NHS Blood and Transplant is a Special Health Authority and is treated as a Non Departmental Body (NDPB) under the Government Financial Reporting Manual (FReM).
Under the FReM NHSBT is required to report on a comprehensive net expenditure basis with programme funding provided by the Department of Health and Social Care recognised in the general reserve. On this basis, for the period ending 31 March 2019, the Authority reported total comprehensive net expenditure of £52.2 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 surplus of £12.7 million in 2018/19, with £69.2 million of programme funding received from the Department of Health and Social Care treated as income.
Note 2 of the published accounts reconciles the operating surplus as reported to the NHSBT board to the net expenditure basis on which the published 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.