Month 4 Financial Report 200203

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Month 4 Financial Report 200203 Powered By Docstoc
					               TRUST BOARD PAPER SUMMARY SHEET


Date of Meeting   25 January 2006        Open/closed           Open


Agenda Item       18                     Paper No              14(06)


Board Action      Information




Report Title       Finance Report – Month 09


Author             Alan Hubber


Lead Director      Gerry Nolan


Appendix No        attached




Purpose/ Summary To update the Board on the Finance Report – Month 09
of Paper


Key Concerns




                       The Trust Board is asked to note the reported financial
Recommendation         position at the end of December.
Month 09 Financial Report 2005/06


1.     Introduction

1.1.   The purpose of this paper is to update the Trust Board on the income and
       expenditure position as at the end of December 2005 and the issues stemming
       from the migration to the new NHS Shared Business Services (SBS) Oracle
       ledger.


2.     Summary

2.1.   The cumulative financial position as at the end of December 2005 is an
       underspend of £259k.

2.2.   Many of the 2005/2006 directorate Cost Improvement Plans (CIPs) remain
       outstanding, with plans to deliver the savings yet to be implemented. These have
       been shown as reductions to budgets within the individual directorates.

2.3.   The forecast outturn based on the Month 09 position is an underspend of £500K.


3.     Shared Business Services Oracle migration

3.1.   The trust transferred its financial services to the NHS Shared Business Service
       centre in West Yorkshire on 1st October. This has meant a fundamental change in
       some of the systems, processes and timetables previously used within the Trust
       with an entirely new general ledger and suite of financial reporting tools.

3.2.   A number of issues were reported as affecting the accuracy and completeness of
       the financial monitoring and reporting at month 7:

          Slippage in the migration timetable meant that a number of the key
           information feeders, most notably payroll and the transfer of data from the old
           ledger, were not complete until very late in the month;
          The transfer of the accounts payable function from our own shared services to
           SBS created a delay in the recording and payment of invoices;
          The WTE information from payroll failed to import successfully into the new
           ledger;
          Significantly tighter closedown timetables reduced the opportunity for
           investigation and correction of variances.

3.3.   These problems have now been largely resolved and the figures now recorded
       within the ledger and forming the basis of this report are far more robust and
       consistent with forecasts previously produced in the old ledger.

3.4.   Some difficulties remain however, most notably concerning the recording of petty
       cash expenditure. Action has been taken to address this issue and adjustments
       have been made to the expenditure figures for the appropriate budgets within this
       paper to accurately report the financial position.


4.     Directorate Commentary

4.1.   Luton

       Working Age Mental Health

4.1.1. The position as at the end of December 2005 is an underspend of £92K (0.9% of
       budget).

4.1.2. The most notable underspending areas are Community Recovery and Medical
       Staffing.


       Learning Disabilities

4.1.3. The reported position as at the end of December 2005 is an overspend of £109k
       (or 1.0% of budget).

4.1.4. The directorate’s 2005/06 CIP is included as a budget reduction, with the plans to
       deliver this saving due to be implemented from the end of January. This
       represents £135K of the overspend reported for the year to date.


4.2.   Bedfordshire

       Working Age Mental Health

4.2.1. The reported position as at the end of December 2005 is £146k underspent (or
       1.4% of budget).

4.2.2. This reflects a general underspend across the directorate due to vacancies both
       with health and local authority posts.

       Mental Health for Older People

4.2.3. The reported position as at the end of December 2005 is an overspend of £83k
       (or 1.6% of budget).

4.2.4. The directorate’s 2005/06 CIP is included as a budget reduction, with the plans to
       deliver this saving only recently implemented. This represents £171K of the
       overspend reported for the year to date.


       CAMH

4.2.5. The reported position as at the end of December 2005 is £166k underspent (or
       5.8% of budget).

4.2.6. This is due to a number of vacancies within the service particularly within medical
       staffing. Additional locum consultants have recently been appointed to address
       the current pressure within the service, utilising the underspend accrued to date.
4.3.   Service Level Agreements

4.3.1. The reported position at the end of December 2005 is a small overspend of £26K.


4.4.   Corporate Services

4.4.1. The reported position as at the end of December 2005 is an overspend of £34k
       (or 0.5% of budget).

4.4.2. This is due to the costs of the new Oracle ledger. An offsetting underspend is
       accruing within Shared Services finance with an adjustment required to the BSS
       SLA to adjust for this.


4.5.   Reserves

4.5.1. The Trust is currently holding in reserves the additional funding provided for the
       increased costs of implementing Agenda for Change. Now that the assimilation
       process is complete budget adjustments are planned to be action in time for
       month 10.


5.     Cashflow

5.1.   At the end of December 2005 the cash balance held in the Trust bank accounts
       was £6.845M.


6.     Risk

6.1.   At this late stage of the year, there is no concern that the Trust will not achieve its
       planned surplus.


7.     Conclusion

7.1.   The Trust is reporting an underspend of £259K at the end of December 2005.

7.2.   It is projected, based on current key assumptions, that the Trust will meet its
       statutory duty to breakeven this financial year and deliver the £500K underspend
       required by the Strategic Health Authority.


8.     Recommendation

8.1.   The Trust Board is asked to note the reported financial position at the end of
       December.



Gerry Nolan
Director of Finance and Performance Management
20 January 2005

				
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