REPORTTITLE-UHBristolNHSFT.docVIP

capital Investment policy Owner Robert Woolley, Director of Corporate Development Version 2 18 July 2008 Submitted to Capital Prioritisation Group 16 July to note. Submitted to Trust Executive Group 23 July 2008 to support. Submitted to Trust Board for approval 29 July 2008 Version 1 24 June 2008 Draft considered at Trust Board 1 July 2008 Purpose This policy sets out the governance arrangements for capital investments undertaken by the University Hospitals Bristol Foundation Trust. The policy takes into account the best practice guidance issued by Monitor, particularly that contained in Risk Evaluation for Investment Decisions by NHS Foundation Trusts (Monitor, February 2006). This policy will be subject to annual review by the Board of Directors. It should be read in conjunction with the standing orders and standing financial instructions of the Trust. Scope The policy applies to capital investments by the University Hospitals Bristol Foundation Trust. It does not apply to investment of in-year surplus operating cash, pension funds, funds of associated charities or funds managed on behalf of other organisations. Particular consideration is given to capital investments classed as major or high-risk. The Trust’s definition of a major investment is given in section 4. The Trust follows the Monitor definition of high risk investments as below: Reportable transactions: all investments that are reportable to Monitor under the thresholds for reporting investments in the Compliance Framework. The applicable thresholds are shown at Annex 1. Other transactions: all investments that have any one or more of the following characteristics: an equity component, which is defined as any participation involving shares and securities, debt instruments convertible into equity, options conferring the right to acquire equity in the future, royalties, participation in the profits of the enterprise, and all types of mezzanine f