Practice in danger of losing cash by failing to claim refunds

Detailed questioning by AISMA accountant Honey Barrett revealed a pattern of
persistent under-claiming at a small medical practice in the South East. The
three-partner GMS practice had been without a practice manager for a year
following the resignation without notice of the previous incumbent.
With no-one focusing on funding claims, matters slipped and it was only when
Honey Barrett started to prepare the year-end accounts that the full picture
emerged. Liz Densley, director, Honey Barrett said: “An important part of our
function at the year end is to assess where funding claims have been made. It was
clear that this practice was in a terrible mess and was in danger of letting cash slip
through its fingers, all because legitimate claims had not gone in.”
To start with no reimbursements from the PCT had been claimed for water rates or
refuse and the practice stood to lose more than £2,000. An overpayment of £2,000
made to the practice’s previous gas supplier had not been retrieved before switching
to a new supplier. Payments of more than £3,000 the practice was entitled to
through the flexible career scheme had not been claimed from the PCT. The
practice had not notified the PCT of the correct salary for the practice’s salaried GPs
and consequently had overpaid superannuation by nearly £3,000. Under-claimed
VAT stood at £2,000. Finally the practice had failed to claim for processing disabled
blue badges – an estimated £2,000. In all £14,000 of under-claimed or underpaid
funding was identified by Honey Barrett.
Liz Densley concludes: “Like many doctors and practice managers, the GPs and
practice manager at this practice were worried about the depth and quantity of the
questions we asked. However, when the questions revealed the amount the practice
stood to gain, the doctors realised the value of our approach.”

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  • Liz Densley
  • AISMA Secretary
  • Honey Barrett Ltd
  • 48 St Leonards Road
  • BEXHILL ON SEA
  • TN40 1JB
  • T:01424730345
  • F: 01424730330