nhs finance competencies · nhs finance competencies 2014 3 the framework is intended to cover...

ii NHS Finance Competencies 2014

Title

Finance Skills Development – by the NHS, for the NHS

NHS Finance Competencies

NHS Finance Competencies 2014

Contents

Introduction 01

How the Competencies work 02

Using the Competencies alongside the KSF 04

How to use this document 05

Indicative Professional Distinctions Map 06

The Five Core Competencies - Detail

Team Working, Managing & Leading 08

Business Partnering 10

Governance & Managing Risk 12

Managing Relationships 14

Using IT 15

The Seven Specific Technical Competencies – Detail

Financial Accounting 16

Management & Business Accounting 20

Commissioning & Contracting 23

Capital Accounting 26

Payroll & Pensions 28

Internal Audit 30

Financial Systems 32

NHS Finance Competencies 2014 1

Background and researchA year into the newly configured NHS landscape, Finance Skills

Development (FSD) commissioned research to identify the competencies

which will enable finance individuals and teams to excel over the next

few years.

The research involved over fifty finance, procurement and informatics

professionals from a representative sample of Clinical Commissioning

Groups (CCGs), Trusts, Foundation Trusts (FTs), Commissioning Support

Units (CSUs), Area Teams and other organisations. Additionally sixteen

Directors of Finance and Chief Financial Operators were interviewed.

FindingsNot surprisingly the research identified that effective finance employees

in the future will be very different to those of the past. We will need

to be more business focused, more entrepreneurial, more creative and

more relationship oriented than ever before. One of the finance directors

summed it up effectively, “we will no longer be the accountant in a

management team – but business managers with accounting skills”.

OutputThe output of the research is a new Finance Competency Framework

which responds to these changing needs and reflects the requirement of

finance teams to become business partners with a broad strategic and

commercial, as well as a financial focus.

The new competencies focus on “softer skills” as well as purely technical

finance skills. Establishing credibility quickly, communicating persuasively,

listening, presenting with impact, working collaboratively and of course

leading effectively are all identified as fundamental to the finance

professional’s skill set.

Relevant to allThe Competence Framework is intended to help every member of the

Finance Team from band 1 to band 8d including finance students and

apprentices. Whether you have ambition to progress or whether you

simply want to do a great job where you are, the Framework is intended

to help you to plan your own development. If you are a manager it will

also help you to write job descriptions and person specifications and to

recruit, appraise and develop your staff.

Future Focused FinanceThe work is intended to compliment the important work currently being

conducted by the Future-Focused Finance Team - in particular the Skills

and Strengths work stream.

To move from: “a bean counting, information providing,

transaction processing role”.

To: “a professional advisory & facilitating role where finance

staff are seen as problem solvers – people who can think

outside the box & add value to healthcare”.

To move from: “being competent finance professionals”.To: “becoming managers with a broad, business perspective,

working as business partners and service improvers with a real

understanding of the NHS and of the healthcare landscape”.

To: “a customer led, external focus with the skills to develop

effective, collaborative partnerships with professionals from

across the service”.

To move from: “a predominantly inward focus”.

Introduction

In our research the main changes identified for Finance were as follows:

2 NHS Finance Competencies 2014

How the Competencies Work

The Framework is split into Core and Specific Technical Competencies. The five Core Competencies apply to all NHS Finance Staff. Each of the

seven Specific Technical Competencies will apply to staff in particular

departments or teams. Hence most members of staff will have six

competencies which are relevant to them (five Core and one Specific).

More senior staff will need more than one Specific Technical Competence

and hence may need a total of seven or eight competencies in all.

The Competence Framework is shown as follows:

FinancialAccounting

Management& Business Accounting

CapitalAccounting

FinancialSystems

Commissioning& Contracting

Internal Audit

Payroll &Pensions

Core Competencies

Team Working, Managing & Leading

Managing Relationships

Business Partnering

Governance & Managing Risk

Using IT


The Framework is intended to cover staff from bands 1 though to 8d. It

is not intended to cover the full set of competencies required by Directors

of Finance, Chief Operating Officers and their most senior Deputies.

Other frameworks and documents have been developed for this group

(e.g. the NHS Leadership Qualities Framework, the FSD document: The

Role of the Finance Director in a Patient Led NHS, and the Chartered

Institute of Public Finance and Accountancy (CIPFA’s) document;

Statement on the Role of the Chief Financial Officer (CFO) in CCGs).

Each competence is split into a number of levels. These levels are

cumulative so that competence at level 4, assumes competence at levels

1, 2 and 3.

The levels roughly equate to one another and will tend to reflect similar

grades of staff across the competencies (see table below).

Larger organisations may find that they have more jobs than there are

levels of competence. This is to be expected, as the purpose of the

competencies is to create a list of all the skills, knowledge and behaviours

that people need to be able to perform across the function as a whole

– and not to create a job description or person specification for every

job. Smaller organisations may find that jobs straddle the levels, as one

person needs to cover a wider range of activities.

The levels within the Framework equate broadly to the NHS Agenda for

Change bands as shown below:

It is important to note that whilst this is a helpful guide, it needs to

be treated with caution as there are significant differences between

what is expected of the different bands across both organisations and

geographical regions.

Competency Level Agenda for Change Bands

1Finance Technicians

1 - 3

2Foundation Professionals

4 – 6

3Experienced Professionals

7 – 8a

4

Experts & Emerging Leaders8b – d


TitleUsing the Finance Competencies alongside the KSF

For organisations using the knowledge and skills framework, the Finance

Competencies look at the knowledge and skills required within each

functional area in finance and as such, provide a different perspective

to the KSF which is more generic. The Finance Competencies therefore

provide you with detailed information about development across and

within each functional area of finance.

The following tables illustrate which of the KSF dimensions are most

likely to apply to each of the Finance Competencies. This will help

organisations needing to create KSF Outlines. More detailed matching

of the levels of the KSF dimensions to the competencies can be found in

Appendix 5 (see page 33).

Core competencies KSF dimensions

Team Working, Managing & Leading G1, G2, G5, G6, G7, C1, C2, C3, C4, C5, C6

Managing Relationships C1, C4, C5, C6

Business Partnering G1, G2, G4, G5, G7, C1, C4, C5, C6, IK2

Governance & Risk Management C3, C4, C5, C6, IK3, G2, G3, G4, G7

Using IT EF1, IK1, IK2, IK3, C3

Specific competencies KSF dimensions

Financial Accounting IK1, IK2, G3, G4, G5, G7

Management & Business Accounting IK1, IK2, IK3, G2, G3, G4, G5, G7

Capital Accounting IK1, IK2, G2, G3, G4, G5, G7

Payroll & Pensions IK1, IK2, G2, G4, G5

Internal Audit IK1, IK2, IK3, G1, G2, G4, G5, G7

Financial Systems IK1, IK2, IK3, G1, G2, G5, G7, EF1

Commissioning & Contracting IK1, IK2, G2, G3, G4, G5, G7


How to use this Document

For the manager

Recruitment and selection

Use the competencies to evaluate jobs, to

shortcut the writing of job descriptions

and person specifications and to help write

adverts for job vacancies specifying the key

attributes being sought.

The framework can be used to develop a

competence based approach to interviewing,

which will help to increase the predictability

and reliability of your interviews. (Appendix

3 - see page 33) . Measuring applicants’

behaviour against competencies is a realistic

and objective way of rating individuals.

Performance management

It is widely acknowledged that alignment

of aims, purpose and values between

staff, teams and organisations is the most

fundamental aspect of motivation. A good

competency framework can contribute

substantially to the alignment process.

A competency framework helps managers

to clarify which elements of performance are

critical, see how an individual is performing

and help spread best practice.

It means there is a common language for

high performance across the organisation.

The framework provides a process and

structure for carrying out effective and

objective appraisals. (Appendix 2 -

see page 33).

It encourages career and professional

development.

For the organisation

Ensure workforce competence

You can use competency frameworks to

track employee competencies, so that if

particular jobs or tasks become available,

those employees with the appropriate

competencies can be considered.

Competencies are also used within workforce

planning and deployment to help you

look at your organisation’s strengths and

weaknesses and develop skills needs for the

short and longer term.

Future proofing your workforce

Succession planning – what competencies

need to be developed?

You might use your competency framework

to assist you with a training needs analysis

of your whole team. It will then help you to

create a succession plan for key posts and

personnel.

It can be used to help you consider how

you might expand your business in line with

its core competencies, by focusing on your

people’s strengths.

For the individual

Getting a job

Makes people more ‘marketable’ by helping

them to develop their competencies and fulfil

their potential.

Provides help in writing CVs/application

forms and preparing for interviews

Developing a career

Helps to identify relevant training and

development needs (Appendix 4 - see page

33) and suggests appropriate development

activities to meet them.

Gives guidance on the ‘personal

development levers’ for each band. This

helps identify where people need to focus

their development in order for them to

move to the next level, appendix 4 helps

individuals to focus on development needs,

the levers and solutions including work-

based, accademic and training courses. The

professional distinction map outlines the key

differentiation between each of the Agenda

for Change bands (page 6).


Indicative Professional Distinctions Map

GCSEs

NVQ 2AAT

Foundation

NVQ 3AAT

Intermediate

NVQ 4 AAT

Technician

Certificate CCAB / CIMA

Diploma CCAB / CIMA

Professional CCAB / CIMA

Post Qual CPD

Post Qual CPD

Level 1 in all 5 Core Competencies

Level 1 in the relevant Specific Technical Competence










Level 2 in the relevant Specific Tech Competence

Level 3 in all 5 Core Comps

Level 3 in one or more Specific Technical Competence


Level 3 in one / more Specific Technical Comp


Level 4 in one / more Specific Technical Comp

The map will tell you:

• What type of finance qualification is relevant to your level.

• The approximate level of the Core and Specific Technical

Competencies which will apply to your role.

• Whether your role is likely to be directly supervised on a

day to day basis or managed on a weekly or monthly basis.

• Whether you are likely to be a team member or a

supervisor/manager.

• The type of people you will be influencing on a daily basis.

• Your involvement with strategy.


1

4

7

2

5

8a

3

6

8b-8d

• Implements strategy

• Influences colleagues & peers within Finance

• Daily work is supervised


• Influences colleagues & peers within Finance



• Influences colleagues & peers within Finance – may have some contacts outside department



• Influences colleagues & peers within the NHS

• Work is managed rather than supervised – may supervise others







• Develops & implements strategy

• Influences senior NHS managers / stakeholders

• Work is managed rather than supervised – may manage others

• Develops & implements strategy

• Influences senior NHS managers / stakeholders


• Develops strategy

• Influences Board & other senior stakeholders


Fin

ance

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sEx

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Pro

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Expe

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NB: The qualifications are

specified in the Agenda for

Change Finance Profiles

and are therefore set for

each band. However the

competencies required for

each band are more flexible

- there are geographical and

organisational variations in

what is required in finance for

the different bands and hence

this table should be taken as

an indicative rather than an

absolute guide.


The Five Core Competencies

Team Working, Managing & LeadingWorks with others cooperatively in a way which secures trust and commitment; motivates individuals and teams in order to secure their high performance

Level of competence

Examples of competence

1Works cooperatively within the team and takes an interest in personal development

1. Aligns own priorities with those of the team, balancing own needs with those of others.

2. Shows respect for and willingly cooperates with others, supporting equality and valuing diversity.

3. Demonstrates sensitivity to and tolerance of the needs of others.

4. Shares information in an open and helpful manner.

5. Listens to and welcomes ideas and learns from others.

6. Willingly contributes to team building activities.

7. Takes on additional activities when required in order to support other team members.

8. Is flexible and adaptable to changing circumstances.

9. Keeps personal and patient information private at all times.

10. Demonstrates loyalty to colleagues.

11. Demonstrates personal resilience in difficult situations and so is able to think of and respond to the needs of others.

12. Takes responsibility for own personal development and seeks opportunities for learning.

2Supervises a team and the day to day performance of people within it

1. Sets short term, clear and challenging objectives for individuals.

2. Expresses confidence and trust in others and allows them to deliver tasks in their own way, promoting individual development.

3. Provides regular one-to-one constructive feedback on people’s performance.

4. Asks others for feedback and adapts own behaviour accordingly.

5. Encourages recognition and positive feedback wherever possible, celebrating success of teams and individuals.

6. Treats all team members fairly, valuing, respecting and promoting equality and diversity.

7. Meets regularly with the team to keep them informed and to listen to and to share ideas.

8. Challenges the team in a supportive, constructive and non-confrontational manner, helping people where required.

9. Deals with conflict in the team in an open and positive way.

10. Is prepared to be unpopular when necessary.

11. Creates a sense of trust and openness through own behaviour, integrity and transparency.

12. Assists with the selection of new team members.

13. Willingly shares own knowledge, skills and experience as well as listening to and learning from others.

14. Maintains orientation and alignment of the team with finance and organisational objectives.

15. Works alongside team members to create development plans focused on the needs of the department and the individual, aimed at improving both what is delivered and how it is done.


Level of competence


3Manages a team or several teams and secures their long term performance

1. Sets medium and long-term goals with individuals/the team, in line with the goals of finance and with the organisation.

2. Clearly defines individual and team roles, responsibilities and standards of output.

3. Manages performance throughout the team, holding regular one to ones and appraisals and dealing effectively with significant performance issues.

4. Trusts others to make decisions and backs their judgement.

5. Uses a range of management styles to suit the needs of a particular situation.

6. Communicates and celebrates success within, across and outside the team.

7. Recognises and uses effectively the different skills and styles of people within the team.

8. Initiates and promotes team building activities.

9. Raises morale in difficult circumstances and on an ongoing basis.

10. Promotes “work-life balance” practices to ensure a healthy team.

11. Effectively recruits new people.

12. Takes their own development seriously, proactively seeking development opportunities.

13. Works with people to identify current and career based development needs and to produce, resource and monitor the delivery of long term personal development plans.

14. Finds the time to coach others in a manner suited to their learning style.

15. Manages the team to ensure that appropriate resources are deployed effectively and efficiently.

16. May need to manage remote teams, using appropriate techniques to monitor work and to motivate staff.

4Communicates the vision for finance, motivating staff and driving high performance across the department

1. Communicates the long-term vision for finance, leading with energy, enthusiasm and resilience and inspiring others to perform.

2. Translates the vision into tangible plans/objectives and communicates it widely.

3. Encourages and inspires others to achieve beyond their initial expectations, to be creative and innovative.

4. Empowers people to make appropriate decisions at all levels in the department, encouraging them to challenge constructively and identify ways to improve on an ongoing basis.

5. Uses best practice/benchmarking techniques when setting and monitoring the performance of people/the department to ensure the finance team delivers value for money services to the organisation in the most effective way.

6. Understands and breaks down barriers which prevent teams from working together effectively and works proactively to minimise such difficulties.

7. Encourages and rewards effective performance and effective team working team working across the department.

8. Identifies the need for, plans, leads and manages change effectively, seeking to communicate and engage with the team and with the wider organisation.

9. Creates an environment where learning and development is valued and placed high on the agenda, encouraging others to think about their long term development and providing opportunities to help them.

10. Ensures that a Development Plan is in place for the Finance Team in line with the vision and strategic objectives and evaluates progress to ensure that key skills within the team are appropriately planned for and developed.

11. Mentors and coaches others in a constructive and developmental manner and personally champions and encourages all training and development activity.

12. Personally models the values of finance/the organisation and create a climate of transparency and trust, promoting high standards of ethical behaviour, integrity and honesty.

Team Working, Managing & Leading


Level of competence


1Acts in a commercially aware way in own role

1. Uses knowledge of the purpose of own role and of that of the department to recognise day to day issues which are commercially important (e.g. attitude and responsiveness to customers/ stakeholders, identifying cost savings etc.).

2. Uses initiative in order to identify opportunities to improve own efficiency and effectiveness.

3. Works flexibly when required in order to meet the needs of the team and its key stakeholders.

4. Provides services/information accurately on request and within given timescales.

5. Escalates non-standard requests to the appropriate person in a timely manner.

2Contributes to the provision of commercially useful information

1. Has a wider awareness of the organisation and its position in the marketplace and uses this to identify areas to improve efficiency and effectiveness of service provided within own area of finance - whilst taking account of the impact of any improvements on other service areas.

2. Assists in the production of commercially focused financial information, understanding and advising others of the implications behind the data.

3. Challenges and improves information, data and ways of working to meet the needs of the organisation, using creative thinking and looking beyond the initial request to provide a wider perspective where relevant.

4. Assists with financial induction training for new and existing budget holders, partners or stakeholders.

3Contributes to the development of the organisation by providing business focused, commercially viable, creative advice

1. Uses knowledge of clinical issues and perspectives, an understanding of the health economy, health needs assessment, resource planning, the role of prevention in the health economy and of organisational processes in order to challenge and suggest improvements and to assess the wider commercial impact of financial decisions.

2. Through developing a sound understanding of the service, provides relevant and reliable commercial and financial advice to non-finance operational teams, assisting with the preparation and development of business plans and with operational decision making.

3. Focuses on the bigger picture, accurately interpreting and forecasting a wide range of information gathered in partnership with local business intelligence units/informatics teams in order to provide strategic guidance to the organisation.

4. Uses knowledge of tender legislation when assisting with the development of business cases and liaises with procurement teams as appropriate.

5. Generates and interprets financial information to help the organisation to understand itself more fully and works as a business advisor taking into account a range of commercial, technical, service quality and financial factors.

6. Presents complex financial information in a way which facilitates business focused, strategic decision making.

7. Assists non finance managers with the development of rigorous business cases aimed at persuading a particular audience.

8. Provides advice to non-finance managers when negotiating, identifying and advising on a wide range of issues in addition to price and cost and using judgment to advise on when to push, compromise or concede.

9. Provides training and coaching to non-finance managers within the organisation to help to develop commercial, financial and investment appraisal skills.

10. Uses long-term planning, forecasting, business intelligence and modelling techniques, which focus on the best use of total resources (not simply year on year) and value for money and which provide insight into the strategic aims of the organisation.

11. Understands the complexities involved in costing and pricing SLAs, models different options and provides advice and assistance where required.

12. Delivers timely reporting and activity focused commercial reports to inform the exec’s decision making as appropriate.

13. Uses knowledge of best practice together with a creative and innovative approach to encourage service managers to think beyond the obvious in order to identify service improvements and financial efficiencies.

Business Partnering Uses a broad understanding of the organisation, customers and stakeholders, the NHS and the market place to provide commercially focused business advice



Level of competence


4Acts as a lead in commercial thinking in order to facilitate success and the long term financial viability of the organisation

1. Uses widespread commercial knowledge and understanding (e.g. knowledge of markets, marketing, opportunities, products, services, brand development, unique selling points, the supplier market place and the competition) in order to shape and inform financial strategy and ensure long-term financial viability.

2. Uses a wider knowledge of the healthcare economy (e.g. knowledge of trends in health and health care expenditure, UK demographics, patient pathways, DH reform agenda, changing technology and legislation, independent and private sectors and health partners) to shape and inform business advice.

3. Uses knowledge of strategic business development, service expansion, marketing, cost saving/control strategies, lean thinking, performance management, improvement and process re-design techniques in order to advise the organisation on how to create growth and increase quality and sustainable value.

4. Works with non-finance colleagues to develop ideas and strategies for revenue generation, funding services, service expansion, making cost efficiencies and maximising the use of assets.

5. Helps to develop the role of finance within the organisation as a strategic business partner and adviser and contributes to the development of a culture of commercial business practice through delivering a planned programme of training and coaching.

6. Assists with the management of business partnerships which are of strategic importance to the organisation.

7. Uses commercial knowledge and an ability to take into account the needs of the wider health economy, in order to provide advice to the organisation in highly complex negotiations, helping to focus parties on the interests of improved patient services.

Business Partnering


Level of competence


1Applies codes of ethics in own role

1. Understands the Standards of Business Conduct for NHS Staff and identifies issues in own area, highlighting the need for changes to practice where required.

2. Is aware of and ensures compliance with the relevant corporate governance guidance (e.g. Corporate Governance Manual, the Constitution, the Code of Conduct Declaring Conflicts of Interest and the Gift and Hospitality Policy, the Anti-Fraud and Corruption Policy and Response Plan) and raises non-compliance issues when identified.

3. Understands and applies all financial policies and procedures and information governance issues relevant to their own area of work and ensures the relevant protocols are being adhered to.

4. Understands and applies relevant mandatory policies and procedures e.g. healthy and safety, data protection, fire safety risk assessment.

5. Is aware of the organisation’s whistle blowing procedure, knows how to escalate concerns and will do so if necessary.

6. Implements and ensures compliance with recommendations made by audit and other external bodies.

7. Understands the role of internal and external audit and assists auditors by providing them with information in a timely and helpful manner.

8. Acts with openness, honesty and integrity.

2Advises others on corporate governance issues

1. Advises others on compliance with corporate policies / guidance and applies the principles of accountability, transparency, integrity and the public good to all activities within own area.

2. Supervises others in their compliance with financial policies and procedures and following relevant protocols, training junior levels of staff where required.

3. Identifies the need for and assists with updating financial policies and procedures.

4. Participates in the procedures for managing risk and the counter measures to mitigate risk.

5. Is aware of the Freedom of Information Act and the Data Protection Act and takes appropriate action where required.

6. Is aware of issues relating to data quality, patient confidentiality and data security and takes appropriate action in the design of finance processes and in the conduct of everyday business to mitigate risks associated with these areas.

3Develops and implements actions to strengthen corporate governance throughout the organisation

1. Assists with the development and provision of information for the exec team on issues relating to corporate governance and compliance with audit requirements.

2. Applies knowledge of the regulatory framework for risk management and advises the organisation on issues relating to financial risk, measuring, assessing and reporting on responses, controls and required actions.

3. Assists with the implementation of internal and external audit recommendations.

4. Trains others in relevant aspects of corporate governance and risk management.

5. Assumes responsibility for identified and assigned risks, continually assessing and monitoring their impact on the organisation and taking a lead in developing strategies and measures for mitigating them.

6. Identifies where improvements to policies and procedures are required and takes a lead in ensuring that they are implemented.

7. Ensures that those making decisions are provided with information that is fit for purpose, relevant, timely and gives clear explanations of financial issues and their implications.

Governance and Managing Risk Introduces and manages issues relating to corporate, information and financial governance and ensures that financial risk is planned for and managed



Level of competence


4Takes a lead role in the development of this area, ensuring that integrated governance is in place

1. Ensures compliance with all corporate governance guidance taking relevant action when con-compliance is identified.

2. Uses understanding of the role of the board, committee structures, the concept of integrated governance and wider corporate governance issues in order to drive the activities of the finance department and ensure that finance has the relevant input and influence.

3. Provides input into the development of assurance processes and systems to ensure internal control, accountability, integrity, probity and transparency throughout the organisation.

4. Informs the organisation of the governance requirements relating to finance and ensures compliance.

5. Ensures that all statutory reporting requirements and the need to satisfy public accountability are met in a timely, accurate and risk focused manner.

6. Promotes strong financial awareness throughout the organisation and develops finance skills and knowledge of governance issues.

7. Contributes to developing risk management strategy, policy and systems for the organisation so that at any one time the organisation has a sound understanding of its strategic risks with clear plans of how to manage them.

8. Advises on the development of financial policies and procedures in response to statutory and best practice requirements.

9. Through an awareness of the organisation’s practices, strengths and weaknesses, advises internal audit on areas for further scrutiny, seeking auditors’ advice when required.

10. Takes responsibility for responding to audit recommendations, ensuring the timely implementation of agreed actions.

11. Puts arrangements in place to establish and maintain a sound system of internal control and to promote probity and propriety in the conduct of business.

Governance and Managing Risk


Managing Relationships Works collaboratively with all stakeholders, developing and maintaining effective relationships and providing an excellent service to them

Level of competence


1Effectively responds to stakeholder needs in day to day role

1. Understands the purpose and broad structure of the organisation and of the finance department, recognises key stakeholders (internal and external) and responds appropriately.

2. Develops effective working relationships with stakeholders, aiming for satisfaction when providing a service to them and recognises the need to rectify situations when things go wrong.

3. Responds to requests with respect and understanding and in a friendly, helpful and flexible manner.

4. Takes personal responsibility for correcting problems and promptly refers queries to the appropriate person when required.

5. Demonstrates an awareness of own impact on others and is able to adjust behaviour accordingly.

2Develops proactive approaches to meeting stakeholder requirements

1. Actively seeks feedback from stakeholders and suggests and implements ideas for improving finance services and processes in own area.

2. Quickly establishes rapport and develops effective relationships, gaining the trust and support of others.

3. Handles conflict situations calmly and assertively, showing respect at all times for the other person.

4. Helps with the development of a service culture within own area.

5. Ensures best practice within the team is implemented and shared.

3Ensures the long term needs of stakeholders are met through developing effective relationships and responding to their needs

1. Seeks to understand stakeholder needs beyond those initially expressed and identifies and implements initiatives focused on improving service.

2. Develops effective, long-term relationships with key stakeholders within and outside the organisation and plans longer term strategies to influence them through working collaboratively.

3. Develops credibility and empathy with stakeholder groups, listens effectively and is flexible in responding to their needs.

4. Develops concise and well-presented information designed to meet the needs of and to influence a specific audience.

5. Gains and maintains attention when speaking to an audience, presenting complex information in a simple format and presenting controversial arguments in a balanced and constructive way which convinces the intended audience.

6. Chairs and/or facilitates complex meetings effectively, involving people in a resourceful, incisive and empathetic manner and working hard to find common ground where there is conflict.

7. Networks and develops relationships within and outside the finance department and the organisation in order to find creative solutions to issues, to problem solve and to share ideas and learning.

8. Publicises successes in providing an excellent service within the organisation.

4Aligns department plans and culture with stakeholder requirements and develops effective long-term collaborative relationships at a senior level

1. Acts in partnership with stakeholders to ensure the success of long term relationships.

2. Becomes involved in stakeholder’s own decision making processes in order to ensure a more effective service is provided and that future needs are predicted and responded to proactively.

3. Develops policies, systems and processes to break down barriers and to facilitate effective relationships across the organisation.

4. Creates a working environment and culture based around satisfying stakeholder needs.

5. Conducts research to identify stakeholder needs and to gain feedback on the performance of finance and changes plans, processes and behaviours to meet emerging requirements.

6. Knows who the key people are (internal and external) and lobbies to gain agreement, influencing them to change views and opinions on issues of strategic importance to finance/the organisation.

7. Deals tactfully and effectively with highly contentious and/or politically sensitive issues of strategic importance to the organisation.

8. Prepares the ground so that complex and sensitive proposals are well received and approved.

9. Monitors the effective implementation of service level agreements with stakeholders, seeks feedback and takes appropriate action.

10. Presents a credible, powerful, compelling and energetic image of finance, communicating and collaborating with senior level partners and stakeholders in a way which engages and inspires others.

11. Ensures successes in providing an excellent service are publicised within and outside the organisation as appropriate.



Level of competence


1Uses basic elements of software packages to assist with daily job

1. Understands system(s) used in own area (local and more general systems) and uses a range of basic functions (e.g. retrieves and files documents, locates and retrieves information, generates standard reports, sends and receives e-mails, uses electronic diary system).

2. Carries out simple word processing tasks (e.g. creates/amends documents using existing templates, enters/corrects text etc).

3. Carries out simple spreadsheet tasks (e.g. downloads, inputs, amends and processes data).

4. Carries out simple database functions (e.g. enters data/generates information by interrogation).

5. Demonstrates basic understanding of hardware (e.g. function of different parts, basic maintenance/care, health and safety etc.).

6. Identifies and resolves simple problems (e.g. printer faults).

7. Accesses data using on-line services and via the Internet.

8. Uses software to improve own ways of working.

9. Organises and stores data and information, appropriately archiving it so that the organisation can access it when required.

10. Understands issues relating to information security and takes appropriate action, following local and organisational guidance.

2Uses software to create templates/

spreadsheets/ presentations etc. for use by others

1. Works with software systems to produce a changed output (e.g. changes standard formats/spreadsheets etc).

2. Creates new formats, databases, word document templates, spreadsheets for other people to use.

3. Uses appropriate software (e.g. PowerPoint) to develop effective presentations.

4. Downloads and manipulates data within spreadsheets to obtain non-routine management information (e.g. uses pivot/lookup tables etc.)

5. Uses other technology as appropriate to assist in the daily operation of the finance department e.g. conference calling, telephone conferencing etc.

6. Aware of the risks and confidentiality / security issues associated with creating spreadsheets, databases etc. and designs documents accordingly.

3Uses software to a more sophisticated level to create complex documents for use by others

1. Identifies when automation will help and uses IT to optimise ways of working and manage repetitive processes.

2. Integrates information from one or more software packages/systems to create automated or linked information sources.

3. Programmes software to create information in a new format (e.g. complex structures of spreadsheets/databases) – suitable for accounting purposes and for use by others outside of finance (e.g. budget holders).

4. Trains and coaches others in the use of a software application.

Using Information Technology Uses IT to gather, interpret and manipulate information to meet the needs of the Function and the Service as a whole

Managing Relationships

Using Information Technology


Level of competence


1Completes financial/ administrative transactions in accordance with relevant procedures

1. Files source documents appropriately and in accordance with internal procedures, ensuring that information is readily retrievable to resolve queries.

2. Assists in the administration of relevant office systems/procedures.

3. Distributes electronic information to people elsewhere in the organisation for authorisation.

4. Processes expenditure journals, ensuring all records are reconciled and stored in accordance with internal procedures.

5. Assists with cash collection, including charitable donations, ensuring cash and cheques are properly receipted, reconciled and banked in accordance with internal procedures and timescales.

6. Issues and monitors petty cash, keeping appropriate records in line with relevant procedures and following security and confidentiality guidelines.

7. Checks supplier’s invoices/credit notes against purchase order information, dealing appropriately with any queries and processing payment runs where relevant.

8. Processes invoices for payment in accordance with agreed procedures and reconciles supplier statements.

9. Raises invoices and codes the income appropriately, using guidelines to identify where VAT needs to be added.

10. Identifies transactions where VAT may be recoverable and seeks appropriate guidance.

11. Identifies invoices from the self-employed and refers to supervisor/manager for advice on the tax status of the individual concerned.

12. Identifies invoices from building companies and uses guidelines to process the invoice or refers to supervisor/manager for advice on whether the Construction Industry Scheme applies.

13. Deals with straight forward requests/queries appropriately and promptly and knows who/where to go to when unable to provide an answer.

14. Raises manual cheques/generates computer cheques in accordance with agreed procedures.

15. Assists with the receivables billing system, reporting regularly on the age and status of outstanding debts, assisting in the preparation and validation of year end debtors for the Annual Accounts, sending routine statements of account to debtors when required and assisting with agreement of balances at quarter period ends.

16. Administers the local method of credit control, including debt collection.

17. Maintains simple spreadsheets where necessary to provide financial information as required.

18. Obtains authorisation for credit card receipts.

19. Keeps database of suppliers up to date in accordance with internal and fraud office guidelines.

Financial Accounting Processes financial transactions and produces statutory accounts and financial returns

The Seven Specific Technical Competencies


Level of competence


2 Ensures through monitoring and reviewing that day to day transactions are completed in line with relevant procedures, in order to provide accurate and timely information for statutory returns

1. Ensures all income/expenditure is promptly recorded and referenced to the relevant source documentation.

2. Reviews the systems for the daily collection and receipting of all cash and cheques including charitable donations and ensures safe transition of cash and cheques.

3. Reconciles all daily cash balances in respect of all bank accounts.

4. Manages daily bank accounts and petty cash holdings ensuring that all income and expenditure is promptly recorded and referenced to source documentation.

5. Manages payment processes on a day to day basis.

6. Supervises the administration of local systems e.g. patient travelling expenses, Road Traffic Act (RTA) claims, car parking and other office tasks.

7. Maintains finance procedures, ensuring they are accurate and adhere to standing financial instructions.

8. Reconciles transactions within the Ledger and maintains suitable records as required by Audit, the Standing Financial Instructions and internal office procedures.

9. Reviews and ensures control accounts are reconciled in accordance with the organisation’s procedures and takes appropriate action.

10. Reviews the cashbook to ensure accurate and timely postings and ensures the accuracy and integrity of the cashbook.

11. Manages the overall integrity of the debt recovery process, liaising with debtors and/or external agencies and producing management reports to support the aged debtor analysis when required.

12. Administers the process for the agreement of debtor and creditor balances.

13. Administers the lease car scheme process and provides advice, liaising with payroll regarding salary deductions where appropriate.

14. Supervises all transaction processing, ensuring that VAT is added, appropriately coded, recovered where possible and charged to the control account, correcting errors when required.

15. Reconciles the VAT control accounts and prepares the monthly VAT returns in order to meet the statutory time limits.

16. Assists in the preparation of the Annual Accounts.

17. Deals with more complex queries appropriately and promptly and refers them where required.

18. Ensures that income and expenditure is analysed appropriately.

19. Collates information relating to future cash flows to enable accurate forecasts and decisions to be made.

20. Responsible for the administration of the online banking system, with overall responsibility for setting and maintaining security and user configuration.

21. Completes VAT exemption certificates for Charitable Funds purchases.

22. Completes Gift Aid annual returns and keep appropriate records.

23. Accrues income and expenditure not yet billed to ensure all costs and income is accounted for in the correct period and ensures robust month end routines are in place.

Financial Accounting


Level of competence


3Manages the production of statutory accounts and financial returns

1. Maintains authorised signature lists, ensuring they are accurate and adhere to the Standing Financial Instructions and acts as authorised signatories where appropriate.

2. Develops finance procedures in line with statutory and NHS guidelines for use by finance and non-finance staff.

3. Manages the production of the cash flow forecast and maintains cash flow monitoring systems, identifying and predicting cash flow issues and developing recommendations to deal with them.

4. Oversees / manages day-to-day tasks in the department, ensuring that all income is recovered and recorded promptly in the General Ledger, receipted properly and reconciled to source documentation.

5. Oversees / manages day-to-day tasks in the department, ensuring payments to suppliers are made and reconciled to source documentation promptly, accurately and efficiently.

6. Understand the process of clinical coding and how it impacts upon subsequent pricing and charges.

7. Ensures production of timely, relevant and accurate information for monthly and annual reports.

8. Assists in the preparation of the draft Annual Financial Accounts and the Charitable Funds Accounts (where appropriate) in accordance with agreed accounting policies (e.g. International Financial Reporting Standards (IFRS)).

9. Uses detailed knowledge of VAT and tax legislation to advise others on whether VAT should be charged and whether it can be recovered in more unusual/greyer areas.

10. Ensures that the Standing Financial Instructions, internal office procedures, audit requirements and the Better Payment Practice Code are adhered to at all times.

11. Manages the Agreement of Balances process to contribute to the Department of Health Consolidated Interim (draft) Accounts.

12. Produces a balance sheet for exec reporting purposes and monitors working balances.

13. Ensures all losses and compensation incidents and claims are captured, investigated and reported within the correct categories (in line with the Losses and Special Payment Register).

14. Produces regular financial and management reports to assist executive decision-making.

15. Reviews capital projects to determine what proportion of VAT can be recovered and seeks advice from experts where required.

16. Develops appropriate training for finance staff, ensuring they are competent and well informed.

17. Manages and prepares year-end timetables for the effective running of financial accounts, including planning for internal and external audit and implementing actions relating to finance.

18. Designs coding structures for financial systems in accordance with the relevant guidance (e.g. NHS Manual for Accounts, Financial Reporting eManual (FReM)).

19. Ensures that finance is IFRS compliant, advises colleagues of the implications and makes appropriate changes.

20. Deals with complex/escalated queries promptly and effectively and making appropriately authorised and documented adjustments.

21. Liaises with other departments to ensure that all information is provided on a timely basis.

22. Assists with the implementation of the investment strategy, liaising with the relevant parties where required and maintaining the necessary records to monitor investment portfolios and ensure receipt of all income due.

23. Produces monthly, quarterly and annual reports to inform the exec of all relevant information.

24. Manages the trust lease car schemes and other salary sacrifice schemes.

Financial Accounting Processes financial transactions and produces statutory accounts and financial returns



Level of competence


4Ensures the efficiency, integrity and effectiveness of processes and systems in financial accounts, ensuring that the Financial Accounts are True and Fair and that accurate advice is given to the exec for decision making purposes

1. Develops a treasury management strategy and designs operational procedures for managing working balances.

2. Organises and manages involvement with both internal and external auditors and ensures all actions are implemented within appropriate timescales.

3. Sources/develops and monitors financial systems and processes to ensure maximum efficiency and effectiveness and compliance with the relevant standards, Statute Law, Internal and External Audit and stakeholder requirements.

4. Conducts tax planning in order to maximise tax efficiency for the organisation and for individuals.

5. Completes the annual Partial Exemption Calculation as required by Customs and Excise.

6. Ensures that the Annual Financial Accounts/Charitable Funds Accounts give a True and Fair view and meet external deadline requirements.

7. Ensures compliance in accounting practices with the law.

8. Advises others on statutory and local governance requirements and develops Standing Financial Instructions (SFIs) where appropriate.

9. Manages the working capital balances and ensures effective use of cash balances.

10. Assesses and identifies organisations in order to make the best use of cash and reviews and reports performance to the relevant investment committees as required.

11. Provides appropriate financial input and advice to management committees in order to assist with strategic decision-making.

12. Reviews changes in legislation to decide if there is an impact on the organisation and how systems/processes need to be adapted to ensure that the new legislation is complied with.

13. Follows up and resolves highly complex financial queries and knows where to find information on financial matters where unsure of a particular issue.

14. Regularly reviews the accounting policies adopted by the organisation ensuring that they remain appropriate, and are changed when a new policy becomes more appropriate to the entity’s particular circumstances.

15. Develops productive relationships with external providers e.g. banks, internal and external audit and other specialists and stakeholders.

16. Liaises with the relevant parties to ensure maximum return on invested funds for minimum risk and maintains necessary records to effectively monitor investment portfolios and ensure receipt of all income due.

17. Develops and delivers monthly, quarterly and annual internal reporting systems to inform the exec of all relevant information, meeting the requirements of the compliance regime.

18. Signs the VAT returns and takes responsibility for their validity.

19. Manages the performance of service providers where appropriate (e.g. Shared Business Services (SBS), payroll, internal audit) to ensure operational effectiveness and efficiency.

20. Ensures that grants are correctly accounted for and used in accordance with the terms and conditions of authorisation and ensures compliance with the agreed accounting policies.

21. Manages liquidity where relevant understanding the debt position and reporting to the exec as required.

Financial Accounting


Level of competence


1Completes financial/ monitoring/ administrative activities in accordance with relevant procedures

1. Assists in updating and preparing budget statements from the General Ledger on a monthly basis in the required formats within given timescales.

2. Accurately records invoices to appropriate cost centres.

3. Responds to and resolves queries from budget holders, referring them to others when necessary.

4. Maintains, monitors and inputs information into a variety of databases ensuring the accuracy and integrity of the data.

5. Maintains appropriate procedure records and audit trails for all activity.

6. Assists in annual budget setting/business planning processes, in line with the organisation’s policy and procedures.

7. Assists in the analysis of income, expenditure and activity budgets, identifies variances and provides back up information to managers in an appropriate format.

8. Maintains spreadsheets to assist in ensuring that income and expenditure are recorded accurately.

9. Reconciles financial data on a monthly basis and maintains appropriate documentation on file.

2Ensures that financial information provided to others is accurate, timely and useful

1. Assists in setting recharge budgets and oversees monthly input of recharge information.

2. Maintains, monitors and develops through the ledger, income and expenditure budgets.

3. Produces ad-hoc reports and analysis as required and answers queries promptly and accurately,.

4. Prepares ad-hoc requests for invoices to be raised and ensures income is recorded accurately.

5. Provides information to support the completion of annual financial and other external returns.

6. Maintains the budget plan, reconciling it to the ledger in order to accurately illustrate budget movement.

7. Supports the Cost Improvement Planning process, inputting data, providing costings, assisting in the development of a monthly schedule of progress and validating the accuracy of plans.

8. Assists with the preparation for budgetary meetings and may lead straightforward, routine meetings with budget holders.

9. Writes and maintains procedures for own area of responsibility striving to improve them where appropriate.

10. Investigates variances on budgets and makes required budget or expenditure adjustments in accordance with established procedures and through engaging with budget holders.

11. Assists in preparing information for business plans and for financial performance reporting as required.

12. Monitors and records charitable fund expenditure to ensure funds are sufficient to cover the requests and if not, takes appropriate action.

13. Assists with the collation, evaluation and reporting of externally collected data – e.g. reference costs.

14. Uses financial and business knowledge to challenge and suggest improvements to practices and procedures.

15. Maintains financial control systems and implements control measures identified by audit.

Management & Business Accounting Prepares and provides financial information to enable the organisation to operate effectively and to make valid decisions about its future direction



Level of competence


3Ensures the efficiency, integrity and effectiveness of processes and systems in financial accounts, ensuring that the Financial Accounts are True and Fair and that accurate advice is given to the exec for decision making purposes

1. Coordinates the processes of annual budget setting and routine financial reporting to agreed timescales.

2. Uses detailed knowledge of SFIs and Standing Orders (SOs) to provide accurate and timely financial support, information and advice in a user-friendly manner for budgetary control, contract pricing, financial planning and efficiency savings programmes/Cost Improvement Programmes (CIPs).

3. Monitors and forecasts income, activity and expenditure trends/budgetary performance on a monthly basis, identifying issues for budget holders and advising them appropriately.

4. Understand the process of clinical coding and how it impacts upon subsequent pricing and charges.

5. Identifies threats to financial viability and agrees corrective action plans with the relevant managers when required.

6. Ensures that the links between cost drivers and expenditure are understood, that all activity is captured and the cost recovered and advises improvements in order to deliver a balanced financial position.

7. Provides a monthly schedule of progress against cost improvement and/or savings plans.

8. Ensures all changes in services or developments are identified and that the resource implications are quantified and the financial consequences addressed.

9. Takes financial responsibility in the competitive tendering process, assessing lower value bids and taking into account financial as well as quality and patient outcome issues when advising on decisions.

10. Uses knowledge of EU/government procurement regulations and of the procurement aspects of SOs and SFIs when advising service managers/assisting with the development of business cases and refers to procurement specialists as required.

11. Advises on the management of contracts to ensure that value for money is obtained and provides advice on the financial implications of contractual issues.

12. Reviews methods of cost allocation, apportionment and absorption and agrees changes.

13. Develops costs for services in line with national costing guidelines and ensures that costs are fairly allocated.

14. Creates or maintains Service Line Reporting (SLR), and patient level costing.

15. Leads on the collation, evaluation, comparison and reporting of externally collected data – e.g. reference costs, liaising with local business intelligence and informatics teams where appropriate.

16. Assists NHS managers by providing financial information and advice to support the development of annual business plans.

17. Proposes development to financial procedures, systems and processes within the management accounting function in order to increase efficiency and stakeholder satisfaction and in order to comply with statutory and internal requirements.

18. Supports the completion of statutory/internal monitoring financial returns in accordance with the timescales and collects data/evidence for audit purposes.

19. Prepares financial option appraisal requests/recommendations for revenue items for presentation to the exec.

20. Tracks income reports to ensure monies from all sources are received and accurately recorded.

21. Identifies and challenges the status quo within own area of responsibility, finding new and more efficient ways of working within the organisation, advising on the economic, efficient and effective use of resources, eliminating waste and adding value for money where necessary.

22. Produces monthly, quarterly and annual reports to inform the exec of all relevant information.

23. Uses understanding of General Medical Services/Primary Medical Services/Alternative Provider Medical Services/GP Contracts and regulations relating to funding issues, to calculate the financial aspects of contracts.

24. Makes appropriate adjustments to contracts/payments when exception changes occur (e.g. list size reductions).

25. Advises others on guidelines relating to new money and growth; monitors expenditure and claims back money when not spent.

26. Provides more complex advice, training and support to senior level budget holders.

27. Takes responsibility for the reporting of Quality, Innovation, Productivity, Prevention (QIPP) performance, identifying reasons for shortfalls and advising on corrective action /lessons to be learned.

Management & Business

Accounting


Level of competence


4Offers strategic support in the effective use of resources/ modernising practices to meet the needs of the organisation and the patient pathways of the future

1. Translates the vision and strategy of the organisation into financially viable integrated business plans including measurable performance targets and Key Performance Indicators (KPIs), consistent with statutory reporting responsibilities.

2. Provides and manages a financial support structure to assist with the budgeting and business planning processes and ensures resources are managed as effectively and efficiently as possible.

3. Reviews risk assessments on the likelihood and possible impact of the loss of a particular funding source.

4. Sets up finance reporting systems to enable profitability analysis of organisational functions to take place in order to inform strategic decision making throughout the organisation.

5. Manages and reports on reserves, ensuring the correct resources are set aside for developments and that it is accurate and properly managed/accounted for.

6. Leads on the CIP planning process to ensure the long term viability of the organisation.

7. Takes financial responsibility in the competitive tendering process, assessing higher value bids and taking into account financial as well as quality and patient outcome issues when advising on decisions.

8. Develops and maintains systems to monitor and update the financial plans and forecast out-turn and advises on corrective action where necessary.

9. Takes a strategic view on financial proposals across the organisation; advises on the profitability/affordability of plans and ensures value for money is secured in the long term.

10. Produces reports and returns on financial performance for exec level discussions/decision making and for external and statutory purposes.

11. Monitors and improves the processes for financial reporting, ensuring internal and external requirements are achieved.

12. Produces financial models showing the effect of payment by results to inform financial planning.

13. Produces long term financial plans (3-5 years) modelling the effect of cost pressures, service developments, cost improvement plans and income assumptions.

14. Responsible for option appraisal of all proposed service changes facilitating full business case production.

15. Interprets and applies new policies and guidelines as they come into effect, ensuring they are understood and applied in all areas of the Directorate and within Finance.

16. Working with other departments, ensures that budgets reflect the cost of delivering contracted activity baselines and other agreed performance targets and KPIs.

17. Produces case mix adjusted activity projections and associated financial value for management.

18. Uses benchmarking/KPI/ratio analysis information to identify where potential benefits can be realised and makes appropriate recommendations.

19. Links financial performance with service performance to provide an overall perspective and ensure that appropriate action is taken.

20. Develops the use of sophisticated performance measurement techniques (e.g. balanced score cards, business excellence model, EFQM, KPIs) to measure the tangible and less tangible aspects of financial and non-financial performance.

21. Develops recommendations on how to improve the costing process and reference costing to improve efficiency.

Management & Business Accounting Prepares and provides financial information to enable the organisation to operate effectively and to make valid decisions about its future direction



Level of competence


For Commissioning & Contracting, this level is completed by people at level 1 in the Financial Accounting and/or the Management & Business Accounting competencies

2Reconciles expenditure (and income where appropriate), and assists with monitoring the performance of service agreements/contracts in line with relevant procedures

1. Supports the reconciliation on a monthly and year end basis, of the expenditure/income for the organisation, reporting on this throughout the year.

2. Reconciles income/expenditure against approved commitments for independent sector referrals and referrals to other providers outside of service agreements.

3. Assists with monitoring and reporting on the performance of service agreements/contracts, liaising with other finance/information staff when required.

4. Understands guidance in order to support Non-Contracted Activity (NCA) challenges and monitors NCAs in order to gain maximum value for money and to ensure appropriate attribution.

5. Supports data collection/validation exercises for annual returns e.g. NCAs.

6. Understands and interprets the relevant guidance and is able to deal with internal and external queries appropriately and promptly, referring them to others when required (including Freedom of Information requests).

7. Supports the agreement on year-end indebtedness, taking account of agreed performance variations.

8. Monitors the commissioning budgets and reports on progress against them on a monthly basis, identifying areas for concern.

9. Prepares monthly service agreement payments and reconciles payments to the ledger on a monthly basis.

10. Develops and updates monthly financial schedules to action approved variations to the service agreements/contracts.

11. Checks that the information from other departments (i.e. information/commissioning), is accurate, timely and follows appropriate guidance and answers their queries.

12. Prepares monthly service agreement statements/contract payments for specialist services.

13. Monitors tariff and non-tariff activity taking into account the financial implications of changes in case mix.

14. Prepares future year income forecasts to assist with contract preparation.

15. Maintains the Joint Continuing Care Database where applicable to ensure accuracy and for reconciliation with actual costs incurred.

16. Provides advice on national and local tariffs and understands and advises commissioners on basic cost/price information.

17. Aware of the importance of patient confidentiality and handles patient data appropriately.

Commissioning & Contracting Ensures that monies are negotiated, planned for, received and spent and that performance is monitored and accurately reflected in contract agreements

Commissioning & Contracting


Level of competence


3Supports the establishment of service agreements/contracts and monitors expenditure and performance against these

1. Assesses bids for work and takes into account financial as well as wider value for money issues when advising on decisions.

2. Monitors and reports on actual performance against service agreements/contracts; identifies variances and, working with commissioning and information colleagues, takes corrective action where necessary to ensure that all targets are met and that value for money is achieved.

3. Understands guidance for Financial Flows; sets up the performance management of service agreements/contracts in line with an integrated finance and activity system and identifies the financial implications for the organisation.

4. Analyses how money has been spent compared with income, assessing reference costs and makes recommendations for change and improvement where required.

5. Uses data from a variety of sources to monitor trends in activity in order to inform future contract negotiations.

6. Uses knowledge of tender legislation when assisting with the development of business cases and liaises with procurement teams as appropriate.

7. Oversees the financial support to the Joint Continuing Care Database where applicable, in order to ensure value for money is obtained.

8. Leads the data collection/validation exercises for annual returns/financial plans.

9. Liaises with other commissioners/providers where host/lead commissioning arrangements exist (e.g. specialist commissioning), to manage financial implications and performance variations and to provide advice as required.

10. Supports the production of commissioning business cases ensuring production of financial analysis, sensitivity analysis and VFM judgements.

11. Coordinates the detailed work required for in-year reporting.

12. Understands the detail of the services that are being commissioned so that they can make informed decisions and provide guidance on financial and value of money issues.

13. Acts as a contact point, answers queries and provides advice and guidance.

14. Prepares and monitors performance in line with the Standard NHS Contract.

15. Understands and where necessary interprets national guidance.

16. Assesses the viability of QIPP schemes and assists with the forecasting and monitoring of delivery to make best use of public money and to mitigate risk/anticipate problems.

Commissioning & Contracting Ensures that monies are negotiated, planned for, received and spent and that performance is monitored and accurately reflected in contract agreements



Level of competence


4Ensures that appropriate monies are negotiated, planned for, and spent and that performance is monitored and managed appropriately

1. Provides the financial lead in the negotiation of contracts in a commercially focused and competitive manner, ensuring that value for money is achieved.

2. With operational management, reviews the overall delivery of services against contract specifications in terms of quality, effectiveness, efficiency and performance and makes appropriate recommendations.

3. Leads the financial performance management of service agreements/contracts in year and the use of in-year reserves.

4. Provides strategic advice on the development and management of contracts and the financial implications of these and contributes to the development of the organisation’s contract policy.

5. Ensures all finance systems are in place and are working efficiently and effectively and are integrated with the activity system, which identifies the implications of Payment by Results (PbR) and other relevant guidance.

6. Keeps up to date with NHS policy changes relating to commissioning and leads the implementation of new initiatives.

7. Uses analysis of how income and expenditure compare/appropriate benchmarking to make recommendations on future requirements and funding to deliver the organisation’s objectives.

8. Acts as the lead finance contact with other organisations where lead/host commissioning exists.

9. Provides advice on the commissioning implications of business cases and any other special projects e.g. service reviews and ensures that they provide value for money and deliver business objectives.

10. Manages the implications of commissioning services under the financial flows regime.

11. Costs care pathways to identify the most cost effective ways of delivering care.

12. Takes a long-term strategic view of commissioning to ensure that local health needs will be met and that value for money is secured.

13. Provides financial guidance on new initiatives and answers complex queries relating to contract issues.

14. Provides the lead financial input into the Standard NHS Contract, establishing contract baselines for both tariff and non-tariff activity.

15. Understands the law and government and local policies relating to procurement, tendering, competition, collaboration, partnerships and advises the organisation appropriately.

16. Supports the modelling and delivery of annual and medium term QIPP plans.

Commissioning & Contracting


Level of competence


1Completes capital transactions in accordance with relevant procedures

1. Uses and refers to the relevant guidance, understanding the difference between capital and revenue.

2. Correctly removes assets from the asset register when appropriate.

3. Ensures that the acquisition of each asset has been appropriately approved.

2Ensures day to day capital transactions are completed in line with relevant procedures and that the appropriate records are accurate and up to date

1. Records correctly the procurement of assets on the ledger, in the balance sheet and in the asset register.

2. Accounts for the disposal of assets correctly, ensuring they are removed from the asset register and conducts an annual asset verification exercise.

3. Deals with capital assets acquired from charitable donations and government grants appropriately, understanding the impact of these.

4. Accounts for the revenue consequences associated with the acquisition of a new asset and ensures that these are appropriately budgeted for and approved.

5. Evaluates the life of an asset when it is entered onto the asset register and at the point of disposal, assesses whether there is any residual life/value and evaluates the implications of this.

6. Checks that the depreciation charges associated with an asset have been calculated correctly and posted to the ledger.

7. Ensures that the balance sheet correctly reflects all acquisitions and disposals, depreciation and indexation.

8. Identifies when VAT can be recovered and deals with other issues relating to VAT, ensuring that the appropriate action is taken.

9. Completes monthly reconciliation to demonstrate that the asset register and ledger are in balance.

3Manages the financial processes involved in capital acquisition for small and medium size transactions and provides advice on capital issues

1. Understands where capital will be funded from (e.g. internally or externally).

2. Maintains a short and long term forecast for the capital programme, ensuring that forecast capital charges are calculated correctly.

3. Ensures that the revenue consequences of capital schemes are properly assessed and accounted for (e.g. staffing costs, consumables, maintenance and repairs etc).

4. Conducts financial assessments of capital business cases, testing the rationale behind investment decisions and using knowledge of the business case requirements outlined in the relevant guidance.

5. Trains and coaches non-finance staff to understand capital and capital accounting issues.

6. Understands issues regarding the impairment of assets and the impact upon income and expenditure associated with impairment, accelerated depreciation and losses on disposal.

7. Uses investment appraisal and risk management techniques, an understanding of whole life costs, discounted cash flows, value for money and an understanding of issues around the investment in the infrastructure of the service, to provide advice on capital acquisition and/or leasing decisions.

8. Assists with the development of budgets associated with changes to maintenance and capital charge costs.

9. Works with the Estates Department to control capital expenditure and manage the Capital and Leasing Programmes, accurately forecasting spend against them.

10. Creates reports on capital related financial information for the relevant capital review bodies/for the exec and completes the relevant financial returns.

11. Works with the Estates/Procurement Departments to manage and monitor capital expenditure and to ensure end of lease procedures are followed in a timely manner where relevant.

12. Ensures that approved capital is appropriately transacted, following internal controls, SFIs and procurement law.

Capital Accounting Ensures capital expenditure is correctly forecast, allocated and spent, assets properly recorded and managed and the consequences of asset use is properly identified, maximising value for money for the NHS.



Level of competence


4Ensures the efficiency, integrity and effectiveness of capital expenditure against the Capital Plan and manages the financial aspects of the purchase of large items of capital

1. Ensures that principles of Good Public Design, Value for Money, Economy, Efficiency and Effectiveness are adhered to when investment decisions are made.

2. Develops the financial aspects of the organisation’s Capital Plans and programmes and ensures progress against them is forecasted, monitored and reported.

3. Has a detailed knowledge of and undertakes investment appraisal analysis when looking at capital purchase versus lease decisions.

4. Coordinates and manages the financial adjustments impacting on the Capital Resource Limit (CRL) and External Financing Limit (EFL) e.g. capital charges, depreciation, changes in accounting regulations etc.

5. Identifies any changes to asset valuation and appropriately manages the implications.

6. Evaluates and approves the costs for capital projects provided by other suppliers.

7. Ensures that all relevant financial returns are completed accurately and on time.

8. Provides robust information to the exec to inform and assist with strategic decision making.

9. Conducts tax planning in order to minimise the amount of VAT that needs to be paid and to maximise the amount that can be recovered, within the law and NHS Guidelines.

10. Tests investment plans at an early stage to see if they are suitable for external investment or not.

11. Oversees the evaluation and monitoring of PFI projects in order to ensure value for money.

12. Conducts strategic financial assessments and provides financial input to large capital projects’ business cases, testing the rationale behind investment decisions and using an understanding of the strategic context behind NHS decision-making to inform conclusions.

13. Satisfies Off Balance Sheet tests about ownership risks and depreciates assets appropriately through the asset register.

14. Understands and applies Whole Life Costs and facilities management costs in financial evaluation and cost comparison between options.

15. Understands where and when it is appropriate to follow relevant guidance.

16. Co-ordinates and manages the overall funding arrangements for capital schemes which includes the management and forecasting of the PBL (Prudential Borrowing Limit).

17. Identifies sources of capital funding available for the organisation and makes appropriate recommendations and plans.

18. Develops convincing loan applications in order to access funding successfully.

Capital Accounting


Level of competence


1Completes routine payroll transactions in accordance with Payroll guidelines

1. Has a basic awareness of the law relating to payroll (e.g. Employment Rights Act, Data Protection etc).

2. Processes documentation for new starters and for leavers, ensuring that the correct authority is received and that statutory documentation is completed accurately.

3. Calculates statutory and non-statutory deductions accurately and in accordance with the legal and organisational requirements.

4. Inputs travel expense claim forms into the payroll system, ensuring they are correctly authorised.

5. Processes due payments and deductions correctly and within specified deadlines, ensuring that employees are bonafide before making payments to them.

6. Checks the authorisation and accuracy of temporary variations to the payroll before processing.

7. Completes payroll for all staff in a timely and accurate manner.

8. Files information and documentation accurately and promptly on completion of work.

9. Runs standard reports and analyses the results.

10. Deals with routine queries accurately and quickly and in a sensitive manner, understanding the need to treat them confidentially.

2Completes more complex payroll transactions in accordance with Payroll guidelines and provides straightforward pensions information

1. Completes or checks non-routine calculations relating to pay accurately and quickly, ensuring that the correct authority has been obtained.

2. Ensures that processing and calculating in respect of statutory deductions and payments (e.g. tax, national insurance, pension, sickness, maternity, paternity) is accurate and complies with statutory and organisational requirements.

3. Deals with deductions from pay e.g. court, council tax, child support, student loans etc. ensuring adherence to legislative requirements and following the rules for the deductions of such payments.

4. Calculates pay termination payments, including redundancy payments, ensuring their correct treatment for tax and national insurance liability and ensuring that redundancy documentation is completed accurately.

5. Ensures the accurate completion of all permanent changes to employee records.

6. Maintains procedures to ensure that confidentiality, accuracy and security of information are maintained at all times.

7. Runs more complex reports within and outside of the payroll system, interrogating the data in order to provide management information for use within the payroll department and by others within the organisation.

8. Provides routine payroll information to outside agencies and to Finance and HR managers as required, in line with confidentiality and security procedures.

9. Deals with more complex problems and queries relating to payroll.

10. Supports/assists with the training of payroll staff on payroll and pensions issues.

11. Assesses pensionable pay providing straightforward information in redundancy, retirement and other leaver situations.

Payroll & Pensions Manages payroll and pensions and provides information and advice to staff about pay and pensions related issues



Level of competence


3Ensures the routine preparation of payroll/pension information is completed in line with Standing Financial Instructions

1. Oversees and ensures the accurate and timely preparation of payroll for all staff.

2. Implements statutory changes relating to pay and pensions, so that staff are remunerated appropriately.

3. Provides complex, ad hoc financial, statistical and management information/reports to line managers and HR managers, interrogating, challenging and manipulating data in order to produce more useful information (both within and outside the payroll system).

4. Ensures all data is stored and recorded correctly, understanding the wider implications of payroll and pensions data and how and where it will be used.

5. Deals with enquiries from statutory and non-statutory bodies with respect to payroll and pensions, accurately and efficiently.

6. Reconciles the payroll on a monthly and annual basis before the completion of year-end returns.

7. Provides advice on tax status for PAYE queries.

8. Leads the training of staff on payroll and pensions issues.

9. Maintains/updates procedures to ensure that confidentiality, accuracy and security of information are maintained at all times.

10. Ensures pay databases are accurately maintained so that staff are paid in accordance with their terms and conditions.

11. Manages the pensions process ensuring pension requirements are reflected properly, checking the data is accurate in the NHS pensions database and correcting errors when necessary.

12. Manages the auto enrolment process for pensions ensuring that all employees are given the opportunity to be a part of the pension scheme.

13. Responsible for system processing, payroll runs, pay awards, increments, monthly payroll reports, payment of BACS files & production of pay slips.

14. Processes statutory and non-statutory returns in accordance with appropriate timescales.

15. Ensures compliance with the Real Time Information (RTI) reporting requirements.

4Manages the payroll/pension functions ensuring statutory, organisational and customer requirements are met as effectively and efficiently as possible

1. Understands the legal and policy implications of changes to NHS pay and pensions and takes appropriate action.

2. Manages the control and reconciliation of payroll deduction records, including payroll creditors, at the end of each accounting period.

3. Controls the treatment of allowances and enhancements for tax, national insurance and pension status.

4. Provides guidance and advice on matters relating to benefit in kind reporting to the Inland Revenue.

5. Develops performance indicators for payroll; monitors performance against them and takes appropriate improvement action.

6. Conducts analyses to understand risk/the impact of probability on the organisation and advises accordingly.

7. Identifies and develops suggestions for improving the efficiency and effectiveness of payroll processes and information and of the payroll department as a whole.

8. Understand and ensures that Real Time Information has been submitted on a timely basis to HM Revenue and Customs as appropriate.

Payroll & Pensions


Level of competence


1Undertakes a variety of audit work across a range of clients, working as a part of a larger team and under some supervision

1. Contributes to the planning of audit reviews through supporting on the establishment of scope, objectives and terms of reference.

2. Designs a test programme to ensure that all key controls and material risks are identified and included without duplication of evidence, and including best practice in terms of authorisation, access, security, reporting functionality and in respect of IT related systems.

3. Ensures that all significant conversations with the client and all other relevant documentation are correctly and appropriately recorded and filed, having due care and consideration to documentation containing personal/sensitive information (e.g. patient identifiable/payroll data).

4. Documents the systems utilising different approaches as required.

5. Produces clear, objective, accurate and conclusive findings, which are based on sound judgement and an evaluation of risk and which are well supported by the appropriate documentation.

6. Uses knowledge of audit principles and best practice guidance to perform allocated audit assignments and tasks, in line with the appropriate quality standards and guidelines.

7. Ensures that confidentiality agreements with clients are adhered to at all times.

8. Knows when to escalate issues to supervisor/senior audit manager and questions and deals with queries from clients promptly, effectively and efficiently. Ensures effective communication, periodically providing timely updates to supervisor/audit manager throughout the assignment.

9. Conducts preparatory work ahead of engagements to organise work schedules to ensure that allocated tasks and/or assignments are undertaken as effectively as possible and involve the least amount of disruption for the client.

10. Identifies the most efficient way of conducting own work so that it is completed within the required budget and time.

11. Develops and sustains a strong relationship with client staff, presenting a professional image and providing conclusive based recommendations to ensure customer satisfaction at all times.

12. Follows up work and reports progress clients have made in implementing audit recommendations.

2Plans, supervises, performs and completes audit assignments in accordance with the relevant principles and standards

1. Takes a wider view of client’s issues and uses risk management/assurance experience to identify the need for an audit and to determine how an audit is structured, ensuring that the testing strategy is reliable and time efficient.

2. Prepares for allocated planning meetings so that they are fully effective and reflective of key challenges facing clients, clearly identifying the breadth of assurance required.

3. Aligns the audit approach and testing basis/approach on overall business context including latest legislative requirements and key risks pertinent to the client.

4. Produces Audit Opinion based on sound judgment and analysis of the facts, drawing conclusions and logical constructive recommendations from allocated assignments.

5. Performs allocated audit assignments of a more complex/ad-hoc and perhaps non-financial kind, taking account of business needs e.g. quality objectives, clinical risks, in accordance with the Public Sector Internal Audit Standards and the local quality system where relevant.

6. Reviews the work of others, providing support and coaching when appropriate, to ensure compliance with Public Sector Internal Audit Standards and the local quality system where relevant.

7. Takes responsibility for identifying new ways to continuously improve the service provided for their clients.

8. Maintains a high profile with their clients, ensuring that they are aware of, and understand the benefits of, the work being completed.

Internal Audit Works with clients to provide assurance and to identify areas to improve efficiency, effectiveness and compliance with statutory and NHS regulations and guidelines



Level of competence


3Manages the relationship with a number of clients to ensure that their service requirements and expectations are met in full - and may manage a team of auditors providing that service

1. Works closely with the client to agree the format and objectives of the audit and to agree how the findings will be reported, managing client expectations with regard to the nature, extent, timing and cost of the process.

2. Conducts tests, audits and consultancy assignments of a complex nature, often requiring a wider business perspective and covering non-financial issues.

3. Assures the quality of all audit opinions produced by the team and produces the Head of Audit Opinion for each client, using judgement and an understanding of risk to identify material findings and to make sensible, substantiated and conclusive recommendations. Resolves issues speedily and satisfactorily where there may be a disagreement of audit opinion.

4. Takes appropriate and timely action when clients reject audit recommendations or when they disagree with or are unhappy about any part of the audit service, ensuring that should recommendations not be accepted the client fully understands the rationale and the context of the finding as well as potential risks of non-acceptance/implementation.

5. Assists the client to identify future audit activities, through effective planning and risk assessment, which will add value to their organisation.

6. Prepares and presents reports to Audit Committees and to other exec level bodies as required, presenting a professional image at all times and demonstrating a deep knowledge of the clients’ business, local risks and wider NHS/national issues.

7. Prepares and delivers the strategic, annual and operational audit plans, based upon a comprehensive assurance and objective driven risk assessment process that demonstrates a detailed understanding of the client’s vision, strategic objectives, business and operational setting, risk maturity/assurance framework and key challenges.

8. Ensures on a day-to-day basis, that all aspects of the terms of reference for particular clients are met and works closely with clients to agree any changes to those objectives or plans.

9. Works to develop and maintain a strong relationship with each client so that the latter perceives and therefore enables audit to be a useful, proactive service.

10. Liaises with and develops a constructive relationship with the external auditors in order to maximise the effectiveness of the total input from audit and to avoid duplication of audit work undertaken.

11. Produces accurate and timely management information and reports on contract performance as requested by either the client or by internal management.

12. Contributes to innovative development work in order to ensure that the organisation continuously improves and remains at the forefront of internal audit developments.

4Ensures the efficiency, integrity and effectiveness of the audit process for clients and ensures the long term viability of the internal audit service

1. Effectively delivers highly complex assignments utilising a range of tools and techniques e.g. facilitation, consultancy, investigations etc.

2. Follows up and resolves complex audit queries and knows where/how to access information when required.

3. Provides advice and education on audit issues to audit staff and to clients in order to improve efficiency, effectiveness and general financial/business performance.

4. Sources, develops and monitors the audit systems and processes to ensure compliance with the law, Public Sector Internal Audit Standards and the local quality system where relevant.

5. Develops internal quality standards and writes policies and procedures for use by audit staff, monitoring the adherence to these on a continual basis.

6. Reviews the overall efficiency and effectiveness of the audit department and identifies and implements recommendations for continuous improvement.

7. Develops effective relationships with clients at a senior level; e.g. executive and non-executive directors, ensuring their continued satisfaction and enabling the audit function to predict and prepare for client requirements in a proactive manner.

8. Develops a strategy and operational plans for the audit department to ensure that the overall objectives are met.

9. Produces audit reports/returns for exec level discussions and for external and statutory purposes and ensures that the Head of Audit Opinion for all clients gives a true and fair view.

10. Conducts analyses to understand risk/the impact of probability on organisations and advises accordingly.

11. Ensures a culture of continuous improvement and development, responding to emerging issues, developing the profile and impact of internal audit and adding value to clients.

Internal Audit


Level of competence


1Conducts daily administrative tasks to support the finance system

1. Follows simple processes to assist with the day to day running of financial systems.

2. Liaises with clients over coding errors.

3. Uploads information in accordance with operating timetables and instructions.

4. Keeps sufficient working papers to provide an audit trail.

5. Ensures information is processed correctly.

2Provides first line support for the day to day administration of the finance system

1. Prepares new account codes.

2. Logs and filters calls to IT.

3. Deals effectively with basic queries.

4. Runs locally developed software.

5. Sets up new passwords and administers password rights.

6. Provides IT training and/or first line support for Finance staff.

7. Provides first line advice for routine finance related IT problems.

8. Produces system control reports to ensure integrity of ledgers.

9. Uses knowledge of the Chart of Accounts to manage the process of setting up all financial codes.

10. Prepares standard reports for managers and develops straightforward, ad-hoc reports as required.

11. Develops simple PC based solutions to improve financial operations.

12. Runs general financial system checks to ensure the integrity of the system.

3Works in a proactive manner to support the finance function in its use of systems

1. Maintains and tests disaster recovery procedures or assists IT in providing this service.

2. Delivers IT training, ensuring that finance and non-finance managers and staff are competent to use the systems.

3. Writes and designs bespoke reports and systems for finance managers.

4. Seeks and finds opportunities to apply technology to improve day to day finance operations in order to enhance productivity, decision making, control and communications.

5. Maintains a systems log for queries and problems and monitors progress to ensure satisfactory resolution of issues in a timely manner.

6. Identifies and implements methods for maintaining internal control and for avoiding fraud within the system.

7. Supports the introduction of upgrades/new IT systems/software across the department (e.g. new ledger systems).

8. Provides advice and help to solve more complex finance/IT problems and proactively identifies long term solutions for the most commonly occurring queries and problems.

4Manages the longer-term development of the Finance system in order to improve the overall effectiveness and efficiency of financial operations

1. Ensures that all staff have the capability to use finance systems appropriately.

2. Keeps abreast of IT developments, liaising with system providers to evaluate the impact on Finance and advises managers to this effect.

3. Keeps abreast of developments in finance, evaluates their implications for the finance system and advises managers to this effect.

4. Sets up disaster recovery processes and/or assists the IT Department with this area.

5. Identifies the need for new/upgraded systems, evaluates the commercial impact of improvements, advises managers on what is possible and prepares business cases as required.

6. Conducts analysis to understand the systems risks to finance and advises accordingly.

7. Provides advice and help with the most complex of systems queries.

Financial Systems Uses applies and develops information technology to support finance managers in achieving their statutory and organisational objectives effectively and efficiently



Using the Competencies in your HR ProcessTo complement this guide, a series of electronic appendices have been developed which can be downloaded from the FSDNetwork website. These appendices are in Microsoft Word format and will aid you in producing the following:

• Job Descriptions & Person Specifications (Appendix 1)

• Appraisal/Performance Management (Appendix 2)

• Competency Based Interviews (Appendix 3)

• Individual Training Needs Analysis/Personal Development Planning (Appendix 4)

• Mapping the KSF & the Finance Competencies (Appendix 5)

To download these guides visit www.fsdnetwork.com/finance-competencies

Financial SystemsAppendices

i NHS Finance Competencies 2014

Title

www.fsdnetwork.com

The NHS Finance Skills Development (FSD) Network operates across all NHS organisations in England.

Its remit is to facilitate, through learning and development,

the improvement of finance and business skills and

competences in the NHS and the development of the

finance function.

The FSD Network uses a dedicated website, www.fsdnetwork.com,

to publicise and support its work. The website is the primary

source of information and learning resources for all finance skills

development needs. The FSD Network continues to support all

NHS finance staff in their ongoing learning and development.

FSD activities are centred on:

• Professional Education and Qualifications

• Lifelong Learning and Continuing Professional Development

• Talent Management

• Career Development for the Finance Function

• Widening and Improving Financial Skills

• Achieving Excellence

Contributors to the Finance Competence FrameworkOur thanks go to the many finance departments and individuals within them who helped us with our initial research

and then with piloting this document. In particular our thanks go to the finance departments and staff from the

following organisations:

• York Teaching Hospital NHS Foundation Trust

• North Tees & Hartlepool NHS Foundation Trust

• Wirral University Teaching Hospital NHS Foundation Trust

• NHS Bury CCG

• NHS Heywood, Middleton & Rochdale CCG

• NHS Eastern Cheshire CCG

• NHS Nottingham North & East CCG

• NHS Southport & Formby CCG

• NHS South Sefton CCG

• Liverpool Community Health NHS Trust

• Mersey Care NHS Trust

• East Lancashire Hospitals NHS Trust

• NHS England – Cheshire, Warrington and Wirral Area Team

• NHS England - South Yorkshire & Bassetlaw Area Team

• NHS England – Cumbria, Northumberland, Tyne & Wear

• Greater Manchester CSU

• South London CSU

• North of England CSU

• Mersey Internal Audit Agency

• ELFS Shared Services

• Nottingham CityCare Partnership

• Claire Yarwood, NHS England (Greater Manchester)

• FSD Network Teams