Soft Split Options

Purpose 2 As you are aware the NHS PCT ’ s are reorganising in April to split their Commissioning and Provider arms as part of a programme known as Transforming Community Services (TCS). The ESR NHS Interface Team is required to deliver a significant volume of change to accommodate this mandatory and legislative change. We are asking all trusts who are considering splitting their payrolls to consider the implications early so changes can be scheduled and completed on time.

There is no cost from the NHS ESR Interface team VPD 123VPD 456 SOURCE ORGANISATION TARGET ORGANISATION Monthly Provider Payroll Entity ABC Soft split option A – Do nothing and cross charge the costs Monthly Commissioner Payroll Entity ABC Weekly Commissioner Payroll Entity ABC NHS HUB LEDGER Weekly Provider Payroll Entity XYZ Monthly Provider Payroll Entity XYZ ESR NHS Hub For Entity ABC NHS Hub For Entity XYZ The costs of the Provider arm sitting in the Commissioning VPD 123 are “cross charged” from the GL system for VPD 123 to the GL system for VPD 456.

Existing NHS Hub New NHS Hub GL Interface file VPD 123VPD 456 SOURCE ORGANISATION TARGET ORGANISATION Monthly Provider Payroll Entity PQR Soft split option B – Create a new Payroll with a dummy entity code for Provider staff Monthly Commissioner Payroll Entity ABC Weekly Commissioner Payroll Entity ABC NHS HUB LEDGER Weekly Provider Payroll Entity XYZ Monthly Provider Payroll Entity XYZ ESR NHS Hub For Entity PQR NHS Hub For Entity XYZ NHS Hub For Entity ABC Cost is between £350 and £700 per split. A new HUB and new interface file are created for the new entity. Decision! Who runs the new payroll for PQR, source or target organisation? GL file For Entity PQR Legal Responsibility

Existing NHS Hub New NHS Hub GL Interface file VPD 123VPD 456 SOURCE ORGANISATION TARGET ORGANISATION Monthly Provider Payroll Entity PQR Soft split option C – renaming the dummy entity code Monthly Commissioner Payroll Entity ABC Weekly Commissioner Payroll Entity ABC NHS HUB LEDGER Weekly Provider Payroll Entity XYZ Monthly Provider Payroll Entity XYZ ESR NHS Hub For Entity PQR NHS Hub For Entity XYZ NHS Hub For Entity ABC Cost is between £350 and £700 per split. A new HUB and new interface file are created for the new entity. Decision! Who runs the new payroll for PQR, source or target organisation? GL file from PQR Renamed with Entity XYZ & sent directly to XYZ Legal Responsibility Monthly Provider Payroll Entity PQR Weekly Commissioner Payroll Entity ABC

Terminology & Acronyms

TCS: Transforming Community Services is a radical programme of change for the way that NHS services are managed and delivered. Source Employing Authority: originating organisation. Target Employing Authority: receiving organisation. VPD: Virtual Private Database Soft Split: the source organisation is restructured at a local level based on your TCS requirements. This requires setting up separate Organisational Structures, Payrolls and General Ledgers so that the new organisation can work as a “pseudo” Employing Authority or legal entity until any technical demerge of the data takes place. ODS Code: Organisation Data Service code - unique identification code for organisational entities of interest to the NHS. Previously known as the NACS code. Entity Code: name given to the ODS code held in the General Ledger (GL) interface files. A Demerge: is where a ‘Source’ Employing Authority sheds part or parts of its organisation and related assignments to become part of a separate ‘Target’ Employing Authority. It is also defined as the complete transfer of a group of employees from one EA to another (normally under TUPE regulations), and will result in the complete removal of their records from the Source EA. Each transfer is classified as a “Demerge event”. 7

What to do next If you are considering a ‘soft split’ for the General Ledger Interface please raise a Service Request to express your interest by 31 st January 2011 for the attention of the NHS Interface Team (ESRNHSINT queue)