13. Financial Management

13.1.1. Implement and maintain measures that provide evidence and assurance that RDN Funding provided to Delivery organisations is used solely for the Work Programme as set out in the sub-contracts.

13.1.2. Ensure RDN Funding that is ‘top-sliced’ to support the delivery of national initiatives is spent specifically on these initiatives. The RRDN Management Team must notify the RDNCC of any forecasted underspends arising from this ‘top-sliced’ funding at the earliest opportunity to allow funding to be appropriately redistributed.

13.1.3. Ensure all payments made to distribute RDN Funding to Delivery organisations are valid, complete, accurate and appropriately authorised.

13.1.4. Implement a budgetary control system to monitor actual expenditure against the RRDN funding allocations, and ensure a forecast is produced at least quarterly during the financial year.

  This forecast must be managed to ensure a break-even position at the financial year-end. 

13.1.5. Implement a system to ensure financial reports provided to the RDNCC are accurate, complete, and up to date.

13.1.6. Report to the RDNCC:

a) the forecast outturn for the period October 2024 to March 2025 with quarterly financial returns, via the NIHR Finance Tool or any other system specified by the RDNCC, to agreed deadlines

b) all RDN Funding and expenditure, for all organisations in receipt of that funding, and agree to the contract-end figures in Delivery organisations’ accounts by the deadlines specified by the RDNCC

c) the end-of-year financial return including a signed declaration statement from the RRDN Host Organisation Director of Finance and RRDN Director as specified by the RDNCC.

13.1.7. Obtain written assurance that the financial information provided by Delivery organisations is accurate and complete and that all costs are valid and appropriately authorised, including a declaration statement from each Delivery organisation, signed by the Director of Finance (or equivalent authority) of the Delivery organisation.

13.1.8. Ensure that RDN Funding is spent appropriately as outlined in the RRDN contractual framework.

13.1.9. In lieu of an internal audit, and as and when directed by the RDNCC, the RRDN Management Team shall provide documentary evidence to ensure the RRDN Minimum Financial Control standards are adhered to.

13.1.10. Ensure all Excess Treatment Cost payments which are managed by the NIHR RDN are distributed in a timely manner to provider organisations as stipulated in the Payment Schedules produced by the RDNCC, without the need of an invoice, and submit a return to the RDNCC, within prescribed deadlines, specifying the amounts paid and unpaid, with reasons where applicable.

13.2.1. RDN Funding must be treated as a separate budget to any other form of NHS monies received. Therefore, RDN Funding must not be subject to spending restrictions that might be applied to other budgets in the RRDN Host Organisation or Delivery organisations, e.g. restrictions on recruitment of staff or non-pay spend.

13.2.2. The RDNCC processes personal data (stored within the NIHR Finance Tool) consisting of information provided by RRDN Host Organisations relating to staff funded in part or in whole by the NIHR RDN, including job category, employer and staff costs. Staff names and/or Payroll ID numbers must not be stored in this system. The RDNCC processes these personal data in order to; 

a) ensure public funds are spent appropriately, aid in financial audit, provide aggregated anonymised information to the DHSC and resource management activity for which the RDNCC has responsibility 

b) exercise its function as the managing agent for the Authority. The Authority and the RRDN Host Organisation are joint Data Controllers for these data.

13.2.3. The RDNCC processes all such data fairly and lawfully in accordance with current Data Protection legislation. 

13.2.4. Access to these data is granted solely to those with responsibility for carrying out these specified activities.

13.2.5. Only relevant data are collected and there is no further processing other than for those purposes noted above.

13.2.6. All data are saved securely and are regularly backed-up.

13.2.7. Data are retained for seven years post contract end date and are then destroyed via secure means.

13.2.8. The RRDN Management Team is responsible for informing RRDN staff and its RDN-funded staff, that their data will be shared with the RDNCC, including the nature of the data and why it is shared.

13.2.9. An internal audit in respect of RDN Funding managed by Delivery organisations should be undertaken in the event of a material or reputational risk being identified by the RRDN Management Team through the monitoring visits or by any other means. Any areas of concern related to RDN Funding are highlighted to the RRDN Host Organisation and the RDNCC. The costs incurred by the Delivery organisation in undertaking an internal audit arising in this way can be charged against RDN Funding.

13.2.10. Where a review of RDN Funding is routinely incorporated into a Delivery organisation’s own cyclical internal audit plan, and where this review highlights a control weakness, this weakness should be reported to the RRDN Host Organisation.

13.2.11. RDN Funding may be used to meet redundancy and pay protection costs at the discretion of DHSC.

13.2.12. Additional supporting information is available in the RDN POF Support Pages.