Office of Public Sector Information
Section 231
1 (1) In sections 228 to 230 and this Schedule, “pharmaceutical services expenditure” means expenditure of a Primary Care Trust which—
(a) is attributable to the payment of remuneration to persons providing pharmaceutical services, and
(b) is not excluded by sub-paragraph (2).
(2) Expenditure is excluded if it is attributable to—
(a) the reimbursement of expenses of persons providing pharmaceutical services which are designated expenses incurred in connection with the provision of those services (or in giving instruction in matters relating to those services),
(b) remuneration referable to the cost of drugs, or
(c) remuneration paid to persons providing additional pharmaceutical services (in accordance with directions under section 127), in respect of such of those services as are designated.
2 (1) In section 228 “main expenditure”, in relation to a Primary Care Trust and the year in question, means—
(a) expenditure of the Primary Care Trust mentioned in sub-paragraph (2),
(b) any other expenditure of the Primary Care Trust attributable to the performance of its functions in that year (other than pharmaceutical services expenditure and remuneration referable to the cost of drugs), and
(c) expenditure attributable to remuneration referable to the cost of drugs for which the Primary Care Trust is accountable in that year (whether paid by it or by another Primary Care Trust).
(2) The expenditure is expenditure attributable to—
(a) the reimbursement in that year of expenses of persons providing pharmaceutical services which are designated expenses incurred in connection with the provision of those services (or in giving instruction in matters relating to those services), or
(b) remuneration paid in that year to persons providing additional pharmaceutical services (in accordance with directions under section 127), in respect of such of those services as are designated.
3 (1) For each financial year, the Secretary of State must apportion among all Primary Care Trusts, in such manner as he considers appropriate, the total of the remuneration referable to the cost of drugs which is paid by each Primary Care Trust in that year.
(2) A Primary Care Trust is accountable in any year for remuneration referable to the cost of drugs to the extent (and only to the extent) that such remuneration is apportioned to it under sub-paragraph (1).
(3) Where in any financial year any remuneration referable to the cost of drugs for which a Primary Care Trust is accountable is paid by another Primary Care Trust, the remuneration must be treated (for the purposes of sections 228 and 229) as having been paid by the first Primary Care Trust in the performance of its functions.
(4) The Secretary of State may, in particular, exercise his discretion under sub-paragraph (1)—
(a) so that any apportionment reflects, in the case of each Primary Care Trust, the financial consequences of orders for the provision of drugs, being orders which in his opinion are attributable to the Primary Care Trust in question,
(b) by reference to averaged or estimated amounts.
(5) The Secretary of State may make provision for any remuneration referable to the cost of drugs which is paid by a Primary Care Trust other than the Primary Care Trust which is accountable for the payment to be reimbursed in such manner as he may determine.
4 (1) In this Schedule—
“designated” means designated in writing by the Secretary of State (and different designations may be made for different purposes),
“drugs” includes medicines and listed appliances (within the meaning given by section 126),
“pharmaceutical services” does not include additional pharmaceutical services,
“remuneration referable to the cost of drugs” includes (except in paragraph 1(2)(b) and subject to sub-paragraph (2)) remuneration payable to persons providing local pharmaceutical services.
(2) The Secretary of State must determine what remuneration paid by Primary Care Trusts to persons providing pharmaceutical services or local pharmaceutical services must be treated for the purposes of this Schedule as remuneration referable to the cost of drugs.
(3) The Secretary of State may treat all remuneration paid by Primary Care Trusts to such persons, so far as it is met by an NHS trust or an NHS foundation trust under section 234(4), as remuneration referable to the cost of drugs for those purposes.
Section 232
1 (1) The following are NHS bodies for the purposes of this Schedule—
(a) any Strategic Health Authority,
(b) any Special Health Authority to which sub-paragraph (2) applies,
(c) any Primary Care Trust,
(d) any NHS trust all or most of whose hospitals, establishments and facilities are situated in England,
(e) any trustees for such an NHS trust appointed under paragraph 10 of Schedule 4,
(f) any special trustees appointed as mentioned in section 212(1) for a trust all or most of whose hospitals, establishments and facilities are situated in England,
(g) any trustees for a Primary Care Trust appointed under paragraph 12 of Schedule 3.
(2) This sub-paragraph applies to any Special Health Authority which—
(a) performs functions only or mainly in respect of England, or
(b) neither performs functions only or mainly in respect of England, nor performs functions only or mainly in respect of Wales.
2 (1) Each NHS body must keep proper accounts and proper records in relation to the accounts.
(2) If the Secretary of State so directs with the approval of the Treasury, the accounts of any such body of a description specified in the direction must be kept in such form as is so specified.
(3) This paragraph is subject to paragraph 8(2).
3 (1) Each NHS body must prepare in respect of each financial year annual accounts in such form as the Secretary of State may direct with the approval of the Treasury.
(2) This paragraph is subject to paragraph 8(3).
4 (1) This paragraph applies to any NHS body that is not a Special Health Authority (as to which, see paragraph 6).
(2) Any annual accounts prepared by any such body under paragraph 3 must be audited in accordance with the Audit Commission Act 1998 (c. 18) by an auditor or auditors appointed by the Audit Commission (see section 2(1)(b) of that Act).
(3) The Comptroller and Auditor General may examine—
(a) any such accounts and any records relating to them, and
(b) any report on them by the auditor or auditors.
(4) “The Audit Commission” means the Audit Commission for Local Authorities and the National Health Service in England and Wales.
5 (1) Each NHS body that is not a Special Health Authority must send a copy of any accounts of the body audited as mentioned in paragraph 4(2) to the Secretary of State by the specified date.
(2) If the body is a Primary Care Trust, it must also send a copy of any such accounts to any Strategic Health Authority whose area includes any part of the Primary Care Trust’s area.
(3) Each Special Health Authority that is an NHS body must send copies of any annual accounts prepared by it under paragraph 3—
(a) to the Secretary of State by the specified date, and
(b) to the Comptroller and Auditor General as soon as is reasonably practicable following the end of the financial year in question.
(4) The “specified date”, in relation to a financial year, means such date as the Secretary of State may direct in relation to that year.
6 (1) This paragraph applies where a Special Health Authority that is an NHS body sends a copy of its annual accounts to the Comptroller and Auditor General under paragraph 5(3).
(2) The Comptroller and Auditor General must examine, certify and report on the accounts.
(3) The Special Health Authority must lay before both Houses of Parliament—
(a) a copy of the accounts, and
(b) the Comptroller and Auditor General’s report on them.
7 (1) This paragraph applies in relation to NHS bodies that are not Special Health Authorities.
(2) The Secretary of State must prepare summarised accounts relating to such bodies in respect of each financial year.
(3) Sub-paragraph (2) is subject to paragraphs 8(3) and 9(2).
(4) The summarised accounts must be prepared in such form as the Treasury may direct.
(5) The Secretary of State must transmit the summarised accounts to the Comptroller and Auditor General not later than the end of the month of November following the financial year to which they relate.
(6) The Comptroller and Auditor General must —
(a) examine and certify the summarised accounts, and
(b) lay copies of them and his report on them before both Houses of Parliament.
(7) This paragraph has effect subject to any provision made under section 14(1) of the Government Resources and Accounts Act 2000 (c. 20) (power to disapply this paragraph in relation to specified bodies and years).
8 (1) For the purposes of this paragraph a “relevant charitable trust”, in relation to an NHS body, means a charitable trust whose trustee or trustees is or are that body.
(2) Nothing in paragraph 2, so far as it applies to an NHS body of any description, has effect in relation to accounts relating to a relevant charitable trust.
(3) Nothing in paragraph 3 or 7, so far as it applies to an NHS body of any description, requires any annual or summarised accounts prepared by or in relation to the body to include matters relating to a relevant charitable trust.
9 (1) For the purposes of this paragraph a “relevant non-charitable trust”, in relation to an NHS body, means a trust which is not a charitable trust and whose trustee or trustees is or are that body.
(2) Nothing in paragraph 7, so far as it relates to an NHS body of any description, requires any summarised accounts prepared in relation to the body to include matters relating to a relevant non-charitable trust.
National Health Service Act 2006