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					 1998/99 Trust Accounts pro-forma

 Introduction

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

 This workbook is not password-protected, and it is expected that trusts will wish to amend and modify these worksheets to
 suit individual needs: they are intended to provide a starting-point for the preparation of accounts which remain the
 trust's responsibility. It is not the intention of the NHS Executive that this file should provide the finished and definiti ve
 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 workbook. Trusts will
 wish to add more detail where appropriate, and delete lines where there would otherwise be zero entries. All cells may be
 overwritten, moved or deleted.




                      Data entered below will be used throughout the workbook:


PCT name:             ENFIELD 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
  ENFIELD PRIMARY CARE TRUST




     FINANCIAL STATEMENTS




FOR THE YEAR ENDED 31 MARCH 2008
                                Foreword to Accounts


                              Enfield Primary Care Trust

These accounts for the year ended 31 March 2008 have been prepared by Enfield Primary Care
    Trust under section 98(2) of the National Health Service Act 1977 in the form which the
              Secretary of State has, with the approval of the Treasury, directed.
ENFIELD PCT - Annual Accounts 2007/08

STATEMENT OF THE CHIEF EXECUTIVE'S RESPONSIBILITIES AS THE ACCOUNTABLE OFFICER OF THE
                                    ORGANISATION.


The Secretary of State has directed that the Chief Executive should be the Accountable Officer to the
organisation. The relevant responsibilities of Accountable Officers are set out in the Accountable Officers
Memorandum issued by the Department of Health.

- there are effective management systems in place to safeguard public funds and assets and assist in the
  implementation of corporate governance;

- value for money is achieved from the resources available to the authority;

- the expenditure and income of the authority has been applied to the purposes intended by Parliament and
  conform to the authorities which govern them;

- effective and sound financial management systems are in place; and

- annual statutory accounts are prepared in a format directed by the Secretary of State with the approval of the
  Treasury to give a true and fair view of the state of affairs as at the end of the financial year and the net
  operating cost, recognised gains and losses and cash flows for the year.

   To the best of my knowledge and belief, I have properly discharged the responsibilities set out in my letter of
   appointment as an Accountable Officer.




   Signed: ……………………………...........................................................................Chief Executive


   Date: ………………............................




                                                           Page 1
ENFIELD PCT - Annual Accounts 2007/08

             STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE ACCOUNTS


The directors are required under the National Health Service Act 1977 to prepare accounts for each financial year.
The Secretary of State, with the approval of the Treasury, directs that these accounts give a true and fair view of
the state of affairs of the organisation and the net operating cost, recognised gains and losses and cash flows for
the year. In preparing these accounts, Directors are required to:

i. apply on a consistent basis accounting policies laid down by the Secretary of State with the approval of the
   Treasury;
ii. make judgements and estimates which are reasonable and prudent;

iii. state whether applicable accounting standards have been followed, subject to any material departures
     disclosed and explained in the accounts.


The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at
any time the financial position of the organisation and enable them to ensure that the accounts comply with
requirements outlined in the above.


The directors confirm to the best of their knowledge and belief they have complied with the above requirements in
preparing the financial statements.

By order of the board.



Signed: …………………...................................................… Accountable Officer


Date: …………………………………….


Signed: …………………...................................................… Director of Finance


Date: …………………………………….




                                                           Page 2
ENFIELD PCT - Annual Accounts 2007/08

Statement on Internal Control 2007/08

1. Scope of Responsibility

   The overall accountability for internal control lies with the Trust Board and the Chief Executive as the Officer accountable to the
   Secretary of State. As Chief Executive, I have responsibility for ensuring that there are robust processes in place for assuring
   the organisation's corporate objectives and policies are fully met. I also have responsibility for safeguarding the public funds
   and the organisation‟s assets as set out in the Accountable Officer Memorandum. I am also responsible for putting in place
   appropriate governance arrangements throughout the organisation that enable me to have confidence in the assurance of
   controls both to the Trust Board and to Parliament.

   Over the period of interim structure from August 2007 to March 2008, following the resignation of the previous Chief Executive,
   Enfield PCT has had the added oversight and management of a Corporate Chief Executive and Corporate Finance Director. A
   Deputy Chief Executive has been appointed to ensure the smooth day-to-day running of the organisation. This has been in
   place to ensure that the organisation regains the robust financial and management control to enable the organisation to deliver
   its strategic objectives within the available finances and remove it‟s deficit. To assist me in discharging my responsibilities I
   have five Executive Directors and a Medical Director, each with a defined area of responsibility. The Executive Directors meet
   with me weekly. The Trust Board meets bi-monthly and the Commissioning Executive which incorporates the PEC) and our
   PBC Clinical Directors meets monthly.

   Enfield PCT also has accountability to NHS London, which carries the responsibility for the overall performance management
   of the organisation. Myself, the Deputy Chief Executive and the Finance Director meet them on a monthly basis to update on
   progress against agreed objectives. All the London PCT Chief Executives also meet on a monthly basis with NHS London to
   discuss the wider strategic development of healthcare in London as a whole. I am responsible for ensuring that this debate
   feeds directly into the planning and setting of strategic objectives at PCT level and from thence to the commissioning
   framework for all health services for Enfield residents.


2. The System of Internal Control

   The system of internal control is designed to identify and manage risks to a reasonable level rather than eliminating all risks of
   failure to achieve the corporate objectives of the organisation. It is therefore unable to provide absolute assurance of
   effectiveness but is fit for purpose. The system in Enfield PCT is designed to:

             ·    Identify, quantify and manage all risks relating directly to the achievement of the defined strategic objectives of
             the organisation;
             ·    Ensure that the management of the risks reaches right through the organisation from the front line care provision
             to the Trust Board
             ·    Ensure that the impact and likelihood of occurrence are regularly reviewed and updated. Trust Board members
             are informed of any changes in status of existing risks and the addition of any new risks identified through regular
             scrutiny and the development of action plans.

   Risk management systems that facilitate internal control have been in place for the year ending 31st March 2008, and have
   been radically reviewed and updated from November 2007 to reflect the move away from turnaround to accelerated
   development towards becoming a “World Class” Commissioning Organisation.


3. Process and Capacity to Handle Risk

   The Risk Management Group is a sub group of the Audit and Risk Committee, which reports directly to the Board on a regular
   basis. This group is responsible for collecting all risk registers from each directorate in the organisation and then collating the
   overall risk register for the organisation. The group monitors all significant risks (i.e. those scoring 16 or above on the 5X5
   scoring matrix) relating to the strategic objectives from the Trust Board. Each Executive Director has responsibility for certain
   risks:

             ·   Corporate Finance Director: all financial risks
             ·    Director Of Nursing & Corporate Affairs: all corporate risks including health & safety, patient safety, information
             safety, infection control and child protection. The post holder also carries the responsibility and accountability for all
             clinical professional staff other than medical staff, including the nursing staff employed by independent contractors.
             ·   Director of Public Health: all clinical risk
             ·   Deputy Chief Executive: all risks relating to contracts / partnerships
             ·   Chief Operating Officer: all risks relating to the safe, effective delivery of patient services in the community
             ·   Medical Director / Director of Primary care: all risks / accountability relating to medical clinicians and the delivery
             of safe, effective care by independent contractors.



                                                                        Page 3
ENFIELD PCT - Annual Accounts 2007/08

  The PCT's Risk Management Policy lays out the responsibilities of all staff and managers throughout the organisation. It also
  outlines the process for reporting and managing risk from the front line of patient care to the Trust Board.

  Risk management in the organisation is augmented by an Incident Policy that supports all staff to report both incidents (clinical
  and non–clinical) and "near-misses", along with the appropriate action plans to ensure that the situation is contained and
  managed, and that it is prevented from re-occurring wherever possible. Where incidents are deemed to be Level 1 or Serious
  Untoward in nature, an Executive Director is named as the responsible person for the investigation and appropriate actions
  following that incident as per the policy. NHS London is informed and updated via the STEIS database. A Serious Untoward
  Incident Group meets to review all such incidents, both internally and for all commissioned services, and reports directly to the
  Trust Board when and if this is required.

  Outcomes and lessons learned as a result of both risk and incident management are fed back to ensure that training is
  informed by real issues and that polices / procedures are updated to ensure the organisation develops in line with specific
  issues. The Patient Safety Working Group co-ordinates this work and also picks up issues that have come to light via the
  complaints process.

  Training on risk and incident management is mandatory for all staff at induction and as part of the programme of regular
  updates. The mandatory and regular training programmes cover:

            ·   Risk reporting and management
            ·   Incident reporting and management
            ·   Fire
            ·   Safer Handling
            ·   Child / Adult Protection
            ·   Infection Control / Waste management
            ·   Use of Medical devices
            ·   Budget management


4. The Risk and Control Framework

  The Enfield PCT Trust Board needs to be confident that the systems, policies and training deliver satisfactory internal control
  so that they can be assured that the organisation can deliver its responsibilities and strategic objectives safely and effectively.
  The mechanism for providing such assurance is the Board Assurance Framework. This maps the corporate objectives and the
  specific aims against the specific actions and controls that are in place to ensure that they are delivered. Any risks relating to
  them reported through the risk register are mapped and reported along with the actions to reduce the likelihood and limit the
  impact of identified risks. Thus there is both top-down direction and bottom-up risk management that are brought together in
  the Assurance Framework. The Audit and Risk Committee oversees the Assurance Framework and reports any significant
  changes to the Trust Board.

  This year the Board Assurance Framework has to reflect the separation of the Provider Division as it moves to “arm‟s length”
  status. For this year, the organisation has highlighted where the directorate level objectives for the Provider Division feed into
  the overarching corporate objectives. The next developmental stage will be to move to separate objectives and assurances for
  the Provider Division Board.

  The partnership arrangements between health and social care are currently under review in respect of adult services. The
  Children‟s Trust continues to develop through increasingly integrated management arrangements. The PCT continues to work
  to develop the appropriate governance structures that enable professional clinical staff to work in settings not necessarily
  managed within the health services. The development of these services are also subject to external scrutiny through the
  Overview and Scrutiny arrangements of the London Borough of Enfield.

5. Human Resources

  Enfield PCT recognises its workforce as key to the delivery of its aim and objectives. The organisation seeks to make the most
  effective use of the skill mix and experience that it holds and to minimise the risk of losing staff with specialist knowledge and
  skills. All staff with specialist skills are noted on an internal database and there are succession plans in place should this
  expertise be lost to the organisation. The organisation is at specific risk during times of change and re-organisation and there
  is therefore an Enfield PCT Organisational Change policy in place that ensures that such times can be managed both within
  the appropriate legal framework and with the least disruptive impact on staff. All statutory requirements under the “NHS Safer
  Recruitment” Policy and related documents are currently met.

  Workforce plans are in place for the organisation as is the ethnic monitoring of recruitment and all learning and development
  activity.

  The Human Resources team have successfully implemented the Electronic Staff Record (ESR) and the Open Learning
  Manager (OLM) systems in 2007/08. Work is on-gong in developing the capacity to support staff and managers with these new
  electronic systems.



                                                                       Page 4
ENFIELD PCT - Annual Accounts 2007/08

6. Compliance with the NHS Pension Scheme regulations

   As an employer with staff entitled to membership of the NHS Pension scheme, there is in place a range of
   control measures to ensure that we fulfil our obligations as set out by the Scheme regulations. We have
   complied with these obligations and can confirm that the deductions from salary, employer‟s contribution and
   payments into the Pension Scheme are accurately updated in accordance with the timescales detailed in the
   Regulations.


7. User Involvement and consultation.


   Enfield PCT abides by all statutory requirements to fully consult users of services and Enfield residents in the
   event of service changes and developments. This is delivered through participation in London-wide consultation
   processes and local ones relating to the over-arching Barnet, Enfield and Haringey Clinical Strategy. The
   Director of Public Health has responsibility for managing and delivering public involvement. There is a user-
   representative on the Trust Board and users are working as part of the NSF Implementation groups. Public
   information is shared through the Enfield PCT website and via the PALs service. Enfield PCT is participating in
   the development of LiNKs. External scrutiny is again achieved via the Health Scrutiny Committee. Children„s
   service development engages both children and their parents through separate consultation processes.


   The PCT has consulted on the principles underpinning the “Healthcare for London: A Framework for Action” in
   January and February 2008 as per the pan-London process. The Director of Nursing & Corporate Affairs has
   represented the PCT on the Joint Committee of PCTs overseeing the consultation process.


8. Health Care Commission Core Standards 2007/08


   Enfield PCT will report full compliance with the HCC core standards for 2007/08. This marks an improvement
   on 2006/07 where “Insufficient Assurance” was reported for C21. The compliance has improved in this area
   following high PEAT scores for the in-patient unit, completion of the 6 Facet survey into premises suitability and
   general environment, and the undertaking of the deep clean required by the DoH for all in-patient units.
   Significant works have been put in place to improve the environment in two health centres / clinics over
   2007/08. The sale of the Laurels Clinic removes some of the poorest estate from the PCT portfolio.


   Specific concerns have been raised nationally as to the level of Information Governance systems that are in
   place across the NHS in 2007/08. The PCT has undertaken a detailed risk assessment of all information
   governance systems, including core standards C9 and C13c, which, whilst being compliant, require further work
   in light of the extra security measures that are now required. An action plan is in place. There have been no
   Serious Untoward Incidents relating to data security or loss in 2007/08. The Information Governance Steering
   Group has reviewed the evidence both for the core standards and the IG self-assessment toolkit, which covers
   a much wider remit than the Healthcare Commission core standards and which has been subject to late
   changes in standards requirements for 2007/08. The Information Governance Steering Group is satisfied that
   these are at an appropriate level, however more work is required as a result of:

            ·   The lack of external assurance of the evidence and controls for the Trust Board;
            ·   The low level of specialist advice and support into the PCT in such a complex and frequently
            developing area;
            ·   The absence of electronic systems to track records including corporate records;
            ·   Late changes to the Information Governance Toolkit requirements especially where they relate to
            data security for Patient Identifiable Data (PID).


   These risks have been reported to the Audit & Risk Committee and have been included in the overall action
   planning for 2008/09. Extra assurance has been added by splitting the overall management of Information
   Governance issues from the role of the Caldicott Guardian to ensure that this role is able to provide the Trust
   Board / PCT staff members with impartial and objective advice when the need arises. The overall management
   of Information Governance issues has been passed to the Director of Nursing & Corporate Affairs.




                                                               Page 5
ENFIELD PCT - Annual Accounts 2007/08

 9. Gaps in the Assurance Framework

   Enfield PCT has been slow to ensure that it has a robust assurance framework in place as a working document that
   enables it to monitor and manage significant risks. This has been achieved for 2007/08 and will continue to be
   developed into 2008/09. The designation of one Executive Director with the overall responsibility for risk management
   and corporate governance has helped to ensure that actions and approaches are co-ordinated across the
   organisation.

   The significant issues that have arisen for the PCT as a result of inadequate controls and assurances have been:


            ·   The lack of robust financial control / reporting has resulted in a significant deficit. The monthly monitoring
            by the NHS London team has ensured greatly improved assurance in the latter part of this year;
            ·     Poor ALE scores in 2006/07 have been managed through a complete review of all the governance
            processes and procedures within the organisation, and new Director-lead responsibilities (outlined above).
            The Corporate Director of Finance has overseen the revision of ALE reporting and evidence collection from
            August 2007. The Audit and Risk Committee has been revised and the new Chair appointed to ensure that
            the internal assurance processes are adequate;
            ·     The continuing use of interim finance staff. The PCT has benefited enormously from the contributions
            of high quality interim staff, but needs to now substantiate the structures to ensure delivery of the recovery
            programme in 2008/09;
            ·    The imposition of a Healthcare Commission Improvement Notice on Barnet and Chase Farm Hospitals
            NHS Trust in relation to MRSA that indicated a possible weakness in the performance management by the
            PCT, which demonstrates a weakness in controls. The Director of Infection Prevention and Control (DIPC)
            for the PCT is meeting regularly with the DIPC for Barnet and Chase Farm Hospitals NHS Trust to work
            collaboratively to improve reporting. This should increase the assurance of compliance;
            ·    Information Governance : In February 2008 there was a level 1 Serious Untoward Incident declared
            following the investigation of information received from a Whistleblower. This concerned the removal of
            computer hardware that had been decommissioned by the PCT and the subsequent sale of that equipment
            on EBay. The incident is currently under investigation by the Police in light of the likelihood of any criminal
            charges being made. The Health Informatics Service immediately undertook a thorough risk assessment on
            the likelihood of any data being lost through this process and no risk was reported as a result of this
            assessment. The process was reported to the Directors' Group but remains subject to strict confidentiality to
            prevent any compromise of the Police investigation. This incident was reported to NHS London via the STEIS
            process. outlined above;
            ·    The weakness of the Local Counter Fraud Shared Service, which has not performed satisfactorily in
            2007/08. This has now been subjected to a detailed review and consultation leading to reconfiguration, as
            partners in the shared service have chosen to develop their own service. The service is to be provided by
            Bentley Jennison from 1st April 2008.

   These have largely been resolved by the end of 2007/08, though the finance team still needs to complete the
   recruitment process that was commenced in February 2008. Interim arrangements remain in place until such time as
   the recruitment process is completed and the Corporate Financial management arrangements from Haringey PCT
   also continue to ensure control and maintenance of the financial stability achieved in 2007/08.

   Other gaps in controls that have been identified as part of the Board Assurance process have now been resolved or
   will be subject to review as part of the process of rolling forward the risks to 2008/9.

10. Review of the Improvement areas from 2006/07 Statement


   Enfield PCT has worked to ensure that all the improvement areas outlined in last year‟s Statement have been tackled
   and the required improvements put in place. I can report this year that all the following have been achieved:


                     ·     Corporate objectives have been set and the appropriate assurance framework has been put in
                     place. The framework was presented to the Trust Board for Quarters 1&2 in September. In Quarter
                     3 it has been revised and updated and was presented to the January Board;
                     ·   The risk management strategy and policy have been overhauled and updated. These will
                     continue to be reviewed by the Audit and Risk Committee in future;




                                                                  Page 6
ENFIELD PCT - Annual Accounts 2007/08

10. Review of the Improvement areas from 2006/07 Statement - cont.

                     ·      There remains an Interim Finance Director with support from a Corporate Finance Director
                     with the oversight of Haringey and Enfield PCTs. These supportive arrangements will remain in
                     place until a substantive Chief Executive and Finance Director can be appointed. There is a
                     revised Commissioning Strategy Plan that outlines the savings and investment programme that
                     will underpin the delivery of the Barnet, Enfield and Haringey Clinical strategy;
                     ·     A Financial recovery plan is in place that shows run rate balance in 2008/09 and full debt
                     repayment by 2011/12;
                     ·     The Governance arrangements for the organisation have been completely overhauled and re-
                     launched. Corporate Governance responsibility has been placed with one executive director to
                     ensure that there is consistency and continuity. Standing Orders and Standing Financial
                     Instructions have been updated as part of this process. The Audit & Risk Committee has been
                     reconfigured to ensure that it has the appropriate oversight of the internal control and governance
                     arrangements and will ensure their effectiveness for 2008 onwards.
                     ·      The Health Informatics Service has developed an IT Disaster Recovery Plan for Barnet,
                     Enfield and Haringey, the PCTs that participate in the shared service. This has recently been
                     reviewed by Internal Audit in Haringey and assessed as providing adequate assurance. The plan
                     covers all three PCTs and therefore the same level of assurance is applicable to Enfield PCT,
                     who manage the Shared Service for HIS. Work is continuing to strengthen and develop the IT
                     infrastructure, safeguards and the security and this is outlined in the draft IM&T strategy for 2008-
                     11.


11. Review of Effectiveness


   As Accountable Officer, I have responsibility for reviewing the effectiveness of the system of internal control. My
   review is informed in a number of ways. The head of internal audit provides me with an opinion on the overall
   arrangements for gaining assurance through the Assurance Framework and on the controls reviewed as part of the
   internal audit work. Executive managers within the organisation who have responsibility for the development and
   maintenance of the system of internal control provide me with assurance. The Assurance Framework itself provides
   me with evidence that the effectiveness of controls that manage the risks to the organisation achieving its principal
   objectives have been reviewed. My review is also informed by the external and internal audit reports, the Self-
   assessment against the Information Governance Toolkit and the HCC declaration against the core standards.
   Other sources of assurance have been derived from the scrutiny of our financial management systems by NHS
   London, the regular performance reports to the Trust Board and the annual reports of the Board committees.


   There have been a total of seven Serious Untoward Incidents (SUIs) reported by the PCT in 2007/08. None of these
   represent a significant control issue; indeed, the resolution of the SUI on the Learning Difficulties Unit was achieved
   through the Royal College of Physicians and the Healthcare Commission confirming that the controls in place were
   good. All were isolated incidents that were quickly resolved. The inception of the SUI Monitoring group ensures that
   controls and assurances are monitored and checked and the Board is informed of any situations that require their
   input or decision-making.

   I have been advised on the implications of the result of my review of the effectiveness of the system of internal
   control through the work of the Audit and Risk Committee and through the assurance framework against the
   corporate objectives. The actions in this year to tighten the system of internal control within the organisation are
   outlined in sections 3 and 9 above.


12. Conclusions

   I, as Chief Executive, confirm that for the year ending 31st March 2008, the mechanisms and developments outlined
   in the above document demonstrate that the organisation has in place a greatly improved process of internal control
   and specifically greater financial control. As a result there is improved confidence in the organisation achieving its
   corporate objectives.



       Tracey Baldwin
       Corporate Chief Executive



                                                                 Page 6 b
ENFIELD PCT - Annual Accounts 2007/08

          Auditors opinion sic




                                        Page 7
ENFIELD 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      376,525          340,818
Less: Miscellaneous Income                           3      (16,997)         (10,752)
Commissioning Net Operating Costs                           359,528          330,066
Provider
Gross Operating Costs                                4       32,626           37,484
Less: miscellaneous income                           3       (5,986)          (9,000)
Provider Net Operating Costs                                 26,640           28,484
Net Operating Costs before interest                         386,168          358,550
Interest Received or Receivable                                    (14)             0
Net Operating cost for the Financial Year                   386,154          358,550




The notes on pages 12 to 40 form part of this account




                                            Page 8
ENFIELD PCT - Annual Accounts 2007/08
          STATEMENT OF RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED
                                 31 March 2008


                                                                        2007/08     2006/07
                                                                         £000        £000


Unrealised surplus / (deficit) on fixed asset revaluations/indexation       2,635       2,726
Gains and losses recognised in the financial year                           2,635       2,726




                                                       Page 9
ENFIELD 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                 0                            47
Tangible assets                                              10.1           46,453                       50,625
Investments                                                  10.4             156                            52
                                                                                          46,609         50,724
CURRENT ASSETS
Stocks and work in progress                                  11                47                            62
Debtors                                                      12             14,935                       12,316
Cash at bank and in hand                                     16.3              18                            59
TOTAL CURRENT ASSETS                                                                      15,000         12,437
CREDITORS : Amounts falling due within one year              13.1                        (29,075)      (21,389)
NET CURRENT ASSETS / (LIABILITIES)                                                       (14,075)       (8,952)
TOTAL ASSETS LESS CURRENT LIABILITIES                                                     32,534         41,772
Provisions for liabilities and charges                       14                           (5,119)       (6,150)
TOTAL ASSETS EMPLOYED                                                                     27,415         35,622

FINANCED BY:
TAXPAYERS EQUITY
General Fund                                                 15                            2,702          8,906
Revaluation reserve                                          15                           24,713         26,716
TOTAL TAXPAYERS EQUITY                                                                    27,415         35,622




The notes on pages 12 to 40 form part of this account

The financial statements on pages 7 to 40 were approved by the Board on [date] and signed on its behalf by




Chief Executive:                                                    Date:




                                                   Page 10
ENFIELD 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                     (380,036)     (355,112)
SERVICING OF FINANCE AND RETURNS ON INVESTMENT:
Interest received                                                                 14                          0
Net cash inflow/(outflow) from servicing of finance and
returns on investment                                                                         14              0
CAPITAL EXPENDITURE
Payments to acquire tangible fixed assets                                   (2,462)                     (1,642)
Receipts from sale of tangible fixed assets                                     8,339                    1,898
Payments to acquire fixed asset investments                                     (104)                         0
Net cash inflow/(outflow) from capital expenditure                                         5,773           256
Net cash inflow/(outflow) before financing and management of liquid resources           (374,249)     (354,856)
MANAGEMENT OF LIQUID RESOURCES
Net cash inflow/(outflow) before financing                                              (374,249)     (354,856)
FINANCING
Net Parliamentary Funding                                                  374,208                     354,713
Net cash inflow/(outflow) from financing                                                 374,208       354,713
Increase/(decrease) in cash                                    16.2                          (41)         (143)




                                                     Page 11
ENFIELD 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 Primary Care Trust is allocations (Parliamentary Funding) from the
   Department of Health within an approved cash limit, which is credited to the General Fund of the Primary Care
   Trust. 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.




                                                      Page 12
ENFIELD 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. Valuations changes arising from revaluation from cost to
  Depreciated Replacement Cost for newly constructed assets are also charged there, as such falls in value
  result from differing assumptions between valuation bases.
  Fixed asset investments

  Fixed asset investments are recorded at Cost less any provision for impairment.


                                                   Page 13
ENFIELD 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 Primary Care Trust, 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 £5000 or
  more is incurred. They are amortised over the shorter of the term of the license and their useful economic
  lives.




                                                     Page 14
ENFIELD 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 two pooled budget arrangements with the London Borough of Enfield. Under the
   arrangements funds are pooled under S75 of the NHS Act 2006 for Drug Action Team and Integrated
   Community Equipment Service activities and a memorandum note to the accounts provides details of the joint
   income and expenditure.
   The Drug Action Team pool is hosted by Enfield PCT. As a commissioner of healthcare services, the Primary
   Care Trust makes contributions to the pool, which are then used to purchase healthcare services. The Primary
   Care Trust accounts for its share of the assets, liabilities, income and expenditure of the pool as determined by
   the pooled budget agreement.
   The Integrated Community Equipment Service pool is hosted by the London Borough of Enfield. As a
   commissioner of healthcare services, the Primary Care Trust makes contributions to the pool, which are then
   used to purchase healthcare services. The Primary Care Trust 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 Primary Care Trust,
   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) Local Improvement Finance Trust
   The NHS follows HM Treasury's 'Technical Note 1 (revised) How to Account for PFI transactions ' which
   provides practical guidance for the application of the Application Note F FRS5 amendment and the guidance
   'Land and Buildings in PFI schemes Version 2'.
   LIFT schemes are schemes under which premises and facilities are constructed and run by private sector
   organisations in return for annual payments from the PCT for the services provided at those premises or
   facilities.
   Where the balance of the risks and rewards of ownership of the LIFT property are borne by the LIFT operator,
   the LIFT payments are recorded as an operating expense. Where the PCT has contributed assets, a
   prepayment for their fair value is recognised and amortised over the life of the LIFT contract by a charge to the
   Operating Cost Statement. Where, at the end of a LIFT contract, a property reverts to the PCT, the difference
   between the expected fair value of the residual asset on reversion and any agreed payment on reversion is
   built up over the life of the contract by capitalising part of the unitary charge each year, as a tangible fixed
   asset.
   NHS LIFT is a variant of PFI. Enfield PCT has an interest in a NHS LIFT scheme for the facilities at Forest
   Road Primary Care Centre. Facilities are constructed and maintained by a 40:60 Public:Private company, the
   LIFTCo. Half of the 40% public shareholding is owned by the national organisation, Partnerships for Health and
   half is owned equally by the 3 participating PCTs - Barnet PCT, Haringey TPCT and Enfield PCT.
   The LIFTCo own the asset. The development and property risks are borne by the LIFTCo to the extent that the
   balance of the transaction has been accepted as „off-balance sheet‟.
   Enfield PCT‟s stake-holding is in the form of £500 shares and loan stock in the form of sub-debt.
   At the end of the 25 year term there is an obligation upon Enfield PCT to buy the asset, although the LIFTCo
   will be obliged to offer the building to PCTs on favourable terms. In addition Enfield PCT will retain its
   shareholding in the LIFTCo.
   Enfield PCT contributes to the management costs of the LIFTCO in the form of an OPEX loan.

                                                          Page 15
ENFIELD PCT - Annual Accounts 2007/08


   Where the balance of risks and rewards of ownership of the PFI property are borne by the Primary Care Trust,
   it is recognised as a fixed asset along with the liability to pay for it which is accounted for as a finance lease.
   Contract payments are apportioned between an imputed finance lease charge and a service charge.
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
   Expenditure on research is not capitalised. Expenditure on development is capitalised if it meets the following
   criteria;
   - there is a clearly defined project
   - the related expenditure is separately identifiable
   - the outcome of the project has been assessed with reasonable certainty as to;
       - its technical feasibility
       - its resulting in a product or service which will eventually be brought into use
   - adequate resources exist, or are reasonably expected to be available, to enable the project to be completed
   and to provide any consequential increase in working capital.
   Expenditure so deferred is limited to the value of future benefits expected and is amortised through the
   Operating Cost Statement on a systematic basis over the period expected to benefit from the project. It is
   revalued on the basis of current cost. The amortisation charge is calculated on the same basis as for
   depreciation i.e. on a quarterly basis. Expenditure which does not meet the criteria for capitalisation is treated
   as an operating cost in the year in which it is incurred.
   Primary Care Trusts are unable to disclose the total amount of research and development expenditure charged
   to the Operating Cost Statement because some research and development activity cannot be separated from
   patient care activity.
   Fixed assets acquired for use in research and development are amortised over the life of the associated
   project.
k) Provisions
   The Primary Care Trust 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 Primary Care Trust
   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 Primary
   Care Trust. The total value of clinical negligence provisions carried by the NHSLA on behalf of the Primary
   Care Trust 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 Primary Care Trust‟s
   contribution to the Clinical Negligence Scheme for Trusts.




                                                      Page 16
ENFIELD PCT - Annual Accounts 2007/08

m) Non-clinical risk pooling
   The Primary Care Trust participates in the Property Expenses Scheme and the Liabilities to Third Parties
   Scheme. Both are risk pooling schemes under which the Primary Care Trust 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 Primary Care Trusts not been bearing their own risks
   (with insurance premiums then being included as normal revenue expenditure). However, Note 25 is
   compiled directly from the losses and compensations register which is prepared on a cash basis.

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.

                                                         Page 17
ENFIELD PCT - Annual Accounts 2007/08

   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
   The Scheme is a “final salary” scheme. Annual pensions are normally based on 1/80th 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.


p) Third Party Assets
   Assets belonging to third parties (such as money held on behalf of Patients) are not recognised in the
   accounts since the Primary Care Trust 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.
q) 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 2007/2008 was 3.5% (2006/2007: 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.




                                                    Page 18
ENFIELD 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                                   386,154        358,550
Less: Non-discretionary Expenditure                                                  2,154          2,972
Operating Costs less non-discretionary expenditure                                384,000        355,578
Final Revenue Resource Limit for year                                             370,692        342,548
Under/(over) spend against Revenue Resource Limit                                 (13,308)       (13,030)

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                                                            2,687          1,641
less: Net book value of assets disposed of                                         (8,089)        (1,760)
Charge Against the Capital Resource Limit                                          (5,402)          (119)
Capital Resource Limit                                                             (3,815)          1,684
(Over) / Under spend against Capital Resource Limit                                  1,587          1,803

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                                                      32,626          37,484
less: Miscellaneous income relating to provider functions                          (5,986)        (9,000)
Net Operating Cost                                                                 26,640          28,484
less: Costs met from PCT's own allocation                                         (26,640)       (28,874)
Under / (over) recovery of costs                                                          0         (390)




                                                    Page 19
ENFIELD PCT - Annual Accounts 2007/08
Note 3. Miscellaneous Income
                                                                                      2007/08       2006/07
                                                          £000             £000        £000          £000
                                                                           Not
                                                     Appropriated      Appropriated
                                                        In Aid            In Aid
Dental Charge income from contractor led GDS & PDS           2,278                       2,278              0
Strategic Health Authorities                                                    567        567          955
NHS Trusts                                                                    6,095      6,095         7,385
Foundation Trusts                                                               120        120           -29
Primary Care Trusts - other                                                  11,495     11,495         7,319
Department of Health - other                                                     13           13        122
Local Authorities                                            1,397                       1,397         1,420
Education, Training and Research                                                591        591          792
Non-NHS: Overseas Patients (non-reciprocal)                        1                            1           0
Road Traffic Act                                                                                            1
Other Non-NHS patient care services                               11                          11            0
Other income                                                     415              0        415         1,787
TOTAL MISCELLANEOUS INCOME                                   4,102           18,881     22,983       19,752




                                                Page 20
ENFIELD PCT - Annual Accounts 2007/08
Note 4. Operating Costs
Note 4.1 Analysis of gross operating costs:
                                                                                     2007/08       2006/07
                                                                                      £000          £000
Goods and services from other Primary Care Trusts
Healthcare                                                                             27,548       26,181
Non Healthcare                                                                          2,022         1,408
Total                                                                                  29,570       27,589
Goods and services from other NHS bodies excluding Foundation Trusts
Healthcare                                                                            190,057      173,753
Non Healthcare                                                                          4,235         3,122
Total                                                                                 194,292      176,875
Goods and Services from Foundation Trusts                                              20,062       14,909
Purchase of healthcare from non-NHS providers                                          22,264       21,534
Social Care from independent providers                                                         0         0
Expenditure on Drugs Action Teams                                                       1,107         1,206
Non-GMS services from GPs                                                                 716          731
Contractor led GDS & PDS                                                               13,270       10,545
PCT Board members' costs                                                                  463          614
PCT Executive Committee non-officer members' costs                                             0       131
Staff costs                                                                            35,255       35,167
Consultancy services                                                                    1,635         1,279
GMS/PMS/APMS/PCTMS                                                                     35,593       35,739
Prescribing costs                                                                      40,179       36,785
General Ophthalmic Services                                                             2,154         1,837
Supplies and services - clinical                                                        1,261         1,279
Supplies and services - general                                                           147          635
Establishment                                                                           1,783         1,324
Transport                                                                                 140          126
Premises                                                                                5,147         4,758
Bad debts                                                                                      3        (9)
Depreciation                                                                            1,348         1,289
Amortisation                                                                                   0         8
(Profit)/loss on disposal of fixed assets                                                (250)        (138)
Cost of capital charge                                                                  1,102         1,241
Audit fees                                                                                156          155
Clinical negligence costs                                                                  52           52
Redundancies                                                                            1,114          638
Other                                                                                     588         2,003
Total                                                                                 409,151      378,302


PCT Board members' costs above include £0 for early retirements prior to 6/3/95 ( 2006/07 £0 ).

Staff costs above include £0 for early retirements prior to 6/3/95 ( 2006/07 £0 ).




                                                             Page 21
ENFIELD 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                                                               35,593        35,739
Prescribing costs                                                                     40,179        36,785
Contractor led GDS & PDS                                                              13,270        10,545
General Ophthalmic Services                                                            2,154         1,837
Non-GMS Services from GPs                                                                716          731
Total Primary Healthcare purchased                                                    91,912        85,637

Purchase of Secondary Healthcare
Learning Difficulties                                                                  8,478         7,612
Mental Illness                                                                        44,663        42,333
Maternity                                                                              9,582         7,380
General and Acute                                                                    160,352      147,319
Accident And Emergency                                                                17,206        19,807
Community Health Services                                                             46,101        32,019
Other Contractual                                                                             0      3,770
Total Secondary Healthcare Purchased                                                 286,382      260,240
TOTAL HEALTHCARE PURCHASED BY PCT                                                    378,294      345,877

Amount of self-commissioned secondary healthcare included above*                      26,640        28,874
Healthcare purchased from Foundation Trusts included above                            19,944        14,909

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




                                                    Page 22
ENFIELD PCT - Annual Accounts 2007/08


Note 4.3 Operating Leases
4.3/1 Operating expenses include:
                                                                                    2007/08           2006/07
                                                                                     £000              £000
Other operating lease rentals                                                             2,366             2,029
Total                                                                                     2,366             2,029



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                                        0                32                      153               31
Between 1 and 5 years                              273                37                      266               42
After 5 years                                    1,788                    0               1,302                    0
Total                                            2,061                69                  1,721                 73




                                                     Page 23
ENFIELD 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                             31,189           24,771         6,418     29,878        24,323      5,555
Social security costs                            1,970              1,970           0     2,015         1,937           78
Employer contributions to NHSPA                 3,047            3,047             0      3,274         3,180         94
Total                                          36,206           29,788         6,418     35,167        29,440      5,727



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                                 20                 18            2        26            26            0
Administration and estates                        418                320         98         369           320           49
Healthcare assistants & other support staff        97                 97            0       111            80           31
Nursing, midwifery & health visiting staff        224                223            1       258           239           19
Scientific, therapeutic and technical staff       119                113            6       126           117            9
Other                                               1                  1          0           0             0         0
Total                                             879                772        107         890           782       108

Note 5.3 Employee benefits

There where no staff benefits in 2007/08 (2006/07 Nil).

Note 5.4 Retirements due to ill-health

During 2007/08 there was 1 early retirement from the Primary Care Trust agreed on the
grounds of ill-health (2006/07 2 ). The estimated additional pension liabilities of these ill-health
retirements (calculated on an average basis and borne by the NHS Pension Scheme) will be £11,056
(2006/07 £219,213).

These retirements represent 0.97 per 1,000 active scheme members.

Note 5.5 Management costs
                                                            2007/08         2006/07
Management costs (£000s)                                         6,150         5,790
Weighted population (Number)                                  276,774        275,734
Management cost per head of weighted population (£)              22.22         21.00
The PCT measures its management costs according to the definitions provided by the Department of Health




                                                          Page 24
ENFIELD 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                               17,693           44,385      18,955          39,639
Total bills paid within target                             16,032           36,004      16,929          33,325
Percentage of bills paid within target                     90.61%       81.12%          89.31%         84.07%

NHS Creditors
Total bills paid in the year                                  2,208        251,198          1,809        208,987
Total bills paid within target                                2,136      250,463            1,170       177,688
Percentage of bills paid within target                     96.74%       99.71%          64.68%         85.02%

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

The PCT has partially met its obligations in regard to the Better Payment Practice Code. Until February 2008 the PCT was not
recording data accurately and the above calculations have been prepared based on March 2008 data. Although corrective
action was taken in March 2008, performance in this month was also overstated due to the incorrect date of receipt being
recorded on invoices relating to prior periods.


Note 6.2 The Late Payment of Commercial Debts (Interest) Act 1998

There was no late payment of commercial debts in 2007/08 (2006/07, nil).


Note 7.1 Profit/(Loss) on Disposal of Fixed Assets
Profit/(loss) on the disposal of fixed assets is made up as follows:
                                                                                       2007/08         2006/07
                                                                                        £000            £000
Profit on disposal of land and buildings                                                     250            138
Total                                                                                         250            138


Note 7.2 Analysis of Impairments charged to operating costs

There where no impairments in 2007/08 (2006/07, nil).


Note 8. Interest Payable

There was no interest payable in 2007/08 (2006/07, nil).




                                                           Page 25
ENFIELD PCT - Annual Accounts 2007/08

Note 9. Intangible Fixed Assets

                                                Software        Total
                                                licences
                                                  £000          £000
Gross cost at 1 April 2007                              145           145
Reclassifications                                     (145)         (145)
Gross cost at 31 March 2008                               0             0
Accumulated amortisation at 1 April 2007                   98             98
Reclassifications                                        (98)           (98)
Accumulated amortisation at 31 March 2008                   0              0

- Purchased at 1 April 2007                                47            47
Total at 1 April 2007                                      47            47

- Purchased at 31 March 2008                               0              0
Total at 31 March 2008                                     0              0




                                            Page 26
ENFIELD 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                 34,275      12,599          264             630             338             147          3,636        1,313     53,202
Additions - purchased                                  0           0            0           1,367             359               0            739          118      2,583
Additions - government granted                         0           0            0               0               0               0              0            0          0
Indexation                                         1,573         862           22               8               9               4                          34      2,512
Reclassifications                                      0         108            0           (108)               0               0            145            0        145
Other in year revaluation                             44          99            0               0               0               0              0            0        143
Disposals                                        (5,381)     (2,708)            0               0               0               0              0            0    (8,089)
At 31 March 2008                                  30,511      10,960          286           1,897             706             151          4,520        1,465     50,496

Accumulated depreciation at 1 April 2007                                                                      273             125          1,781           398     2,577
Provided during the year                                          507            10                             9              11            663           148     1,348
Reclassifications                                                   0             0                             0               0             98             0        98
Indexation                                                                                                      8               3                            9        20
Accumulated depreciation at 31 March 2008               0         507            10                 0         298             142          2,542           564     4,043

Net book value
- Purchased at 1 April 2007                       34,275      12,599          264                630               65            22        1,855           915    50,625
Total at 1 April 2007                             34,275      12,599          264                630               65            22        1,855           915    50,625

Net book value
- Purchased at 31 March 2008                      30,511      10,453          276           1,897             416                12        1,978           910    46,453
Total at 31 March 2008                            30,511      10,453          276           1,897             408                 9        1,978           901    46,453




                                                                        Page 27
ENFIELD PCT - Annual Accounts 2007/08
Note 10.1 Tangible Fixed Assets (continued)

Of the totals at 31 March 2008, £0 related to land valued at open market value and £0
related to buildings, installations and fittings valued at open market value.


Following a review of Intangible Assets, Software and Licences with a gross cost at 1 April 2007 of
£145k and accumulated depreciation of £98k, have been reclassified as Tangible Fixed Assets.


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

There where no assets held under finance leases and hire purchase contracts in 2007/08 (2006/07, nil).




                                                                   Page 28
ENFIELD PCT - Annual Accounts 2007/08
Note 10.3 The net book value of land and buildings at 31 March 2008 comprises:

                                                                                           Government
                                          31 March 2008      Purchased       Donated        Granted   31 March 2007
                                              £000              £000           £000           £000        £000
Freehold                                       41,240            41,240                0            0      47,138
TOTAL                                          41,240            41,240                0            0      47,138

Note 10.4 Fixed assets investments
                                             Equity          Loan-stock        Total
                                          shareholdings
                                              £000               £000          £000
Balance as at 31 March 2007                          1                51           52
Additions                                            0               104          104
Balance as at 31 March 2008                          1               155          156


Note 10.5 Current Asset Investments

There were no current asset investments at 31/3/08 (31/3/07, nil).


Note 10.6 Economic Lives of Fixed Assets
                                      Minimum Life          Maximum Life
                                         (years)               (years)
Software Licences                                5                     5
Buildings excl. Dwellings                      27                     40
Dwellings                                      27                     27
Car Park                                      125                    125
Plant and Machinery                              5                    10
Transport Equipment                              6                     7
Information Technology                           5                     8
Furniture and Fittings                           5                    10




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

Raw materials and consumables                        47                 62
Total                                                47                 62




                                                               Page 29
ENFIELD PCT - Annual Accounts 2007/08

Note 12. Debtors
                                                             31 March 2008        31 March 2007
                                                                 £000                 £000
Amounts falling due within one year:
NHS debtors                                                          12,268                9,690
Provision for irrecoverable debts                                       (12)                  (9)
Other prepayments and accrued income                                  1,211                  608
Other debtors                                                         1,468                2,027
TOTAL                                                                14,935               12,316

Other Debtors include;
- £ Nil prepaid pension contributions at 31 March 2008 (31 March 2007 £ Nil); and
- £ Nil prepayments from the buyout of early retirements (31 March 2007 £ Nil ).


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:
NHS creditors                                                      10,298                   7,758
Family Health Services (FHS) creditors                              7,365                   5,023
Non - NHS trade creditors - revenue                                   914                       44
Non - NHS trade creditors - capital                                   119                        0
Tax                                                                   341                      367
Social Security costs                                                 271                      315
Other creditors                                                       742                      684
Accruals and deferred income                                        9,025                   7,198
                                                                   29,075                  21,389
Total                                                              29,075                  21,389
Other Creditors include;
- £ Nil for payments due in future years under arrangements to buy out the liability for early
  retirements over 5 years (2006/07 £ Nil ); and
- £ 700k outstanding pensions contributions at 31 March 2008 (£655k at 31 March 2007)




                                                     Page 30
ENFIELD PCT - Annual Accounts 2007/08
Note 13.2 Finance lease obligations

There where no finance lease obligations at 31/3/08 (31/3/07, nil).


Note 13.3 Finance Lease Commitments

There where no finance lease commitments at 31/3/08 (31/3/07, nil).

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                                         359        5,042        402             0           347            6,150
Arising during the year*                                772          286           1          147           879            2,085
Utilised during the year                            (1,076)        (195)        (35)            0         (121)          (1,427)
Reversed unused                                          (3)       (896)        (32)            0         (758)          (1,689)
At 31 March 2008                                         52        4,237         336          147           347            5,119

Expected timing of cash flows:
Within 1 year                                             5          286          34            0            35              360
1 - 5 years                                              20          858         136            0           140            1,154
Over 5 years                                             27        3,093         166          147           172            3,605

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

The PCT inherited the liability for the capitalised early retirement costs of certain former staff and employees of its
predecessor organisations. At 31st March 2008 the provision to meet these payments amounted to £2,025k (06/07
£1,839k). Commitment to pay these charges will continue for the lifetime of the claimants and their surviving spouses.
During the year an additional £810k was provided to restore the fund to the level to meet current expectations of future
pension payment entitlements.

Legal claims is predominantly a structured settlement of a personal injury claim from a former employee, inherited from the
North Central London Strategic Health Authority. The commitment will continue for the lifetime of the claimant.

Restructuring provisions relates to redundancy costs incurred as a consequence of restructuring the PCT's counter fraud
services.

Other provisions comprise of potential claims received resulting from the Ombudsman's ruling in respect of the provision by
the NHS of free nursing care to patients in care homes.


£20,000 is included in the provisions of the NHS Litigation Authority at 31/03/2008 in respect of clinical negligence liabilities
of the PCT (31/03/2007 £nil).




                                                                Page 31
ENFIELD PCT - Annual Accounts 2007/08
Note 15.   Movements on Reserves

Movements on reserves in the year comprised the following:

                                            Revaluation reserve          General Fund

                                            2007/08     2006/07       2007/08     2006/07
                                             £000        £000          £000        £000
At 1 April                                    26,716         25,000       8,906      10,493
Net Parliamentary Funding                          0              0     374,208     354,713
Cost of Capital Charge                             0              0       1,102       1,241
Transfer from the OCS                              0              0   (386,154)   (358,550)
Surplus/(deficit) on other
revaluations/indexation of fixed assets         2,635      2,726             0            0
Transfer of realised profits (losses)         (4,638)    (1,010)         4,638       1,010
Other movements on reserves                         0          0             2          (1)

At 31 March                                   24,713         26,716      2,702       8,906




                                                  Page 32
ENFIELD 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                                                             (386,168)        (358,550)
Depreciation charge                                                                 1,348           1,297
Cost of capital charge                                                              1,102           1,241
(Profit)/loss on disposal of fixed assets                                           (250)           (138)
Non-cash movement in provisions                                                       396           1,482
(Increase)/decrease in stocks                                                          15             (48)
(Increase)/decrease in debtors                                                    (2,619)         (3,662)
Increase/(decrease) in creditors                                                    7,567           3,653
Increase/(decrease) in provisions                                                 (1,427)           (387)
Net cash inflow/(outflow) from operating activities                            (380,036)        (355,112)

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                                              (41)         (143)
Change in net debt resulting from cash flows                                           (41)         (143)
Net debt at 1 April 2007                                                                 59           202
Net debt at 31 March 2008                                                                18            59


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                                 1             (51)           0           0               52
Cash at bank and in hand                        17               10           0           0                7
Total                                           18             (41)           0           0               59




                                                     Page 33
ENFIELD PCT - Annual Accounts 2007/08
Note 17. Capital Commitments

Commitments under capital expenditure contracts at the balance sheet date were £Nil (2006/07 £ Nil ).

Note 18. Post Balance Sheet Events

There were no post balance sheet events in 2007/08.

Note 19. Contingencies

The PCT may have a liability of up to £100,000 for the settlement of Employment Tribunal cases that are currently
in progress. The estimate for this contingent liability is based on previous settlement sums for similar cases
and takes into account redundancy and other payments already made by the PCT. The PCT also believes that
elements of the cases will be difficult for the claimants to prove.

£10,000 is included in the contingent liabilities of the NHS Litigation Authority at 31/03/2008 in respect of
clinical negligence liabilities of the PCT (31/03/07 £nil).




                                                        Page 34
ENFIELD PCT - Annual Accounts 2007/08

Note 20. Related Party Transactions
Enfield Primary Care Trust is a body corporate established by order of the Secretary of State for Health.

During the year material transactions undertaken with Enfield Primary Care Trust by Board Members and key management staff or
parties related to them, were as follows:


                                                             Payments to       Receipts from     Amounts owed      Amounts due from
                                                             Related Party     Related Party    to Related Party    Related Party
                                                                   £                 £                  £                 £
Dr P Barnes - Eagle House GP surgery                          1,582,012              0                  0                 0


The Department of Health is regarded as a related party. During the year Enfield Primary Care Trust 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, where transactions are material, are listed below;

                                                           Expenditure with    Income from       Amounts owed      Amounts due from
                                                            Related Party      Related Party    to Related Party    Related Party
                                                                £'000              £'000             £'000              £'000
Barnet Primary Care Trust                                       1,333             3,102               409               1,114
Barnet & Chase Farm Hospitals NHS Trust                        73,769             1,627              2,749              4,124
Barnet, Enfield and Haringey Mental Health NHS Trust           40,890             4,709              1,546              3,790
Barts and The London NHS Trust                                  3,706                0                744                 0
Central and North West London Mental Health
Foundation Trust                                                 2,027               0                217                 0
Haringey Teaching Primary Care Trust                            27,047             4,079             1,460               817
London Ambulance Service NHS Trust                               7,545               0                372                 0
Moorfields Eye Hospital NHS Foundation Trust                     1,452               0                155                 0
North Middlesex University Hospitals NHS Trust                  44,319              138               339                218
Royal Free Hampstead NHS Trust                                  15,069               0                504                 0
The Whittington Hospital NHS Trust                               1,626               0                451                 0
University College London NHS Foundation Trust                  11,652               0                259                 0




In addition, the Primary Care Trust has had a significant number of material transactions with other Government
Departments and other central and local Government bodies. Most of these transactions have been with the
London Borough of Enfield.


Tracey Baldwin is the substantive Chief Executive Officer of Haringey TPCT. From 1 August 2007 she was appointed to the interim
role of Corporate Chief Executive Officer of Enfield PCT and Haringey TPCT. She is employed by Haringey TPCT who recharged
Enfield PCT for her services during 2007/08.


Harry Turner is the substantive Finance Director of Haringey TPCT. From 1 August 2007 he was appointed to the interim role of
Corporate Director of Finance for Enfield PCT and Haringey TPCT. He is employed by Haringey TPCT who recharged Enfield PCT
for his services during 2007/08.




                                                              Page 35
ENFIELD PCT - Annual Accounts 2007/08
Note 21. Local Improvement Finance Trust (LIFT) Transactions

Note 21.1 LIFT schemes deemed to be off-balance sheet
                                                                             2007/08        2006/07
                                                                              £000           £000
Amounts included within operating expenses in respect
of LIFT transactions deemed to be off-balance sheet -
gross.                                                                             928              825
Net charge to operating costs                                                      928              825

The PCT is committed to make the following payments during the next year:

                                                                             2007/08        2006/07
                                                                              £000           £000
21 to 25 years (inclusive)                                                         928            825


                                                                              £000
The estimated capital value of the LIFT scheme                                   6,998
Contract start date                                                          7/14/2004
Contract end date                                                            7/14/2029

NHS LIFT is a variant of PFI. Enfield PCT has an interest in a NHS LIFT scheme for the facilities at
Forest Road Primary Care Centre. Facilities are constructed and maintained by a 40:60
Public:Private company, the LIFTCo. Half of the 40% public shareholding is owned by the national
organisation, Partnerships for Health and half is owned equally by the 3 participating PCTs - Barnet
PCT, Haringey TPCT and Enfield PCT.

The LIFTCo own the asset. The development and property risks are borne by the LIFTCo to the
extent that the balance of the transaction has been accepted as „off-balance sheet‟.

Enfield PCT‟s stake-holding is in the form of £500 shares and loan stock in the form of sub-debt.

At the end of the 25 year term there is an obligation upon Enfield PCT to buy the asset, although the
LIFTCo will be obliged to offer the building to PCTs on favourable terms. In addition Enfield PCT will
retain its shareholding in the LIFTCo.

Enfield PCT contributes to the management costs of the LIFTCO in the form of an OPEX loan.

EPCT holds the head lease for the LIFT scheme. A new building in Forest Road, Edmonton has
been constructed because the previous site was not fit for the services EPCT provides. Enfield Drug
Action Team, Children and Adolescent Mental Health Services, Community Services and GP
Services are based in the new facility in Forest Road.




                                                      Page 36
ENFIELD 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 Primary Care Trusts 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 Primary Care Trust's net operating costs are financed primarily from resources voted annually by Parliament.
The Primary Care Trust largely finances its capital expenditure from funds made available from
Government under an agreed resource limit. Enfield PCT is not, therefore, exposed to significant liquidity risks.

Interest-Rate Risk
100% of the PCT's financial assets and 100% of its financial liabilities carry nil or fixed rates of interest. Enfield 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                                18              0            0               18                  0                 0                 0
Other                                    0              0            0                0                  0                 0                 0
Gross financial assets                  18              0            0               18

At 31 March 2007
Sterling                                59              0            0               59                  0                 0                 0
Other                                    0              0            0                0                  0                 0                 0
Gross financial assets                  59              0            0               59




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                                   0               0            0               0                   0                 0                 0
Gross financial assets                  0               0            0               0

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

                                                                         Page 37
ENFIELD PCT - Annual Accounts 2007/08

Foreign Currency Risk
The PCT has no 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 Basis of fair
                                                                                                                           valuation
                                                                                                          £000            £000
Financial assets
Fixed Asset investments                                                                                        156             156
Cash                                                                                                            18              18
Debtors over 1 year:
  - Agreements with commissioners to cover creditors and provisions                                              0               0
Loans and Investments                                                                                            0               0     Note a
Total                                                                                                          174             174

Financial liabilities
Overdraft                                                                                                         0                0
Creditors over 1 year:
  - Early retirements                                                                                           0                  0   Note b
  - Finance leases                                                                                              0                  0   Note c
  - Other                                                                                                       0                  0
Provisions under contract                                                                                   5,119                  0   Note d
Total                                                                                                       5,119                  0


a These debtors reflect agreements with commissioners to cover creditors over 1 year for early retirements and provisions
   under contract, and their related interest charge/unwinding of discount. In line with notes c and e, below, fair value is not
   significantly different from book value.


b Fair value is not significantly different from book value since interest at 9% is paid on early retirement creditors.


c To obtain fair value, cash flows have been discounted at prevailing market interest rates for finance leases for a similar term.


d Fair value is not significantly different from book value since, in the calculation of book value, the expected cash flows
   have been discounted by the Treasury discount rate of 3.5% in real terms.




Note 23. Third party assets

The PCT held £ 5,064 cash at bank and in hand at 31.3.2008 which relates to monies held by Enfield PCT on behalf of
patients (£ 2,019 at 31/3/07). This has been excluded from cash at bank and in hand figure reported in the accounts.




                                                                             Page 38
ENFIELD PCT - Annual Accounts 2007/08


Note 24. Pooled Budget


Drug Action Team

Enfield PCT has a pooled budget arrangement with London Borough of Enfield which is
hosted by the PCT. The PCT receives all funding from the scheme and pays all related
costs. Any costs incurred on behalf of London Borough of Enfield are recharged to that
body.
A memorandum account for the arrangement follows.

Pooled Budget - Memorandum Trading Account for Drug Action Team

                                                                     2007/08     2006/07
                                                                        £000       £000
Income:
Substance Misuse Pooled Treatment Budget Funding                      2,328        2,529
Underspend 05/06                                                        160           15
Transfer from Haringey TPCT                                             118            0
In year recharges to London Borough of Enfield                          192          229
Total Income                                                          2,798        2,773

Expenditure:
Non-drug treatment specific                                              30           89
Open access drug treatment                                              742          724
Structured Community based                                            1,839        1,244
Residential drug treatment specific                                     217          307
Workforce Activities                                                     15           14
Systems Investment                                                      210           63
User and carer involvement                                                4           30
Models of care                                                            0            0
Shared Care                                                               0          251
Miscellaneous                                                             0           51
Total Expenditure                                                     3,057        2,773

Slippage carried over to 2008/09                                 -      259              0


Integrated Community Equipment Service (ICES)

Enfield PCT has a pooled budget arrangement with London Borough of Enfield (LBE) for
loan of equipment which is hosted by the LBE . LBE recharges Enfield PCT for all related
expenditure.
A memorandum of expenditure analysis follows.

Pooled Budget - Memorandum Expenditure Account for Integrated Community Equipment Service

                                                                     2007/08     2006/07
                                                                        £000       £000

Gross Funding
London Borough of Enfield                                               905         889
Enfield Primary Care Trust                                              377         346
Total Gross Funding                                                    1,282       1,235

Expenditure:
Equipment                                                               805          800
ICES Manager                                                             52           50
Employee Costs                                                          278          284
Running Costs                                                           141          155
Total Expenditure                                                     1,276        1,289

Under/(Over) spend                                                        6         (54)



                                                                     Page 39
ENFIELD PCT - Annual Accounts 2007/08


Note 25 Losses and Special Payments

There were 3 cases of losses and special payments (prior year: nil cases) totalling £8k (prior year: £0) approved during 2007-
2008.

There were no clinical negligence cases where the net payment exceeded £100,k (prior year: no cases).


There were no fraud cases where the net payment exceeded £100k (prior year: no cases).


There were no personal injury cases where the net payment exceeded £100k (prior year: no cases totalling ).


There were no compensation under legal obligation cases where the net payment exceeded £100k (prior year no cases ).


There were no fruitless payment cases where the net payment exceeded £100k (prior year no cases ).


Note: The total costs included in this note are on an accruals basis and on the cash basis reported last 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                          0                  0                0                 0
Balances with local authorities                                      770                  0              102                 0
Balances with NHS Trusts/FTs                                       5,204                  0            1,112                 0
Balances with public corporations and trading funds                3,926                  0              115                 0
Balances with bodies external to Government                        5,035                  0           27,746                 0
At 31 March 2008                                                  14,935                  0           29,075                 0

Balances with other central government bodies                          0                  0              367                 0
Balances with local authorities                                    1,060                  0            1,366                 0
Balances with NHS Trusts/FTs                                      10,289                  0            5,862                 0
Balances with public corporations and trading funds                    0                  0                0                 0
Balances with bodies external to Government                          967                  0           13,794                 0
At 31 March 2007                                                  12,316                  0           21,389                 0




                                                                 Page 40

				
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