Notes to the Accounts

1. Accounting Policies

These financial statements have been prepared in a form directed by the Secretary of State and in accordance with the Financial Reporting Manual (FReM) 2025 to 2026, issued by HM Treasury. The accounting policies contained in the FReM follow International Financial Reporting Standards (IFRS) as adapted or interpreted for the public sector context. Where the FReM permits a choice of accounting policy, the accounting policy that is judged to be most appropriate to the particular circumstances of NHS Counter Fraud Authority (NHSCFA) for the purpose of giving a true and fair view has been selected. The particular policies adopted are described below. These have been applied consistently in dealing with items considered material in relation to the accounts.

1.1 Going Concern

NHSCFA’s Annual Report and Accounts have been prepared on a going concern basis.

The NHSCFA draws its funding from the Department of Health and Social Care (DHSC). Parliament has demonstrated its commitment to fund DHSC for the foreseeable future, and DHSC has demonstrated its commitment to the funding of the NHSCFA. There is no evidence that the services we provide will not continue into the future, and therefore we have applied continuation of service provision in making our decision to use the going concern assumption.

1.2 Accounting Convention

These accounts have been prepared under the historical cost convention, modified where material to account for the revaluation of property, plant and equipment, intangible assets, and certain financial assets and financial liabilities.

1.3 Critical judgements and key sources of estimation uncertainty

In the application of the Authority’s accounting policies, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors, that are considered to be relevant. Actual results may differ from those estimates. The estimates and underlying assumptions are continually reviewed. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

NHSCFA do not consider any judgements or uncertainties to be critical.

1.4 Income

In the application of IFRS 15 a number of practical expedients offered in the Standard have been employed. These are as follows;

• NHSCFA does not disclose information regarding performance obligations part of a contract that has an original expected duration of one year or less,
• NHSCFA is to similarly not disclose information where revenue is recognised in line with the practical expedient offered in the Standard, where the right to consideration corresponds directly with value of the performance completed to date,
• The FReM has mandated the exercise of the practical expedient offered in the Standard that requires NHSCFA to reflect the aggregate effect of all contracts modified before the date of initial application.

Income in respect of services provided is recognised when (or as) performance obligations are satisfied by transferring promised services to the customer and is measured at the amount of the transaction price allocated to that performance obligation.

Operating income is income which relates directly to the operating activities of the Authority. It principally comprises charges for services provided on a full-cost basis to external customers, as well as public repayment work. Where income is received for a specific activity which is to be delivered in the following financial year, that income is deferred.

1.4.1 Revenue from contracts with customers

The Authority’s Other Contract Income relates to services provided to UK Devolved Administrations and Crown Dependencies.

1.5 Parliamentary funding

The main source of funding of the Authority is Parliamentary Funding from the Department of Health and Social Care within an approved cash limit, which is credited to the general fund. Parliamentary funding is recognised in the financial period in which it is received.

1.6 Employee benefits

1.6.1 Short-term employee benefits

Salaries, wages and employment-related payments, including payments arising from the apprenticeship levy, are recognised in the period in which the service is received from employees. The cost of leave earned but not taken by employees at the end of the period is recognised in the financial statements to the extent that employees are permitted to carry forward leave into the following period.

1.6.2 Retirement benefit costs

Most past and present employees are covered by the provisions of the NHS Pensions Scheme. This scheme is an unfunded, defined benefit scheme that covers NHS employers, General Practices and other bodies allowed under the direction of the Secretary of State for Health and Social Care. The scheme is not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, the scheme is accounted for as though it were a defined contribution scheme: the cost to NHSCFA of participating in the scheme is taken as equal to the contributions payable to the scheme for the accounting period.

For early retirements other than those due to ill health the additional pension liabilities are not funded by the scheme. The full amount of the liability for the additional costs is charged to expenditure at the time NHSCFA commits itself to the retirement, regardless of the method of payment.

The scheme is subject to a full actuarial valuation every four years and an accounting valuation every year.

1.7 Operating expenses

Operating expenses are recognised when, and to the extent that, the goods or services have been received. They are measured at the fair value of the consideration payable.

1.7.1 Value added tax

Most of the activities of NHSCFA are outside the scope of value added tax (VAT). Irrecoverable VAT is charged to the relevant expenditure category or included in the capitalised purchase cost of non-current assets. Where output tax is charged or input VAT is recoverable, the amounts are stated net of VAT.

1.8 Property, plant and equipment

1.8.1 Recognition

Property, plant and equipment is capitalised if:

• it is held for use in delivering services or for administrative purposes;
• it is probable that future economic benefits will flow to, or service potential will be supplied to NHSCFA;
• it is expected to be used for more than one financial year;
• the cost of the item can be measured reliably; and either
• the item has a cost of £5,000 or more; or
• collectively, a number of items have a cost of at least £5,000 and individually have a cost of more than £250, where the assets are functionally interdependent, had broadly simultaneous purchase dates, are anticipated to have simultaneous disposal dates and are under single managerial control; or
• it forms part of the initial setting-up cost of a new building, irrespective of their individual or collective cost.

1.8.2 Measurement

All property, plant and equipment (PPE) are initially measured at cost, comprising expenditure directly attributable to bringing the asset into the location and condition necessary for it to operate as intended by management. Subsequently, assets held for their service potential and in use are measured at current value in existing use. Assets which are surplus to requirements are measured at fair value where there are no restrictions preventing access to the market at the reporting date.

In line with the 2025–26 FReM updates, non-investment assets (including PPE and intangible assets) are no longer subject to a mandatory annual revaluation or formal valuation assessment. Instead, revaluations are only undertaken where there is an indication that carrying value may be materially misstated, with management applying judgement to ensure that assets are not carried at amounts materially different from their current value at the reporting date.

Right-of-use (ROU) assets arising from leases are recognised in accordance with IFRS 16. These are initially measured at cost, comprising the lease liability, lease payments made at or before commencement, direct costs incurred, less any lease incentives received, and an estimate of restoration costs. Subsequent measurement follows the HM Treasury interpretation for the public sector, with ROU assets measured using a revaluation model where appropriate, unless the cost model is considered a suitable proxy for current value in existing use or fair value, consistent with the policy applied to owned assets. Where consideration is significantly below market value, the cost model is not considered an appropriate proxy.

Fixtures and IT equipment are capitalised at cost and, due to their short useful lives and low individual values, are carried at depreciated historic cost as a proxy for current value in existing use. Depreciation is charged over a useful life that reflects the expected pattern of consumption of economic benefits or service potential.

Revaluation gains are recognised in the revaluation reserve, except where they reverse a previous impairment recognised in expenditure, in which case they are credited to expenditure to that extent. Revaluation losses that do not arise from a loss of economic value or service potential are first offset against any balance in the revaluation reserve and thereafter recognised in expenditure. Gains and losses recognised in the revaluation reserve are reported in other comprehensive net expenditure.

The Authority does not currently hold any revalued assets and therefore does not maintain a revaluation reserve. All fixed assets are held at depreciated historic cost as a proxy for current value in existing use.

1.9 Intangible assets

1.9.1 Recognition

Intangible assets are non-monetary assets without physical substance, which are capable of sale separately from the rest of NHSCFA’s business or which arise from contractual or other legal rights. They are recognised only when it is probable that future economic benefits will flow to, or service potential be provided to, NHSCFA; where the cost of the asset can be measured reliably; and where the cost is at least £5,000.

Software that is integral to the operating of hardware, for example an operating system, is capitalised as part of the relevant item of property, plant and equipment. Software that is not integral to the operation of hardware, for example application software, is capitalised as an intangible asset

Expenditure on research is not capitalised: it is recognised as an operating expense in the period in which it is incurred. Internally generated assets are recognised if, and only if, all of the following have been demonstrated:

• the technical feasibility of completing the intangible asset so that it will be available for use;
• the intention to complete the intangible asset and use it;
• the ability to sell or use the intangible asset;
• how the intangible asset will generate probable future economic benefits or service potential;
• the availability of adequate technical, financial and other resources to complete the intangible asset and sell or use it; and
• the ability to measure reliably the expenditure attributable to the intangible asset during its development.

1.9.2 Measurement

Intangible assets are initially measured at cost, comprising expenditure directly attributable to the acquisition, development and preparation of the asset for its intended use. Subsequently, intangible assets held for their service potential are measured at current value in existing use where an active market exists; however, in most cases, due to the absence of active markets, they are carried at amortised historic cost as a proxy for current value in existing use.

In line with the 2025–26 FReM updates, non-investment assets, including intangible assets, are no longer subject to a mandatory annual revaluation or formal valuation assessment. Instead, management applies judgement to ensure that carrying values are not materially misstated, with revaluation or impairment only undertaken where there is an indication of a material change in value.

Amortisation is charged on a systematic basis over the asset’s useful economic life, reflecting the pattern in which the asset’s future economic benefits or service potential are expected to be consumed. Useful lives and amortisation methods are reviewed annually.

Impairment losses are recognised where the recoverable amount of an asset falls below its carrying value and are charged to expenditure in the Statement of Comprehensive Net Expenditure.

1.10 Depreciation, amortisation and impairments

Depreciation and amortisation is charged to write off the costs or valuation of property, plant and equipment, right of use assets and intangible assets, less any residual value, on a straight-line basis over their estimated useful lives. The estimated useful life of an asset is the period over which NHSCFA expects to obtain economic benefits or service potential from the asset. This is specific to NHSCFA and may be shorter than the physical life of the asset itself. Estimated useful lives and residual values are reviewed each year end, with the effect of any changes recognised on a prospective basis.

At each financial year end, NHSCFA checks whether there is any indication that its property, plant and equipment or intangible assets have suffered an impairment loss. If there is indication of such an impairment, the recoverable amount of the asset is estimated to determine whether there has been a loss and, if so, its amount. Intangible assets not yet available for use are tested for impairment annually at the financial year end.

Impairment losses that arise from a clear consumption of economic benefit are taken to expenditure. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount but capped at the amount that would have been determined had there been no initial impairment loss. The reversal of the impairment loss is credited to expenditure.

1.11 Leases

1.11.1 Leases

A lease is a contract or part of a contract that conveys the right to use an asset for a period of time in exchange for consideration. An adaptation of the relevant accounting standard by HM Treasury for the public sector means that for NHS bodies, this includes lease-like arrangements with other public sector entities that do not take the legal form of a contract. It also includes peppercorn leases where consideration paid is nil or nominal (significantly below market value) but in all other respects meet the definition of a lease. The NHS body does not apply lease accounting to new contracts for the use of intangible assets.

The Authority determines the term of the lease term with reference to the non cancellable period and any options to extend or terminate the lease which the Authority is reasonably certain to exercise.

1.11.2 The Authority as lessee

Recognition and initial measurement

At the commencement date of the lease, being when the asset is made available for use, the Authority recognises a right of use asset and a lease liability

The right of use asset is recognised at cost comprising the lease liability, any lease payments made before or at commencement, any direct costs incurred by the lessee, less any cash lease incentives received. It also includes any estimate of costs to be incurred restoring the site or underlying asset on completion of the lease term.

The lease liability is initially measured at the present value of future lease payments discounted at the interest rate implicit in the lease. Lease payments includes fixed lease payments, variable lease payments dependent on an index or rate and amounts payable under residual value guarantees. It also includes amounts payable for purchase options and termination penalties where these options are reasonably certain to be exercised.

Where an implicit rate cannot be readily determined, the Authority’s incremental borrowing rate is applied. This rate is determined by HM Treasury annually for each calendar year. A nominal rate of 4.81% applied to new leases commencing in 2025 and 5.32% to new leases commencing in 2026.

The Authority does not apply the above recognition requirements to leases with a term of 12 months or less or to leases where the value of the underlying asset is below £5,000, excluding any irrecoverable VAT. Lease payments associated with these leases are expensed on a straight-line basis over the lease term or other systematic basis. Irrecoverable VAT on lease payments is expensed as it falls due.

Subsequent measurement

As required by a HM Treasury interpretation of the accounting standard for the public sector, the Authority employs a revaluation model for subsequent measurement of right of use assets, unless the cost model is considered to be an appropriate proxy for current value in existing use or fair value, in line with the accounting policy for owned assets. Where consideration exchanged is identified as significantly below market value, the cost model is not considered to be an appropriate proxy for the value of the right of use asset.

The Authority subsequently measures the lease liability by increasing the carrying amount for interest arising which is also charged to expenditure as a finance cost and reducing the carrying amount for lease payments made. The liability is also remeasured for changes in assessments impacting the lease term, lease modifications or to reflect actual changes in lease payments. Such remeasurements are also reflected in the cost of the right of use asset. Where there is a change in the lease term or option to purchase the underlying asset, an updated discount rate is applied to the remaining lease payments.

1.12 Cash and cash equivalents

Cash is cash in hand and deposits with any financial institution repayable without penalty on notice of not more than 24 hours. Cash equivalents are investments that mature in 3 months or less from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and that form an integral part of NHSCFA’s cash management. Cash, bank and overdraft balances are recorded at current values.

1.13 Provisions

Provisions are recognised when NHSCFA has a present legal or constructive obligation as a result of a past event, it is probable that NHSCFA will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the expenditure required to settle the obligation at the end of the reporting period, taking into account the risks and uncertainties. Where a provision is measured using the cash flows estimated to settle the obligation, its carrying amount is the present value of those cash flows using HM Treasury’s discount rates.

Early retirement provisions are discounted using HM Treasury’s pension discount rate of negative 2.95% (2024 to 2025: negative 2.40%) in real terms. All general provisions are subject to four separate discount rates according to the expected timing of cashflows from the Statement of Financial Position date:

• A nominal short-term rate of 3.64% (2024 to 2025: positive 4.03%) for inflation adjusted expected cash flows up to and including 5 years from Statement of Financial Position date.
• A nominal medium-term rate of 4.22% (2024 to 2025: 4.07%) for inflation adjusted expected cash flows over 5 years up to and including 10 years from the Statement of Financial Position date.
• A nominal long-term rate of 5.32% (2024 to 2025: 4.81%) for inflation adjusted expected cash flows over 10 years and up to and including 40 years from the Statement of Financial Position date.
• A nominal very long-term rate of 5.07% (2024 to 2025: 4.55%) for inflation adjusted expected cash flows exceeding 40 years from the Statement of Financial Position date.

1.14 Contingent liabilities and contingent assets

A contingent liability is:

• a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of NHSCFA; or
• present obligation that is not recognised because it is not probable that a payment will be required to settle the obligation, or the amount of the obligation cannot be measured sufficiently reliably.

A contingent liability is disclosed unless the possibility of a payment is remote.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of NHSCFA. A contingent asset is disclosed where an inflow of economic benefits is probable.

Where the time value of money is material, contingent liabilities and contingent assets are disclosed at their present value.

1.15 Financial assets

Financial assets are recognised when NHSCFA becomes party to the contractual provision of the financial instrument or, in the case of trade receivables, when the goods or services have been delivered. Financial assets are derecognised when the contractual rights have expired or when the asset has been transferred and NHSCFA has transferred substantially all of the risks and rewards of ownership or has not retained control of the asset.

Financial assets are initially recognised at fair value plus or minus directly attributable transaction costs for financial assets not measured at fair value through profit or loss. Fair value is taken as the transaction price, or otherwise determined by reference to quoted market prices, where possible, or by valuation techniques.

Financial assets are classified into the following categories: financial assets at amortised cost, financial assets at fair value through other comprehensive income, and financial assets at fair value through profit and loss. The classification is determined by the cash flow and business model characteristics of the financial assets, as set out in IFRS 9, and is determined at the time of initial recognition.

1.15.1 Impairment

All of the NHSCFA’s financial assets are measured at amortised cost, as they are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and where the cash flows are solely payments of principal and interest. This includes all trade and other receivables.

After initial recognition, these financial assets are measured at amortised cost using the effective interest method, less any impairment. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the life of the financial asset to the gross carrying amount of the financial asset.

For all financial assets measured at amortised cost, the NHSCFA recognises a loss allowance representing expected credit losses on the financial instrument.

The NHSCFA adopts the simplified approach to impairment, in accordance with IFRS 9, and measures the loss allowance for trade receivables, contract assets and lease receivables at an amount equal to lifetime expected credit losses. For other financial assets, the loss allowance is measured at an amount equal to lifetime expected credit losses if the credit risk on the financial instrument has increased significantly since initial recognition (stage 2), and otherwise at an amount equal to 12-month expected credit losses (stage 1).

HM Treasury has ruled that central government bodies may not recognise stage 1 or stage 2 impairments against other government departments, their executive agencies, the Bank of England, Exchequer Funds, and Exchequer Funds’ assets where repayment is ensured by primary legislation. The NHSCFA therefore does not recognise loss allowances for stage 1 or stage 2 impairments against these bodies. Additionally, the Department of Health and Social Care provides a guarantee of last resort against the debts of its arm’s length bodies and NHS bodies (excluding NHS charities), and NHSCFA does not recognise loss allowances for stage 1 or stage 2 impairments against these bodies.

For financial assets that have become credit impaired since initial recognition (stage 3), expected credit losses at the reporting date are measured as the difference between the asset’s gross carrying amount and the present value of the estimated future cash flows discounted at the financial asset’s original effective interest rate. Any adjustment is recognised in profit or loss as an impairment gain or loss.

1.16 Financial liabilities

Financial liabilities are recognised when NHSCFA becomes party to the contractual provisions of the financial instrument or, in the case of trade payables, when the goods or services have been received. Financial liabilities are de-recognised when the liability has been extinguished – that is, the obligation has been discharged or cancelled or has expired.

1.16.1 Other Financial liabilities

All of NHSCFA’s financial liabilities are measured at amortised cost. After initial recognition, all other financial liabilities are measured at amortised cost using the effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash payments through the life of the asset, to the amortised cost of the financial liability.

1.17 Foreign Currencies

NHSCFA’s functional currency and presentational currency is pounds sterling, and figures are presented in thousands of pounds unless expressly stated otherwise. Transactions denominated in a foreign currency are translated into sterling at the spot exchange rate on the date of the transaction. At the end of the reporting period, monetary items denominated in foreign currencies are retranslated at the spot exchange rate on 31 March.

Exchange gains and losses on monetary items (arising on settlement of the transaction or on retranslation at the Statement of Financial Position date) are recognised in the Statement of Comprehensive Net Expenditure in the period in which they arise.

1.18 Losses and Special Payments

Losses and special payments are items that Parliament would not have contemplated when it agreed funds for the health service or passed legislation. By their nature they are items that ideally should not arise. They are therefore subject to special control procedures compared with the generality of payments. They are divided into different categories, which govern the way that individual cases are handled.

Losses and special payments are charged to operating expenditure on an accruals basis, including losses which would have been made good through insurance cover had NHSCFA not been bearing its own risks (with insurance premiums then being included as normal revenue expenditure).

1.19 Standards, amendments and interpretations in issue but not yet effective or adopted

The Government Financial Reporting Manual (FReM) does not yet require the application of the following IFRS Standards for 2025–26. While these standards have received UK endorsement, they have not yet been adopted within the FReM and are therefore not applied in these financial statements.

IFRS 18 Presentation and Disclosure in Financial Statements - The Standard is effective for accounting periods beginning on or after 1 January 2027. The Standard is UK endorsed and not yet adopted by the FReM. Early adoption is not permitted. The expected impact of applying the standard in future periods has not yet been assessed.

IFRS 19 Subsidiaries without Public Accountability: Disclosures - The Standard is effective for accounting periods beginning on or after 1 January 2027. The Standard is UK endorsed and not yet adopted by the FReM. Early adoption is not permitted. The expected impact of applying the standard in future periods has not yet been assessed.

2. Other operating income

Income from contracts all related to services provided to UK Devolved Administrations.

Performance obligations relating to all services provided are satisfied over time and fall entirely within the financial year.

Other non-contract revenue relates to training income, employee lease car contributions and recovery of legal costs.

3. Employee benefits and staff numbers

3.1.1 Employee benefits

3.1.2 Retirements due to ill health

The Authority had no compensation payments or additional pension liabilities arising from early retirement or loss of office as at 31st March 2026 (31st March 2025 nil)

3.2 Pension Costs

Most past and present employees are covered by the provisions of the NHS Pension Schemes. Details of the benefits payable and rules of the schemes can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions. Both the 1995/2008 and 2015 schemes are accounted for, and the scheme liability valued, as a single combined scheme. Both are unfunded defined benefit schemes that cover NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State for Health and Social Care in England and Wales. They are not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, each scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS body of participating in each scheme is taken as equal to the contributions payable to that scheme for the accounting period.

In order that the defined benefit obligations recognised in the financial statements do not differ materially from those that would be determined at the reporting date by a formal actuarial valuation, the FReM requires that “the period between formal valuations shall be four years, with approximate assessments in intervening years”. An outline of these follows:

3.2.1 Accounting valuation

A valuation of scheme liability is carried out annually by the scheme actuary (currently the Government Actuary’s Department) as at the end of the reporting period. This utilises an actuarial assessment for the previous accounting period in conjunction with updated membership and financial data for the current reporting period, and is accepted as providing suitably robust figures for financial reporting purposes. The valuation of the scheme liability as at 31 March 2026, is based on valuation data as at 31 March 2023, updated to 31 March 2026 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used.

The latest assessment of the liabilities of the scheme is contained in the Statement by the Actuary, which forms part of the annual NHS Pension Scheme Annual Report and Accounts. These accounts can be viewed on the NHS Pensions website and are published annually. Copies can also be obtained from The Stationery Office.

3.2.2 Full actuarial (funding) valuation

The purpose of this valuation is to assess the level of liability in respect of the benefits due under the schemes (considering recent demographic experience), and to recommend the contribution rate payable by employers. The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2020. The results of this valuation set the employer contribution rate payable from 1 April 2024 to 23.7% of pensionable pay. The core cost cap cost of the scheme was calculated to be outside of the 3% cost cap corridor as at 31 March 2020. However, when the wider economic situation was taken into account through the economic cost cap cost of the scheme, the cost cap corridor was not similarly breached. As a result, there was no impact on the member benefit structure or contribution rates.

The 2024 actuarial valuation is currently being prepared and will be published before new contribution rates are implemented from April 2027.

4. Operating expenses

1. Information on Losses and Special Payments can be found within the Parliamentary accountability and audit report.

5. Finance Expenditure

Finance expenditure represents interest and other charges involved in the borrowing of money or asset financing.

6. Right of Use Assets

The lease for the Citygate property expired on 1 April 2025 and was disposed of at that date.

6.1 Reconciliation of the carrying value of lease liabilities

Lease liabilities are included within borrowings in the statement of financial position. A breakdown of borrowings is disclosed in note 12.

6.2 Maturity analysis of future lease payments at 31 March

7. Property, plant and equipment

7.1 2025/26 Property, plant and equipment

7.2 2024/25 Property, plant and equipment

7.3 Cost or valuation of fully depreciated assets

The cost or valuation of fully depreciated assets still in use was £476k (2024/25: £424k). These primarily relate to digital storage facilities. These assets are expected to be disposed of during 2026-27.

7.4 Economic lives

Buildings excluding dwellings only include the cost of improvements to leasehold premises, which are written off over the term of the lease; hence the low values for minimum and maximum life.

8. Intangible non-current assets

8.1 2025/26 Intangible non-current assets

8.2 2024/25 Intangible non-current assets

In 2024 to 2025, there was one software licence included above which had a carrying value which was significant to the financial statements. The licence relates to the Authority’s data analytics software and had a carrying value of £633k and remaining amortisation period of 21 months.

8.3 Cost or valuation of fully depreciated assets

The cost or valuation of fully amortised assets still in use was £24k (2024/25: £30k). This value relates to internally generated computer software.

8.4 Economic lives

9. Trade and other receivables

10. Cash and cash equivalents

There were no cash equivalents at 31st March 2026 (2024/25 nil).

11. Trade and other payables

There were no non-current payables at 31st March 2026 (2024/25 nil).

12. Borrowings

12.1 Current Borrowings

12.2 Non-Current Borrowings

13. Provisions

13.1 Provisions

13.2 Provisions movements and expected timing

14. Contingent Liabilities and Contingent Assets

14.1 Contingent liabilities

The Authority is currently subject to two employment tribunal claims arising in the normal course of business. At the balance sheet date, these claims are not considered sufficiently certain to meet the recognition criteria for provisions under IAS 37. Accordingly, no provision has been recognised. The estimated potential financial exposure is £115,000, although the timing and outcome remain uncertain (2024 to 2025 nil).

14.2. Contingent assets

There were no contingent assets at 31 March 2026 (2024 to 2025 nil).

15. Commitments

15.1. Capital commitments

The Authority had no contracted capital commitments at 31st March 2026 (2024 to 2025 nil).

15.2. Other financial commitments

The Authority had no other financial commitments at 31st March 2026 (2024 to 2025 nil).

16. Financial instruments

16.1 Financial risk management

Financial reporting standard IFRS 7 requires disclosure of the role that financial instruments have had during the period in creating or changing the risks a body faces in undertaking its activities

As the cash requirements of the Authority are met primarily through Parliamentary Funding, financial instruments play a more limited role in creating risk that would apply to a non-public sector body of a similar size. The majority of financial instruments relate to contracts for non-financial items in line with the Authority’s expected purchase and usage requirements and the Authority is therefore exposed to little credit, liquidity or market risk

16.1.1 Currency risk

The Authority is principally a domestic organisation with the great majority of transactions, assets and liabilities being in the UK and sterling based. The Authority has no overseas operations. The Authority therefore has low exposure to currency rate fluctuations.

16.1.2 Interest rate risk

All of the Authority’s financial assets and financial liabilities carry nil or fixed rates of interest. The Authority is not, therefore, exposed to significant interest-rate risk.

16.1.3 Credit risk

Because the majority of the Authority’s income come from funds voted by Parliament and from other public bodies the Authority has low exposure to credit risk.

16.1.4 Liquidity risk

The Authority’s net operating costs are financed from resources voted annually by Parliament. The Authority largely finances its capital expenditure from funds made available from Government under an agreed capital resource limit. The Authority is not, therefore, exposed to significant liquidity risks.

16.2 Financial assets

16.3 Financial liabilities

All of the above financial liabilities have a maturity date within one year.

All of the above financial liabilities have a maturity date within one year.

17. Operating Segments

The Authority operates as a single segment, which is counter fraud.

This work is within one main geographical segment, the United Kingdom.

18. Related party transactions

The Authority is a corporate body established by order of the Secretary of State for Health and Social Care.

The Department of Health and Social Care is regarded as a related party. During the year the Authority had a significant number of material transactions with the Department and with other entities for which the Department is regarded as the parent Department, including NHSBSA.

In addition, the Authority has had a number of material transactions with one other central government department. All of these transactions have been with HM Revenue and Customs.

During the year none of the Department of Health and Social Care Ministers, Authority board members or members of the key management staff, or parties related to any of them, has undertaken any material transactions with the NHS Counter Fraud Authority.

The values including closing balances as at 31 March 2026 and prior year comparatives, are provided in the tables below.

2025/26

¹ Expenditure with HM Revenue and Customs relates to payroll deductions.
² Expenditure with Department of Health and Social Care relates to building lease costs.
³ Expenditure with NHS Business Services Authority relates to contracted services.

2024/25

¹ Expenditure with HM Revenue and Customs relates to payroll deductions.
² Expenditure with Department of Health and Social Care relates to building lease costs.
³ Expenditure with NHS Business Services Authority relates to contracted services.

19. Events after the reporting period

The Accounts were authorised for issue by the NHS Counter Fraud Authority Chief Executive and Accounting Officer on the same date as the C&AG's certificate.

20. Registered Office

The registered office for the NHS Counter Fraud Authority is:

NHS Counter Fraud Authority
7th Floor
HM Government Hub
10 South Colonnade
Canary Wharf
London
E14 4PU