NSS is currently on track to meet its key financial targets for FY16, which can be summarised as:

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Allison McCormick
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1 B/15/86 NSS Formal Board Meeting Friday, 4 September 2015 Finance Paper Purpose The purpose of the attached paper is to summarise our financial performance for the financial year, as at 31 July 2015 with appropriate supporting commentary. Recommendation The Board is asked to note the attached document. Timing N/A Background NSS is currently on track to meet its key financial targets for FY16, which can be summarised as: NSS Target RAG rating* YTD Position Full Year Forecast Reference Revenue outturn Green 0.2m Breakeven Section 2 Capital outturn Green Breakeven Breakeven CRES savings Green 39% 108% Section 3 *Key Red: Target will not be met Amber: Uncertainty over whether target will be met Green: On target Engagement The information in this paper is based on the monthly submissions from the SBU s. Carolyn Low Director of Finance and Business Services carolynlow@nhs.net Page 1 of 6

National Services Scotland NSS BOARD FINANCE REPORT FOR THE YEAR TO 31 st July 2015 1.

2 National Services Scotland NSS BOARD FINANCE REPORT FOR THE YEAR TO 31 st July LDP FINANCIAL TARGETS NSS is currently on track to meet its key financial targets for FY15, which can be summarised as: NSS Target RAG rating* YTD Position Full Year Forecast Reference Revenue outturn Green 0.2m Breakeven Section 2 Capital outturn Green Breakeven Breakeven CRES savings Green 39% 108% Section 3 *Key Red: Target will not be met Amber: Uncertainty over whether target will be met Green: On target 2. REVENUE OUTTURN The revenue position as at the end of July is showing a surplus of 0.2m and the full year forecast is break-even as detailed below: YTD Actual YTD v Budget YTD v Budget % FY Forecast NSS Baseline Allocation 94, % 290,430 SG Allocation 34, % 110,120 NHSS Health Board Trading 86,314 1,428 2% 259,201 SGHD Trading 283 (14) -5% 964 Non-NHSS Income 2,890 (101) -3% 8,373 Total Income 217,948 1,314 1% 669,089 Pay 47, % 144,818 Non Pay 37,985 (693) -2% 123,744 Depreciation/Capital Charges 3, % 11,661 Purchase of Healthcare 68, % 206,930 Cost Of Sales (Logistics) 59,580 (1,349) -2% 180,847 AME 0 (128) 1,089 Total Expenditure 217,712 (1,338) -1% 669,089 Net Surplus/(Deficit) 236 (24) 0 The main points to note are: 1 Income o PCF Logistics throughput is up 1.4m year to date which is matched by the variance to budget against cost of sales. Page 2 of 6

3 o SNBTS income is up by 0.2m as a result of increased demand from both health bodies and third parties. o PHI income is down by 0.4m which relates to shortfall against income targets. However this is largely offset by lower than budgeted levels of expenditure mainly against pay. Expenditure o The year to date under spend on pay relates to vacancies across all SBU s. The planned recruitment of these vacancies is reflected in the full year forecast. o The financial plan for the year had a net 2.6m deficit to be met through in year savings. The non pay variance year to date relates to this savings target. However year to date the savings have been met through pay. Appendix 1 provides an extract of the major variances by SBU. 3. EFFICIENCY SAVINGS The CRES target is set at 3% of the baseline allocation which for NSS is 8.9m. The SBU planned efficiencies exceeded the CRES target by 3.5m and are forecasting to exceed the LDP CRES target for FY16 by 0.7m. The following table shows the performance by SBU against the planned level of efficiencies. SNBTS IT PCFS PCF PHI Corp Total CRES Target 1, , ,039 8,888 Efficiency savings target per Plan 2, ,993 1, ,211 Savings to July , ,505 Total savings forecast to March , ,339 1,000 1,009 9,600 Total savings over/(under) achieved against target (6) 0 0 (654) (150) 199 (611) The shortfall against the plan is mainly due to PCF and in particular the specialist services delivered through NSD. The efficiencies within NSD are being reviewed to ensure all qualifying savings have been identified and reported. It should be noted that NSD is expected to break even. Appendix 2 provides the full breakdown of the local efficiency savings programme contributing to the planned savings. 2 Page 3 of 6

4 4. BALANCE SHEET As at As at 31 July June 2015 Movement NON CURRENT ASSETS Tangible/Intangible Assets 72,436 73,343 (907) Debtors after one year 4,547 4,547-76,983 77,890 (907) CURRENT ASSETS Stock 16,645 16, Debtors 46,530 36,704 9,826 Government Banking Service 2,357 7,146 (4,789) Cash at bank and in hand ,572 60,262 5,310 CURRENT LIABILITIES Creditors due within one year (57,748) (56,521) (1,227) Net current assets/(liabilities) 7,824 3,741 4,083 Total assets less current liabilities 84,807 81,631 3,176 PROVISIONS FOR LIABILITIES AND CHARGES (2,578) (2,641) 63 Creditors due after one year (8,750) (8,750) 0 73,479 70,240 3,239 FINANCED BY: General Fund 66,965 63,717 3,248 Revaluation Reserve 6,514 6,523 (9) 73,479 70,240 3,239 The balance sheet for July is compared to June. The main movements are noted below: Debtors (increase 9.8m) The increase is mainly due to accrued income and prepaid expenditure for IT contracts. Government Banking Service (decrease 4.8m) The decrease of 4.8m is as a result of close management of the cash position during July. 6. CONCLUSION At the end of July NSS is forecasting to meet its financial targets. The financial position will be closely monitored to ensure NSS stays on track. Carolyn Low Director of Finance and Business Services 3 Page 4 of 6

5 Appendix 1 Revenue position by SBU Table 2 SBU Scottish National Blood Transfusion Service YTD Budget YTD Surplus / (Deficit) Full Year Forecast Variance % Narrative 17, % The year to date under spend of 309k is primarily due to increased activity and income levels to Health Boards and Third Parties. The full year forecast of 370k includes additional costs relating to air quality monitoring as part of the National Centre and other unbudgeted costs. Central Legal Office 2, (0) 11% The year to date under spend of 274k is in line with budget and relates to higher level of income received in the early part of the year. The full year breakeven position is in line with the financial plan. IT 27, % The year to date surplus of 34k relates mainly to pay. The full year forecast of breakeven position is in line with the financial plan. Practitioner and Counter Fraud Services Procurement, Commissioning and Facilities 9, (46) 1% The year to date under spend of 94k relates mainly to higher than expected income from third parties for SHSC. The full year deficit of 46k is as a result of non pay pressures however P&CFS are looking to identify further efficiencies savings to deliver a breakeven position. 138, % The year to date surplus of 129k relates mainly to higher level of outward secondees. This is not expected to continue as posts will be back filled. Public Health and Intelligence 11,082 (41) (100) (0%) The year to date deficit of 41k is mainly due shortfall against income targets which is partially offset by an underspend on pay. The full year deficit of 100k is due to shortfall in edris income. Business Services 7, % The year to date surplus of 24k relates to the timing of income received from Alba. The full year forecast breakeven position is in line with the plan. Clinical & Corporate Affairs 1, (0) 6% The year to date surplus of 86k relates mainly to the under spend within communications and timing of customer engagement programmes. The full year breakeven position is in line with the financial plan. HR 1, (0) 4% The year to date surplus of 55k is mainly due to an under spend on training and higher than expected income from NHSBoards. The full year breakeven position is in line with the financial plan. Reserves (1,065) (813) (430) 76% The year to date and full year position is in line with planning assumptions. The reserves position will be closely monitored throughout the year. Workforce Resource Team % The year to date under spend of 84k is due to the timing of redundancy costs. At this stage of the year a full year breakeven position is forecast. Total 216, % 4 Page 5 of 6

6 Appendix 2 - Local Efficiency Programme Efficiency Programme YTD Savings FY Savings % of overall Programme Key Projects PCF New contract & different prescribing patterns for Blood Products 583 1,750 18% PCF NSD Efficiency - restricted uplift to Boards 380 1,141 12% PCF CytoVision MTS saving 367 1,100 11% SNBTS Staff Rationalisation - dis-established posts & associated costs % SNBTS Staff Rationalisation & Restructure - Lean improvements % Corp Facilities - Reduced size of estate % SNBTS Collaborative procurement with UK BTS' % P&CFS Assets management % P&CFS Workforce reduction % P&CFS epharmacy automation % PCF Increased volume at lower cost - transport % IT Hosted Desktop roll out - Reduces no. support staff required % PHI Core staff reductions % IT Synergies from NSS Business IT % Total 2,598 7,918 82% Other Projects by SBU SNBTS Scottish National Blood Transfusion Service % IT IT % P&CFS Practitioner and Counter Fraud Services 0 0 0% PCF Procurement, Commissioning and Facilities % PHI Public Health and Information Services % Corp Corporate % Total 908 1,682 18% Total Projects by SBU SNBTS Scottish National Blood Transfusion Service 598 2,005 21% IT IT % P&CFS Practitioner and Counter Fraud Services % PCF Procurement, Commissioning and Facilities 1,438 4,339 45% PHI Public Health and Information Services 717 1,000 10% Corp Corporate 336 1,009 11% NSS Total 3,505 9, % Note The YTD savings do not include any savings related to staff transferred to the workforce resource team. 5 Page 6 of 6

NHS LANARKSHIRE FINANCE REPORT FOR THE YEAR ENDED 31 MARCH 2006

NHS LANARKSHIRE FINANCE REPORT FOR THE YEAR ENDED 31 MARCH 2006 1. Purpose of Report The purpose of this report is to provide the NHS Board with the summary financial position for the year ended 31 March