WirralPCT Accounts07 08 by HC120704024843

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									                       FOREWORD TO THE ACCOUNTS


                               WIRRAL PRIMARY CARE TRUST



                                 12 months ending 31 March 2008




These accounts for the year ended 31 March 2008 have been prepared by Wirral Primary Care Trust
under section 98(2) of the National Health Service Act 1997 in the form which the Secretary of State
has, with the approval of the Treasury, decided.
 1998/99 Trust Accounts pro-forma

 Introduction

 This workbook should be copied into the same directory as "TAC.XLW". It will then import the requ
 the TAC forms to facilitate the presentation of the accounts data in the format required by the trust fo

 This workbook is not password-protected, and it is expected that trusts will wish to amend and modif
 suit individual needs: they are intended to provide a starting-point for the preparation of accounts wh
 trust's responsibility. It is not the intention of the NHS Executive that this file should provide the fini
 version of the accounts, and trusts are free to use other systems to prepare final accounts.

 All the accounts data is drawn from TAC.XLW. Data entered below will be used throughout the wor
 wish to add more detail where appropriate, and delete lines where there would otherwise be zero entr
 overwritten, moved or deleted.




                       Data entered below will be used throughout the workbook:


PCT name:              WIRRAL PCT
This year              2007/08
Last year              2006/07
This year ended        31 March 2008
Last year ended        31 March 2007
This year beginning    1 April 2007




                                          Intro
WIRRAL PCT - Annual Accounts 2007/08
                           OPERATING COST STATEMENT FOR THE YEAR ENDED
                                            31 March 2008




                                                               2007/08    2006/07
                                                        NOTE      £000       £000

Commissioning
Gross Operating Costs                                    4     483,948    445,807
Less: Miscellaneous Income                               3     (11,502)   (10,814)
Commissioning Net Operating Costs                              472,446    434,993
Provider
Gross Operating Costs                                    4      42,627     40,466
Less: miscellaneous income                               3      (5,089)    (5,607)
Provider Net Operating Costs                                    37,538     34,859
Net Operating Costs before interest                            509,984    469,852
Interest Received or Receivable                                      0          0
Interest Paid or Payable                                             1          1
Net Operating cost for the Financial Year                      509,985    469,853




The notes on pages 5 to 33 form part of this account.




                                                OCS
OCS
WIRRAL PCT - Annual Accounts 2007/08
            STATEMENT OF RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED
                                   31 March 2008


                                                                         2007/08   2006/07
                                                                            £000      £000


Fixed asset impairment losses                                                 0         0
Unrealised surplus / (deficit) on fixed asset revaluations/indexation      1,961     1,830
Increase in the donated asset reserve and government grant reserve due
to receipt of donated and government granted assets                           0         0
Additions / (Reductions) in the General Fund due to the transfer of
assets from/(to) NHS bodies and the Department of Health                      0         0
Additions / (Reductions) in other reserves                                    0      (172)
Recognised gains and losses for the financial year                         1,961     1,658
Prior period adjustment - other                                               0         0
Gains and losses recognised in the financial year                          1,961     1,658




                                                            SRGL
WIRRAL PCT - Annual Accounts 2007/08
                                                  BALANCE SHEET AS AT
                                                      31 March 2008


                                                                                         31 March 2008    31 March 2007
                                                               NOTE         £000                  £000             £000
FIXED ASSETS
Intangible assets                                                9                 97                                 89
Tangible assets                                                 10.1            25,545                             26,569
Investments                                                     10.4                0                                  0
                                                                                                25,642             26,658
CURRENT ASSETS
Stocks and work in progress                                      11                15                                 15
Debtors                                                          12             14,587                             12,302
Investments (other e.g. ETS)                                                        0                                  0
Cash at bank and in hand                                        16.3                2                                  0
TOTAL CURRENT ASSETS                                                                            14,604             12,317
Creditors : Amounts falling due within one year                 13.1                           (32,456)        (28,968)
NET CURRENT ASSETS / (LIABILITIES)                                                             (17,852)        (16,651)
TOTAL ASSETS LESS CURRENT LIABILITIES                                                            7,790             10,007
Creditors: Amounts falling due after more than one year         13.1                                 0                 0
Provisions for liabilities and charges                           14                             (3,867)         (2,369)
TOTAL ASSETS EMPLOYED                                                                            3,923              7,638

FINANCED BY:
TAXPAYERS' EQUITY
General Fund                                                     15                             (1,308)             4,368
Revaluation reserve                                              15                              5,231              3,270
Donated asset reserve                                            15                                  0                 0
Government grant reserve                                         15                                  0                 0
Other reserves                                                   15                                  0                 0
TOTAL TAXPAYERS' EQUITY                                                                          3,923              7,638




The notes on pages 5 to 33 form part of this account.

The financial statements on pages 1 to 4 were approved by the Board on June 16, 2008 and signed on its behalf by

Chief Executive:                                                        Date:




                                                        Balance Sheet
WIRRAL PCT - Annual Accounts 2007/08

                          CASH FLOW STATEMENT FOR THE YEAR ENDED
                                                31 March 2008

                                                                                      2007/08     2006/07
                                                                NOTE   £000              £000        £000
OPERATING ACTIVITIES
Net cash outflow from operating activities                      16.1                 (502,447)   (467,721)
SERVICING OF FINANCE AND RETURNS ON INVESTMENT:
Interest paid                                                                   0                       0
Interest received                                                               0                       0
Interest element of finance leases                                              0                       0
Net cash inflow/(outflow) from servicing of finance
and returns on investment                                                                   0           0
CAPITAL EXPENDITURE
Payments to acquire intangible assets                                         (22)                      0
Receipts from sale of intangible assets                                         0                       0
Payments to acquire tangible fixed assets                               (1,636)                      (697)
Receipts from sale of tangible fixed assets                                     0                       0
Payments to acquire fixed asset investments                                     0                       0
Receipts from sale of fixed asset investments                                   0                       0
Net cash inflow/(outflow) from capital expenditure                                     (1,658)       (697)
Net cash inflow/(outflow) before financing and management of liquid resources        (504,105)   (468,418)
MANAGEMENT OF LIQUID RESOURCES
(Purchase) of other current asset investments                                               0           0
Sale of other current asset investments                                                     0           0
Net cash inflow/(outflow) from management of liquid resources                               0           0
Net cash inflow/(outflow) before financing                                           (504,105)   (468,418)
FINANCING
Net Parliamentary Funding                                              504,107                    468,418
Other capital receipts surrendered                                              0                       0
Capital grants received                                                         0                       0
Capital element of finance lease rental payments                                0                       0
Cash transfers (to)/from other NHS bodies                                       0                       0
Net cash inflow/(outflow) from financing                                              504,107     468,418
Increase/(decrease) in cash                                     16.2                        2           0




                                                     Cashflow
WIRRAL PCT - Annual Accounts 2007/08
                                                      NOTES TO THE ACCOUNTS
Note 1. Accounting policies

   The financial statements have been prepared in accordance with the 2007/08 Financial Reporting Manual (FReM) issued
   by HM Treasury. The particular accounting policies adopted by the Primary Care Trust ("PCT") are described below.
   They have been applied in dealing with items considered material in relation to the accounts.
   These accounts have been prepared under the historical cost convention, modified to account for the revaluation of fixed
   assets, and stock where material, at their value to the business by reference to current costs. This is in accordance with
   directions issued by the Secretary of State and approved by HM Treasury.
a) Income and Funding
   The main source of funding for the PCT is allocations (Parliamentary Funding) from the Department of Health within an
   approved cash limit, which is credited to the General Fund of the PCT. Parliamentary funding is recognised in the
   financial period in which the cash is received.
   Miscellaneous income is income which relates directly to the operating activities of the PCT. It principally comprises fees
   and charges for services provided on a full cost basis to external customers, as well as public repayment work. It includes
   both income appropriated-in-aid of the Vote and income to the Consolidated Fund which HM Treasury has agreed should
   be treated as operating income.
   Income is accounted for applying the accruals convention. Income is recognised in the period in which services are
   provided. Where income has been received for a specific activity to be delivered in the following financial year, that
   income will be deferred.
b) Acquisitions and Discontinued Operations
   Activities are considered to be 'acquired' only if they are acquired from outside the public sector. Activities are
   considered to be 'discontinued' only if they cease entirely. They are not considered to be 'discontinued' if they transfer
   from one public sector body to another.
c) Taxation
   The PCT is not liable to pay corporation tax. Expenditure is shown net of recoverable VAT. Irrecoverable VAT is
   charged to the most appropriate expenditure heading or capitalised if it relates to an asset.
d) Fixed Assets
   i) Capitalisation
   All assets falling into the following categories are capitalised:
   Intangible assets which can be valued, are capable of being used in a PCT's activities for more than one year and have a
   cost equal to or greater than £5,000;
   Intangible fixed assets held for operational use are valued at historical cost and are depreciated over the estimated life of
   the asset on a straight line basis. The carrying value of intangible assets is reviewed for impairment at the end of the first
   full year following acquisition and in other periods if events or changes in circumstances indicate the carrying value may
   not be recoverable.
   Purchased computer software licences are capitalised as intangible fixed assets where expenditure of at least £5,000 is
   incurred. They are amortised over the shorter of the term of the licence and their useful economic lives.




                                                            5
5
WIRRAL PCT - Annual Accounts 2007/08

   Tangible assets which are capable of being used for a period which exceeds one year and which:
   - individually have a cost equal to or greater than £5,000; or
   - collectively have a cost equal to or greater than £5,000 and individually cost more than £250, where the assets are
   functionally interdependent, they had broadly simultaneous purchase dates and are anticipated to have simultaneous
   disposal dates; and are under single managerial control; or
   - form part of the initial equipping and setting-up cost of a new building, ward or unit irrespective of their individual or
   collective costs; or
   - form part of an I.T. network which collectively has a cost of more than £5,000 and individually have a cost of more than
   £250.
   ii) Valuation

   Intangible fixed assets held for operational use are valued at historical cost, except Research and Development which is
   valued using appropriate index figures. Surplus intangible assets are valued at the net recoverable amount.
   Tangible fixed assets are stated at the lower of replacement cost and recoverable amount. On initial recognition they are
   measured at cost (for leased assets, fair value) including any costs such as installation directly attributable to bringing
   them into working condition. They are restated to current value each year. The carrying values of tangible fixed assets
   are reviewed for impairment in periods if events or changes in circumstances indicate the carrying value may not be
   recoverable.
   Land, Buildings, Installations and Fittings
   Land and buildings are restated at current cost using professional valuations at five-yearly intervals in accordance with
   FRS15. Between valuations price indices appropriate to the category of asset are applied to arrive at the current value.
   The buildings indexation is based on the All in Tender Price Index published by the Building Cost Information Service
   (BCIS). The land index is based on the residential building and land values reported in the Property Market Report
   published by the Valuation Office and included in the Manual for Accounts. Valuations are carried out by the District
   Valuers of the Inland Revenue Government Department at five-yearly intervals. A five-yearly revaluation was carried out
   as at 1 April 2005.

   The valuations were carried out in accordance with the Royal Institute of Chartered Surveyors (RICS) Appraisal and
   Valuation Manual insofar as these terms are consistent with the agreed requirements of the Department of Health and HM
   Treasury. In accordance with the requirements of the Department of Health, the asset valuations were undertaken in 2004
   as at the prospective valuation date of 1 April 2005 and were applied on 31 March 2005.
   The valuations have been carried out primarily on the basis of Depreciated Replacement Cost for specialised operational
   property and Existing Use Value for non-specialised operational property.
   In respect of non-operational properties, including surplus land, the valuations have been carried out at Open Market
   Value. The value of land for existing use purposes is assessed to Existing Use Value. Land and buildings held under
   finance leases are capitalised at inception at the fair value of the asset but may be subsequently revalued by the District
   Valuer. The valuations do not include notional directly attributable acquisition costs nor have selling costs been deducted,
   since they are regarded as not material.
   Additional alternative Open Market Value figures have only been supplied for operational assets scheduled for imminent
   closure and subsequent disposal.
   Adjustments arising from indexation price movements are taken to the Revaluation Reserve and shown in the Statement of
   Recognised Gains and Losses.




                                                           6
WIRRAL PCT - Annual Accounts 2007/08

   Equipment
   Equipment surplus to requirements is valued at net recoverable amount and assets held under finance leases are
   capitalised at the fair value of the assets. With those exceptions, equipment is valued at estimated net current replacement
   cost through annual uplift by the change in the value of the GDP deflator, other than IT equipment which is considered to
   have nil inflation.
   Assets in the course of construction
   Assets in the course of construction are valued at current cost using the index as for land and buildings (see above).
   These assets include any existing land or buildings under the control of a contractor.
   Residual interests in off-balance sheet Private Finance Initiative properties

   Residual interests in off-balance sheet Private Finance Initiative properties are included in tangible fixed assets under
   ''assets under construction and payments on account' where the PFI contract specifies the amount at which the assets will
   be transferred to the PCT at the end of the contract. The residual interest is built up during the life of the contract by
   capitalising the unitary charge so that at the end of the contract the balance sheet value of the residual value plus the
   specified amount equal the expected value of the residual asset at the end of the contract. The estimated fair value of the
   asset on reversion is determined by the District Valuer based on Department of Health guidance.
   iii) Depreciation, amortisation and impairments
   Depreciation is charged on a straight-line basis on each main class of fixed asset as follows:
   Freehold land and land and buildings surplus to requirements are not depreciated. Assets in the course of construction and
   residual interests in off-balance sheet Private Finance Initiative contract assets are not depreciated until the asset is
   brought into use or reverts to the PCT, respectively.
   Buildings, installations and fittings are depreciated on their current value over the estimated remaining life of the asset as
   advised by the District Valuer.
   Leaseholds are depreciated over the primary lease term.
   Equipment is depreciated on current cost evenly over the estimated life of the asset.
   Intangible assets are amortised over the estimated lives of the assets.
   Where the useful economic life of an asset is reduced from that initially estimated due to the revaluation of an asset for
   sale, depreciation is charged to bring the value of the asset to its value at the point of sale.
   Purchased computer software licences are capitalised as intangible fixed assets where expenditure of £5,000 or more is
   incurred. They are amortised over the shorter of the term of the license and their useful economic lives.
   iv) Donated Assets

   Donated tangible fixed assets are capitalised at their valuation on receipt and this value is credited to the donated asset
   reserve. Subsequent revaluations are also taken to this reserve. Each year an amount equal to the depreciation charge on
   the asset is released from the Donated Asset reserve to the Operating Cost Statement of the PCT. Donated assets are
   revalued and depreciated as described above for purchased assets.
   v) Government Grants
   Government grants are grants from government bodies other than funds from NHS bodies or funds awarded by
   Parliamentary Vote. Government grants in respect of capital expenditure are credited to a government grant reserve and
   are released to the Operating Cost Statement over the expected useful lives of the relevant assets by equal annual
   instalments. Grants of a revenue nature are credited to miscellaneous income in the Operating Cost Statement so as to
   match them with the expenditure to which they relate. The Government Grant Reserve is revalued each year to match the
   net book value of the assets it has financed.




                                                            7
WIRRAL PCT - Annual Accounts 2007/08

e) Cash, Bank and Overdraft:
   Cash, bank and overdraft balances are recorded at current values. Interest earned on bank accounts and interest charged
   on overdrafts are recorded as, respectively, 'Interest receivable' and ' Interest payable' in the periods to which they relate.
   Bank charges are recorded as operating expenditure in the periods to which they relate.
f) Pooled budgets
   The PCT has entered into a pooled budget with The Metropolitan Borough of Wirral whereby funds are pooled under S75
   of the NHS Act 2006 for Integrated Community Equipment Services.
   The pool is hosted by the PCT. As a commissioner of healthcare services, the PCT makes contributions to the pool, which
   are then used to purchase healthcare services. The PCT accounts for its share of the assets, liabilities, income and
   expenditure of the pool as determined by the pooled budget agreement.
g) Leases
   Where substantially all risks and rewards of ownership of a leased asset are borne by the PCT, the asset is recorded as a
   tangible fixed asset and a debt is recorded to the lessor of the minimum lease payment discounted by the interest rate
   implicit in the lease. The interest element of finance lease payments is charged to the Operating Cost Statement over the
   period of the lease at a constant rate in relation to the balance outstanding.
   Other leases are regarded as operating leases and the rentals are charged to the Operating Cost Statement on a straight line
   basis over the term of the lease.
h) Private Finance Initiative
   The PCT does not have any Private Finance Initiative schemes.




                                                              8
WIRRAL PCT - Annual Accounts 2007/08

i) Stocks and work-in-progress

   Stocks comprise raw materials and consumables and are valued at the lower of cost and net realisable value. This is
   considered to be a reasonable approximation to current cost due to the high turnover of stocks.
   Work-in-progress comprises goods in intermediate stages of production. Partially completed contracts for patient services
   are not accounted for as work-in-progress.
j) Research and development
   The PCT has not incurred any expenditure on research and development during the year (2006/07 £0).
k) Provisions
   The PCT provides for legal or constructive obligations that are of uncertain timing or amount at the balance sheet date on
   the basis of the best estimate of the expenditure required to settle the obligation. Where the effect of the time value of
   money is significant, the estimated risk-adjusted cash flows are discounted using the Treasury's discount rate of 2.2% in
   real terms.
l) Clinical Negligence Costs

   The NHS Litigation Authority (NHSLA) operates a risk pooling scheme under which the PCT pays an annual contribution
   to the NHSLA which in return settles all clinical negligence claims. Although the NHSLA is administratively responsible
   for all clinical negligence cases the legal liability remains with the PCT. The total value of clinical negligence provisions
   carried by the NHSLA on behalf of the PCT is disclosed at Note 14.
   Since financial responsibility for clinical negligence cases transferred to the NHSLA at 1 April 2002, the only charge to
   operating expenditure in relation to clinical negligence in 2007/08 relates to the PCT’s contribution to the Clinical
   Negligence Scheme for Trusts.
m) Non-clinical risk pooling

   The PCT participates in the Property Expenses Scheme and the Liabilities to Third Parties Scheme. Both are risk pooling
   schemes under which the PCT pays an annual contribution to the NHS Litigation Authority and, in return, receives
   assistance with the costs of claims arising. The annual membership contributions and any ‘excesses’ payable in respect of
   particular claims are charged to operating expenses as and when they become due.
n) Losses and Special Payments

   Losses and special payments are items that Parliament would not have contemplated when it agreed funds for the health
   service or passed legislation. By their nature they are items that ideally should not arise. They are therefore subject to
   special control procedures compared with the generality of payments. They are divided into different categories, which
   govern the way each individual case is handled.

   Losses and special payments are charged to the relevant functional headings, including losses which would have been
   made good through insurance cover had PCT not been bearing its own risks (with insurance premiums then being included
   as normal revenue expenditure). Note 25 to the accounts is compiled on an accruals basis for 2007/08 and not on a cash
   basis as for 2006/07. The figures for 2006/07 have been restated to be shown on an accruals basis.




                                                           9
WIRRAL PCT - Annual Accounts 2007/08


o) Pension Costs
   Past and present employees are covered by the provisions of the NHS Pensions Scheme. Details of the benefits payable
   under these provisions can be found on the NHS Pensions website at www.pensions.nhsbsa.nhs.uk. The Scheme is an
   unfunded, defined benefit scheme that covers NHS employers, General Practices and other bodies, allowed under the
   direction of the Secretary of State, in England and Wales. The scheme is not designed to be run in a way that would enable
   NHS bodies to identify their share of the underlying Scheme assets and liabilities. Therefore, the Scheme is accounted for
   as if it were a defined contribution scheme: the cost to the NHS Body of participating in the Scheme is taken as equal to
   the contributions payable to the Scheme for the accounting period.

   The Scheme is subject to a full actuarial valuation every four years (until 2004, based on a five year valuation cycle), and a
   FRS17 accounting valuation every year. An outline of these follows:
   a) Full actuarial (funding) valuation
   The purpose of this valuation is to assess the level of liability in respect of the benefits due under the scheme (taking into
   account its recent demographic experience), and to recommend the contribution rates to be paid by employers and scheme
   members. The last such valuation, which determined current contribution rates was undertaken as at 31 March 2004 and
   covered the period from 1 April 1999 to that date.
   The conclusion from the 2004 valuation was that the Scheme had accumulated a notional deficit of £3.3 billion against the
   notional assets as at 31 March 2004. However, after taking into account the changes in the benefit and contribution
   structure effective from 1 April 2008, the Scheme actuary reported that employer contributions could continue at the
   existing rate of 14% of pensionable pay. On advice from the Scheme actuary, scheme contributions may be varied from
   time to time to reflect changes in the scheme’s liabilities. Up to 31 March 2008, the vast majority of employees paid
   contributions at the rate of 6% of pensionable pay. From 1 April 2008, employees contributions are on a tiered scale from
   5% up to 8.5% of their pensionable pay depending on total earnings.
   b) FRS17 Accounting valuation
   In accordance with FRS17, a valuation of the Scheme liability is carried out annually by the Scheme Actuary as at the
   balance sheet date by updating the results of the full actuarial valuation.
   Between the full actuarial valuations at a two-year midpoint, a full and detailed member data-set is provided to the Scheme
   Actuary. At this point the assumptions regarding the composition of the Scheme membership are updated to allow the
   Scheme liability to be valued.
   The valuation of the Scheme liability as at 31 March 2008, is based on detailed membership data as at 31 March 2006 (the
   latest midpoint) updated to 31 March 2008 with summary global member and accounting data.
   The latest assessment of the liabilities of the Scheme is contained in the Scheme Actuary report, which forms part of the
   annual NHS Pension Scheme (England and Wales) Resource Account, published annually. These accounts can be viewed
   on the NHS Pensions website. Copies can also be obtained from The Stationery Office.

   Scheme provisions as at 31 March 2008
                                                                                                th
   The Scheme is a “final salary” scheme. Annual pensions are normally based on 1/80 of the best of the last 3 years
   pensionable pay for each year of service. A lump sum normally equivalent to 3 years pension is payable on retirement.
   Annual increases are applied to pension payments at rates defined by the Pensions (Increase) Act 1971, and are based on
   changes in retail prices in the twelve months ending 30 September in the previous calendar year. On death, a pension of
   50% of the member’s pension is normally payable to the surviving spouse.
   Early payment of a pension, with enhancement, is available to members of the Scheme who are permanently incapable of
   fulfilling their duties effectively through illness or infirmity. A death gratuity of twice final year’s pensionable pay for
   death in service, and five times their annual pension for death after retirement, less pension already paid, subject to a
   maximum amount equal to twice the member’s final year’s pensionable pay less their retirement lump sum for those who
   die after retirement, is payable.
   For early retirements other than those due to ill health the additional pension liabilities are not funded by the scheme. The
   full amount of the liability for the additional costs is charged to the income and expenditure account at the time the Trust
   commits itself to the retirement, regardless of the method of payment.
   The Scheme provides the opportunity to members to increase their benefits through money purchase Additional Voluntary
   Contributions (AVCs) provided by an approved panel of life companies. Under the arrangement the employee/member
   can make contributions to enhance an employee's pension benefits. The benefits payable relate directly to the value of the
   investments made.
   Scheme provisions from 1 April 2008
   From 1 April 2008 changes have been made to the NHS Pension Scheme contribution rates and benefits. Further details of
   these changes can be found on the NHS Pensions website www.pensions.nhsbsa.nhs.uk

                                                                     10
WIRRAL PCT - Annual Accounts 2007/08


p) Foreign currency
   Transactions in foreign currencies are translated into sterling at the rates of exchange current at the dates of the
   transactions. Resulting exchange gains and losses are taken to the Operating Cost Statement.
q) Third Party Assets
   Assets belonging to third parties (such as money held on behalf of Patients) are not recognised in the accounts since the
   PCT has no beneficial interest in them. Details of third party assets are given in Note 23 to the accounts and Note 16.3 for
   patient monies.
r) Cost of Capital Charge
   The treatment of fixed assets in the account is in accordance with the principal capital charges objective to ensure that
   such charges are fully reflected in the cost of capital. The interest rate applied to the cost of capital charge in the financial
   year 2007/08 was 3.5% (2006/07: 3.5%) on all assets less liabilities, except for cash balances with the Office of the
   Paymaster General (OPG) and for Donated Assets where the charge is nil.
s) Incomplete episodes
   For 2007/08 the PCT has accrued for Incomplete Episodes of care with our main local NHS provider. No prior year
   adjustment has been input for this figure.
t) Merger Accounting
   Wirral PCT was created on 1 October 2006 following the dissolution of Bebington and West Wirral Primary Care Trust
   and Birkenhead and Wallasey Primary Care Trust on 30 September 2006. All assets, liabilities and duties of the
   predecessor PCT's transferred to Wirral PCT on that date.
   The Department of Health specified that PCT's established on 1 October 2006 would prepare their 2006/07 financial
   statements on a merger accounting basis, in accordance with the Treasury Financial Reporting Manual. Therefore, the
   comparative financial statements represent the PCT's position as if it had always been in existence. Transactions between
   the predecessor PCT's during the period 1 April 2006 to 30 September 2006 and the balances between them as at 30
   September 2006 have been eliminated from these financial statements. These changes had no impact on the financial
   performance or the General Fund balance of the PCT.




                                                             11
WIRRAL PCT - Annual Accounts 2007/08

Note 2. Financial Performance Targets
Note 2.1 Revenue Resource Limit
The PCT's performance for 2007/08 is as follows:                                           2007/08         2006/07
                                                                                              £000            £000
Total net operating cost for the financial year                                            509,985         469,853
Less: Non-discretionary Expenditure                                                          3,093            2,868
Operating Costs less non-discretionary expenditure                                         506,892         466,985
Final Revenue Resource Limit for year                                                      516,562         467,260
Under/(over) spend against Revenue Resource Limit                                            9,670              275
Financial support included in under/(over) spend against RRL:
- NHS Bank                                                                                        0             131
- Internally Generated                                                                            0               0

Note 2.2. Capital Resource Limit
The PCT is required to keep within its Capital Resource Limit
                                                                                           2007/08         2006/07
                                                                                              £000            £000
Gross Capital Expenditure                                                                    2,042              713
Add: Loss in respect of disposals of donated assets                                               0               0
less: Net book value of assets disposed of                                                        0               0
less: Capital grants                                                                              0               0
less: Donations                                                                                   0               0
Charge Against the Capital Resource Limit                                                    2,042              713
Capital Resource Limit                                                                       2,045              727
(Over) / Under spend against Capital Resource Limit                                               3              14

Note 2.3. Provider full cost recovery duty

The PCT is required to recover full costs in relation to its provider functions. The performance for 2007/08 is
as follows:
                                                                                            2007/08         2006/07
                                                                                               £000             £000

Provider gross operating cost                                                               42,627           40,466
less: Miscellaneous income relating to provider functions                                  (5,089)          (5,607)
Net Operating Cost                                                                          37,538           34,859
less: Costs met from PCT's own allocation                                                 (38,376)         (34,869)
Under / (over) recovery of costs                                                             (838)             (10)




                                                            12
WIRRAL PCT - Annual Accounts 2007/08
Note 3. Miscellaneous Income
                                                                                    2007/08   2006/07
                                                         £000            £000         £000      £000
                                                                          Not
                                                      Appropriate     Appropriate
                                                       d In Aid        d In Aid
Fees and Charges                                                  4             0        4         6
Dental Charge income from contractor led GDS & PDS           4,789              0     4,789     4,841
Dental Charge income from trust led GDS & PDS                    44             0       44        38
Prescription Charge Income                                        3             0        3         3
Strategic Health Authorities                                      0            40       40       276
NHS Trusts                                                        0             0        0      1,516
Foundation Trusts                                                 0         1,512     1,512      148
Primary Care Trusts for Drug Action Teams                         0             0        0         0
Primary Care Trusts - other                                       0         1,235     1,235     1,226
Primary Care Trusts - Lead Commissioning Income                   0         2,033     2,033      687
English RAB Special Health Authorities                            0             0        0         0
Other English Special Health Authorities/CGA Bodies               0             0        0         0
Department of Health - SMPTB                                      0             0        0         0
Department of Health - other                                      0             0        0       138
Income for Trust Impairment                                       0             0        0         0
Local Authorities                                            1,688              0     1,688     1,787
Patient Transport Services                                        0             0        0         0
Education, Training and Research                                 33         2,332     2,365     2,320
Non NHS: Private Patients                                         0             0        0         0
Non-NHS: Overseas Patients (non-reciprocal)                       0             0        0         0
Road Traffic Act                                                  0             0        0       147
NHS Injury Costs Recovery                                       133             0      133        32
Other Non-NHS patient care services                          1,102              0     1,102     1,633
Charitable and other contributions to expenditure                44             0       44       278
Transfer from the donated asset reserve                           0             0        0         0
Transfer from the Government Grant reserve                        0             0        0         0
Other income                                                 1,585             14     1,599     1,345
TOTAL MISCELLANEOUS INCOME                                   9,425          7,166    16,591    16,421




                                                        13
WIRRAL PCT - Annual Accounts 2007/08
Note 4. Operating Costs
Note 4.1 Analysis of gross operating costs:
                                                                                                        Restated *
                                                                                          2007/08         2006/07
                                                                                             £000            £000
Goods and services from other Primary Care Trusts
Healthcare                                                                                 45,800          21,590
Non Healthcare                                                                                  866           866
Total                                                                                      46,666          22,456
Goods and services from other NHS bodies excluding Foundation Trusts
Healthcare                                                                                 67,486         236,049
Non Healthcare                                                                                 1,335         3,285
Total                                                                                      68,821         239,334
Goods and Services from Foundation Trusts                                                 178,912          10,398
Purchase of healthcare from non-NHS providers                                              35,123          30,757
Social Care from independent providers                                                            0                 0
Expenditure on Drugs Action Teams                                                              3,428         3,159
Non-GMS services from GPs                                                                      2,053               78
Contractor led GDS & PDS                                                                   19,976          19,936
Trust led GDS & PDS                                                                              16           174
PCT Board members' costs                                                                       1,057         1,096
PCT Executive Committee non-officer members' costs                                               83                43
Staff costs                                                                                34,824          33,137
Consultancy services                                                                           1,893         1,303
GMS/PMS/APMS/PCTMS                                                                         47,056          47,306
Prescribing costs                                                                          58,356          57,689
Pharmaceutical Services                                                                           0                 0
Local Pharmaceutical Service Pilots                                                               0                 0
New Pharmacy Contract                                                                          2,383         2,138
General Dental Services                                                                           0                 0
General Ophthalmic Services                                                                    3,093         2,868
Supplies and services - clinical                                                               3,368         2,604
Supplies and services - general                                                                 852           813
Establishment                                                                                  4,685         2,925
Transport                                                                                        73                60
Premises                                                                                       3,167         2,102
Bad debts                                                                                        11                50
Depreciation                                                                                   4,085         1,392
Amortisation                                                                                     14                13
Fixed asset impairments and reversals                                                           920           198
NHS Trust Impairments                                                                             0                 0
(Profit)/loss on disposal of fixed assets                                                         0                 0
Cost of capital charge                                                                          202           256
Audit fees                                                                                      193           439
Other auditor's remuneration                                                                      0                 0
Clinical negligence costs                                                                        68                50
Other finance costs - unwinding of discount                                                       0                 0
Change in the discount rate on provisions                                                         0                 0
Redundancies                                                                                     22           455
Other                                                                                          5,175         3,044
Total                                                                                     526,575         486,273


PCT Board members' costs above include £0 for early retirements prior to 6 March 1995 (2006/07 £0).

Staff costs above include £0 for early retirements prior to 6 March 1995 (2006/07 £0).

* The comparative numbers for the year 2006/07 have been restated from those presented in the financial
statements for that year. Additional analysis of expenditure categories has been added to be consistent with the
presentation of the 2007/08 results.




                                                                                          14
WIRRAL PCT - Annual Accounts 2007/08

Note 4.2 Analysis of operating expenditure by expenditure classification
Note 4.2 Purchase of Health Care by PCT
                                                                                     2007/08   2006/07
                                                                                        £000      £000
Purchase of Primary Health Care
GMS / PMS/ APMS / PCTMS                                                               47,056    47,306
Prescribing costs                                                                     58,356    57,689
Pharmaceutical services                                                                   0         0
Contractor led GDS & PDS                                                              19,976    19,936
Trust led GDS & PDS                                                                     410       174
General Ophthalmic Services                                                            3,093     2,868
Department of Health Initiative Funding                                                   0         0
Local Pharmaceutical Services Pilots                                                      0         0
New Pharmacy Contract                                                                  2,383     2,138
Non-GMS Services from GPs                                                              2,053       78
Other                                                                                     0       899
Total Primary Healthcare Purchased                                                   133,327   131,088

Purchase of Secondary Healthcare
Learning Difficulties                                                                 14,230    19,814
Mental Illness                                                                        40,746    35,742
Maternity                                                                             14,653    15,767
General and Acute                                                                    210,982   197,924
Accident And Emergency                                                                18,902    13,858
Community Health Services                                                             47,943    42,278
Other Contractual                                                                     18,120    11,929
Total Secondary Healthcare Purchased                                                 365,576   337,312
Impairments in Trusts                                                                     0         0
Grants (revenue) to fund Capital Projects - GMS                                           0         0
Grants (revenue) to LAs to fund Capital Projects                                          0         0
Grants (revenue) to private sector to fund Capital Projects                            1,141      418
Grants (revenue) to fund Capital Projects - Dental                                      462       261
Grants (revenue) to fund Capital Projects -other                                          0         0
TOTAL HEALTHCARE PURCHASED BY PCT                                                    500,506   469,079

Amount of self-commissioned secondary healthcare included above*                      38,376    34,869
Healthcare purchased from Foundation Trusts included above                           178,912    10,398

* This is the total of secondary healthcare that the PCT commissioned from itself.




                                                              15
WIRRAL PCT - Annual Accounts 2007/08


Note 4.3 Operating Leases
4.3/1 Operating expenses include:
                                                                                              2007/08       2006/07
                                                                                                 £000          £000
Hire of plant & machinery                                                                         163            142
Other operating lease rentals                                                                   1,061          1,041
Total                                                                                           1,224          1,183



Note 4.3/2 Annual commitments under non - cancellable operating leases are:
                                                    2007/08              2007/08              2006/07       2006/07
                                           Land and buildings        Other leases   Land and buildings   Other leases
                                                       £000                 £000                 £000           £000
Operating leases which expire:
Within 1 year                                             17                  109                  15             88
Between 1 and 5 years                                    368                  292                 416            300
After 5 years                                            438                    0                 364              0
Total                                                    823                  401                 795            388




                                                                                        16
WIRRAL PCT - Annual Accounts 2007/08
Note 5. Staff numbers and related costs
Note 5.1 Staff costs
                                                            2007/08                                       2006/07
                                                        Permanently                                    Permanently
                                                  Total   Employed               Other       Total       Employed         Other
                                                  £000         £000               £000       £000            £000         £000
Salaries and wages                               33,861           32,856          1,005     32,340           30,730       1,610
Social security costs                             2,297            2,297             0       2,352              2,352        0
Employer contributions to NHSPA                   4,150            4,150             0       4,007              4,007        0
Other pension costs                                 141              141              0        631              631           0
Total                                            40,449           39,444          1,005     39,330           37,720       1,610



Note 5.2 Staff Numbers
                                                            2007/08                                       2006/07
                                                        Permanently                                    Permanently
                                                  Total   Employed                Other      Total       Employed         Other
                                                Number      Number              Number     Number          Number       Number
Medical and dental                                   29              27              2          42                42         0
Ambulance staff                                        0              0              0           0                 0         0
Administration and estates                          290             275             15         446               427        19
Healthcare assistants & other support staff         155             155              0          17                17         0
Nursing, midwifery & health visiting staff          377             377              0         444               421        23
Nursing, midwifery & health visiting learners          0              0              0           0                 0         0
Scientific, therapeutic and technical staff         151             140             11         125               121         4
Social Care staff                                      0              0              0          77                77         0
Other                                               145              145             0           6                5          1
Total                                            1,147            1,119             28      1,157            1,110          47

Note 5.3 Employee benefits

There were no employee benefits in 2007/08 that need disclosing (2006/07 £0).

Note 5.4 Retirements due to ill-health

During 2007/08 there were 2 early retirements from the PCT agreed on the
grounds of ill-health (2006/07 none). The estimated additional pension liabilities for ill-health
retirements (calculated on an average basis and borne by the NHS Pension Scheme) will be £7,198 (2006/07 £0).

Note 5.5 Management costs
                                                                 2007/08        2006/07

Management costs (£000s)                                           7,578          6,940

Weighted population (Number)                                     360,280        359,606

Management cost per head of weighted population (£)                21.03          19.30

The PCT calculates its management costs according to the definitions provided by the Department of Health.

                                                            17
WIRRAL PCT - Annual Accounts 2007/08


Note 6. Better Payment Practice Code
Note 6.1 Better Payment Practice Code - measure of compliance

                                                                2007/08              2007/08         2006/07           2006/07
Non-NHS Creditors                                               Number                  £000         Number               £000

Total bills paid in the year                                      22,079              81,541          19,172            58,848
Total bills paid within target                                    17,847              73,824          17,297            54,119


Percentage of bills paid within target                           80.83%              90.54%          90.22%            91.96%

NHS Creditors
Total bills paid in the year                                       1,689              21,204           1,597            23,464
Total bills paid within target                                     1,209              17,210           1,031            19,520


Percentage of bills paid within target                           71.58%              81.16%          64.56%            83.19%

The Better Payment Practice Code requires the PCT to aim to pay all valid invoices by the due date or within 30 days
of receipt of a valid invoice, whichever is later.

Note 6.2 The Late Payment of Commercial Debts (Interest) Act 1998
                                                                                                     2007/08           2006/07
                                                                                                        £000              £000

Amounts included within Interest Payable (Note 8) arising from claims
made by businesses under this legislation                                                                   1               1
Compensation paid to cover debt recovery costs under this legislation                                       0               0

Note 7.1 Profit/(Loss) on Disposal of Fixed Assets

The PCT has not disposed of any fixed assets during 2007/08 (2006/07 none).

Note 7.2 Analysis of Impairments charged to operating costs
                                                                                                                    Current
                                                              Intangible            Tangible     Fixed Asset           Asset
                                                                  Assets              Assets    Investments      Investments     Total
                                                                   £000                £000            £000             £000     £000
Loss or damage from normal operations                                   0                  0                0               0       0
Loss as a result of catastrophe                                         0                  0                0               0       0
Abandonment of assets in course of construction                         0                  0                0               0       0
Unforeseen obsolescence                                                 0                  0                0               0       0
Over specification of assets                                            0                  0                0               0       0
Other (detail below) *                                                  0                920                0               0     920
Changes in Market Price                                                 0                  0                0               0       0

Totals                                                                  0                920                0               0     920

* Impairment of remaining assets at Victoria Central Hospital, as part of site redevelopment.

Note 8. Interest Payable
                                                                                                     2007/08           2006/07
                                                                                                        £000              £000
Finance leases                                                                                             0                 0
Other (e.g. late payment of commercial debt)                                                               1                 1
TOTAL                                                                                                       1               1




                                                                            18
WIRRAL PCT - Annual Accounts 2007/08

Note 9. Intangible Fixed Assets

                                            Software     Licenses &    Patents   Development    Total
                                             licences   trademarks                expenditure
                                                 £000          £000       £000           £000    £000
Gross cost at 1 April 2007                        109              0         0              0     109
Additions - purchased                              22              0         0              0      22
Additions - donated                                 0              0         0              0       0
Additions - government granted                      0              0         0              0       0
Impairments                                         0              0         0              0       0
Indexation                                          0              0         0              0       0
Other revaluation                                   0              0         0              0       0
Reclassifications                                   0              0         0              0       0
In year transfers to/from NHS bodies                0              0         0              0       0
Disposals                                           0              0         0              0       0
Gross cost at 31 March 2008                       131              0         0              0     131
Accumulated amortisation at 1 April 2007          20               0         0             0       20
Indexation                                         0               0         0             0        0
Impairments                                        0               0         0             0        0
Reversal of impairments                            0               0         0             0        0
Other revaluation                                  0               0         0             0        0
Provided during the year                          14               0         0             0       14
Reclassifications                                  0               0         0             0        0
In year transfers to/from NHS bodies               0               0         0             0        0
Disposals                                          0               0         0             0        0
Accumulated amortisation at 31 March 2008         34               0         0             0       34

- Purchased at 1 April 2007                       89               0         0             0       89
- Donated at 1 April 2007                          0               0         0             0        0
- Government granted at 1 April 2007               0               0         0             0        0
Total at 1 April 2007                             89               0         0             0       89

- Purchased at 31 March 2008                      97               0         0             0       97
- Donated at 31 March 2008                         0               0         0             0        0
- Government granted at 31 March 2008              0               0         0             0        0
Total at 31 March 2008                            97               0         0             0       97


                                                              19
WIRRAL PCT - Annual Accounts 2007/08
Note 10. Tangible Fixed Assets
Note 10.1 Tangible fixed assets at the balance sheet date comprise the following elements:
                                                       Land     Buildings    Dwellings    Assets under      Plant &    Transport Information    Furniture    Total
                                                                excluding                  construction   machinery    equipment technology     & fittings
                                                                dwellings                 and payments
                                                                                            on account
                                                        £000         £000          £000           £000          £000        £000         £000        £000      £000
Cost or valuation at 1 April 2007                      4,505       21,690             0               0        1,342           0        1,920          50    29,507
Additions - purchased                                      0        1,288             0               0          257           0          475           0     2,020
Additions - donated                                        0            0             0               0            0           0            0           0         0
Additions - government granted                             0            0             0               0            0           0            0           0         0
Impairments                                                0            0             0               0            0           0            0           0         0
Indexation                                               244        1,705             0               0           36           0            0           1     1,986
Reclassifications                                          0            0             0               0            0           0            0           0         0
In year transfers to/from NHS bodies                       0            0             0               0            0           0            0           0         0
Other in year revaluation                                  0            0             0               0            0           0            0           0         0
Disposals                                                  0            0             0               0            0           0            0           0         0
At 31 March 2008                                       4,749       24,683             0               0        1,635           0        2,395          51    33,513

Accumulated depreciation at 1 April 2007                    0       1,219             0              0           909           0          785           25    2,938
Provided during the year                                    0       3,649             0              0            71           0          363            2    4,085
Impairments                                                 0         920             0              0             0           0            0            0      920
Reversal of Impairments                                     0           0             0              0             0           0            0            0        0
Reclassifications                                           0           0             0              0             0           0            0            0        0
Indexation                                                  0           0             0              0            24           0            0            1       25
Other in year revaluation                                   0           0             0              0             0           0            0            0        0
In year transfers to/from NHS bodies                        0           0             0              0             0           0            0            0        0
Disposals                                                   0           0             0              0             0           0            0            0        0
Accumulated depreciation at 31 March 2008                   0       5,788             0              0         1,004           0        1,148           28    7,968

Net book value
- Purchased at 1 April 2007                            4,505       20,471             0              0          433            0        1,135           25   26,569
- Donated at 1 April 2007                                  0            0             0              0            0            0            0            0        0
- Government Granted at 1 April 2007                       0            0             0              0            0            0            0            0        0
Total at 1 April 2007                                  4,505       20,471             0              0          433            0        1,135           25   26,569

Net book value
- Purchased at 31 March 2008                           4,749       18,895             0              0          631            0        1,247           23   25,545
- Donated at 31 March 2008                                 0            0             0              0            0            0            0            0        0
- Government Granted at 31 March 2008                      0            0             0              0            0            0            0            0        0
Total at 31 March 2008                                 4,749       18,895             0              0          631            0        1,247           23   25,545




                                                                                              20
WIRRAL PCT - Annual Accounts 2007/08
Note 10.1 Tangible Fixed Assets (continued)
Of the totals at 31 March 2008, £4,749,000 relates to land owned by the PCT and £19,256,000 related to buildings, installations
and fittings owned by the PCT (31 March 2007 £4,505,000 and £20,904,000, respectively).

Note 10.2 Net book value of assets held under finance leases and hire purchase contracts at the balance sheet date

The PCT has no assets held under finance leases or hire purchase contracts at the 31 March 2008 or 31 March 2007.




                                                                                   21
WIRRAL PCT - Annual Accounts 2007/08
Note 10.3 The net book value of land and buildings at 31 March 2008 comprises:

                                                                                           Governmen
                                            31 March 2008       Purchased        Donated    t Granted   31 March 2007
                                                     £000            £000           £000         £000            £000
Freehold                                           23,644          23,644              0            0          24,903
Long leasehold                                          0               0              0            0              73
Short leasehold                                         0               0              0            0               0
TOTAL                                              23,644          23,644              0            0          24,976

Note 10.4 Fixed assets investments

The PCT has no fixed asset investments.

Note 10.5 Current Asset Investments

The PCT has no current asset investments.

Note 10.6 Economic Lives of Fixed Assets
                                             Minimum Life    Maximum Life
                                                   (years)         (years)
Software Licences                                        1               5
Licences and Trademarks                                  0               0
Patents                                                  0               0
Development Expenditure                                  0               0
Buildings excl. Dwellings                              15              50
Dwellings                                                0               0
Plant and Machinery                                      5             15
Transport Equipment                                      0               0
Information Technology                                   5               5
Furniture and Fittings                                   5             10

Note 11. Stock and work in progress
                                            31 March 2008    31 March 2007
                                                     £000             £000

Raw materials and consumables                          15              15
Work-in-progress                                        0               0
Finished goods                                          0               0
Total                                                  15              15




                                                              22
WIRRAL PCT - Annual Accounts 2007/08

Note 12. Debtors
                                                                  31 March 2008          31 March 2007
                                                                           £000                   £000
Amounts falling due within one year:
NHS debtors                                                                 8,643                 3,415
Provision for irrecoverable debts                                           (211)                  (72)
Other prepayments and accrued income                                        3,907                 5,720
Capital debtors                                                                 0                     0
Other debtors                                                               2,116                 3,098
                                                                           14,455                12,161
Amounts falling due after more than one year:
NHS debtors                                                                     0                     0
Provision for irrecoverable debts                                               0                     0
Other prepayments and accrued income                                            0                     0
Capital debtors                                                                 0                     0
Other debtors                                                                 132                   141
                                                                              132                   141
TOTAL                                                                      14,587                12,302

NHS Debtors include;
NHS Debtors as at 31 March 2008 do not include any amounts for prepaid pension contributions
(31 March 2007 £0) or for prepayments from the buyout of early retirements (31 March 2007 £0).


Note 13. Creditors

Note 13.1 Creditors at the balance sheet date are made up of:
                                                                  31 March 2008          31 March 2007
                                                                           £000                   £000
Amounts falling due within one year:
Bank overdrafts                                                                 0                     0
Interest payable                                                                0                     0
Payments received on account                                                    0                     0
NHS creditors                                                               4,322                 3,544
Family Health Services (FHS) creditors                                      8,803                 8,457
Non - NHS trade creditors - revenue                                         5,502                 4,791
Non - NHS trade creditors - capital                                           433                    49
Tax                                                                             0                     4
Social Security costs                                                           0                     3
Obligations under finance leases and hire purchase contracts                    0                     0
Other creditors                                                               195                   254
Accruals and deferred income                                               13,201                11,866
                                                                           32,456                28,968
Amounts falling due after more than one year:
Obligations under finance leases and hire purchase contracts                    0                     0
NHS creditors                                                                   0                     0
Other                                                                           0                     0
                                                                                0                     0
Total                                                                      32,456                28,968

NHS Creditors as at 31 March 2008 do not include any amounts for payments due in future years under
arrangements to buy out the liability for early retirements over 5 years (31 March 2007 £0) or for any outstanding
pension contributions (31 March 2007 £0).




                                                          23
23
WIRRAL PCT - Annual Accounts 2007/08
Note 13.2 Finance lease obligations

The PCT does not have any finance lease obligations at 31 March 2008 or 31 March 2007.

Note 13.3 Finance Lease Commitments

The PCT does not have any finance lease commitments at 31 March 2008 or 31 March 2007.

Note 14. Provisions for liabilities and charges
                                                    Pensions       Pensions        Legal     Restruc-          Other               Total
                                                   relating to   relating to      claims      turings
                                                       former     other staff
                                                    directors/
                                                     members
                                                         £000          £000        £000          £000          £000                £000
At 1 April 2007                                             0              0         235            0          2,134               2,369
Arising during the year*                                    0              0         493            0          2,323               2,816
Utilised during the year                                    0              0       (205)            0          (324)               (529)
Reversed unused                                             0              0           0            0          (789)               (789)
Unwinding of discount                                       0              0           0            0              0                   0
Transfer in-year                                            0              0           0            0              0                   0
At 31 March 2008                                            0              0        523             0          3,344               3,867

Future Payments to NHS trusts                               0              0           0            0              0                  0
Future Payments to NHS Foundation Trusts                    0              0           0            0              0                  0
Future Payments to Primary Care Trusts                      0              0           0            0              0                  0
Expected timing of cash flows:
Within 1 year                                               0              0        523             0          3,344               3,867
1 - 5 years                                                 0              0          0             0              0                   0
Over 5 years                                                0              0          0             0              0                   0

* Provisions relating to the PCT's own provider functions are shown gross with the expected reimbursements from the NHSLA
included in debtors.

£207,348 is included in the provisions of the NHSLA at 31 March 2008 in respect of clinical negligence provisions of the PCT (31
March 2007 £98,748).




                                                                     24
WIRRAL PCT - Annual Accounts 2007/08
Note 15.   Movements on Reserves

Movements on reserves in the year comprised the following:

                                                     Revaluation reserve     Donated asset           Government grant        Other reserves           General Fund
                                                                               reserve                   reserve

                                                     2007/08     2006/07    2007/08        2006/07   2007/08   2006/07      2007/08    2006/07     2007/08     2006/07
                                                        £000        £000       £000           £000      £000      £000         £000       £000        £000        £000
At 1 April                                              3,270      1,612         0              0         0             0        0            0       4,368       5,370
Net Parliamentary Funding                                   0          0         0              0         0             0        0            0     504,107     468,418
Cost of Capital Charge                                      0          0         0              0         0             0        0            0         202         256
Transfer from the OCS                                       0          0         0              0         0             0        0            0   (509,985)   (469,853)
Fixed asset impairments                                     0          0         0              0         0             0        0            0           0           0
Surplus/(deficit) on other revaluations/indexation
of fixed assets                                         1,961      1,830         0              0         0             0        0            0          0             0
Transfer of realised profits (losses)                       0          0         0              0         0             0        0            0          0             0

Receipt of donated/Government granted assets                0          0         0              0         0             0        0            0          0             0
Depreciation and disposal of
donated/Government granted assets                           0           0        0              0         0             0        0            0          0             0
Transfers to/(from) other NHS Bodies                        0           0        0              0         0             0        0            0          0             0
Other movements on reserves                                 0       (172)        0              0         0             0        0            0          0           177

At 31 March                                             5,231      3,270         0              0         0             0        0            0     (1,308)      4,368




                                                                                      25
WIRRAL PCT - Annual Accounts 2007/08
Note 16. Notes to the cash flow statement

Note 16. 1 Reconciliation of operating costs to net cash flow from operating activities:
                                                                                             2007/08      2006/07
                                                                                                 £000         £000
Net operating Cost                                                                         (509,984)    (469,852)
Depreciation charge                                                                             4,099        1,405
Cost of capital charge                                                                            202          256
Fixed asset impairments                                                                           920          198
(Profit)/loss on disposal of fixed assets                                                           0            0
Non-cash movement in provisions                                                                 2,027        2,288
Transfer from donated asset reserve                                                                 0            0
Transfer from the Government grant reserve                                                          0            0
(Increase)/decrease in stocks                                                                       0           30
(Increase)/decrease in debtors                                                                (2,285)      (6,319)
Increase/(decrease) in creditors                                                                3,103        4,623
Increase/(decrease) in provisions                                                               (529)        (350)
Net cash inflow/(outflow) from
operating activities before restructuring                                                  (502,447)    (467,721)
Payments in respect of fundamental
reorganisation/restructuring                                                                       0            0
Net cash inflow/(outflow) from operating activities                                        (502,447)    (467,721)

Note 16.2 Reconciliation of net cash flow to movement in net debt
                                                                                            2007/08      2006/07
                                                                                               £000         £000
Increase/(decrease) in cash in the period                                                         2            0
Cash outflow from finance lease payments                                                          0            0
Cash (inflow)/outflow from (decrease)/increase in liquid resources                                0            0
Change in net debt resulting from cash flows                                                      2            0
Non - cash changes in debt                                                                        0            0
Net debt at 1 April 2007                                                                          0            0
Net debt at 31 March 2008                                                                         2            0


Note 16.3 Analysis of changes in net debt

                                                   At 31       Cash flows     Non-cash Transfers to/          At
                                                  March           in year    changes in  from NHS         1 April
                                                   2008                            year      bodies         2007
                                                   £000              £000         £000        £000          £000

OPG cash at bank                                        2               2            0             0            0
Cash at bank and in hand                                0               0            0             0            0
Bank overdrafts                                         0               0            0             0            0
Finance leases due within one year                      0               0            0             0            0
Finance leases due after one year                       0               0            0             0            0
Current Asset Investments                               0               0            0             0            0
Total                                                   2               2            0             0            0

No patients' monies are held in creditors as at 31 March 2008 (31 March 2007 £0).



                                                            26
WIRRAL PCT - Annual Accounts 2007/08
Note 17. Capital Commitments

Commitments under capital expenditure contracts at 31 March 2008 were £12,000 (31 March 2007 £0).

Note 18. Post Balance Sheet Events
There have been no post balance sheet events.

Note 19. Contingencies
The PCT has the following contingent (losses)/gains which have not been included in the accounts:
                                                                                          2007/08         2006/07
                                                                                             £000            £000
Gross value                                                                                (2,471)         (6,055)
Amounts recoverable (if any)                                                                     0               0
Net Contingent Liability                                                                   (2,471)         (6,055)

The PCT recognises a Contingent Liability for Continuing Care Restitution cases which have not been accrued in the accounts.




                                                             27
WIRRAL PCT - Annual Accounts 2007/08

Note 20. Related Party Transactions
The PCT is a body corporate established by order of the Secretary of State for Health.

During the year 2007/08 some of the Board Members or members of the key management staff or parties related to them have
undertaken material transactions with the PCT as follows:


                                                                Payments          Receipts Amounts Owed         Amounts due
                                                               to Related     from Related    to Related        from Related
                                                                    Party            Party         Party               Party
                                                                  2007/08          2007/08       2007/08             2007/08
                                                                        £                £             £                   £

Dr J O'Connor - Medical Director (Partner in GP Practice) *        74,652                0                 0                  0
Dr A Mantgani - Medical Director (Partner in GP Practice)         722,599                0            52,417                  0
Dr S Mukherjee - Medical Director (Partner in GP Practice)        994,915                0            88,809                  0

* Dr J O'Connor was a medical director until 31st May 2007, only 2 months worth of the payment to the related party is
disclosed in this note.
Dr S Roohi and Dr K Kidd also served as medical Directors of the PCT but have no related Party Transactions that need to be
declared.

Prior Year comparators

During the year 2006/07 some of the Board Members or members of the key management staff or parties related to them
undertook material transactions with the PCT as follows:

                                                                 Payments          Receipts Amounts Owed         Amounts due
                                                                to Related     from Related     to Related       from Related
                                                                     Party            Party          Party              Party
                                                                  2006/07          2006/07        2006/07            2006/07
                                                                         £                £              £                  £

Dr J O'Connor - Medical Director (Partner in GP Practice)         497,582                0            56,396                  0
Dr A Mantgani - Medical Director (Partner in GP Practice)         737,404                0            55,966                  0
Dr S Mukherjee - Medical Director (Partner in GP Practice)        932,875                0            96,371                  0


The Department of Health is regarded as a related party. During the year the PCT has had a significant
number of material transactions with the Department, and with other entities for which the Department is regarded as the
parent Department. These entities are listed below;

Northwest Strategic Health Authority                                         NHS Business Services Authority
NHS Litigation Authority                                                     NHS Logistics

Primary Care Trusts                                                          NHS Trusts
Western Cheshire PCT                                                         Liverpool Cardiothoracic Centre
Central and Eastern Cheshire PCT                                             Royal Liverpool Children's Hospital
Liverpool PCT                                                                Royal Liverpool and Broadgreen Hospital
Sefton PCT                                                                   Wrightington Wigan and Leigh
Halton and St Helens PCT                                                     St Helens and Knowsley Hospital
Knowsley PCT                                                                 North West Ambulance Service
Warrington PCT                                                               Walton Centre for Neurosciences
                                                                             Merseycare NHS Trust
Foundation Trusts                                                            North Cheshire Hospital
Aintree University Hospitals                                                 Pennine Acute Hospitals
Wirral University Teaching Foundation Trust                                  Robert Jones and Agnes Hunt
Cheshire and Wirral Partnership Foundation Trust                             Southport and Ormskirk Trust
Countess of Chester Hospital                                                 Mid Cheshire Hospitals
Clatterbridge Centre for Oncology
Liverpool Women's Hospitals
Lancashire Teaching Hospital
South Manchester University Hospital

In addition, the PCT had a significant number of material transactions with other Government
Departments and other central and local Government bodies. Most of these transactions were with
the Metropolitan Borough of Wirral, HM Customs and Excise and the Inland Revenue, as well as the
Government Office for the Northwest.

                                                                              28
WIRRAL PCT - Annual Accounts 2007/08
Note 21. Private Finance Transactions

Note 21.1 PFI schemes deemed to be off-balance sheet

The PCT does not have any PFI schemes deemed to be off-balance sheet.

Note 21.2 'Service' element of PFI schemes deemed to be on-balance sheet

The PCT does not have any PFI schemes deemed to be on-balance sheet.




                                                                           29
WIRRAL PCT - Annual Accounts 2007/08
Note 22. Financial Instruments

FRS 13, Derivatives and Other Financial Instruments, requires disclosure of the role that financial instruments have had during the
period in creating or changing the risks an entity faces in undertaking its activities. Because of the way PCT's are financed,
they are not exposed to the degree of financial risk faced by business entities. Also, financial instruments play a much more limited role
in creating or changing risk than would be typical of the listed companies to which FRS 13 mainly applies. The PCT has limited
powers to borrow or invest surplus funds and financial assets and liabilities are generated by day-to-day operational activities rather
than being held to change the risks facing the PCT in undertaking its activities.

As allowed by FRS 13, debtors and creditors that are due to mature or become payable within 12 months from the balance sheet date
have been omitted from all disclosures other than the currency profile.

Liquidity risk
The PCT's net operating costs are financed primarily from resources voted annually by Parliament.
The PCT largely finances its capital expenditure from funds made available from
Government under an agreed resource limit. Wirral PCT is not, therefore, exposed to significant liquidity risks.

Interest-Rate Risk
All of the PCT's financial assets and all of its financial liabilities carry nil or fixed rates of interest. The PCT is not,
therefore, exposed to significant interest-rate risk. The following two tables show the interest rate profiles of the PCT's financial
assets and liabilities:

Note 22.1 Financial Assets

                                                                                                 Fixed               rate   Non-interest
                                                                                                                                bearing
Currency                               Total     Floating   Fixed rate    Non-interest    Weighted ave     Weighted ave       Weighted
                                                     rate                     bearing          interest        period for       average
                                                                                                  rate        which fixed          term
                                       £000         £000         £000            £000               %              Years          Years
At 31 March 2008
Sterling                                  2             0            0              2                0                  0               0
Other                                   132             0            0            132                0                  0               0
Gross financial assets                  134             0            0            134

At 31 March 2007
Sterling                                  0             0            0              0                0                  0               0
Other                                   141             0            0            141                0                  0               0
Gross financial assets                  141             0            0            141



Note 22.2 Financial Liabilities

                                                                                                 Fixed rate                 Non-interest
                                                                                                                                bearing
Currency                               Total     Floating   Fixed rate    Non-interest    Weighted ave     Weighted ave       Weighted
                                                     rate                     bearing          interest        period for       average
                                                                                                  rate        which fixed     term until
                                                                                                                               maturity
                                       £000         £000         £000            £000               %              Years          Years
At 31 March 2008
Sterling                                  0             0            0              0                0                  0               0
Other                                3,867              0            0          3,867                0                  0               0
Gross financial liabilities          3,867              0            0          3,867

At 31 March 2007
Sterling                                  0             0            0              0                0                  0               0
Other                                2,369              0            0          2,369                0                  0               0
Gross financial liabilities          2,369              0            0          2,369




                                                                                                                                     30
WIRRAL PCT - Annual Accounts 2007/08

Foreign Currency Risk
The PCT has negligible foreign currency income or expenditure.

Note 22.3 Fair Values

Set out below is a comparison, by category, of book values and fair values of the PCT's financial assets and
liabilities as at 31 March 2008.

                                                                        Book Value       Fair Value

                                                                                  £000          £000
Financial assets
Fixed Asset investments                                                             0              0
Cash                                                                                2              2
Debtors over 1 year:
  - Agreements with commissioners to cover creditors and provisions                 0             0
Loans and Investments                                                             132           132
Total                                                                             134           134

Financial liabilities
Overdraft                                                                           0              0
Creditors over 1 year:
  - Early retirements                                                                0            0
  - Finance leases                                                                   0            0
  - Other                                                                            0            0
Provisions under contract                                                        3,867        3,867
Total                                                                            3,867        3,867


Note 23. Third party assets

The PCT held no cash at bank and in hand on behalf of patients at 31 March 2008 (31 March 2007 £0).




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Note 24. Pooled Budget

The PCT hosts a pooled budget arrangement with Wirral Metropolitan Borough Council whereby the PCT will contribute
67% and Wirral Metropolitan Borough Council will contribute 33% for Integrated Community Equipment Services. The
budget for the year ended 31 March 2008 was £1,531,620 of which the PCT contributed £1,031,700.




                                                         32
Note 25 Losses and Special Payments

There were 86 cases of losses and special payments (2006/07: 47 cases) totalling £131,146 (2006/07: £1,425) during 2007/08.
There were no clinical negligence cases where the net payment exceeded £100,000 (2006/07: no cases).
There were no fraud cases where the net payment exceeded £100,000 (2006/07: no cases).
There were no personal injury cases where the net payment exceeded £100,000 (2006/07: no cases).
There was no compensation under legal obligation cases where the net payment exceeded £100,000 (2006/07: no cases).
There were no fruitless payment cases where the net payment exceeded £100,000 (2006/07: no cases).

Note: The total costs included in this note are on an accruals basis and not on the cash basis reported for the prior year.

Note 26 Intra-government balances
                                                                          Debtors              Debtors           Creditors     Creditors
                                                                         Amounts              Amounts             Amounts       Amounts
                                                                       falling due          falling due         falling due   falling due
                                                                       within one           after more          within one    after more
                                                                              year            than one                 year     than one
                                                                                                   year                              year
                                                                             £000                  £000                £000          £000

Balances with other central government bodies                                   4                     0                   0            0
Balances with local authorities                                             1,406                     0               1,188            0
Balances with NHS Trusts/FTs                                                8,299                     0               3,532            0
Balances with public corporations and trading funds                             0                     0                   0            0
Balances with bodies external to Government                                 4,746                   132              27,736            0
At 31 March 2008                                                           14,455                   132              32,456            0

Balances with other central government bodies                                   5                      0              8,471            0
Balances with local authorities                                             3,522                      9              5,045            0
Balances with NHS Trusts/FTs                                                3,410                      0              3,537            0
Balances with public corporations and trading funds                             0                      0                  0            0
Balances with bodies external to Government                                 5,356                      0             11,915            0
At 31 March 2007                                                           12,293                      9             28,968            0




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