Health and social care integration: finance guidance

Guidance on financial matters relating to health and social care integration, for the assistance of health boards and local authorities.

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Section A Introduction and Purpose

1 Background

1.0.1 The Public Bodies (Joint Working) (Scotland) Act 2014 (the Act) establishes the legislative framework for the integration of health and social care in Scotland[2]. The Act and regulations have a significant impact on the financial governance of Health Boards and Local Authorities and the Scottish Government recognised that there was the need for objective financial guidance to assist and support health and local authority finance leaders in implementing the provisions.

1.0.2 The Scottish Government established the Integrated Resources Advisory Group (the Group) to provide advice on the financial implications of the legislation and on the requirements for statutory and professional guidance. The membership of the IRAG was drawn from a wide range of financial stakeholders within local government, health and central government[3]. The work of the Group was allocated to five financial workstreams, each chaired by a Director of Finance from either a Health Board or Local Authority and supported by functional experts and the Scottish Government. The workstreams[4] covered the following areas:

  • Accounting treatment and VAT;
  • Financial recording and reporting;
  • Financial controls, assurance and risk;
  • Financial planning and financial performance management; and
  • Capital and assets

1.0.3 Each workstream reviewed the financial implications of the legislation and developed principles to be used as a basis for the development of professional guidance initially for the shadow arrangements. The principles were reviewed and agreed by the Group and guidance drafted from the principles was subsequently reviewed and agreed by the Group.



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