Clive Field, Interim Director of Finance and Performance. 20 June 2016

Transcription

1 Clive Field, Interim Director of Finance and Performance 20 June 2016

2 Summary I & E Position The Trust is forecasting 1.1m before impairments in line with the plan. The plan includes 0.2m impairment which will result in an overall surplus of 0.9m. The ytd position is 0.8m deficit, which is 0.5m worse than plan Apr May Jun Jul Aug Sep Oct Nov Dec Jan Best FOT Most Likely FOT Worst FOT Feb Mar Trust Income and expenditure budget is 4.7m less than in the operating plan submitted to NHSI Urgent care pathway 2.4m, Local QIPP requirements 0.8m NHSE QIPP 0.6m Other 0.9m. This also impacts on the monthly profiling of the budget.

3 Financial Duties and KPIs Control Total of 1.1m surplus before Impairments Cost of Capital Absorption Duty Better Payments Practice Code FSRR of 4 External Financing Limit (cash target) target not yet confirmed Capital Resource Limit target not yet confirmed The Trust has received notification from NHSI to increase the control total from 1.1m to 2.1m. This report excludes the impact of this change which will be reported in Month 3. Risk movement and trend Improvement in performance and within plan Deterioration in perfomance but still within plan Performance continuing on plan 1 No plan in place Improvement in performance but still slightly off plan Deterioration in perfomance and slightly off plan Performance continuing but still slightly off plan 2 Plan in place but progress insufficient Improvement in performance but still off plan Deterioration in performance and off plan Performance continuing but still off plan 3 Plan in place & progress satisfactory Assurances 3

4 Income Position The Trust is forecasting to achieve 158.5m of income in line with budget. Year to date is slightly adverse compared to plan with non clinical income offsetting shortfalls in cost and volume contracts and reduced non contractual activity in April. Financial Reports 2016/2017 Current Month 2 Mths to May Mths to 31 March 2017 F/Cast Local Contracts N Nhs England Npsa Income (0.2) (0.3) Other Nhs Clinical Income Nhs Clinical Income (0.2) (0.2) Education & Training N (0.0) Other Non Clinical Income Merit Award Income (0.0) (0.0) Non Clinical Income Non Nhs Clinical Income N Non Nhs Clinical Income Income (0.0) (0.1)

5 Pay Position The Trust is currently planning on spending 115.4m on pay during 2016/17, 73% of the overall budget. Financial Reports 2016/2017 Current Month 2 Mths to May Mths to 31 March 2017 F/Cast Permanent Staffing Bank (including medical locums) (0.1) (0.2) Agency (0.5) (0.9) Total Pay (0.2) (0.3) Financial Reports 2016/2017 Current Month 2 Mths to May 2016 Fa Fav v'ble 'ble 12 Mths to 31 March 2017 Fa F/Cast v'ble Medical (0.2) Nursing (0.1) Other Clinical (0.1) Non Clinical (0.1) (0.3) Total Pay (0.4) (0.3) The cumulative adverse position reflects the under achievement of savings on the Admin and Clerical review, and high spend agency spend particularly within the Programme Management Office. 5

6 Non Pay The Trust spent 2.8m on non pay for the month which was marginally more than plan. This was due to non recurrent expenditure on computers (Real Time Feedback system) and training. The Trust is reviewing plans to ensure that expenditure is brought back in line with budget The Trust is forecasting to spend 29.8m (18.9%) on non pay in line with plan. Reserves and contingencies are budgeted as non pay. Financial Reports 2016/2017 Current Month 2 Mths to May Mths to 31 March 2017 F/Cast Drug Costs (0.2) (0.2) (0.0) (0.4) (0.4) (0.0) (2.5) (2.5) 0.0 Secondary Commisioning Costs (0.2) (0.2) 0.0 (0.6) (0.5) 0.0 (1.9) (1.9) 0.0 Clinical Supplies & Servs Cost (0.1) (0.1) (0.0) (0.1) (0.1) (0.0) (0.6) (0.6) 0.0 Other Costs (2.3) (2.4) (0.1) (4.3) (4.4) (0.1) (23.9) (23.9) 0.0 Contingency (0.8) (0.8) 0.0 Non Pay (2.7) (2.8) (0.1) (5.4) (5.5) (0.1) (29.8) (29.8) 0.0 The costs of capital are currently forecast to be in line with plan. Financial Reports 2016/2017 Current Month 2 Mths to May Mths to 31 March 2017 F/Cast Cap Charges - Depreciation (0.5) (0.5) (0.0) (0.9) (0.9) (0.0) (5.5) (5.5) 0.0 Cap Charges - Pdc Dividend (0.6) (0.6) (0.0) (1.1) (1.1) (0.0) (6.7) (6.7) 0.0 Interest Receivable (0.0) Sub Total (1.0) (1.0) (0.0) (2.0) (2.0) (0.0) (12.2) (12.2) 0.0 6

7 Savings 2016/17 CIP = 6.5m 2017/18 CIP = 5.7m Total = 12.2m Schemes totalling 12.2m have now been identified, 4.0m improvement on May position. Month 2 deliver of 0.2m versus plan of 0.1m. Positive variance due to non recurrent savings relating to the receipt of overage payments following the sale of Woodcote Road. Plus need to deliver on 2015/16 planned savings of 0.5m (A&C Review) and 0.7m (Community Modernisation. Savings against the A&C review are currently behind plan. 7

8 Capital The capital expenditure budget for the year is 17.2m. The Trust is planning on disposing South Place and Roseland sites for 3.9m during the year. Estates Schemes Maintenance Wards Refurbishment Other Refurbishments ECR Electronic Care Record System EMP EFL Plan CRL Plan Total Estates Schemes IM&T IT Block Capital Total IM&T Total Capital Expenditure Capital Expenditure 17.2 Planned Depreciation 5.5 PDC Movement in working capital (5.7) Disposal 3.9 (3.9) Retained Earnings 0.9 Total EFL/CRL The CRL for the year has not yet been confirmed. The Trust is planning a CRL of 13.4m and expects to achieve this target. The Trust target EFL has not yet been confirmed. 8

9 Statement of Financial Position Statement of Financial Position as at 31 May 2016 Forecast 31 March 2016 Previous Month Current Month 31 March 2017 NON CURRENT ASSET: Intangible assets Plant, Property and Equipment Total Non-Current Assets Non Current Asset Held for sale Total Non-Current Assets Held for sale CURRENT ASSETS: Inventories Receivables (due in less than 1 year): NHS Trade Receivables Non-Nhs Trade Receivables Other Receivables Other Financial Assets (Accrued Income) Prepayments Total Receivables - due in less than 1 year Cash and Cash Equivalents Total Current Assets CURRENT LIABILITIES Trade Payables (3.9) (0.2) (0.5) (4.5) Other Payables (4.1) (4.2) (4.2) (4.2) PDC Dividend Payable 0.0 (0.3) (0.9) (0.9) Capital Payables (2.1) (1.9) (1.8) (1.8) Provisions (1.5) (1.5) (1.5) (0.5) Other Financial Liabilities (Accruals) (5.9) (7.2) (8.3) (8.3) Deferred Revenue (0.6) (0.4) (1.0) (1.0) Total amounts falling due within one year (18.0) (15.8) (18.2) (21.2) NET CURRENT ASSETS/(LIABILITIES) TOTAL ASSETS LESS CURRENT LIABILITIES Provision for Liabilities and Charges (0.1) (0.1) (0.1) (0.1) TOTAL ASSETS EMPLOYED FINANCED BY TAXPAYERS EQUITY: Public dividend capital Retained Earnings (accumulated losses) Retained Surplus(Deficit) in year 2.0 (0.3) (0.8) (7.1) Donated asset reserve Revaluation Reserve Other Reserves TOTAL TAXPAYERS EQUITY Opening PPE 199.4m Depreciation ( 5.5) Capital Expenditure 17.2 Valuation Impact 1.0 Closing PPE 212.1m The overall debt position at the end of May was 3.8m of which 2.2m relate to prior financial years. This mainly relates to NHS invoices and only 0.4m is non NHS. Cash - see next page Provisions assumes redundancy provision is used up by the year end. The Trust is reviewing the annual leave provision to determine whether a non recurrent benefit can be reported in the I&E. 9

10 Cash The planned cash flow shows an increasing cash balance in the first and second half of the year due to the build up of cash resources to meet the payment of PDC in September and March. The Trust continues to build planned cash reserves which are required in future years in order to partly fund the Estates Modernisation Programme. The cash balance at the end of the month was 18.7m compared with the plan of 18.2m; this was due to the receipt of the first quarter SLA from Health Education England. The plan is to have a closing balance of 13.6m at the end of the financial year. (A) (B) (C) Mar-16 Apr-16 May-16 Jun-16 July-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 (D) (E) (F) Plan ----Forecast (A) Early receipt of Q1 SLA from Health Education England (B) Gradual build up of cash for PDC payment due in September (C) Payment of 3.4m PDC (D) Higher Payment runs to clear Q3 invoices including NHS properties (E) Receipt from disposal of South Place and Roseland sites totalling 3.8m (F) Payment of 3.3m PDC and other year end invoices 10