NHS Blood and Transplant is Special Health Authority and treated as a Non-Departmental Body (NDPB) under the Government Financial Reporting Manual (FReM). As such, we are committed to providing details of our financial information. As well as details of our National and Income and Expenditure accounts, you can also view other financial information such as salaries, expenditure and more.
For the purposes of the national accounts NHSBT is classified as a Public Corporation by the Office for National Statistics reflecting that the majority of NHSBT's income is provided through the sale of products and associated services, on a cost recovery basis, to NHS Trusts.
Under the FReM NHSBT is required to report on a comprehensive net expenditure basis with programme funding provided by the Department of Health recognised in the general reserve. On this basis, for the period ending 31 March 2017, the Authority has reported total comprehensive net expenditure of £80.8 million. This reflects the net operating costs of the Authority (including income from the sales of products and services) and that blood, solid organs, tissues and stem cells are freely donated.
Income and Expenditure accounts
The Board and Management of NHSBT, however, monitor and control NHSBT’s financial performance on an Income and Expenditure basis, as this is more appropriate to the nature of NHSBT’s activities. On this basis NHSBT generated an operating deficit of £4.9 million in 2016/17, with £65.9 million of programme funding received from the Department of Health treated as income. NHSBT is currently making significant investments in the replacement of its IT infrastructure and systems. The investments are mostly funded from cash reserves that were accumulated in anticipation of the investments to come. They will, however, result in NHSBT recording technical income and expenditure deficits over the period of the investment cycle. These investments are the driver for the deficit recorded in 2016/17 and will also see NHSBT make further planned deficits over the next three years.
Note 2 of the accounts reconciles the operating surplus as reported to the NHSBT Board to the net expenditure basis on which these accounts are prepared. The note further provides a segmental analysis of our financial performance that is consistent with our strategic business units and the presentation of our management accounts.