(vi) details of any corrective action where necessary and the Chief Executive's and/or Chief Finance and Investment Officer's view of whether such actions are sufficient to correct the situation; (b) the issue of timely, accurate and comprehensible advice and financial reports to each budget holder, covering the areas for which they are responsible; (c) investigation and reporting of variances from financial, workload and manpower budgets; (d) monitoring of management action to correct variances; and (e) arrangements for the authorisation of budget transfers. 4.4.2 Each Budget Holder is responsible for ensuring that: (a) any likely overspending or reduction of income cannot be met by virement is not incurred without the prior consent of the Board; (b) the amount provided in the approved budget is not used in whole or in part for any purpose other than that specifically authorised subject to the rules of virement; (c) no permanent employees are appointed without the approval of the Chief Executive other than those provided for within the available resources and manpower establishment as approved by the Board. (d) Effective systems exist within the Directorates to ensure that all expenditure is authorised in advance of commitment (e.g. operation of an authorised signatory system) and that individuals incurring the expenditure fully understand their budgetary control responsibilities. 4.4.3 The Chief Executive is responsible for identifying and implementing cost improvements and income generation initiatives in accordance with the requirements of the IBP and a balanced budget. 4.5 Capital Expenditure 4.5.1 The general applying to delegation and reporting shall also apply to capital expenditure. The particular applications relating to capital are contained in SFI 14. 4.6 Monitoring Returns 4.6.1 The Chief Executive is responsible for ensuring that the appropriate monitoring forms are submitted to the requisite monitoring organisation. 5. ANNUAL ACCOUNTS AND REPORTS 5.1 The Chief Finance and Investment Officer, on behalf of the Trust, will: (a) prepare financial returns in accordance with the accounting policies and guidance given by the Department of Health and the Treasury, the Trust’s accounting policies, and generally accepted accounting practice;
manager/Pharmaceutical Officer. Wherever practicable, stocks should be marked as Trust property. 15.2.3 The Chief Finance and Investment Officer shall set out procedures and systems to regulate the stores including records for receipt of goods, issues, and returns to stores, and losses. 15.2.4 Stocktaking arrangements be agreed with the Chief Finance and Investment Officer and there shall be a physical check covering all items in store at least once a year. 15.2.5 Where a complete system of stores control is not justified, alternative arrangements shall require the approval of the Chief Finance and Investment Officer. 15.2.6 The designated Manager/Pharmaceutical Officer shall be responsible for a system approved by the Chief Finance and Investment Officer for a review of slow moving and obsolete items and for condemnation, disposal, and replacement of all unserviceable articles. The designated Officer shall report to the Chief Finance and Investment Officer any evidence of significant overstocking and of any negligence or malpractice (see also overlap with SFI No. 16 Disposals and Condemnations, Losses and Special Payments). Procedures for the disposal of obsolete stock shall follow the procedures set out for disposal of all surplus and obsolete goods. 15.3 Goods supplied by NHS Supply Chain 15.3.1 For goods supplied via the NHS Supply Chain central warehouses, the Chief Executive shall identify those authorised to requisition and accept goods from the store. The authorised person shall check receipt against the delivery note before forwarding this to the Chief Finance and Investment Officer or nominated representative who shall satisfy himself that the goods have been received before accepting the recharge. 16. DISPOSALS AND CONDEMNATIONS, LOSSES AND SPECIAL PAYMENTS 16.1 Disposals and Condemnations 16.1.1 Procedures The Chief Finance and Investment Officer must prepare detailed procedures for the disposal of assets including condemnations, and ensure that these are notified to managers. 16.1.2 When it is decided to dispose of a Trust asset, the Head of Department or authorised deputy will determine and advise the Chief Finance and Investment Officer of the estimated market value of the item, taking account of professional advice where appropriate. 16.1.3 All unserviceable articles shall be: (a) condemned or otherwise disposed of by an employee authorised for that purpose by the Chief Finance and Investment Officer; (b) recorded by the Condemning Officer in a form approved by the Chief Finance and Investment Officer which will indicate whether the articles are