Equitable Access. Financial Model Handbook

Transcription

1 Equitable Access 1

2 Index Section Description Page Nos 1. The Model Model Instructions Model Structure Overview of Financial Model Template (FMT) FMT Worksheets FMT Worksheet 1. Instructions FMT Worksheet - 2. Assumptions FMT Worksheet 3. Naviagtion FMT Worksheet 4. Financial Summary FMT Worksheet 5. Payment Model FMT Worksheet 6. Staff Numbers and Costs FMT Worksheet 7. Non-Staff Costs FMT Worksheet 8. Monthly Costs FMT Worksheet 9. Monthly Revenues FMT Worksheet 10. Cashflow. 9 2

3 1.0 The Model This (FMH) is intended to be used in conjunction with the Financial Model Template (FMT), Annex 9A of ITT Volume 2, which has been issued to Bidders for completion with their Bid submission in respect of the Gloucestershire PCT procurement scheme. 2.0 Model Instructions All Bidders must complete the FMT in full to ensure a Compliant Bid. Failure to do so could result in a non-compliant Bid and elimination as a potential Bidder. 3.0 Model Structure The FMT provided to the Bidders has been prepared in Microsoft Excel 2003 and Bidders are requested to save their electronic submission copy under this version or in a lower version of Excel. The FMT is a single Excel workbook with a number of worksheets. The worksheets and a brief list of their contents are provided below, at Section 5. Each worksheet, its purpose and the methodology as to its completion is detailed within the FMH. The worksheets are integrated with one another such that changes of input data will automatically update any designated cells within the workbook as appropriate. The FMT comprises data, provided by Gloucestershire PCT, which is locked and is not to be amended by the Bidders. Bidder input data requirements are indicated by the cells highlighted in yellow. The FMT is designed to reflect a contract term of five years and all financial values input to the model and or provided by Gloucestershire PCT are in real terms. i.e. no inflation is included in the values and therefore the financial values ascribed to the model are in 2007 values. 4.0 Overview of Financial Model Template The FMT provides for a series of worksheets, which will allow the Bidders to input data and thereby enable the assessment of the Bid as to its overall value in terms of attributable cost to Gloucestershire PCT and as to Bidder s level of planned revenue and profitability arising from the scheme. 5.0 FMT Worksheets The FMT comprises a series of ten worksheets, which are listed in the table below, providing the worksheet references within the workbook, together with a brief description of their content and the Bidder requirements, i.e. actions required of the Bidders for the relevant worksheet. 3

4 Bidder Worksheet Reference Description Requirements Completion Checklist Checklst Input data 1. Instructions Instructions as to Completion of Model Read Instructions 2. Assumptions Model Template Assumptions Input Data 3. Navigation Index to Model Worksheets No Action 4. Financial Summary Statistics and Financial Overview No Action 5. Payment Model Summary of Volumes and Unit Prices per year Input Data 6. Staff Numbers and Costs Non Staff Costs by Year Input Data 7. Non Staff Costs Non Staff Costs Input Data 8. Monthly Costs Monthly cost Profile No Action 9. Monthly Revenue Monthly Revenue Profile No Action 10. Cashflow Cash Flow Borrowing Requirements No Action 5.1 FMT Worksheet 1. Instructions The FMT is provided with an instruction set included under worksheet, reference, 1. Instructions, which should be read by Bidders in conjunction with this FMH. The instruction set provides a summary of the content of each worksheet. Should Bidders have any queries regarding the requirements listed within the instruction set above, the material provided within the FMH or the FMT model and require assistance, they are advised to please contact:- Name INSERT PCT REPRESENTATIVE NAME Address PLEASE INSERT PCT 5.2 FMT Worksheet - 2. Assumptions The FMT workbook is provided with a series of key assumptions, reference, 2. Assumptions, which govern a range of aspects in relation to the data contained in the FMT. These assumptions reflect key areas of input to be provided by Gloucestershire PCT and/or the Bidder. The data contained on the assumptions page reflects key information utilised by the FMT in determining outputs. As stated previously, the Bidder inputs are highlighted in yellow and are addressed below: Title Sections 4

5 The Bidder is expected to complete the following title sections contained under model references B13 to B15 inclusive, as follows: Bidder: Enter Name File Name: Enter File Name Date: Date of model These details, together with the other titles in this section, will automatically be referenced to all worksheets in the FMT. Model Start Dates The model start date has been entered by Gloucestershire PCT and reflects the date when the service is expected to commence. Model Start Date Period Service Commencement 1 January Full Service End Date 31 December Salary Assumptions Pension Contribution - Employer Bidders are required to enter the employer s pension contribution rate for non TUPE Staff (i.e. Staff not transferred from Gloucestershire PCT). The default rate is 10%, as provided in the FMT and will apply to those non TUPE Staff where their personnel pension flag is set to the value of 1, as opposed to the default 0. See table extract below and guidance note to worksheet 6. Staff Numbers and Costs. Note: The pension flag is located on worksheet 6. Staff Numbers and Costs opposite the individual job title. Salary Assumptions NIC Employer - rate % 12.80% NIC Employer - - Breakpoint per annum 5,225 Pension Contribution Employer 10% 5.3 FMT Worksheet - 3. Navigation The FMT workbook contains a worksheet reference, 3. Navigation. This worksheet lists in a table all worksheets and provides a brief description together with the Bidder requirements. The Bidder requirements are self-explanatory e.g. No Action, implies that the Bidder need not enter any data to this worksheet. Bidders are not required to enter any data in this worksheet. 5

6 The worksheet references are hyperlinked to the corresponding worksheet within the workbook. To use this facility, the cursor is placed on the link and clicked once and the cursor will be taken automatically to the referenced worksheet, automatically placing it on the title of the worksheet, which is positioned at the top left hand side; this aspect is common to all worksheets within the workbook. Within each worksheet, a title bar Go to Navigation, allows the user to return to the navigation page, by placing the cursor on the text of the title bar, notated Go to Navigation. By clicking once, the cursor will be retuned to the navigation page. The user can therefore navigate around the model as required. 5.4 FMT Worksheet 4. Financial Summary The FMT worksheet reference, 4. Financial Summary requires no inputs to be submitted by Bidders. The worksheet reflects a five year summary of the Bidder s proposal as follows: Patient Volumes; Analysis of patient volumes and values by category; The Provider s trading account including revenue, salary cost, direct costs and profitability; The price per patient treatment; Gloucestershire PCT costs; including the total cost to Gloucestershire PCT together with a summary of the pass through costs and the gross price per patient to Gloucestershire PCT. Bidder cash flow and bank balance; and The maximum and minimum level of funding required. 5.5 FMT Worksheet 5. Payment Model The FMT contains a worksheet reference, 5. Payment Model. This worksheet contains a listing of the service provision as to description of the service, the volumes applicable and the corresponding tariff prices and input cells for Bidder s to enter their price for the service. The price input requirements are unit prices, with Gloucestershire PCT providing the corresponding historical volumes. The worksheet allows for a summary of the revenue for the Provider for each of the five years of the Contract. In addition, the worksheet summarises in a separate section beneath the total revenue line the KPI Payment Range Regime, i.e. the sums that would be payable under various scenarios based on the Provider s performance. Further details on the computation of these values are provided in Schedule 7 of the Contract. The total prospective revenue is automatically carried to the financial summary worksheet. The KPI Payment Range Regime reflects possible scenarios as to payments to the Provider based on attributable performance standards or key performance indicators 6

7 (KPIs). These indicators and their computation are detailed in Schedule 7 of the Contract. 5.6 FMT Worksheet 6. Staff Numbers and Costs The FMT contains a worksheet reference, 6. Staff Numbers and Costs. This worksheet provides for the collection of data on Staff job titles, headcount, the headcount measured at whole time equivalents (WTEs) values for Staff costed to the scheme within two discrete sections, as follows: TUPE Transfers This section of the worksheet will reflect those Staff who will transfer from the PCT under the section of the worksheet referenced as TUPE Transfers. The data for this section is provided by Gloucestershire PCT. Non-TUPE Staff This section of the worksheet will reflect those Staff who will be recruited and added to the Provider s payroll. The data for this section will require input by the Bidder. The worksheet allows for the full five-year period of the scheme and will reflect the gross cost of the salaries for each of the five years of the Contract. The gross cost of salaries is defined as gross pay (before statutory deductions e.g. taxation, employees NIC and deductions e.g. employees pensions), employers National Insurance Contributions (NIC) and employers pension contributions. In respect of non-tupe Staff, Bidders must enter the job title of the employee, if not already available or inadequate in the worksheet, the headcount, in all cases single units and the WTE equivalency. For example, where an employee works only 50% of a normal working week, this would be 1 employee, but would have a WTE equivalency factor of 0.5. The salary for the employee will reflect the gross salary that the employee is paid before statutory deductions (e.g. tax) or employee non-statutory deductions (e.g. loan repayments to employer). The gross salary will include all taxable pay, including, but not limited to, overtime, bonus payments, shift allowances etc. The FMT will automatically calculate the NIC contributions for the employer based on the employees gross salary cost. A key factor for the employer will be the cost of the pension provision, if applicable. To attribute pension contributions payable by the employer, Bidders must enter 0 or 1 into the pension flag column opposite the employee job title. The factor 0 indicates that no pension is payable by the employer and 1 indicates that the employer will pay pension contributions to the employees scheme. The latter value is determined by the assumptions table, input values, Salary Assumptions - Pension contributions employer. See Section 5.2 above. The default rate for pension contributions is 10% of gross salary. 7

8 The other column will reflect any payments, which are not taxable, but payable by the employer. 5.7 FMT Worksheet 7. Non Staff Costs The FMT contains a worksheet reference, 7. Non Staff Costs. This worksheet provides for the collection of data in relation to non-staff costs that the Provider will incur on an annual basis over five years. Note that no VAT will be recoverable under this scheme and therefore all costs will be input inclusive of VAT, where applicable. The worksheet is divided into two sections, non-pass through costs and pass through costs. Non-pass through costs are those costs which will require input from Bidders and will reflect the Bidder s cost for the service. Pass through costs are those costs, which Gloucestershire PCT has deemed as being Gloucestershire PCT s responsibility and are populated on the worksheet reflecting Gloucestershire PCT s cost of the service. In some instances, historical costs have been input by Gloucestershire PCT in the nonpass through cost section. These are of small value and unlikely to vary from Bidder to Bidder. Bidders are expected to complete the section non-staff costs, taking account of any historical costs, which have been provided. The input cells are highlighted in yellow. Additional lines, if required, may be inserted within the appropriate sections, together with a description. 5.8 FMT Worksheet 8. Monthly Costs The FMT contains a worksheet reference, 8. Monthly Costs, which automatically allocates the annual values entered in the FMT worksheet 7. Non- Staff Costs into monthly values. These are allocated on a one-twelfth basis. 5.9 FMT Worksheet 9. Monthly Revenue The FMT contains a worksheet reference, 9. Monthly Revenue, which automatically allocates the annual values entered in the FMT worksheet 4. Payment Model into monthly values. These are allocated on a one-twelfth basis FMT Worksheet 10. Cashflow The FMT workbook contains a worksheet reference, 10. Cashflow. The FMT reflects a monthly cashflow based on the data contained within the FMT. In essence, this 8

9 worksheet provides the Provider with a presentation of the likely timing of cash payments and receipts and therefore the level of funding required via the Provider s bank account. The FMT cashflow template requires no inputs from Bidders and reflects the overall funding requirements for the scheme based upon the planned cashflows. 9