Catalogue description Records of the Accountant General's Department

The Accountant General's Department was established in 1919. It was responsible for financial matters relating to the work of the ministry, including accounting, contracts and regional finance.

As with other sections of the ministry, the department's functions were considerably augmented after the establishment of the National Health Service under the provisions of the National Health Service Act 1946, and subsequent legislation. New responsibilities included the financial supervision of hospitals and the regional divisions of the National Health Service.

The department also became responsible for the administration of the Hospital Endowments Fund.The Hospital Endowment Fund was established under s7(4) of the National Health Services Act 1946. On 5 July 1948 the endowments of all hospitals, except those designated as teaching hospitals, were transferred to the Minister of Health. The endowments of teaching hospitals were transferred to the new Boards of Governors.

The assets of the Hospital Endowments Fund were invested and the income was distributed each year to Regional Hospital Boards and Hospital Management Committees Originally this distribution was in proportion to the number of staffed beds maintained and controlled by Regional Hospital Boards and Hospital Management Committees on 31 December 1948 but under s7(1) of the Health Services and Public Health Act 1968 the Secretary of State could vary the proportions in which the income was distributed.

The National Health Service (Hospital Endowments Fund Distribution of Income) Regulations 1969 [S.I. 1969/1425] provided that the distribution in any financial year should be proportionate to the average number of occupied beds maintained or controlled by Hospital Management Committees and Regional Hospital Boards during the preceding calendar year, the number of beds used for treatment of certain categories of patients (mainly long stay) being counted twice. This related the distribution of income more closely to the current position in the hospital service.

The Hospital Endowments Fund was wound up by the National Health Service Reorganisation Act 1973 s23(1) and in accordance with the National Health Service (Hospital Endowments Fund Distribution of Assets) Order 1974 [S.I. 1974/1915] the fund's assets were distributed to Regional Health Authorities, Area Health Authorities and Special Trusts. The distribution of these assets was in accordance with responsibility for hospitals as at 1 April 1974 and was based upon the weighted average number of occupied beds during the year 1973 in non-teaching hospitals.