8.78 Where the unitary payment is allocated between the acquisition of a residual interest (recorded on the balance sheet) and the cost of services (charged to the operating cost statement), this may result in an additional cash requirement for the NHSScotland body, since only the cost of services will be included in the charge against the RRL.
8.79 It is a matter of principle that healthcare economies should bear the total costs of their PPP schemes. It is important that bodies ensure that their cash requirements reflect the full costs of PPP Schemes in terms of both revenue and capital. Bodies must demonstrate that the accounting implications of residual interests have been considered fully in order to receive FBC approval.
8.80 Annex 2 sets out the flows of funds between Bodies, together with an overview of the technical accounting required. Once the unitary payment and the value of the residual interest are known, the SGHD should be notified the capital funding requirements to cover the addition to Bodies' tangible fixed assets in respect of building up the residual interest and the revenue element will normally be expected to be covered by Bodies' RRLs.