Financial Report 2013/14

12 Months to 31 March 2014

Document Information This report updates the Trust Board on the financial position of the Trust as at 31

st March 2014.

Date: 23rd

April 2014 Status: Final

Current Version: 1.0

Transparency level: Public

Author: Mike Naylor, Director of Finance and Deputy CEO

Owner: Finance

Commissioned by: Finance & Investment Committee

File location: \\sprfiler01\finance\Mgmt.Accounts\Board Reporting\2013_14\Month 12\Board Reports

.

MONTHLY FINANCIAL REPORT

12 MONTHS TO 31 MARCH 2014

CONTENTS

Page No.

1.0 Financial Summary as at 31 March 2014 ............................................................................. 1

2.0 Income & Expenditure Summary ......................................................................................... 2

3.0 Directorate Positions ............................................................................................................ 4

4.0 Savings Targets ................................................................................................................... 5

5.0 Capital ................................................................................................................................. 5

6.0 Statement of Financial Position, Cash and Working Capital ................................................. 6

7.0 Financial Risks .................................................................................................................... 6

8.0 Financial Duties ................................................................................................................... 6

9.0 Income & Expenditure – Functional Analysis ....................................................................... 7

10.0 Income & Expenditure – Directorate Analysis ...................................................................... 8

11.0 Statement of Financial Position ........................................................................................... 9

12.0 Capital Expenditure Summary & EFL/CRL Targets............................................................ 10

13.0 Cashflow ............................................................................................................................ 11

14.0 Workforce Information ....................................................................................................... 12

15.0 Nursing Analysis ................................................................................................................ 13

16.0 Public Sector Payment Policy ............................................................................................ 14

Appendix A - Glossary of terms used in this report ........................................................................ 15

1

1.0 Financial Summary as at 31 March 2014

The Trust will submit draft annual accounts for 2013/14 to the Department of Health, TDA and the auditors on 23rd April 2014.

The Trust is provisionally reporting, subject to audit, a £1.6m underlying surplus before impairments and profit on sale of assets. This is in line with the plan approved by the Trust Board at the beginning of the year. This achieves the Trust’s statutory duty to at least break even and achieves the performance duty monitored by the TDA.

The position after impairments and profit on sale of assets is a £2.7m surplus. Impairments are £0.7m surplus due to favourable market conditions resulting in a net increase in value of Trust Assets. The Trust achieved a £0.3m net gain following the sale of Roselodge and Henderson sites.

The Trust also has a performance duty to achieve a £7.9m cost improvement target, which was achieved partly in line with original savings plans £5.6m (71%) and partly through mitigating action of £2.3m (29%). The full year effect of plans is £7.7m (97%).

The Trust is reporting an I&E surplus margin of 1.0% as required. The EBITDA margin is slightly below plan at 7.7% compared to plan of 8.0% this was necessary, in order to achieve the 1.0% surplus margin, due to lower depreciation charges than plan.

The cash balance at the year end was £16.3m. The Trust achieved both financial duties i.e. to stay within the External Financiing Liming (EFL) and be within the Department of Health target range for the Cost of Capital Absorption Duty.

As required the Trust has stayed within the Capital Resource Limit (CRL) of £1.8m. Capital spend for the year was within budget at £6.9m compared to a plan of £8.8m.

The Trust received a risk rating of ‘3’ from the TDA (‘5’ is the highest/best, ‘1’ the lowest) in line with the operating plan. The position against each of the risk rating metrics is outlined below. This risk rating will not be used next year as it is being replaced by CoSRR which uses different metrics and is designed to assess financial sustainability.

Metric Ytd Plan Previous Month Outturn

EBITDA margin 7.8% 3 7.9% 3 7.7% 3

EBITDA, % achieved 100.0% 5 101.2% 5 97.3% 4

ROA 3.3% 3 3.7% 3 3.9% 3

I&E surplus margin 0.9% 2 1.0% 3 1.0% 3

Liquid ratio 52.9 4 47.5 4 48.8 4

Weighted Average 3 3 3

2

2.0 Income & Expenditure Summary

The Trust is monitored by the TDA on its financial position before impairments and profit on the sale of assets. The Trust achieved the planned underlying surplus of £1.6m.

The final position had slightly more income than previously anticipated, offset by additional costs. The summary of the outturn position for the year compared to plan is provided below.

Overall expenditure is £2.3m more than plan, which when combined with the favourable income position of £2m results in a year to date EBITDA of £12.3m. This is £0.3m less than plan. Post EBITDA adjustments for the costs of capital are £0.3m better than plan at £10.7m resulting in an overall underlying surplus of £1.6m in line with plan.

The Trust is monitored by the TDA on its position before impairments and net gain on sale of assets. The overall forecast is a £2.7m surplus with is £1.9m better than plan.

The financial plan allowed for a negative impairment of £0.8m due to the planned sale of properties. However the valuation from the District Valuer resulted in a £0.8m net favourable impairment. This was £1.5m better than plan as the planned impairment due to rationalisation of Trust sites was more than offset by the improvement in the property market over the past few months which increased the value of Trust properties.

The Trust achieved a £0.3m gain on the sale of Roselodge and Henderson sites.

Further breakdown of the income and expenditure position can be found on page 7.

2.1 Income

2.1.1 The final position on income for the year was £160m which was a £2m (1%) favourable variance against plan, of which £1.5m related to clinical income and £0.5m to non clinical income.

2.1.2 The position improved in the month by £1m compared to the previous forecast due to unplanned income including £0.3m HCAS funding. This funding was confirmed by NHS England in March having been at risk all year.

Budget Actual

£m £m £m %

EBITDAIncome 158.1 160.0 2.0 1%

Pay (115.2) (118.4) (3.2) -3%

Non Pay (30.2) (29.4) 0.9 3%

12.6 12.3 (0.3) -3%

Sub TotalCap Charges - Depreciation (4.9) (4.6) 0.3 6%

Cap Charges - Pdc Dividend (6.2) (6.1) 0.0 1%

Interest Receivable 0.1 0.1 0.0 0%

(11.0) (10.7) 0.3 -2%

1.6 1.6 0.0

Impairment (0.8) 0.8 1.5

Profit / (Loss) On Asset Disps 0.0 0.3 0.3

0.8 2.7 1.9

Var (Adv)/Fav

Financial Reports 2013/2014 12 Mths to March 2014

EBITDA

Sub Total

Surplus / (Deficit)

Underlying Surplus / (Deficit)

3

2.1.3 The cumulative performance against national contracts, NPSA and non contractual activity is £1.1m favourable.

2.1.4 Other Clinical income was £0.3m better than plan mainly due to the new Wandsworth CAMHS assessment service.

2.1.5 Non Clinical income was £12.4m and was £0.5m better than plan and was largely due to additional funding from the LDA of £0.3m in February.

2.1.6 The Trust achieved 98% of the £3.1m CQUIN funding available. The shortfall was due to the non achievement of the Crisis Plan target in quarter 3.

2.2 Expenditure

2.2.1 The final position on expenditure is £2.3m (<1%) greater than plan with non pay reporting a £0.9m under spend and pay a £3.2m over spend.

2.2.2 The final outturn position on pay included a £1.0m provision for redundancy costs (other clinical staff) and £0.4m provision for the protection costs of Recruitment and Retention Premiums. This was in part funded by the Trust 1% contingency which is budgeted within the plan in non pay. The £1.8m balance of the over spend is consistent with the over spends reported previously and relates to additional nursing costs on the wards and non recurrent slippages against the transformation schemes savings plans and the closure of Haydon House.

2.2.3 A breakdown of the pay bill by category is provided below. This is the total cost of both permanent and temporary staffing.

2.2.4 Nursing budgets were increased in November following a review of the nursing establishments by the Director of Nursing and subsequent Trust Board approval to allocate non recurrent CQUIN funding to nursing. As a result the nursing budgets on the wards increased by £648k this financial year, c£130k each month from 1st November.

2.2.5 The adverse position on nursing in the first seven months compared to budget is the main driver of the cumulative adverse position and the forecast over spend on pay. Nursing expenditure has remained relatively static throughout the year at £4m per month with an increase in month 12 due to the provision for protection costs relating to the Recruitment and Retention Premiums. Following consultation with staff this allowance has been withdrawn for all staff other than pharmacists who receive the allowance in relation to on call work.

2.2.6 Temporary staffing as a percentage of the paybill for 2013/14 is 16% compared to 14% in 2012/13 and approximately 15% in the first half of this financial year. A breakdown of temporary staffing spend is provided below and compares average monthly spend in quarter 4 with the previous quarters. More details of temporary staffing spend can be found on page 12.

Budget

£m

Actual

£m

(Adv)/Fav

'ble

Budget

£m

Actual

£m

(Adv)/Fav

'ble

Medical 1.9 2.0 (0.1) 22.8 22.3 0.5

Nursing 4.0 4.4 (0.4) 46.6 48.3 (1.7)

Other Clinical 1.7 2.8 (1.1) 21.8 23.0 (1.2)

Non Clinical 2.0 2.1 (0.2) 24.0 24.8 (0.7)

Total Pay 9.6 11.3 (1.7) 115.2 118.4 (3.2)

Current Month 12 Mths to March 2014

4

2.2.7 In total non pay costs are £0.9m less than plan which is due to the Trust contingency being budgeted in non pay but used to fund pay over spends. The over spend on contractual care for PICU clients of £0.3m was offset by under spends on drugs and other costs.

3.0 Directorate Positions

The financial report below provides the financial position against budget for each of the Trust directorates. The reporting is based on internal financial responsibilities within the Trust i.e. the income the directorate is responsible for negotiating and the expenditure that a directorate is responsible for spending. It is not intended to be the service line report or to show the net contribution to overheads of a CCG’s cash envelope.

Overall the clinical directorates reported a £0.4m favourable position against budget. A significant proportion of the income remains at risk and is offset by a provision for bad debts held corporately. The position before national contract income is £0.8m adverse and reflects the over spend on inpatient wards in the first half of the year.

The position for the directorates is summarised below.

The adverse position is offset by favourable variances in other areas primarily within Other Clinical Services/Medical Directorate and through the use of contingency and reserves. The position is outlined in more detail on page 8.

2013/14

Qtr 1

£k

2013/14

Qtr 2

£k

2013/14

Qtr 3

£k

2013/14

Qtr 4

£k

2013/14

Average

£k

Medical 163 138 158 181 175

Admin, Managers and Estates 303 328 425 415 401

Nursing 755 852 868 913 924

Scientific, Therapeutic, Technical 178 155 194 168 190

Other 67 52 64 62 67

Total Temporary Staffing 1,466 1,524 1,710 1,739 1,756

Total Paybill 9,679 9,652 9,794 10,338 10,763

Temporary Staffing as % of Paybill 15% 16% 17% 17% 16%

Year End

Income Cost Total Forecast

£m £m £m £m

Kingston & Richmond 0.0 0.1 0.1 (0.1)

Sutton & Merton 0.0 (0.1) (0.1) (0.0)

Wandsworth 0.0 (0.5) (0.5) (0.4)

Local Directorates 0.1 (0.5) (0.5) (0.6)

Specialist Services 0.2 (0.5) (0.3) (0.3)

Sub Total 0.2 (1.0) (0.8) (0.9)

National Contracts & NCA for Local Services 1.2 0.0 1.2 0.4

Total Clinical Directorates 1.4 (1.0) 0.4 (0.5)

Financial Reports 2013/14 Variance At 31 March 2014

5

4.0 Savings Targets

The Trust achieved the savings plan of £7.9m through a mixture of actions in line with plan (£5.6m 71%) and mitigating action (£2.3m 29%). The mitigating action of £2.3m included £2.1m to offset the delayed start of a number of schemes. The full year effect of schemes is £7.7m approximately 97% of target. Additional schemes have been identified in 2014/15 to address the shortfall. The Trust Executive agreed to use CQUIN funding to mitigate against the shortfalls.

5.0 Capital

The total capital expenditure for the year was £6.9m compared with the plan of £8.8m. Major capital expenditure in the year relate to the CAMHS campus £1.6m, Estates modernisation programme £1.0m, Azaleas £0.6m, IT schemes £1.0m, and the balance of £2.7m relates to a number of other smaller projects. The IT programme includes the refresh of server, computers, mobile devices and other IT equipment, single sign on project and the WIFI provision.

Capital expenditure was planned to be funded by the sale receipts and depreciation. Four sites were disposed of (see section 6 for details) totalling £5.2m with a book value of £4.9m thus making a net gain of £0.3m.

The Trust reported a net positive impairment of £0.8m in the accounts which was as a improvement in the property market over the past few months. This reversed some of the previous years’ negative impairments which were mainly due to revaluation of assets and rationalisation of Trust sites.

No business cases between £200k and £400k were reported to the ISG.

Savings PlanPlan

£k

Actual

£k

Variance

£k

Community Transformation - Adult 400 0 400

Community Transformation - CAMHS 382 0 382

Care Pathway Transformation - Older People 170 85 85

Increased Community Based Care 325 0 325

Savings on Specialist Services 592 524 68

Management Savings within Clinical Directorates 692 371 321

Savings on Smaller Schemes 1,763 1,318 445

Facilities 910 827 83

Overheads 2,395 2,345 49

Total Savings Schemes 7,629 5,470 2,158

Income Growth 271 121 150

Total Savings Plan 7,900 5,591 2,308

Mitigation Action 0 2,308 -2,308

Grand Total 7,900 7,900 0

6

6.0 Statement of Financial Position, Cash and Working Capital

The cash balance at 31 March was £16.3m compared with the plan of £14.6m. The difference of £1.7m is mainly made up of the following items:

Movement in creditors and debtors resulting in an increased cash outflow of £3.7m

The delay in disposal of fixed assets, South Place resource to 2015/16 and Edward Wilson to 2017 a reduction in the planned cash receipts of £2.0m.

There were no investments held with the National Loans Fund at the end of the financial year. Interest receivable for the year was £62k which was above the target of £50k.

The total receipts from sale of four sites in the year was £5.2m (Henderson £1.5m, Roseland £1.3m, St John Part B £1.8m and Wallington Resource centre £0.6m).

Cash flow projection are set out on page 11.

7.0 Financial Risks

The Trust draft accounts will be submitted on the 23rd April and report that the Trust has achieved all financial targets and maintained a financial risk rating of 3 in line with plan. Following the submission of the draft accounts the Trust awaits the Audit Opinion which is scheduled to be presented to the Audit Committee on 27th May. After which, the accounts will be brought to theTrust Board for approval on 5th June.

8.0 Financial Duties

The Trust has to meet its two financial duties:

Cash Target - to stay within the External Financing Limit (EFL) – The Trust ended the year with an acceptable under shoot against the EFL of £0.4m.

The Cost of Capital Absorption Duty - this is calculated by dividing the dividend payments paid to the NHS Executive by the Average Relevant Net Assets. The Trust is within the NHSE target range.

In addition, the Trust is required to:

meet a Public Sector Payment Policy Performance of 95% - the Trust’s achieved this performance for the year ‘by volume’, at 95.1%, and ‘by value’ with an actual per performance of 98.3%. See Page 14.

Stay within the Capital Resource Limit (CRL)- the Trust achieved this target of £2.0m by an undershoot of £1.1m. The undershoot was as a result of additional CRL approved during the year as cash receipts for disposal of assets were doubtful and the remaining planned cash receipts were received in mid March 2014.

7

9.0 Income & Expenditure – Functional Analysis

All figures in £ks

Budget Actual(Adv)/

Fav'bleBudget Actual

(Adv)/

Fav'ble

Forecast

@ M11

EbitdaBlock Contract 1 - Wandsworth Nhs Clinical Income3.3 3.3 0.0 39.3 39.3 0.0 Income 39.3

Block Contract 2 - Merton 1.3 1.3 0.0 15.8 15.8 0.0 15.8

Block Contract 2 - Sutton 1.3 1.3 (0.0) 15.3 15.3 (0.0) 15.3

Block Contract 3 - Kingston 1.3 1.3 (0.0) 15.2 15.2 (0.0) 15.1

Block Contract 3 - R&T 1.2 1.2 0.0 14.1 14.1 (0.0) 14.1

Block Contract 4 - Other 0.4 0.4 (0.0) 4.9 4.4 (0.5) 4.4

National Commissioning Board 2.3 2.3 0.0 27.3 27.3 0.0 27.3

Npsa Income 0.2 0.4 0.2 2.8 4.4 1.6 3.9

Other Nhs Clinical Income 0.5 0.9 0.4 4.8 5.3 0.6 4.9

11.8 12.4 0.6 139.4 141.1 1.7 140.0 Sum:

Education & Training Non Clinical Income0.6 0.7 0.1 7.6 8.0 0.4 7.9

Other Non Clinical Income 0.2 0.2 0.0 4.1 4.2 0.1 4.1

Merit Award Income 0.0 0.0 (0.0) 0.2 0.2 (0.0) 0.2

0.9 0.9 0.1 11.9 12.4 0.5 12.3 Sum:

Non Nhs Clinical Income Non Nhs Clinical Income0.6 0.5 (0.1) 6.8 6.6 (0.2) 6.7

0.6 0.5 (0.1) 6.8 6.6 (0.2) 6.7 Sum:

13.2 13.8 0.6 158.1 160.0 2.0 159.0

Sum:

Perm Pay Pay (8.2) (9.5) (1.2) (98.7) (99.9) (1.2) Expenditure(98.7)

Temporary Pay (1.4) (1.9) (0.5) (16.6) (18.5) (1.9) (18.2)

(9.6) (11.3) (1.7) (115.2) (118.4) (3.2) (116.9)

Sum:

Drug Costs Non Pay(0.2) (0.2) 0.0 (2.9) (2.8) 0.1 (2.8)

Secondary Commisioning Costs (0.0) (0.1) (0.0) (0.6) (0.9) (0.3) (0.8)

Clinical Supplies & Servs Cost (0.1) (0.1) (0.0) (0.6) (0.7) (0.0) (0.7)

Other Costs (2.0) (2.0) 0.0 (25.2) (25.0) 0.1 (24.6)

Contingency (0.1) 0.5 0.6 (1.0) 0.0 1.0 (0.5)

(2.5) (1.8) 0.6 (30.2) (29.4) 0.9 (29.5)

Sum:

(12.1) (13.2) (1.1) (145.4) (147.8) (2.3) (146.3)

Sum:

1.2 0.7 (0.5) 12.6 12.3 (0.3) 12.6

Sum:

Post EbitdaCap Charges - Depreciation Sub Total(0.4) (0.1) 0.3 (4.9) (4.6) 0.3 Post Ebitda (4.9)

Cap Charges - Pdc Dividend (0.5) (0.5) 0.0 (6.2) (6.1) 0.0 (6.2)

Impairment (0.8) 0.8 1.5 (0.8) 0.8 1.5 0.6

Interest Receivable 0.0 0.0 0.0 0.1 0.1 0.0 0.1

Profit / (Loss) On Asset Disps 0.0 0.3 0.3 0.0 0.3 0.3 0.1

(1.7) 0.5 2.2 (11.8) (9.6) 2.2 (10.3)

Sum:

(0.5) 1.2 1.7 0.8 2.7 1.9 2.3

Ebitda

1.2

(2.5)

Sub Total

(12.1)

Expenditure

Pay

(9.6)

13.2

Financial Reports 2013/2014 Current Month 12 Mths to March 2014

Nhs Clinical Income

Non Pay

Income

Non Nhs Clinical Income0.6

11.8

Non Clinical Income0.9

Surplus / (Deficit)

(1.7)

8

10.0 Income & Expenditure – Directorate Analysis All figures in £ks

Budget Actual(Adv)/

Fav'bleBudget Actual

(Adv)/

Fav'ble

Forecast

@ M11

Income Kingston & Richmond Central Income2.6 2.6 0.0 30.9 30.9 0.0 30.9

Income Specialist 2.5 2.5 0.0 29.6 29.7 0.2 29.7

Income Sutton & Merton 2.4 2.4 0.0 28.7 28.7 0.0 28.7

Income Wandsworth 3.3 3.4 0.0 40.0 40.0 0.0 40.0

Income Corporate 0.9 1.4 0.4 11.1 12.3 1.2 11.5

Central Income 11.7 12.2 0.5 140.2 141.6 1.4 140.8

Kingston & Richmond Clinical Directorates(1.6) (1.5) 0.2 (18.9) (18.8) 0.1 (19.0)

Sutton & Merton (1.7) (1.7) (0.0) (19.9) (20.0) (0.1) (20.0)

Wandsworth (2.1) (2.3) (0.2) (24.9) (25.4) (0.5) (25.3)

Specialist Services (2.0) (2.0) (0.0) (23.4) (23.9) (0.5) (23.8)

Clinical Directorates (7.3) (7.4) (0.1) (87.1) (88.1) (1.0) (88.1)

Medical Director Other Clinical Services(0.4) (0.4) (0.0) (5.0) (4.5) 0.6 (4.5)

Pharmacy (0.1) (0.1) (0.0) (1.6) (1.5) 0.0 (1.5)

Psychology (0.0) (0.0) (0.0) (0.2) (0.2) 0.0 (0.2)

Therapies (0.1) (0.1) (0.0) (1.1) (1.1) (0.0) (1.1)

Other Clinical Services (0.6) (0.7) (0.1) (7.9) (7.3) 0.6 (7.3)

Facilities Facilities(1.5) (1.9) (0.4) (17.0) (17.6) (0.6) (17.4)

Facilities (1.5) (1.9) (0.4) (17.0) (17.6) (0.6) (17.4)

Overhead Departments Overhead Departments(1.0) (1.6) (0.6) (13.3) (16.0) (2.8) (15.5)

Overhead Departments (1.0) (1.6) (0.6) (13.3) (16.0) (2.8) (15.5)

Central Costs Central Costs(1.8) 0.6 2.4 (14.1) (10.0) 4.2 (10.1)

Central Costs (1.8) 0.6 2.4 (14.1) (10.0) 4.2 (10.1)

Surplus / (Deficit) (0.5) 1.2 1.7 0.8 2.7 1.9 2.3

Financial Reports 2013/2014

3CCN - Level 3 Cost Centre Name

Current Month 12 Mths to March 2014

9

11.0 Statement of Financial Position

All figures in £k

Actual Actual Outturn

31 March 2013 Previous Month 31 March 2014

NON CURRENT ASSET:

Intangible assets 1,154 849 1,164

Plant, Property and Equipment 177,724 177,967 192,419

Total Non-Current Assets 178,878 178,816 193,583

Non Current Asset Held for sale 6,884 4,524 0

Total Non-Current Assets Held for sale 6,884 4,524 0

CURRENT ASSETS:

Inventories 162 162 203

Receivables (due in less than 1 year):

NHS Trade Receivables 3,978 3,662 4,962

Non-Nhs Trade Receivables 1,849 1,310 1,385

Other Receivables 720 877 1,077

Other Financial Assets (Accrued Income) 2 2,117 0

Prepayments 493 374 549

Total Receivables - due in less than 1 year 7,042 8,340 7,973

Cash and Cash Equivalents 12,027 17,104 16,277

Total Current Assets 19,231 25,606 24,453

CURRENT LIABILITIES

Trade Payables -2,849 -1,704 -5,622

Other Payables -3,546 -3,830 -3,784

PDC Dividend Payable 0 -2565 0

Capital Payables -1,174 -411 -1,248

Provisions -2,469 -1,480 -1,851

Other Financial Liabilities (Accruals) -5,575 -7,057 -3,857

Deferred Revenue -374 -1,387 -292

Total amounts falling due within one year -15,987 -18,434 -16,654

NET CURRENT ASSETS/(LIABILITIES) 10,128 11,696 7,799

TOTAL ASSETS LESS CURRENT LIABILITIES 189,006 190,512 201,382

Provision for Liabilities and Charges -88 -88 -87

TOTAL ASSETS EMPLOYED 188,918 190,424 201,295

FINANCED BY TAXPAYERS EQUITY:

Public dividend capital 130,895 130,895 130,895

Retained Earnings (accumulated losses) -6,223 -4,553 -2,266

Retained Surplus(Deficit) in year 1,670 1,506 1,627

Donated asset reserve 0 0 0

Revaluation Reserve 62,576 62,576 71,039

Other Reserves 0 0 0

TOTAL TAXPAYERS EQUITY 188,918 190,424 201,295

Statement of Financial Position as at

31 March 2014

10

12.0 Capital Expenditure Summary & EFL/CRL Targets

All figures in £k

Capital Expenditure Summary as at 31 March 2014

Actual Budget

Estates Schemes

SpH Regeneration Program 1,020 1,733

CAMHS Campus 1,571 1,094

PEAT 41 399

AZALEAS - Ward Refurbishment 601 601

Others 2,636 4,022

Total Estates Schemes 5,869 7,849

IM&T

IT Block Capital 1,005 1,000

Total IM&T 1,005 1,000

Total Capital Expenditure 6,874 8,849

Note: A circular flows payment for Roseland Clinic of £1,339k was planned but has now been deferred to 2014/15

External Financing Limit (EFL)/Capital Resource Limit (CRL)

EFL EFL CRL CRL

Outturn Plan Outturn Plan

Planned Capital Expenditure excl transferred asset 6,874 8,849

Planned Depreciation 4,612 4,923

PDC(payment for transferred asset) 0 -1,339 0 -1,339

Movement in working capital -2,043 1,326

Disposal -5,192 -7,214 -4,864 -7,214

Retained Earnings -1,627 -1,601

Potential Under/(over) spend against CRL

Total EFL/CRL -4,250 -3,905 2,010 296

Target -3,866 3,135

Undershoot 384 1,125

11

13.0 Cashflow

All figures in £k

PLAN ACTUAL FORECAST FORECAST FORECAST FORECAST FORECAST FORECAST FORECAST FORECAST FORECAST FORECAST FORECAST FORECAST

Mar-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15

Opening Balance 13,345 17,104 16,277 16,591 17,117 17,350 17,935 18,409 15,699 15,967 15,909 16,104 16,767 16,900

INCOME (CASH IN)

Wandsworth CCG SLA 3,335 3,406 3,245 3,245 3,245 3,245 3,245 3,245 3,245 3,245 3,245 3,245 3,245 3,245

Merton CCG SLA 1,289 1,395 1,315 1,315 1,315 1,315 1,315 1,315 1,315 1,315 1,315 1,315 1,315 1,315

Sutton CCG SLA 1,176 1,323 1,239 1,239 1,239 1,239 1,239 1,239 1,239 1,239 1,239 1,239 1,239 1,239

Kingston CCG SLA 1,192 1,163 1,249 1,249 1,249 1,249 1,249 1,249 1,249 1,249 1,249 1,249 1,249 1,249

Richmond & Twickenham CCG SLA 1,326 1,141 1,066 1,066 1,066 1,066 1,066 1,066 1,066 1,066 1,066 1,066 1,066 1,066

Other NHS - Clinical Income 1,473 2,047 839 839 839 839 839 839 839 839 839 839 839 839

Health Education England -

NMET/MADEL/SIFT 650 627 627 627 627 627 627 627 627 627 627 627 627

NHSE Commissioning Board 1,872 2,276 2,255 2,255 2,255 2,255 2,255 2,255 2,255 2,255 2,255 2,255 2,255 2,255

Other Operating Income 1,046 2,114 1,030 1,030 1,030 1,030 1,030 1,030 1,030 1,030 1,030 1,030 1,030 1,030

Proceed from Assets Disposal 5,440 2,966

Proceed from Transferred Asset

PDC Drawdown

TOTAL INCOME 18,799 17,831 12,865 12,865 12,865 12,865 12,865 12,865 12,865 12,865 12,865 12,865 12,865 12,865

EXPENDITURE (CASH OUT)

Payroll Cost -8,371 -8,765 -7,931 -7,931 -7,931 -7,931 -7,931 -7,931 -7,931 -7,931 -7,931 -7,931 -7,931 -7,931

Agency Expenditure -1,494 -2,809 -1,456 -1,456 -1,456 -1,456 -1,456 -1,456 -1,456 -1,456 -1,456 -1,456 -1,456 -1,456

Capital Expenditure -872 -519 -898 -442 -721 -467 -639 -495 -938 -1,261 -873 -634 -1,160 -1,659

Other Expenditure -2,397 -3,473 -2,266 -2,510 -2,524 -2,426 -2,365 -2,365 -2,272 -2,275 -2,410 -2,181 -2,185 -2,187

Payment for Transferred Asset -1,339

TDR -3,078 -3,092 -3,328 -3,327

TOTAL EXPENDITURE -17,551 -18,658 -12,551 -12,339 -12,632 -12,280 -12,391 -15,575 -12,597 -12,923 -12,670 -12,202 -12,732 -16,560

Closing Balance 14,593 16,277 16,591 17,117 17,350 17,935 18,409 15,699 15,967 15,909 16,104 16,767 16,900 13,205

12

14.0 Workforce Information

13

15.0 Nursing Analysis

14

16.0 Public Sector Payment Policy

Non NHS Creditors

Number Value Number Value

2011/12 94.3% 96.1%

2012/13 92.5% 95.0%

2013/14

April 94.6% 98.1% 94.6% 98.1%

May 96.6% 99.6% 95.6% 98.9%

June 93.6% 96.3% 94.9% 98.0%

July 91.3% 96.9% 94.6% 97.9%

August 96.2% 99.3% 94.9% 98.2%

September 95.4% 98.4% 95.0% 98.2%

October 93.9% 98.1% 94.7% 98.1%

November 96.2% 97.3% 95.0% 98.1%

December 97.2% 99.5% 95.2% 98.2%

January 91.0% 97.4% 94.7% 98.1%

February 99.6% 99.9% 95.1% 98.2%

March 94.6% 98.6% 95.1% 98.3%

NHS Creditors

Number Value Number Value

2011/12 91.2% 96.1%

2012/13 91.3% 97.4%

2013/14

Quarter 1 96.6% 99.8% 96.6% 99.8%

Quarter 2 97.5% 99.5% 97.0% 99.2%

Quarter 3 100.0% 100.0% 97.3% 99.4%

Quarter 4 97.9% 100.0% 97.1% 99.4%

Performance in Quarter

Performance in Month

Cumulative Performance

Cumulative Performance

15

Appendix A - Glossary of terms used in this report

CAMHS Child & Adolescent Mental Health Service(s)

Capital Charges 3.5% levy on the average Trust net assets

CCG Clinical Commissioning Group

CIP Cost Improvement Programme

CQUIN Additional income received dependant on achieving certain PCT targets.

CRL Capital Resource Limit

DoH Department of Health

EBITDA Earnings before Interest, Tax, Depreciation and Amortisation

EFL External Financing Limit

ESG Estates Strategy Group

FIMS Financial Information Management System

FOT Forecast Outturn

FT Foundation Trust

FYE Full Year Effect

HASCAS The Health & Social Care Advisory Service

I&E Income & Expenditure

IBP Integrated Business Plan

ISG Information Management Strategy Group

LDA Learning and Development Agreement

LTFM Long Term Financial Model

NCG National Commissioning Group formally known as NSCAG

NHS W NHS Wandsworth (formerly Wandsworth PCT)

NHS S&M NHS Sutton & Merton (formerly Sutton & Merton PCT)

NHS K NHS Kingston (formerly Kingston PCT)

NHS R NHS Richmond (formerly Richmond & Twickenham PCT)

NPSA Named Person Service Agreement / Cost per Case

PDC Public Dividend Capital

PSPP Public Sector Payment Policy

QIPP Quality, Innovation, Productivity and Prevention

QCIG Quality, Cost Improvement Group

RAG Red, Amber, Green rating system

SIP Service Improvement Programme

SLA Service Level Agreement

TDA Trust Development Authority

TDR Trust Debt Remuneration

WTE Whole Time Equivalent – Staff numbers