ABSTRACT
This chapter provides insight into the rudiments of money matters as they pertain to health. The budget for the NHS is set as part of the Comprehensive Spending Review, which outlines the spending for three years. The allocated monies are given to the Department of Health who then allocates the revenue expenditure and the capital expenditure. The boards of trusts monitor performance against this plan through monthly finance reports, which look at the current position, the near future based on forecasting from the present, and how this compares to where the trust ‘should be’ according to its plan. National Health Service (NHS) accounts must follow ‘industry standards’ as defined by the Secretary of State or Monitor, over and above the legal requirements for the United Kingdom (UK). The balance sheet then summarises the position, i.e. total assets minus total liabilities. Depreciation and amortisation are technical ways for dealing with value changes over time.
