NHS Shared Business Services provides finance and procurement services to over 100 customer organizations across the NHS. It processes over $28 billion in annual payments and $6 billion in annual procurement spend. The document discusses the benefits of integrating NHS finance and procurement systems, including improved spend analysis, reduction in non-purchase order spend, and increased payment discounts. It also outlines challenges, lessons learned, and examples of management reports that could be generated from an integrated system.

1. NHS Shared Business Services
Align Finance and Procurement to
Achieve Shared Services excellence
James Minards - Senior Operations Manager
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2. Size and Scale
107 Customer Organisations <25% of NHS
Over 43,000 trained users on the Oracle system
>4 million AP & AR transactions per annum
£28 billion payments processed per annum
£6 billion spend through e-Procurement per annum
75% NHS ALBs, 7/10 SHAs and 29% of PCTs are clients
Recovering £10 billion of NHS Debt per annum
Largest provider of Payroll services to NHS – over 2 million payroll
transactions per annum
Successfully merged 67 NHS clients into 23 new organisations & De-
merged 6 PCTs into Provider/Commissioner Organisations
Consistently exceeding contractually SLAs (8 KPIs)
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3. Service Portfolio
Purchase
SLR / PLC
to pay
Specialist
Order to
Procurement
Cash
advice
Support
Specialist
Merger technology
services
Oracle 11i Management
platform
De/Merger Fixed Accounting information
services Assets to Reporting
Support
Development
VAT/Tax
Interfaces
advice Training
FHS
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4. Drivers
Multiple Sources of the Truth
Suppliers
Users & Approvals
Coding / Categories
No Clear Vision of Financial Position
GRNI
Accruals
Budget Status
No Strategic Picture
OGC / PaSA Contract adherence
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5. Challenges
Code Mapping – Commodity, VAT, Subjectives
Different Users – Code Combinations
System Integration – Frequency, complexity,
compatibility
Power …..
Functionality – More / Less
Change – People, ease of use, enforcement
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6. Performance + Reports =
Knowledge = Benefits
Full visibility and Audit trail of all Orders Payments and Approvals
Comprehensive Analysis of spend by Person, Supplier, Department
and Cost Centre
Full comparative analysis on Catalogue/Contract and non Contract
spend
Full visibility of Process – Notifications, Invoices, receipting i.e. what
is with whom and for how long
Visibility of total SBS Client spend and Contract comparisons to
provide benchmark data for development
Procurement Dashboard and other metrics to analyse and assist in
achieving Best Practice
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7. Solution
Integrated Finance & Procurement
Users
Deliver to Location = Cost Centre
Approval Limits, Budget access, approval hierarchy
Subjective Codes
Commodity / Categories = Subjectives
VAT Specific Commodity / Categories = Subjectives/ Sub Analysis 1
Suppliers
Pay & Purchasing – Single record
Enforced PO process – driving down Non PO Spend
Reports
Automatic drill down across all activities
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8. Implementation
Baseline – Benefit / ROI prediction
Project planning – Standard Prince 2 Methodology
Process project workshops
Data Templates – Vendors/Suppliers, Users, GL – Cost
Centres, Subjectives, Deliver to Locations
IT Preparation & Readiness
Training
PIMS
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9. Stages & Concurrent Activity
Initiation Impact Process Design & Data Transition Stabilisation
Stage Assessment Capture Stage Stage
IT Readiness IT Readiness
Process Design
Project
Go No
Initiation Kick Impact Application Process Go-Live Post Go Live
Go
and Set Off Assessment Clone Walkthrough & Cutover Support
Decision
Up
Data Data Data Data
Collection Validation Load Verification
Training
HR HR
Communications Communications
Wave Planning Project Management Project Management
Operations
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10. Benefits of SBS Integrated
Finance/Purchasing platform
Supplier and Trust Dept level analysis both PO and non PO spend
Spend analysis – Contract compliance
Activity detail – PO commitments, Invoice payment analysis
Reduction in non PO spend
Non PO activity accounts for upward of 60% of procurement activity across
the NHS and results in wasted time and resources:
No Financial control over spend until after the event
Invoice processing requires more manual intervention. Typical
processing time 14-21 days vs. less than 24 hrs for a automatically
matched PO Invoice
PO generated Invoices more likely to result in on time payment to
Suppliers and enable the NHS to benefit from payment discounts
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11. Categories & Code Combinations
1,428 Three Alpha Codes Split across 53 key Financial
Groupings linked to 420 Subjective codes
AAA – Alcoholic Drinks – Provisions & Kitchens
Subjective 7150 = 60 e-Class Codes
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12. Chart of Accounts Structure
SEGMENT STRUCTURE CODES
Entity Code 4 digit alpha/numeric Based on national entity code with
an N suffix
Cost Centre 6 digit alpha/numeric Unique range per Organisation
Subjective 4 digit numeric Shared Subjective code list
Analysis 1 5 digit alpha/numeric Shared range, plus additional range
per organisation for local reporting
Analysis 2 5 digit alpha/numeric Shared range of all NHS
Organisations and GP codes, plus
additional range per organisation for
local project reporting
Spare 6 digit numeric Default value zeros – used only for
Payroll Statistical postings
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13. The Reporting Hierarchy
Highest Organisation Level = ORGTOT
Lowest Organisation Level = Cost Centre
Typical Use: Budget Holder Reporting
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14. The Subjective Hierarchy
TOTA
(Total Organisation)
BALS INCE
(Balance Sheet) (Inc & Exp)
A099 - Sys Assets Clearing
CAPI - Taxpayer Funds INCO
EXPE
TAST - Total Assets (Gross Income)
(Gross Expenditure)
TLIA - Total Liabilities
SINAC - Activity Inc eg I430 DoH Inc NCM2 NCOM
NONP PAYX
SIOPC - Other Inc eg I450 RTA Inc (Non Pay PCT (Non Pay Comm
(Non Pay Exp) (Pay Expenditure)
IOTH - Other Op Inc eg I463 Rental Inc Exp) Exp)
APMS - Alt Prov Med Ser eg T835
GMS2 - Total GMS eg T801
PCMS - PCT Med Ser eg T830
PMS2 - Total Pers Med Ser eg T825
COMM - Commissioning eg M635
GMSD - GMS Discret eg D603
GMSN - GMS Non Discret eg G607
PMSE - Pers Med & Dent eg S633
CLIN- Clinical Serv&Supp eg N701 Dressings
ESTB - Establishment Exp eg N722 Printing
GENL - Gen Supp&Serv eg N720 Bedding
Highest Subjective Level = TOTA SMSC - Misc Serv eg N767 Social Care
OTRE Other Estab Costs eg N730 Training
PREM - Prem & Fixed Plant eg N732 Utils
Lowest Subjective Level = Subjective Code Subjective level- 7320 Electricity
PAGY - Non NHS Staff eg P580
PBOA - Pay Board eg P502
Typical Use: FIMS Returns PMED - Med & Dent eg P504
PNUR - Nursing eg P522
PPAM - PAMS eg P530
PPTB - Prof & Tech eg P554
PSCI - Scientists & Prof eg P544
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PSEC - Staff on Sec’mnt eg P599
PSPL - Supp Pay P586 14
PSUP - Healthcare Assts eg P566

15. Reporting for Budget Holders
Web based reporting which provides users with the ability to access
summary Cost Centre level financial information and then drill down
to ever more detailed information until source/ transactional level
detail is displayed including Invoice image.
Reporting Tool used by Budget Holders and is also used by Finance
Teams
Budget Holders have on-line access to:
Divisional Reports (based upon Cost Centre Parent/Child
relationship)
Detailed Child Cost Centre Reports (with Drill down to Invoice
Image)
Detailed Payroll Reports
Reports display information held in a Reporting Warehouse
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16. 5 - Subjective Analysis
Organisation Code and Name
• Report by Subjective showing a standard
budget/expenditure report format
• Drill-down the subjective hierarchy from total income
and expenditure to Analysis 1 codes
• Subjective in Row
• Funded & Actual WTE, Budget, Actual and Variance
for Month and Year in Column
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17. 9 - Top/Bottom Variances
Cost Centre Code and Description
Cost Centre Code and Description
Cost Centre Code and Description
Cost Centre Code and Description • A ranking report showing the ten most overspent
Cost Centre Code and Description
and ten most underspent cost centres. Absolute
Cost Centre Code and Description
Values and not percentages
Cost Centre Code and Description
Cost Centre Code and Description • Used to identify the most significant variances
Cost Centre Code and Description
within a directorate
Cost Centre Code and Description
Cost Centre Code and Description
Cost Centre Code and Description
Cost Centre Code and Description
Cost Centre Code and Description
Cost Centre Code and Description
Cost Centre Code and Description
Cost Centre Code and Description
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18. Procurement Reports
Top 10 Revenue Suppliers by Trust in SHA, by
value and percent
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19. Lessons Learned
Data Cleansing & Validation – Suppliers & Code Combinations
IT Readiness – IP Addresses, networks and Bandwidths
Communications – engagement
Training – Scheduling & Facilities
Catalogues / content procurement support
Superusers / Help Desks / PIMS
Structured Cut-Over process – Letters, Invoices, Balances
Good Project Management & Governance
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16/03/2009 19