345,780 Financed by: Taxpayers' Equity 360, , , ,617

Transcription

1 Financial Year Ending 31st March 2015 Agenda Item 11(01) Trust Income & Expenditure Report period ended 31st October 2014 The Trust s reported financial position improved significantly in October, but this was due to the regognition of a pro-rata 7/12ths element of additional deficit funding of 15.8m. Without that funding, the year to date variance acually reduced from 1.3m to 0.8m. At the EBITDA level (i.e. before taking into account the favourable variance on depreciation) the underlying position i.e. excluding the additional national funding has now shifted from 0.3m favourable to 0.4m adverse. The deterioration in the position is driven predominantly by an increase in agency and non pay costs. This non pay increase is mainly in clinical supplies and the usage of the independent sector, as well as increases in bad debt provision for RTA income as a result of revised guidance. 13/14 YTD 13/14 YTD Annual Year to Date Prior Actual Variance Plan Plan Actual Variance Variance 430,096 (6,144) Commissioner Income (excluding Non-PbR Drugs and Blood) 742, , ,236 4,848 3,232 64,160 2,053 Non-PbR Drugs & Blood (excl Devices) 125,362 73,830 77,375 3,545 3, ,256 (4,091) Sub-Total Commissioner Income 867, , ,611 8,393 6,497 4,337 (587) Other Clinical Income 8,256 4,797 8,015 3,218 3, ,593 (4,678) Total Clinical Income 875, , ,626 11,611 9,580 96,453 2,087 Other Income 153,215 89,313 92,885 3,573 2, TDA Plan Reconciliation (6,352) (3,244) 0 3,244 1, ,046 (2,591) Total Income 1,022, , ,511 18,428 13,117 (344,178) 1,179 Pay Costs (625,189) (363,138) (360,725) 2,413 2,972 (64,039) 1,250 Non-PbR Drugs & Blood (excl Devices) (124,267) (73,122) (77,218) (4,096) (3,128) (158,689) (4,276) Other Non Pay (272,211) (159,915) (163,076) (3,161) (770) 0 0 Trust Financial Contingencies (23,883) (13,932) (12,679) 1, (4,324) Unallocated CIPs 22,268 11,650 0 (11,650) (12,068) 0 0 TDA Plan Reconciliation 6,352 3,585 0 (3,585) (615) (566,906) (6,170) Total Expenditure (1,016,931) (594,872) (613,698) (18,826) (12,841) 0 0 Additional Non-Recurrent Funding of Deficit 0 0 9,190 9, ,140 (8,761) EBITDA 5,647 6,211 15,004 8, (24,561) (15) Capital Charges (43,522) (25,459) (24,256) 1,204 1, (4) Non-Operating Income (7,443) (38) Non-Operating Expenses (12,448) (7,232) (7,222) 10 3 (3,810) (8,819) Retained Surplus/(Deficit) (50,223) (26,422) (16,410) 10,012 1,342 Allowed Technical Adjustments 551 (131) IFRIC 12 Adjustment Donated Asset Adjustment (607) (797) 204 (2,898) (8,732) Adjusted Surplus/(Deficit) (48,952) (25,686) (16,454) 9,232 1, Trust Balance Sheet as at 31st October 2014 The variance on Property, Plant and non current assets has arisen from slippage against plan on the Informatics Safer Hospitals, Safer Wards schemes. The Trust has accessed temporary PDC borrowing of 29.8m until the end of October The original plan included drawing down temporary PDC of 37m and the full Safer Hospitals, Safer Wards PDC capital funding ( 4.6m) at this point in the year. I&E position at the end of October, although still a significant deficit, is 10m ahead of plan Actual Planned Actual Variance Previous Forecast Outturn Position Position to Plan Outturn 31-Mar Oct Oct Oct Sep Mar ,893 Property, Plant and Non Current Assets 610, ,243 (3,250) 606, ,461 23,236 Cash & Cash Equivalents 3,271 3, ,225 3,101 65,806 Trade and Other Current Assets 73,735 89,981 16,246 69,964 67,761 (104,910) Current Liabilities (84,442) (96,703) (12,261) (92,144) (90,141) 595,025 Total Assets less Current Liabilities 603, , , ,182 (7,832) Non Current Provisions and Liabilities (5,825) (6,260) (435) (6,256) (6,210) (241,413) Non Current Borrowings (236,987) (237,002) (15) (237,401) (233,355) 345,780 Total Assets Employed 360, , , , ,780 Financed by: Taxpayers' Equity 360, , , , I&E & 1.2 Bal Sheet 1

2 Continuity of Services Risk Ratings Financial Risk Ratings Financial Year Ending 31st March Monitor Risk Ratings period ended 31st October 2014 Liquidity at the month end was -8.5 days which equates to a weighted rating of 2. This represents a significant improvement on the month 6 position of days and results from a combination of the Trust drawing down a further 4.8 million of temporary borrowing in October as agreed with the TDA and an improvement in the I&E position due to national deficit funding. Category 13/14 Rating Indicator PREVIOUS MONITOR FINANCIAL RISK RATINGS Annual Plan Actual Actual FRR to Date 3.0 EBITDA Margin Achieved: Year to Date 0.6% 2.4% EBITDA Percentage of Plan: Year to Date 100.0% 241.6% Net Return After Financing: Year to Date (8.5%) (4.7%) I&E Surplus Margin net of Dividend: Year to Date (4.9%) (2.6%) Liquidity Ratio Days (including NWCF): Year to Date Combined Financial Risk Rating: Year to Date Category 13/14 Rating Indicator MONITOR CONTINUITY OF SERVICE RISK RATINGS Annual Plan Actual Actual COS to date 2.0 Liquidity Days (15.0) (8.5) Capital Services Capacity % Combined Risk Rating Monitor Risk Ratings 2

3 m Financial Year Ending 31st March Capital Expenditure period ended 31st October 2014 The capital programme is on track to deliver forecast outturn although the M&SE and IT programmes have been slower than expected. The detailed M&SE programme has now been approved and circulated to CSU's to progress. In October the expenditure and income, 0.8m, for the paediatric robot funded by LTHCF has been accounted for. The Informatics Safer hospitals schemes were planned for spend in the early months but this been reprofiled for a more even spread of expenditure throughout the year.the Informatics forecast outturn now includes 1.4m for the MRC Bioinformatics scheme which is being funded by Leeds University. Prior Year Approved YTD Forecast Expenditure Cap Prog Expenditure Outturn Progress 4,581 HV/LV Electrical Infrastructure 4,350 3,238 4,350 Ongoing and on track 0 Clarendon Wing Generators 1, ,140 Scheme on site 0 UPS/IPS Installation Theatres 1, ,560 Design work commenced 4,560 Backlog 1, ,020 Inc Ward L51 scheme 3,790 Maintenance 3,824 1,532 3,824 Retentions ex 13/14 schemes & Ward J Seacroft Reprovision of Services 1, ,200 On hold 0 Building Schemes re CQC report 0 0 2,810 Awaiting funding approval see below 13,101 Sub Total - Building and Engineering 13,094 6,726 15,904 4,921 General 3,204 2,108 3,204 Inc Oracle Financials,Mat System,Microsoft EWA 3,169 Safer Hospitals funded schemes 7,955 1,236 Expenditure planned for month 1 now reprofiled over 7,955 year 0 IT Purchased from Donations 60 1,395 BioInformatics funded by LU ex MRC 8,090 Sub Total - Informatics 11,159 3,404 12,554 3,103 General Medical Equipment 4,308 1,095 4,395 Priorities approved and circulated to CSU's 0 Equipment re CQC report and 18 week target 0 0 Equip required post CQC visit - exc B&E - Bid 11,484 submitted to TDA/ITFF approval expected in Nov. Also inc bid for equipent re 18 week target 1,223 Equipment Purchased from Donations 1,210 1,470 inc Telemetry monitors,vapour freezer, Paed Robot 1,991 3,415 PFI Equipment Replacement 1, ,905 Spend planned for later in year 117 Other Equipment Civica SLAM 7,858 Sub Total - Equipment 7,423 2,575 19,785 29,049 Total Expenditure 31,676 12,705 48,243 Funding Depreciation 26,083 14,075 19,314 Inc saving from extending asset lives Repayment of Capital Loan (3,356) 0 (3,356) Proceeds from Disposals 1, ,297 Proceeds from Donations 1,210 1,470 FOT inc 1,395K ex LU re MRC BioInformatics & 3, k ex LTHCF re Paed Robot PDC Funding ( Safer Hospitals ) 4,634 1,474 4,634 part payment received in July PDC Funding ( Essential Equipment ) ,294 Bid submitted awaiting approval PDC Funding ( Equipment 18 week target ) 0 0 2,000 Bid submitted awaiting approval TDA support re depreciation reduction 0 0 6,769 PFI Equipment Replacement 1, ,905 Total Resources Available 31,676 17,482 48, Cash Flow period ended 31st October 2014 Commissioners continue to pay in line with their 2014/15 contracts. Temporary borrowing PDC of 29.8m has been drawn down between August and October to ensure prompt payment was maintained to suppliers; BPPC has increased slightly to 90% (95% for the month of October) Cash Balances Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Plan m Actual m 1.4 Capital & 1.5 Cash 3

4 Financial Year Ending 31st March a - Trust Expenditure Analysis of Pay period ended 31st October 2014 Although the pay variance continues to be favourable, the in month position worsened from 3m to 2.4m. This is partly offset by the improved variance on the financial contingency line of 0.4m. The majority of pay groups have continued to perform in line with trend, but the variance in nursing has driven the adverse position for the month. The additional recruitment of substantive staff has been fully funded from the financial contingency reserve (which has caused the 0.4m improvement noted above)- the variance has been caused by an increase in the usage of temporary staff which was 0.6m higher this month than the year to date average. The other main areas of over spend are AHPs and Ancillary which both continue to be driven by agency usage. Pay Expenditure Analysis by Staff Group 13/14 YTD 13/14 YTD Year To Date Actual Variance Annual Actual Prior STAFF GROUP Plan Plan Substantive Exc Addl Basic Pay Addl Basic Pay Substantive inc Addl Basic Pay Overtime Bank Staff Agency Staff Total Variance Variance (14,542) 1,328 General & Senior Managers (27,553) (16,307) (14,428) (10) (14,438) (40) 0 (341) (14,819) 1,488 1,284 (111,095) 1,208 Medical (200,938) (116,707) (107,131) (6) (107,138) 0 (1,506) (6,807) (115,451) 1,256 1,109 (110,036) 5,940 Nursing (200,916) (116,644) (105,075) (564) (105,639) (2,056) (4,296) (5,107) (117,098) (454) 668 (18,964) 1,118 AHPs (34,617) (19,992) (17,902) (196) (18,098) (357) (31) (1,705) (20,190) (198) (279) (8,275) 579 Professional & Scientific (15,298) (8,810) (8,187) (19) (8,205) (11) 0 0 (8,216) (26,141) 2,293 Professional & Technical (46,429) (26,463) (24,630) (126) (24,756) (288) (12) (751) (25,807) (246) (40) Opticians (411) (237) (233) 0 (233) (233) 4 3 (4,858) 118 Pharmacists (8,614) (4,991) (4,538) (9) (4,547) (20) 0 (519) (5,086) (95) (133) (30,038) 905 Admin & Clerical (55,820) (32,704) (26,332) (131) (26,463) (287) (5) (5,985) (32,740) (36) 104 (18,014) 442 Ancillary (31,325) (18,433) (16,281) (612) (16,893) (735) (140) (1,388) (19,156) (723) (763) (1,969) 167 Maintenance (3,652) (2,075) (1,695) 0 (1,695) (234) 0 0 (1,929) (5,218) Balance to TDA Plan CSU level (Turnover/P&C/CIPs) (226) (194) (344,178) Total Pay Expenditure excluding Provisions & 8,841 Commitments and Unallocated CIPs (625,189) (363,138) (326,433) (1,672) (328,105) (4,028) (5,990) (22,602) (360,725) 2,413 2, ,987 Financial Contingencies (Trust) (17,574) (10,251) (9,640) 0 (9,640) (9,640) (14,612) Unallocated CIPs (Trust) 22,268 11, (11,650) (12,068) 0 0 Balance to TDA Plan (20,527) (13,674) ,674 14,305 (344,178) (2,784) Total Pay Expenditure (641,022) (375,413) (336,073) (1,672) (337,745) (4,028) (5,990) (22,602) (370,365) 5,048 5, a Pay 4

5 Financial Year Ending 31st March b - Trust Expenditure Analysis of Non Pay period ended 31st October 2014 The non pay position worsened significantly in October, with an increase in the adverse variance from 3.9m to 7.3m. This is a combination of the continuation of the adverse trend seen in September (which was 2.8m for the month) plus a further increase in both spend and CIP target. The main areas of increased in spend are Clinical Supplies (excluding blood and drugs) driven by the additional working day and there being an additional weekly supply chain feeder, usage of the independent sector, and a requirement to increase the RTA bad debt provision from 15.8% to 18.9% due to a change to national guidance. The CIP target for October increased by 0.2m. The absolute variance on drugs of 4.6m year to date is predominantly driven by non tariff spend which is matched by an increase in income. In total the year to date adverse variance on clinical supplies, devices and medical equiment is only 0.1m, but in September was 0.9m favourable. The absolute non pay variance, excluding pass through drugs, continues to be driven by the use of the independent sector. The non pay trend over the last two months is not sustainable if the Trust is to deliver against it's deficit plan. Non-Pay Expenditure Analysis 13/14 YTD 13/14 YTD Annual Year to Date Prior Annual Budget Reconciliation - Appendix 1.1 to Appendices 1.6a and 1.6b Total Pay (App Non-Pay Variance Actual Variance Plan Plan Actual Variance Variance (App 1.1) 1.6a) (App 1.6b) % (32,453) 730 Clinical Supplies & Services Excl Drugs and M&SE (65,772) (39,064) (38,219) ,290 (62,503) 1,965 Drugs (142,142) (83,527) (88,108) (4,580) (5.5) (4,117) Pay (625,189) (625,189) 0 0 Excluded Devices (340) (198) (7,179) (6,980) (3,519.6) (6,013) Non-PbR Drugs & Blood (excl Devices) (124,267) (32,744) 606 Medical & Surgical Equip : Purchases (70,390) (41,441) (35,446) 5, ,650 Other Non Pay (272,211) (4,392) 25 General Supplies & Services (8,732) (5,136) (4,977) Total Non-Pay (396,478) (3,561) (54) Establishment Expenditure (7,129) (4,130) (4,571) (440) (10.7) (355) Financial Contingencies (23,883) (17,574) (6,310) (1,441) 79 Transport & Moveable Plant (2,698) (1,565) (1,728) (163) (10.4) (138) Unallocated CIPs 22,268 22,268 0 (25,767) (13) Premises & Fixed Plant (55,691) (32,046) (31,237) ,026 TDA Plan Reconciliation 6,352 (20,527) 26,879 (4,527) (3,110) Purchase of Healthcare from Non NHS Bodies (5,653) (3,723) (6,678) (2,955) (79.4) (2,162) Total Operating Expenditure (1,016,931) (641,022) (375,909) (2,426) (308) External Contract Staffing & Consultancy (3,168) (1,839) (1,889) (50) (2.7) 24 (8,965) (18) Insurance (20,122) (11,738) (11,758) (20) (0.2) (6) (10,012) (351) Miscellaneous (14,643) (8,631) (8,505) (188,790) (450) Total Non Pay Expenditure excluding Provisions & Commitments and Unallocated CIPs (396,478) (233,037) (240,294) (7,256) (3.1) (3,898) Financial Contingencies (Trust) (6,310) (3,681) (3,039) (482) Unallocated CIPs (Trust) 0 (0) Balance to TDA Plan 26,879 17,259 0 (17,259) (14,920) (188,790) (725) TOTAL NON PAY EXPENDITURE (excl. Depreciation) (375,909) (219,459) (243,333) (23,873) (10.9) (18,268) (482,986) (946) Total Pay (App 1.6) and Non-Pay Expenditure (excl. Depreciation) (1,016,931) (594,872) (613,698) (18,826) (3.2) (12,841) 1.6b Non Pay 5

6 Financial Year Ending 31st March Cost Improvement Plan period ended 31st October 2014 At the end of October actual performance on identified CIPs was 20.8 million against an internal plan of 26.4 million resulting in an adverse variance of 5.7 million - this represents a deterioration from the September position which was 4.5m behind plan. Although in total the Trust is reporting a favourable variance against its planned deficit position, the underlying EBITDA position after removing deficit funding received this month is now adverse. Agency costs and non pay costs have both increased in the month which are set against a backdrop of an increased CIP plan. Up to the end of September there had been an assumption that although no formal substitution had taken place to offset favourable variances or income over-performance against the unachieved and unidentified CIP targets, the favourable variance was sufficient to offset the shortfall in CIP performance. With the underlying position on agency and non pay worsening this month, resulting in an adverse EBITDA (excluding the additional deficit funding received this month) that could now not happen in full. Total Schemes by Stage and CIP Value Number of schemes 14/15 TDA Plan CIP ly Reporting of Actual Performance Against Target 14/15 Revised Plan Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar YTD 14/15 Plan - schemes at "Opportunity" stage /15 Plan - schemes at "Plans in Progress" stage 11 27,320 13, (48) ,182 1,662 1,770 1,990 1,965 2,460 3,574 14/15 Plan - schemes at "Fully Developed" stage ,442 2,439 2,495 2,457 2,427 3,228 2,705 2,784 2,868 2,878 3,112 3,027 3,023 18,535 Balance of schemes to find (Unidentified) 10 26,700 7, ,337 14/15 CIP schemes target 30 54,399 54,399 3,069 3,065 3,259 3,477 4,411 4,522 4,695 5,160 5,278 5,732 5,622 6,110 26,497 Actuals 54,399 54, ,680 3,419 3,270 3,562 4,037 3,484 20,791 Variance 0 0 (2,730) (385) 160 (207) (849) (485) (1,210) (5,706) Variance (%) 0% 0% -89% -13% 5% -6% -19% -11% 0% 0% 0% 0% 0% 0% -23% YTD Progress: Rec / Non Rec Pay / Non Pay YTD Progress Pay Non Pay Income Schemes by Stage Last Plan This Plan Movement in Plan 5000 Recurrent 20,791 2,413 9,817 8,560 Opportunity Non-recurrent Plans in Progress 13,328 13, Actual CIP Achieved CIP Target per Total 20,791 2,413 9,817 8,560 Fully Developed 33,731 33,442 (289) Non-Recurrent % 0% 0% 0% 0% Unidentified 7,238 7, Total 54,399 54, Forecast CIP Risk CSU Cross- Cutting Unidentified Unidentified, "Opportunity" and "Plans in Progress" schemes 20,957 Account Code Level 25,310 6, ,131 Underperformance 5,706 Unallocated 150 7,684 14,434 22,268 CIP Risk 26,663 Total 25,460 14,505 14,434 54,399 Total Main Risks Identified Programme Start Date Project Lead Explanation of Risk 1.7 CIP Summary 6

7 1.8 Trust Financial Contingencies period ended 31st October 2014 At the end of October total full year Financial Contingencies were 23.9m. Following TDA guidance at the time of setting budgets for 2014/15, these were budgeted for and phased in 1/12ths, and each month as long as the contingency is not being used, an accrual is made against each constituent element until it is required, at which point the contingency is to be released. To date, the total accrual stands at 12.7m against a year to date budget of 13.9m, resulting in a favourable variance of 1.2m. This compares to 0.8m in September, and the improvement is because part of the nursing contingency is now being released to offset the cost of additional nurses recruited in the month. The main two elements which are not being accrued for at all are VAT on agency staff and the Learning Development Agreement provision. This is because in each case it is assumed that expenditure relating to those two elements is being incurred across multiple individual CSUs, making a direct budget allocation difficult. Annual Year to Date Prior Plan Plan Actual Variance Variance Pay Inflation 1, VAT on A&C Agency 1, (642) (550) Nursing - Quality Investment 3,183 1,857 1,547 (310) 0 IT - Safer Hospitals Investment Corporate Infrastructure 5,000 2,917 2, Theatres - Additional Sessions 1,873 1,093 1, Other Pay Cost Pressures 5,019 2,929 2, Non-Pay Inflation 3,768 2,197 2, Tariff Drugs 1, Learning Development Agreement (302) (259) Penalty Provision 1, Specialised Services Derogation Contingency (other pay cost pressures) (901) (526) (553) (27) 17 Total 23,883 13,934 12,680 (1,254) (769) 1.8 Financial Contingencies 7