Page 85 - Pharmacy Appeals 1/4/04 to 31/3/05

NHS Resolution Annual report and accounts 2021/22 61

As noted above (see Item 3 under Figure 16), some Table 9: Annually Managed Expenditure
favourable movements in key assumptions, most
significantly financial assumptions in relation to future
Annually Managed (fm) (fm)
inflation rates, have had a positive impact on AME
Expenditure
this year. Flowever, the impact of the HM Treasury
discount rate changes (Item 6 under Figure 16) was Budget 45,938
underestimated in the budget. A gross adjustment
Expenditure
of £4,612 million was applied to the 2021/22 known
claims provision to align expected settlement timings Net cost of new claims 3,143
with an actuarial view of timing of cashflows (Item 4 provisions
under Figure 16). This is partially offset by the increase
Change in discount rate 42,623
of £2,457 million of the provision at 31 March 2021.
Settlement of provisions (2,458)
The net effect of these factors has resulted in an
underspend on the AME budget of £2,630 million. Total expenditure 43,308
Flowever, there is no specific budgetary cover provided
Under/(overspend) 2,630
for the prior year adjustment of £2,457 million, and this
has been reported to DFISC as a budgetary breach.