2 Does revenue for All non-devolved revenue sourced from the Ministry will be service contracts confirmed directly with the responsible Ministry directorates. materially agree with what has been advised by the Ministry? 3 Out-year revenue Indicative out-year revenue increases are advised in the latest assumptions consistent with Funding Envelope. Ministry advice? 4. Cost and Volume Assumptions Requirements Interpretation 1 Are the assumptions for Assessment of whether cost assumptions are and ‘appropriate’ personnel outsourced explained’ will be based on whether cost changes ‘adequately services costs and Full Time are consistent with: Equivalent (FTE) movements financial information disclosed in the AP and AP financial appropriate and adequately templates explained? estimated revenue growth advised in the latest Funding Envelope 2 Are planned interest, the percentage ranges estimated in CPI and salary indices depreciation, capital charge changes in volumes, practices, service delivery, etc. costs and assumptions appropriate and adequately Significant variation from the latest Funding Envelope or indices explained? should be explained and justified in the AP, or in a confidential 3 Are all cost assumptions document sent separately to the Ministry. Expenditure planned (eg, clinical supplies costs) for out years should reflect a realistic assessment of appropriate and adequately requirements to support the projected revenue stream in those explained? years. It should not be derived simply by applying the same preliminary increase as for revenues to each expenditure line. 4 Is the productivity gain and associated risk inherent in the plan clearly explained? 5. Fixed Assets Requirements Interpretation 1 Does the AP include a No interpretation required. statement about: a) when assets were last revalued b) in what year the next revaluation will take place as required by relevant accounting standards. 2 Does the AP include (if No interpretation required. known) the asset impacts and additional costs resulting from re-evaluation? Does the DHB note its No interpretation required. 3 strategy for actively disposing of assets that are surplus to requirements?
2 Does revenue for service contracts materially agree with what has been advised by the Ministry? All non-devolved revenue sourced from the Ministry will be confirmed directly with the responsible Ministry directorates. 3 Out-year revenue assumptions consistent with Ministry advice? Indicative out-year revenue increases are advised in the latest Funding Envelope. 4. Cost and Volume Assumptions Requirements Interpretation 1 Are the assumptions for personnel outsourced services costs and Full Time Equivalent (FTE) movements appropriate and adequately explained? Assessment of whether cost assumptions are ‘appropriate’ and ‘adequately explained’ will be based on whether cost changes are consistent with: financial information disclosed in the AP and AP financial templates estimated revenue growth advised in the latest Funding Envelope the percentage ranges estimated in CPI and salary indices changes in volumes, practices, service delivery, etc. Significant variation from the latest Funding Envelope or indices should be explained and justified in the AP, or in a confidential document sent separately to the Ministry. Expenditure planned for out years should reflect a realistic assessment of requirements to support the projected revenue stream in those years. It should not be derived simply by applying the same preliminary increase as for revenues to each expenditure line. 2 Are planned interest, depreciation, capital charge costs and assumptions appropriate and adequately explained? 3 Are all cost assumptions (eg, clinical supplies costs) appropriate and adequately explained? 4 Is the productivity gain and associated risk inherent in the plan clearly explained? 5. Fixed Assets Requirements Interpretation 1 Does the AP include a statement about: a) when assets were last revalued b) in what year the next revaluation will take place as required by relevant accounting standards. No interpretation required. 2 Does the AP include (if known) the asset impacts and additional costs resulting from re-evaluation? No interpretation required. 3 Does the DHB note its strategy for actively disposing of assets that are surplus to requirements? No interpretation required.