The Review of the NHS financial year 2006/07 focuses on the financial performance of strategic health authorities, primary care trusts and NHS trusts during 2006/07 and comments on the audit and financial issues that arose during the year.
The NHS had a financially challenging year in 2006/07. The Department of Health made financial recovery one of the top priorities for 2006/07 and implemented an ambitious financial turnaround programme, targeted on those organisations with the most serious financial problems.
Its main focus is:
- the key themes and issues arising from the Auditors' Local Evaluation assessments
- includes some case studies on those organisations that have performed well
The Auditors Local Evaluation involves auditors making scored judgements on the five key themes:
- financial reporting
- financial management
- financial standing
- internal control
- value for money
The Audit Commission then calculates an overall use of resources (UoR) score. This UoR score is included within the Healthcare Commission's Annual Health Check which consists of two elements: a score for quality of services; and a score for UoR. Monitor (the Independent Regulator of NHS Foundation Trusts) provides the Healthcare Commission with the UoR scores for NHS foundation trusts.
The report also looks forward to the key financial management issues arising in 2007/08 and beyond.