20082009 MONTH 9 ACCOUNTS SUMMARY

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2008/2009MONTH 9 ACCOUNTS SUMMARY
Jonathan Wise, Director of Finance Performance

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Contents

• Process
• Summary of month 9 financial performance
• Analytical review 07/08 v 08/09

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PROCESS

• Deadline achieved for completion of Month 9 set
  of accounts
• All material external audit recommendations for
  2007/08 actioned
• Improvements made in internal processes and
  quality of analysis
• Analysis of movements 07/08 (pro-rata) to 08/09
  undertaken
• Post project review being undertaken to identify
  areas for improvement at year-end

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Summary of month 9 financial performance

• Statutory financial duties
• Underspend against revenue resource limit
  year-to-date underspend of 11.17m
• Underspend capital resource limit year-to-date
  underspend of 297k
• Underspend against cash limit year-to-date
  underspend of 33.3m
• Other financial targets
• Public Sector Payment Policy
• - year-to-date performance (see table)
• - plans for improved performance being
  implemented
• Provider arm full cost recovery year-to-date
  460k adverse variance plans to achieve full
  recovery by year-end

All values are YTD
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Analytical review 07/08 v 08/09

• Balance sheet
• Fixed assets
• Debtors
• Creditors
• Provisions
• Expenditure
• Operating Cost statement
• Analysis of Gross Operating Costs

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Balance sheet fixed assets

• 000
• Tangible assets
• Balance at 1/4/08 52,743
• Additions 702 Includes Willesden
  deferred asset
• Indexation 2,168
• Depreciation (1,972)
• Disposals (580)
• Transfer to intangible assets (90)
• Balance at 31/12/08 52,971
• Intangible asset 82
• Includes accelerated depreciation on IT and
  other assets following full review

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Balance sheet - Debtors

• 31/03/08 31/12/08
• 000 000
• NHS 1,399 807
• Other debtors, prepayments etc. 4,137 845
• Provision for irrecoverable debts (759)
  (457)
• Total 4,777 1,195
• Comments
• Aged debtor analysis at 31/12
• 000
• 0-30 days 430
• 31-60 days 182
• 61-90 days 39
• Over 90 days 538
• Sub Total 1,189
• Less Bad debts Provision (457)
• Other Debtor items/prepayments 463

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Balance sheet - Creditors

• 31/03/08 31/12/08
• 000 000
• NHS 11,265 10,330
• Non-NHS/trade creditors 6,148 1,785
• Accruals and deferred income 18,817 28,571
• Other (incl. tax/NI/Super) 58 1,069
• TOTAL 36,288 41,755
• Comments
• NHS creditors agreed as part of month 9 agreement
  of balances
• Balance between non NHS/trade creditors and
  accruals reflects earlier cut-off as a result of
  the revised closure timetable

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Balance sheet - Provisions

• 000
• 31/03/08 4,468
• Arising during the year 32
• Utilised during the year (266)
• Reversed unused -
• Unwinding of discount 27
• 31/12/08 4,261
• Comments
• The provisions relate to a) clinical negligence
  claims arising from cases relating to NHS Trusts
  pre-dating their establishment and b) pensions in
  respect of former staff pre-dating 1995.

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Operating cost statement

• 07/08 07/08 08/09
• 000 x75 000
• 000
• Commissioning
• Gross costs 391,337 293,503 296,329
• Less income (8,121) (6,091)
  (5,142)
• Net costs 383,216 287,412 291,187
• B. Provider
• Gross costs 42,722 32,042 32,088
• Less income (4,425) (3,319)
  (3,246)
• Net costs 38,297 28,723 28,842
• Total 421,513 316,135
  320,029
• Interest receivable - - (36)
• Less non-discretionary (2,047) (1,535)
  (1,662)
• Revised Total 419,466 314,600
  318,331
• Resource limit 421,164 315,873
  329,501

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Gross operating Costs

• 07/08 07/08 08/09
• 000 x75 000
• 000
• NHS goods services 246,142 184,607 189,474
• Non-NHS healthcare 29,180 21,885 24,250
• Dental services 14,723 11,042 11,578
• Staff costs 33,355 25,016 26,588
• Consultancy 2,135 1,601 680
• Prescribing costs 35,393 26,545 26,811
• GMS etc 41,663 31,247 31,577
• Pharmacy contract 1,370 1,027 1,608
• Ophthalmic services 2,047 1,535
  1,662
• Establishment premises costs 11,542
  8,657 9,891 includes acc depn. 540k
• Impairments 3,054 2,291 -
• Profit/loss on disposal (75) (56)
  100
• Redundancies 2,307 1,730 227
• Bad debts 2,826 2,119 -
• Other 8,397 6,298 3,971