13 October 2009 The Directors University Hospitals Bristol NHS Foundation Trust Trust Headquarters Marlborough Street Bristol BS1 3NU Please contact Kevin Henderson in the first instance Direct line 0844 7988761 Email k-henderson@auditcommission.gov.uk Dear Sir/Madam Restated Accounts under International Financial Reporting Standards Period ending 31 May 2008 in relation to United Bristol Healthcare NHS Trust The 2008 Budget included an announcement that all public bodies following the HM Treasury Financial Reporting Manual (FReM), which includes NHS Trusts, would follow international financial reporting accounting standards (IFRS) from 2009/10. In preparation for this change, the Department of Health requires all NHS Trusts, including those, like University Hospitals Bristol Foundation Trust, that became a foundation trust during 2008/09, to submit accounts and summarisation schedules (FMAs) containing their 2008/09 accounts figures as comparatives restated in accordance with IFRS. The Audit Commission agreed with the Department of Health that auditors would review the restated accounts/fmas and that the review would be modelled on Statement for Investment Reporting 5000: Public reporting engagements on financial information reconciliations under listing rules and SIR 1000: Engagements in connection with an investment circular, with appropriate adaptations to reflect the specific circumstances of the engagement. I obtained an understanding of the factors affecting the restatement sufficient to identify and assess the risk of the restatement not being properly compiled and adjustments being inappropriate for the purposes of presenting the financial information (as restated) on a basis consistent in all material respects with the accounting policies contained in the NHS Trust Financial Reporting Manual 2009/10 based in International Generally Accepted Accounting Principles (SIR 5000.2). I determined materiality to be 679,530. Audit Commission, Westward House, Lime Kiln Close, Stoke Gifford, Bristol BS34 8SR T 0117 923 6757 F 0117 9794100 www.audit-commission.gov.uk
2 Auditor s report My review of the Trust s restated accounts/fmas is complete. I have not identified any issues that I need to report to you before I issue my report on the restated accounts/fmas. However, I request a letter of representation from you, a suggested draft of which is at Appendix 1. Subject to receipt of the signed letter of representation, I anticipate issuing the standard Auditor s report included at Appendix 2. Yours faithfully Richard Lott Engagement Lead, Audit Commission
3 Appendix 1 - DRAFT suggested letter of representation Date: Richard Lott Engagement Lead Westward House Lime Kiln Close Stoke Gifford Bristol BS34 8SR Dear Richard University Hospitals Bristol NHS Foundation Trust - Restated financial statements for period ended 31 May 2008 (in relation to United Bristol Healthcare NHS Trust) I confirm to the best of my knowledge and belief, having made appropriate enquiries of other directors of University Hospitals Bristol NHS Foundation Trust, that: I have made available to the auditor all significant information relevant to the restated financial statements, of which I have knowledge; and The statements are factually accurate, no material facts have been omitted and the statements are not otherwise misleading. I confirm that this letter has been discussed and agreed by the Board on 28 October 2009. Signed on behalf of University Hospitals Bristol NHS Foundation Trust. Paul Mapson Director of Finance
4 Appendix 2 Draft Auditor s report NHS Accounting Processes Section Financial Monitoring & Accounts Branch Room 4W52 Department of Health Quarry House Quarry Hill Leeds LS2 7UE Date: X October 2009 Dear Sirs University Hospitals Bristol NHS Foundation Trust: Financial statements and FMA forms prepared on the basis of the accounting policies contained in the NHS Manual for Accounts 2009/10 based in International Generally Accepted Accounting Principles I report on the restated financial statements and FMA forms submitted by the Trust to you comprising: a statement of financial position, statement of comprehensive income, statement of changes in taxpayers equity, cash flow statement and associated notes for the year ended 31 May 2008, as previously reported in the financial statements prepared under the NHS Manual for Accounts 2008/09 based on United Kingdom Generally Accepted Accounting Principles, restated on the basis of the accounting policies contained in the NHS Manual for Accounts 2009/10 based in International Generally Accepted Accounting Principles; and a statement of financial position as at 1 April 2008, prepared on the basis of the accounting policies contained in the NHS Manual for Accounts 2009/10 based in International Generally Accepted Accounting Principles. This report is required by the procedures specified by the Audit Commission in NHS Trusts: Reporting on restated financial statements and FMA forms prepared on the basis of the accounting policies contained in the NHS Manual for Accounts 2009/10 dated 27 August 2009 and is given for the purpose of complying with that requirement and for no other purpose. Responsibilities It is the responsibility of the directors of the Trust (the "Directors") to prepare the restated financial statements and FMA forms in accordance with the NHS Manual for Accounts 2009/10 and the Guidance for the restatement of 2008/09 results to an IFRS basis issued by the Department of Health on 4 August 2009.
5 It is my responsibility to form an opinion, as required by NHS Trusts: Reporting on restated financial statements and FMA forms prepared on the basis of the accounting policies contained in the NHS Manual for Accounts 2009/10 dated 27 August 2009, as to whether: (a) the restated financial statements have been properly compiled on the basis stated; (b) the adjustments made in preparing the restated financial statements are appropriate for the purpose of presenting the financial information (as adjusted) on a basis consistent in all material respects with the accounting policies contained in the NHS Manual for Accounts 2009/10; and (c) the FMA forms are consistent with the restated financial statements. and to report that opinion to you. In providing this opinion I am not updating or refreshing any reports or opinions previously made by me on any financial information used in the compilation of the restated financial statements and FMA forms, nor do I accept responsibility for such reports or opinions beyond that owed to those to whom those reports or opinions were addressed at the date of their issue. Basis of Opinion I conducted my work in accordance with the Audit Commission s guidance NHS Trusts: Reporting on restated financial statements and FMA forms prepared on the basis of the accounting policies contained in the NHS Manual for Accounts 2009/10 dated 27 August 2009. The work that I performed for the purpose of making this report involved no independent examination of any of the underlying financial information supporting the financial statements for the year ended 31 March 2009 as previously reported in the financial statements prepared under the NHS Manual For Accounts 2008/09 based on United Kingdom Generally Accepted Accounting Principles. It consisted primarily of: checking whether the unadjusted financial information of the Trust has been accurately extracted from an appropriate source; assessing whether all adjustments necessary for the purpose of presenting the financial information consistent in all material respects with the accounting policies contained in the NHS Manual for Accounts 2009/10 have been made; examination of evidence supporting the adjustments; and checking the arithmetical accuracy of the adjustments. I planned and performed my work so as to obtain the information and explanations I considered necessary in order to provide me with reasonable assurance that: the restated financial statements have been properly compiled on the basis stated and that the adjustments are appropriate for the purpose of presenting the financial information (as adjusted) on a basis consistent in all material respects with the accounting policies contained in the NHS Manual for Accounts 2009/10; and the FMA forms are consistent with the restated financial statements
6 Opinion In my opinion: (a) the restated financial statements have been properly compiled on the basis stated; (b) the adjustments are appropriate for the purpose of presenting the financial information (as adjusted) on a basis consistent in all material respects with the accounting policies contained in the NHS Manual for Accounts 2009/10; and (c) the FMA forms are consistent with the financial statements. Yours faithfully Richard Lott Officer of the Audit Commission Audit Commission Westward House Lime Kiln Close Stoke Gifford Bristol BS34 8SR October 2009