those staff. Some or all of the bidders will be invited to the final presentation stage based on the assessed scores. References will be taken up for all shortlisted bidders. Final Presentation and Assessment Shortlisted bidders will be invited to make a presentation to the Assessment Panel. The purpose of the presentation is to allow the panel to: Modify/moderate their initial assessment scores having had the opportunity to meet and question the bidding organisation. Establish the extent to which the individuals who will be providing or leading the provision of the service are able to command the confidence of the assessors and that those individuals have demonstrated the necessary level of emotional intelligence to give assurance that they will be able to work with the Eastern AHSN team to deliver continuous improvement in our financial management. The results of this final stage will be combined on a weighted basis with the price proposed for the service to identify a preferred supplier for each lot, and if the panel deem it advisable, a reserve supplier or suppliers (ranked in order of preference) in case arrangements cannot be satisfactorily concluded with the preferred supplier. 13 P a g e

14 Confirmation and Feedback Detailed feedback to all bidders will be available once the contractual arrangements have been concluded with the preferred or reserve supplier. Bidders will be advised of the outcome of the assessment process as soon as possible following the Final Presentation and Assessments. Satisfactory conclusion of the contractual arrangements will be dependent on: Agreeing the terms of the final contract for service; Conclusion of any outstanding issues raised in the assessment process (e.g. outstanding references or proof of qualifications) Agreement of a transition date and process with Eastern AHSN. 14 P a g e

15 Further information Website Information about the work and structure of the Eastern Academic Health Science Network can be found on the company website: Context For further information on the AHSN Network and the current developments which might impact on Eastern AHSN, the following documents might be of interest: NHS England Board Paper Developing our Academic Health Science Networks, which set the framework for the relicensing of the AHSNs, 21 July Office of Life Sciences, Life Sciences Industrial Strategy, an independent report to government from the life science sector 15 P a g e

16 Enquiries If further clarification or information is required then please contact: Alasdair Bovaird Business Affairs Consultant Eastern AHSN Any information provided to one bidder will be circulated to all known interested parties. 16 P a g e

17 eahsn.org Eastern Academic Health Science Network (Eastern AHSN) Unit C, Magog Court, Great Shelford, CB22 3AD Telephone: +44 (0) Company registration number: