EXECUTIVE SUMMARY EXECUTIVE SUMMARY

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1 EXECUTIVE SUMMARY EXECUTIVE SUMMARY Report to Trust Board Date Tuesday 23 September 2014 Agenda Number 3.1 Agenda Item Finance Report August 2014 Sponsor Andy Robinson, Director of Finance & Performance Prepared by Colin Dart, Deputy Director of Finance Presented by Andy Robinson, Director of Finance & Performance 1 Purpose and Key Issues The purpose of this paper is to present the Board with the Trust s financial position at 31 August Key highlights include: Year to date surplus of 1,992k against plan surplus 1,992k achievement of internal plan; Year end forecast retained surplus being 2,352k being 1%; m Savings programme; Level of aged debtors being managed low risk; Trade Year to Date Better Payment Code exceeds 95% target; Overall Forecast Financial Risk Rating of 4 at 31 March 2015; Overall Continuity of Service Risk Rating Forecast of 3 at 31 March 2015; 2 Supporting Information The report is attached. 3 Controls and Assurance This paper provides the Board with assurance of progress in providing timely, relevant information that gives assurance on the reported financial position. The Finance Committee will receive reports on behalf of the Board on all financial matters as the Trust makes the transition to a Foundation Trust. The financial controls are tested annually as part the Internal Audit plan and reports are made to the Audit and Assurance Committee. The financial position forms part of the Trust s performance monitoring and contracting meetings with its commissioners. This finance paper forms the basis of reporting to the NHS Trust Development Authority and the Department of Health. Director of Finance Page 1 of 22

2 The consistency of the information provided and the reporting of forecast outturn must be consistent with the annual Statutory Accounts that are subject to external audit by the Audit Commission. 4 Legal and Regulatory Implications The legal and regulatory implications have been considered and none have been identified. 5 Equality and Diversity Implications The Trust aims to design and implement services, policies and measures that meet the diverse needs of our service, population and workforce, ensuring that none are placed at a disadvantage over others. No adverse or positive impacts have been identified from this report. 6 Patient, Public and Staff Involvement The Trust ensures that patients, the public and staff are involved in the decision-making process when appropriate. 7 Cost Implications There are no cost implications. 8 Potential Risk to the Organisation Potential risks are set out in Section 7. 9 Committee Prompts Is the information presented in a way that ensures maximum value and understanding by the Board? Is there any other information the Committee would like included? 10 Recommendations The Board is asked to: NOTE the financial indicators set out in Section 2 Dashboard. RECEIVE the Finance Report August References Not applicable. 12 Strategic Objectives The Trust s Strategic Objectives are reviewed by the Board on an annual basis. This paper supports the achievement of the following strategic objectives: Highest quality Sustainable services Integrated health and social care Flexible and multiskilled workforce Efficient and effective Local provider of choice Director of Finance Page 2 of 22

3 13 Principal Risks The Trust s Principal Risks have been identified through the Trust s risk management processes. They are updated as they are identified by the Risk Management Committee. This paper supports the mitigation of the following principal risks: Financial planning & management Strategic & business planning Workforce numbers Workforce skills Procedural management Equipment & facilities arrangements Clinical records management Leadership & management Unsafe behaviour External demands Partnership arrangements Communication Director of Finance Page 3 of 22

4 Finance Report Month 5 August 2014 Index Page 1 Summary 5 2 Dashboard 5 3 Statement of Comprehensive Income (Income & Exp) Financial Position Income and Activity Expenditure Savings 9 4 Statement of Financial Position (Balance Sheet) Cash and Liquidity 11 5 Monitor Financial Risk Rating Underlying Financial Risk Rating Potential Financial Risk Indicators Monitor s Potential Continuity of Service (CoS) Risk Rating 14 6 Capital Programme 14 7 Risks and Opportunities 15 Appx. A Financial Risk Rating 16 Appx. A1 Proposed Continuity of Service Risk Rating 17 Appx. B Statement of Comprehensive Income 18 Appx. C Other Income and Divisional Expenditure 19 Appx. D Statement of Financial Position 20 Appx. E Capital Programme 21 Appx. F 12 Month Cash Flow 22 Number Convention All monetary values are stated in '000. Income values are stated as negative (-) numbers. Expenditure values are stated as positive (+) numbers. Asset values are stated as positive (+) numbers. Liability values are stated as negative (-) numbers. Favourable variances are stated as negative (-) numbers. Adverse variances are stated as positive (+) numbers. Rounding differences may occur in some instances. Director of Finance Page 4 of 22

5 1. Summary The following report outlines the financial position of the Trust at 31 August The main financial objectives for 2014/15 are: Deliver a m savings programme; Achieve a 2.3m surplus that supports progress to Foundation Trust status. 2. Dashboard Green Green Amber Amber Green Green Green Financial Summary Month 5 Achievement of Year to Date surplus against plan FRR of 3 under old Monitor rating at month 5 FRR of 4 under new Monitor rating at month 5 Income 67k under-recovery of income for patient care at month 5. 15k under-recovery of other income at month 5. Net Divisional Expenditure Overall 359k over-spend on Pay expenditure. Overall 147k over-spend on Non Pay expenditure. CIP Plans m target for 2014/ m Green 0.245m Amber 2.260m Red Aged Debtors Aged debts have decreased overall by 1.1m in month to 3.1m. Low Risk Public Sector Payment Policy Achievement of the 95% target. Financial Summary Year End Forecast Achievement of planned surplus 2.3m FRR of 4 under old Monitor rating FRR of 3 under new Monitor rating 3. Statement of Comprehensive Income (SOCI) The Statement of Comprehensive Income is attached as Appendix B 3.1 Financial Position Performance against Plan 0k Neutral The year to date surplus of 1,992k achieved the plan. This is consistent with the plan submitted to the NHS TDA. Director of Finance Page 5 of 22

6 3.1.2 Full Year Achievement - 2,352k Surplus The forecast surplus achieves the required 1% surplus target after the impact of IFRS adjustments that are planned to be reflected in the month 12 position. 3.2 Income and Activity Contract Income 67k Adverse The total contract income adverse variance of 67k is impacted by 67k adverse variance on activity after the allocation of income reserve to budgets predominantly in Trauma and Orthopaedics. 0k neutral impact of excluded drugs and devices. Referrals at Trust level were 10.54% above plan and activity on Elective waiting lists are also above plan. To summarise: Continued trend of increased referrals for cancer and screening services. Outpatient over performance as a result of the above. Elective under performance predominantly Trauma and Orthopaedics. This will recover over the coming months. Emergency under performance from volumes below plan off-set by increased complexity of patients. This adversely impacts the Emergency baseline adjustment. A&E over performance. Activity information will not be available to inform the Committee. There are a number of groups monitoring this performance including RTT group, Activity and Planning Group, Operational meetings and Performance meetings. RTT 16+ week waits The Trust has been progressing delivery of the national requirement to reduce the number of patients waiting 16 weeks or more from waiting lists during August with the target to be achieved by 30 September. This activity will be additional to the agreed contract with NEW Devon CCG and not subject to the current cap on contract over performance. The DH recognises that RTT performance at speciality level will fluctuate during this period and the Trust will plan to achieve the overall target. Director of Finance Page 6 of 22

7 3.2.2 Other Income - 15k Adverse Other income is income that is allocated directly to the relevant Division. There was an in-month adverse movement of 80k across the Trust as set out in Appendix C. The main impact is the fluctuating nature of the timing of income received relating to Road Traffic Accident (RTA) income becoming due to the Trust. 3.3 Expenditure Details of performance against Divisional expenditure budgets are set out in Appendix C Employee Benefits (Pay) - 359k Adverse At Month 5 the overall pay variance is adverse with the continuing hot spots in ES, Logistics & Resilience, Medical and Surgical Specialities and Community Hospitals. The main impact is the use of medical and nurse agency as a result of: Vacancies (Medical and Nursing) Sickness Safer staffing levels provided in Community Hospitals not funded by the Commissioners. Recruitment to vacancies is being progressed and there are arrangements to attend recruitment fair s. The most significant risk to recruitment is the Transforming Community Services strategy where the uncertainty surrounding both the future organisational alignment and the number of Eastern Community Hospitals required for the future. There continues to be high areas of agency usage that is not funded by Commissioners Clinical Supplies (Non Pay) - 147k Adverse There was an in-month favourable movement of 34k on non-pay. The most significant adverse variances continue to be experienced in: Health and Social Care mainly due to travel (demand). Specialist Services mainly due to continence products (demand) and M&SE disposable instruments within Podiatry (demand). The demand impact is being monitored through community activity reporting. Clinical and Support mainly due to ICU consumables (demand), Blood products and Theatres consumables Drugs (excluded) and Penalty Costs - 115k Adverse variance Director of Finance Page 7 of 22

8 Excluded drugs and devices expenditure is matched by income. The following penalties have been reflected in the financial position: Never Event 5,000 Cancer Waits 63, Weeks 20,000 MRSA 10,000 Cancelled Operations 8,000 Ambulance Handovers 9, ,000 Director of Finance Page 8 of 22

9 3.4 Savings The Trust has a CIP target of m Project Forecast Trend R 2,260,000 A 245,000 G 9,469,900 11,974,900 Unidentified 0 R 0 Community Hospitals 560,000 R 560,000 Commissioner agreed schemes (NDHCT Risk share) 1,700,000 R Pharmacy Review - Outpatients 52,000 G Outpatient Productivity (extended working day) 80,046 G Utilities Consumption Review 50,000 G Market Expansion - Okehampton Audiology 15,000 A GUM review (Income) 100,000 G Market Expansion - Tiverton Audiology 30,000 A Product Standardisation 200,000 G 200,000 A Pay Flexibilities - Salary sacrifice 190,000 G Pathology - In year CRES 113,000 G Maternity Redesign 70,000 G Clinical Correspondence 70,000 G Paediatric Diabetes BPT 37,972 G 1,897,046 1,010,972 Already Delivered Divisional Annual Productivity Gain (Divisional Housekeeping) 5,550,882 G Growth through Efficiencies (Acute) 1,000,000 G IT SLA 200,000 G Hotel Services Review 150,000 G PACs Review 300,000 G Further bed reduction (MH) 380,000 G Further bed reduction (BS) 330,000 G Growth Through Efficiencies (Community) 200,000 G Reduction of 1 ward at Exeter Community Hospital 200,000 G Closure of inpatient beds at Torrington Hospital 160,000 G Closure of Tiverton MIU overnight 36,000 G 7,200,882 1,306,000 Director of Finance Page 9 of 22

10 Amber Schemes ( 0.25m) Product Standardisation ( 0.2m) A consortium of Trusts from Dorset to Cornwall are progressing a solution that sets standard rates for medical locums. There is expected to be a part year effect to this scheme and confidence of delivery of benefits is high. Red Schemes ( 2.26m) Commissioner Schemes (to be agreed) 1.7m As part of the 2014/15 contract settlement there was agreement to deliver a number of (to be agreed) schemes that would deliver 1.7m reduction in the costs of delivering services covered by the Community contracts. Other than the current impacts on Ilfracombe and Crediton Community Hospitals there is currently no alignment between the 2 organisations. The Trust continues to press for agreement on the consolidation of Community Hospital beds and has outlined proposals that achieves c. 1m of savings. Risk Whilst there is a 50/50 risk share agreement as part of the Heads of Terms Agreement with the CCG, the Trust s financial plan assumes full delivery of the target. These schemes are reported and monitored via the Community Services Delivery Board. Community Hospitals ( 0.56m) The Trust has implemented safer staffing levels in Community Hospitals and addressed RN cover in smaller units. The Trust is also incurring agency expenditure due to the inability to recruit to vacancies in Community Hospitals due to the uncertainties of the TCS re-procurement and the future of these hospitals. There is currently a non-funded pressure of 560k. Further Opportunities Opportunities being progressed are: Cost Reduction Agency Medical and Nursing Pathology (pre-procurement) opportunities Pharmacy Homecare Back-Office / Support Services (clinical and non-clinical) Director of Finance Page 10 of 22

11 Patient Flow MAU Ambulatory Care reduce 6 beds Medicine and Surgery seasonal flexing of beds (12 to 18) Average Length of Stay Home Before Lunch Delayed Discharges Readmissions < 30 days (also reduced contract penalty) Bed Occupancy Productivity Community Growth New/Follow Up Outpatients correct for the pathway, technology opportunities Outpatient DNA s Theatre Utilisation Outpatient Utilisation Next Steps Plan to implement recommendations of Readmissions Audit (internal and external opportunities). Agree CCG opportunities. 4. Statement of Financial Position (SOFP) The Statement of Financial Position (Balance Sheet) is set out in Appendix D. 4.1 Cash and Liquidity Aged Debtors Aged Debtors Year to date No. of Invoices This Month 000's % of Total Aged Debtors No. of Invoices Last Month 000's % of Total Aged Debtors Movement (Fav)/Adv 0-30 Days % % (1,217) Days 334 1,053 34% % (62) Days % % 51 Over 90 Days % % 144 Total Aged Debt 3,067 4,151 (1,084) The level of total aged debt has decreased this month by 1,084k. Director of Finance Page 11 of 22

12 There are a number of Local Authorities in the Over 90 Days category that are being managed with regards to payment for services previously commissioned by the NHS Cash at Bank - 4,245k The 12 month rolling cash flow included as Appendix F has been reviewed and phasing adjustments reflected. Previous planning assumptions required an anticipated loan of 9.5m in 2014/15 to support the Capital Programme. Changes in priority and delivery have resulted in a funding requirement of 2.5m. Internal discussions have taken place with a decision being made to fund the additional capital requirement from cash balances achieved from prior year surplus. This is consistent with the Trust s financial strategy. This also removes the risk associated with the approval of the application. The Trust will liaise with the NHS TDA on its future capital plans that may be supported by a loan application Better Payment Policy The cumulative performance for trade remains above target Current Month Cumulative Target Value % - Trade 95% 96% 95% Green Volume % -Trade 93% 95% 95% Green Value % - NHS 99% 99% 95% Green Volume % - NHS 98% 98% 95% Green Director of Finance Page 12 of 22

13 5. Monitor Financial Risk Rating (for information) Full details on the Financial Risk Rating are attached as Appendix A. Trust Performance - Actual YTD Value Rating Status Achievement of Plan EBITDA Achieved as a % of plan % 1 Green Underlying Performance EBITDA Margin 8.0% 1 Green Financial Efficiency ROA excluding Dividend 2.8% 0 1 Red I&E surplus margin net of dividend. 2.08% 1 Green Liquidity Liquidity Ratio (days) Green Underlying Financial Risk Rating Green Over-riding Rules Financial Risk Rating 3 1 Green Trust Performance - Forecast Value Rating Status Achievement of Plan EBITDA Achieved as a % of plan. 99.5% 1 Green Underlying Performance EBITDA Margin 7.8% 1 Green Financial Efficiency ROA excluding Dividend 6.1% 1 Green I&E surplus margin net of dividend. 1.0% 1 Green Liquidity Liquidity Ratio (days) Green Underlying Financial Risk Rating Green Over-riding Rules Financial Risk Rating 4 1 Green 5.1 Underlying Financial Risk Rating At the end of August the year to date underlying Financial Risk Rating is 3. The year-end forecast Financial Risk Rating is currently rated Potential Financial Risk Indicators Potential Financial Risk Indicators 1 Unplanned decrease in (quarterly) EBITDA margin in two consecutive quarters NO 2 Finance Declaration 2 signed NO 3 FRR 2 (or less) for any one quarter NO 4 Working capital facility (WCF) used in reporting period NO 5 Debtors > 90 days past due account for more than 5% of total debtor balances YES 6 Creditors > 90 days past due account for more than 5% of total creditor balances NO 7 Two or more changes in Finance Director in a twelve month period NO 8 Interim Finance Director in place over more than one quarter end NO 9 Quarter end cash balance <10 days of (annualised) operating expenses YES 10a Capital expenditure < 75% of plan for the year to date NO 10b Capital expenditure > 125% of plan for the year to date NO There has been no change in the reasons underpinning the Red ratings. Director of Finance Page 13 of 22

14 5.3 Continuity of Service (CoS) Risk Rating The Trust is also monitoring performance against Monitor s Continuity of Service Risk Rating. These risk ratings are detailed in Appendix A1. Trust Performance - Actual YTD Value Rating Status Liquidity Liquidity Ratio (days) (0.80) 1 Green Capital Service Capacity Capital Service Capacity (time) Green Underlying CoS Risk Rating Green Trust Performance - Forecast Value Rating Status Liquidity Liquidity Ratio (days) (9.60) -1 Red Capital Service Capacity Capital Service Capacity (time) Green Underlying CoS Risk Rating Green The Liquidity ratio indicates that operational cash obligations would achieve a year end rating of 3 for CoS. The Committee has been previously provided with assurance of the historic trends in this area that includes: Cash management is a daily priority for the finance department; Rolling 12 month cash flows are prepared and presented monthly to Finance Committee and Board; Trust contract income instalments are received by 15 th of the month; The highest payment volumes are either 19 th (PAYE and Pension) or 27 th (Payroll) of the month; The Trust has historically had negative working capital as previously reported to the Committee; The Trust has increased its cash position over time within the financing constraints of the NHS. 6. Capital Programme Spend to date 3,574k The Capital programme is attached as Appendix E. The Capital programme for 2014/15 is 15,444k assuming internal cash funding of 2,500k. Director of Finance Page 14 of 22

15 7. Risks and Opportunities The main risks to report are: Contract penalties as a result of breaches to access targets. CCG approach to TCS consultation resulting in experienced staff leaving the organisation and creating a safety risk in Community Hospitals. The level of CIP associated with the delivery of jointly developed schemes with the CCG. Mitigations include: Over Performance in contracts not subject to cap and collar arrangement. Director of Finance Page 15 of 22

16 Appendix A Financial Risk Rating Code FRR Inputs Description Year to Date Forecast INC Total Income From SOCI (95,625) (229,296) TE Total Expenditure Excl Depreciation From SOCI 87, ,464 E EBITDA (Surplus)/Deficit - Actual From SOCI (7,645) (17,833) EP EBITDA (Surplus)/Deficit - Plan From SOCI (7,648) (17,928) RETDIV (Surplus)/ Deficit before Dividend From SOCI (3,488) (7,822) RET Retained (Surplus)/ Deficit From SOCI (1,992) (2,352) ST Stock & Work in Progress From SOFP 2,492 2,774 CAHS Non-current assets held for sale From SOFP 0 0 NCAL Net Current Assets / (Liabilities) From SOFP 147 (2,866) TAE Total Assets Employed From SOFP 126, ,741 WCF Estimated Working Capital Facility 30 Days of budget operating expenditure 17,960 17,960 D Days in Period (cumulative) Cumulative Days YTD/Year Total Financial Risk Rating Calculation EBITDA Achieved as a % of plan. E / EP EBITDA Margin E / INC ROA excluding Dividend RETDIV / TAE 1 I&E surplus margin net of dividend. RET / INC Liquidity Ratio (days) (NCAL - ST - CAHS + WCF) / TE x D Monitor FRR Matrix Financial Criteria Metric to be scored Weight % Achievement of Plan EBITDA Achieved as a % of plan. 10 <50% 50% 70% 85% 100% Underlying Performance EBITDA Margin 25 <1% 1% 5% 9% 11% Financial Efficiency ROA excluding Dividend 20 <-2% -2% 3% 5% 6% I&E surplus margin net of dividend. 20 <-2% -2% 1% 2% 3% Liquidity Liquidity Ratio (days) 25 < Weighted Average 100 Trust Performance - Actual YTD Value Rating Status Achievement of Plan EBITDA Achieved as a % of plan % 1 Green Underlying Performance EBITDA Margin 8.0% 1 Green Financial Efficiency ROA excluding Dividend 2.8% 0 1 Red I&E surplus margin net of dividend. 2.08% 1 Green Liquidity Liquidity Ratio (days) Green Underlying Financial Risk Rating Green Over-riding Rules Financial Risk Rating 3 1 Green Trust Performance - Forecast Value Rating Status Achievement of Plan EBITDA Achieved as a % of plan. 99.5% 1 Green Underlying Performance EBITDA Margin 7.8% 1 Green Financial Efficiency ROA excluding Dividend 6.1% 1 Green I&E surplus margin net of dividend. 1.0% 1 Green Liquidity Liquidity Ratio (days) Green Underlying Financial Risk Rating Green Over-riding Rules Financial Risk Rating 4 1 Green Director of Finance Page 16 of 22

17 Appendix A1 Proposed Continuity of Service Risk Rating Code CoS Inputs Description Year to Date Forecast TE Total Expenditure Excl Depreciation From SOCI 87, ,464 NE Normalised EBITDA (Surplus)/Deficit From SOCI (7,556) (15,023) IR Interest Receivable From SOCI (10) (18) DAI Donated Asset Income (89) (2,810) AI Annual Loan + Interest From SOCI 88 1,053 PDC Divd PDC Dividend From SOCI 1,496 3,591 PFI Capital Element of Fin Lease & PFI payments From SOFP RC Restructure Costs From SOCI 0 0 EC Exceptional Costs From SOCI 0 0 CA Current Assets From SOFP 16,887 16,074 INV Inventories From SOFP 2,492 2,774 CL Current Liabilities From SOFP (16,740) (18,940) AH4S Non-current Asset Held for Sale From SOFP 0 0 L of CR Lines of Credit 0 0 Calculation Working Capital Balance (WCB) (CA-INV) + CL - AH4S + L of CR Annual Operating Expenses (AOE) TE Revenue Avail for Debt Service (RADS) NE - IR Annual Debt Service (ADS) AI + PDC Divd + PFI Continuity of Service (CoS) Risk Rating Liquidity Ratio (days) WCB/AOE x 360 Capital Service Capacity (time) RADS / ADS Monitor Continuity of Service (CoS) Risk Rating Matrix Financial Metrics Metric to be scored Weight % Liquidity Liquidity Ratio (days) 50 < Capital Service Capacity Capital Service Capacity (time) 50 <1.25x 1.25x 1.75x 2.5x Weighted Average 100 Trust Performance - Actual YTD Value Rating Status Liquidity Liquidity Ratio (days) (0.80) 1 Green Capital Service Capacity Capital Service Capacity (time) Green Underlying CoS Risk Rating Green Trust Performance - Forecast Value Rating Status Liquidity Liquidity Ratio (days) (9.60) -1 Red Capital Service Capacity Capital Service Capacity (time) Green Underlying CoS Risk Rating Green Director of Finance Page 17 of 22

18 Appendix B Statement of Comprehensive Income All in 000's This Month Year to date Year End (Fav)/ adv Budget Actual Plan Budget Actual Forecast Income (206,943) NHS Clinical Income (17,175) (17,065) 110 (86,957) (86,890) 67 (208,828) (1,885) (20,469) Other Income (1,737) (1,657) 80 (8,750) (8,735) 15 (20,469) 0 (227,411) Total Income (18,912) (18,723) 190 (95,707) (95,625) 82 (229,296) (1,885) Costs 150,867 Employee Benefits (pay) 12,650 12, ,295 63, , ,383 Drugs (Excluded) & Penalty Costs 1,032 1, ,348 5, , ,806 Clinical Supplies 3,885 3,851 (34) 20,219 20, , (6,780) CRES (732) (1,087) (355) (812) (1,502) (690) 0 6,780 6,208 Reserves 8 0 (8) 9 0 (9) 0 (6,208) 209,484 Total Costs 16,843 16,641 (202) 88,060 87,980 (79) 211,464 1,980 (17,928) EBITDA (Surplus)/deficit (2,069) (2,081) (12) (7,648) (7,645) 3 (17,833) % EBITDA % 10.9% 0 0.2% 8.0% 8.0% 0.0% 7.8% -0.1% (Fav)/ adv (Fav)/ adv 8,987 Depreciation ,727 3, ,974 (13) 0 Net Profit/Loss on Asset Disposal (18) Interest Receivable (2) (2) (0) (8) (10) (2) (18) 0 1,055 Interest Payable , ,591 Dividend on PDC ,496 1, , ,615 Total Interest/Depn & Amort 1,137 1, ,655 5,653 (2) 13,602 (13) (4,312) Internally Generated (Surplus)/ Deficit (932) (930) 2 (1,992) (1,992) 0 (4,231) 82 1,960 IFRS Adjustments 0 0 1,879 (81) (2,352) Revised Trust (Surplus)/Deficit before Impairments (932) (930) 2 (1,992) (1,992) 0 (2,352) 1 1.0% Retained (Surplus)/Deficit % 4.9% 5.0% 0.0% 2.1% 2.1% 0.0% 1.0% 0.0% Director of Finance Page 18 of 22

19 Appendix C Other Income and Divisional Expenditure Month Variance Year to date Variance All in 000's Income Pay Non Pay Total (Fav)/adv Income Pay Non Pay Total (Fav)/adv Corporate 87 (33) (63) (9) 81 (142) (65) (126) ES, Logistics & Resilience (3) (1) Facilities (9) (27) (4) (40) (21) (144) 14 (151) Medical Specialities (2) (7) Health & Social Care 10 (42) 20 (12) 11 (89) 40 (38) Clinical Support Services (5) (15) (64) 61 (18) Specialist Services & Projects 7 (9) (7) (9) (6) (47) Surgical Specialties (7) (27) Community Hospitals 2 88 (12) 77 (0) 211 (31) 180 Net Directorate Income/Exp excl. Dep'n and Excl. Drugs (34) Drugs (Excluded) & Penalty Costs Depreciation 0 0 Net Directorate Income/Expenditure (6) Director of Finance Page 19 of 22

20 Appendix D Statement of Financial Position Opening All in 000's Actual Forecast Non Current Assets (NBV) 2,429 Intangible Assets 2,250 1, ,235 Property/Plant/Equipment 131, , Non NHS Trade Receivables 1,044 1, ,646 Total Non-Current Assets 134, ,990. Current Assets 2,627 Inventories 2,492 2,774 10,197 Trade and Other Receivables 10,150 11,147 3,602 Cash at Bank and in Hand 4,245 2,153 16,426 Total Current Assets 16,887 16,074 Current Liabilities 0 Loans - non-commercial ,419 Trade and Other Payables -16,279-18, Provisions Borrowings ,226 Total Current Liabilities -16,740-18,940-1,800 Net Current Assets / (Liabilities) 147-2, ,846 Total Assets less Current Liabilities 134, ,124 Non Current Liabilities 0 Loans - non-commercial Provisions ,613 Borrowings -8,494-8,320-8,643 Total Non Current Liabilities -8,494-8, ,203 Total Assets Employed 126, ,741 Taxpayes Equity 54,591 Public Dividend Capital 54,591 54,591 39,672 Retained Earnings 41,677 41,210 29,940 Revaluation Reserve 29,940 31, ,203 Total Taxpayers Equity 126, ,741 Director of Finance Page 20 of 22

21 Finance Report Finance Committee September 2013 Appendix E Capital Programme Northern Devon Healthcare NHS Trust Incorporating community services in Exeter, Mid and East Devon Year to date Forecast Year End Original Plan Flexed Plan All in 000's Budget Actual Fav/ (adv) Fav/ (adv) (8,220.00) (8,220.00) Notified CRL - plan (3,307.67) (3,307.67) 0.00 (8,220.00) 0.00 (754.00) Adjustment to CRL - actual depreciation (754.00) 0.00 (9,500.00) (2,500.00) Internal use of surplus (2,500.00) 0.00 (1,025.00) (1,025.00) Generated from Asset Disposal (1,025.00) 0.00 (2,810.00) (2,945.00) Donated (265.97) (265.97) 0.00 (2,945.00) 0.00 (21,555.00) (15,444.00) Total Funding (3,573.63) (3,573.63) 0.00 (15,444.00) Replacement Operational Equipment Blue Smoke New Equipment , , Operational IT / Informatics , , , Site Development 2, , , , , Backlog Maintenance , , EPC , , Salaries , (162.00) 0.00 Slippage Required , , Total Capital Programme 3, , , Programme Over / (Under) Commitment Finance Page 21 of 22

22 Finance Report Finance Committee September 2013 Appendix F 12 Month Rolling Cash Flow Northern Devon Healthcare NHS Trust Incorporating community services in Exeter, Mid and East Devon Statement of Cash Flows (CF) Aug Sep Oct Nov Dec Jan Feb Mar 2014/15 Apr May June July All in 000's Cumulative Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Cash Flows from Operating Activities Operating Surplus/(Deficit) 3, (1,173) 6, Depreciation and Amortisation 3, , Impairments and Reversals (IFRS) ,879 1, EBITDA Surplus/(Deficit) per Statement of Comprehensive Income 7,645 1,455 1,455 1,455 1,455 1,456 1,456 1,456 17,833 1,426 1,426 1,426 1,426 Interest (Paid) / Received (430) (87) (87) (86) (87) (87) (87) (86) (1,037) (103) (103) (103) (103) Dividend (Paid)/Refunded 0 (1,796) (1,795) (3,591) (Increase)/Decrease in Inventories (147) (147) (Increase)/Decrease in Trade and Other Receivables (15) 279 (41) (153) 115 (15) 163 (1,075) (1,075) Increase/(Decrease) in Trade and Other Payables (1,140) 93 (15) (135) (293) (93) (97) 1,179 1, Provisions Utilised Increase/(Decrease) in Movement in non Cash Provisions Net Cash Inflow/(Outflow) from Operating Activities 6, ,447 1,216 1,325 1,396 1,570 (293) 13,633 1,323 1,323 1,323 1,323 CASH FLOWS FROM INVESTING ACTIVITIES (Payments) for Property, Plant and Equipment (6,019) (808) (1,339) (1,108) (1,367) (1,699) (1,737) (1,634) (15,711) (708) (708) (708) (708) Proceeds of disposal of assets held for sale (PPE) ,025 Net Cash Inflow/(Outflow) from Investing Activities (6,019) (808) (1,339) (808) (1,367) (974) (1,737) (1,634) (14,686) (708) (708) (708) (708) NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING 522 (729) (42) 422 (167) (1,927) (1,053) CASH FLOWS FROM FINANCING ACTIVITIES Public Dividend Capital Received Loans received from DH - New Capital Investment Loans Loans repaid to DH - Capital Investment Loans Repayment of Principal Cap element of payments re PFI, LIFT Schemes and finance leases (122) (24) (24) (23) (24) (23) (23) (24) (287) (25) (25) (25) (25) Net Cash Inflow/(Outflow) from Financing Activities (122) (24) (24) (23) (24) (23) (23) (24) (287) (25) (25) (25) (25) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 400 (753) (66) 399 (190) (1,951) (1,340) Cash and Cash Equivalents ( and Bank Overdraft) at Beginning of the Period Cash and Cash Equivalents ( and Bank Overdraft) at End of the Period 3,845 4,245 3,492 3,576 3,961 3,895 4,294 4,104 2,153 2,743 3,333 3,923 4,245 3,492 3,576 3,961 3,895 4,294 4,104 2,153 2,743 3,333 3,923 4,513 Finance Page 22 of 22