LETTER : The best possible returns for trusts

Colin L. Reeves
Sunday 05 March 1995 19:02 EST
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From Mr Colin L. Reeves

Sir: I was most concerned to read the headline "Health service managers lack a sense of balance" (22 February). The National Audit Office examined a sample of NHS trusts and found that all had developed treasury management policies in line with best professional practice. NHS trusts are expected to earn the best possible return on any temporary cash surplus they may hold, but this must be consistent with appropriate management effort, costs and the minimisation of risk.

The NAO report found that the NHS Executive had provided a firm foundation on which trusts can build their investment management policies. The Executive's role is to encourage NHS trusts regularly to review these policies and procedures to comply with best practice.

The prime aim will be to ensure that trusts set an investment strategy where cash is available when needed, risk of loss of deposit and transaction costs are minimised and an acceptable rate of interest is earned.

Yours faithfully,

COLIN L. REEVES

Director of Finance and

Corporate Information

NHS Executive

Leeds

28 February

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