Financial Statements 2016 | Page 28

accordgroup.org.uk /value-for-money Regulation and compliance The HCA Governance and Financial Viability Standard outlines expectations for providers to demonstrate that value for money services are being delivered, and moreover that value for money is embedded in the culture of the organisation. Accord understands the importance of being able to confidently demonstrate value for money through responsible management of finances and application of resources, whilst continuing to provide excellent services to customers. The Group’s achievements have been benchmarked against the requirements of the standard, as below: Registered providers shall: “Have a robust approach to making decisions on the use of resources to deliver the provider’s objectives, including an understanding of the trade-offs and opportunity costs of its decisions.” 26 Accord Group How Accord Group delivers against these requirements n Group Board receives regular updates on how agreed business plan objectives are being implemented n Financial planning is integrated into business planning cycle. Annual detailed financial plans are prepared identifying the extent of the financial resources available to deliver the Board’s strategic objectives and ambitions. n Opportunity costing is incorporated into the PAP approval process to demonstrate the rationale behind proposed business and investment decisions. For example the decision to invest or divest in certain properties based upon asset management intelligence. n Business planning and objective setting at Board away day. This ensures the commitment of financial resource aligns entirely to the business plan objectives. n Board approval of key resource financial allocation documents including the Group budget assumptions report, Group annual budget and Group financial planning. n Internal senior management Project Approval Panel (PAP) which reviews all major investment decisions, business cases and business development opportunities with recommendations to Board. n All major services are underpinned by detailed exit strategies. The Group implements these exit strategies when the future of a service which no longer makes a favourable contribution is being considered. n Through rigorous stress testing exercises the Board is clearly sighted on relevant risk events and application of resources to mitigate against such events in line with the Board’s risk appetite.