1
Item 5B
Monthly Finance Report For
October 2014
Prepared by:
Stephen Dunham
Financial Controller
Charlotte Sparrow
Head of Financial Performance and Decision Support
Steven Davies
NHS Finance Director & Deputy Chief Financial Officer
Presented By:
Charles Nall
Chief Financial Officer
Action for Board:

For information

For consideration

For decision

Board of Directors Meeting
20th November 2014
Date produced
November 2014
13th
2
Contents of Main Report
Page Number
Executive Financial Summary
3
Detailed Income and Expenditure Position
4
Underlying Position
5
NHS Income
6
NHS Operating Expenditure
8
Efficiency Scheme Performance
11
Research & Development and Commercial Trading Position
12
Cashflow
13
Debtors Management and Credit Control
14
3
Executive Financial Summary
Overall Position Surplus / (Deficit)
NHS
(exc. R&D)
Income
Expenditure
Overall Position
In Month
Plan (£M)
Actual (£M)
1.7
0.2
Research &
Development
Position
Commercial
Trading Unit
Position
(1.5)
Actual (£M)
Actual (£M)
3.6
3.6
13.6
11.7
14.3
13.2
1.2
0.4
% Full Year achieved
Full Year % forecast
Actual (£M)
0.1
0.2
Actual (£M)
0.7
(1.5)
85.5
80.3
91.3
82.8
(0.8)
0.7
4.1
Actual (£M)
0.5
(0.3)
Plan (£M)
Actual (£M)
5.0
3.0
40%
Plan (£M)
Actual (£M)
74%
2.5
1.7
0.1
Actual (£M)
5.8
(2.5)
148.3
141.3
155.7
144.2
7.4
(2.9)
3.4
(0.9)
3.4
3.8
Actual (£M)
0.6
0.9
Plan (£M)
Actual (£M)
4.4
3.2
Var (£M)
0.3
(0.8)
Plan (£M)
Actual (£M)
2.3
(1.5)
4
4
Continuity of Service Risk Rating
4
(1.2)
Plan (£M)
Actual (£M)
1.2
1.1
0.1
Var (£M)
(3.8)
Plan (£M)
Actual (£M)
4.7
(1.5)
Comment
Rating of 4 (highest rating) is maintained in October.
Year End
2013/14
End of
Quarter 1
End of
Quarter 2
Prior Month
Current
Month
Forecast Qtr
3
Forecast
Year End
(Qtr 4)
24.29
17.76
16.91
16.91
18.45
14.91
12.60
6 Mths +
(£M)
3- 6 Mths
(£M)
2 Mths
(£M)
1 Mth
(£M)
Total
(£M)
Overdue Debts
Debtors
Var (£M)
(6.2)
Cash Balance (£M)
Cash Flow
Var (£M)
Full Year Forecast
YTD
Debt Service Cover
Liquidity
Var (£M)
Full Year Forecast
Year to Date
Var (£M)
Var (£M)
Full Year Forecast
Var (£M)
(0.8)
Plan (£M)
(2.0)
Plan (£M)
Year to Date
Var (£M)
Key Risks and Actions Required
Var (£M)
Full Year Forecast
Var (£M)
Year to Date
70%
In Month
Plan (£M)
0.0
Plan (£M)
In Month
Plan (£M)
Full Year Forecast
Var (£M)
Year to Date
Var (£M)
Indicator
Continuity of
Service Risk Rating
Plan (£M)
In Month
Plan (£M)
YTD % achieved
Efficiency Scheme
Performance
Year to Date
Var (£M)
Last Qtr
Total
(£M)
NHS Contract Debts
1.78
1.87
1.49
2.44
7.59
5.38
Commercial Debts
2.13
0.66
0.27
0.53
3.60
3.89
Other
TOTAL
0.41
4.32
0.23
2.76
0.13
1.89
0.23
3.20
1.01
12.20
1.12
10.39
Key Income and Expenditure Risks:
 The net position in month is below plan for both the NHS
and Commercial Trading Units. The year to date position
benefits from non-recurrent items.
 Commercial position was a deficit of £0.3M in month and
the full year forecast has worsened to a deficit of £1.5M.
 NHS income is above plan in month by £0.7M but is more
than offset by expenditure overspends of £1.5M (although
above budget, the October position is marginally above
forecast). Additional capacity being provided is increasing
the clinical pay cost base but not generating sufficient
additional clinical activity.
 No confirmation has yet been given of the R&D
infrastructure funding.
Actions:
 Focus on NHS expenditure control. Ensure utilisation levels
of both inpatient and outpatient capacity are improved.
 Continue to pursue an increase in referrals and a decrease in
DNA’s at new satellites.
 Efficiency schemes with delayed start dates this year should
be reassessed for their recurrent impact.
Cashflow and Balance Sheet Risks:
 Debt recovery. Overdue debts total £12.2M, with £7.6M of
NHS contract debts.
 Higher total capital spend and lower operational cash
performance forecast for 2014/15 imply lower than
budgeted cash balances.
Actions:
 Maintain high level dialogue with relevant NHS
organisations and levy interest charges where appropriate.
 Monitor cash position carefully in conjunction with
authorisation of capital purchases.
4
Detailed Income and Expenditure Position - Surplus / (Deficit)
In Month
Overall Trust I&E Summary
Year to Date
Full Year Forecast
Prior Year YTD
Budget
Actual
Variance
Budget
Actual
Variance
Budget
Actual
Variance
Actual
Variance
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
NHS Clinical Income
Commercial Trading Units
Other Income
Total Income
12,452
3,018
2,020
17,490
12,899
2,140
2,227
17,265
447
(879)
207
(224)
79,330
19,648
12,461
111,438
81,532
15,253
15,761
112,546
2,202
(4,395)
3,300
1,108
138,003
34,745
21,033
193,780
141,803
26,633
24,274
192,710
3,800
(8,112)
3,242
(1,070)
68,017
18,608
11,541
98,166
13,515
(3,355)
4,221
14,380
NHS Expenditure
Pay Exenditure
Medical
Nursing
Scientific, Theraputic & Technical
Admin and Clerical
Ancillary Services
Research & Development Pay
Total Pay Expenditure
2,385
1,766
927
2,003
167
594
7,842
2,780
1,985
917
2,021
170
537
8,410
(394)
(219)
10
(19)
(3)
56
(569)
16,169
12,026
6,339
14,104
1,165
4,213
54,016
17,259
12,409
6,122
13,841
1,141
3,916
54,687
(1,090)
(383)
217
263
24
297
(671)
28,027
20,865
10,975
24,050
1,990
7,160
93,066
30,068
21,535
10,532
24,070
1,954
7,174
95,332
(2,041)
(670)
443
(20)
36
(14)
(2,266)
14,032
10,273
5,771
10,737
1,113
3,503
45,429
(3,227)
(2,136)
(350)
(3,104)
(28)
(414)
(9,258)
Non-Pay Exenditure
Drugs
Clinical Supplies and Services
Premises
Other Expenditure
Research & Development Non-Pay
1,733
1,169
711
869
175
2,094
1,372
681
1,217
143
(360)
(204)
30
(347)
32
11,028
7,677
4,813
7,026
1,349
11,419
8,174
4,788
7,604
1,021
(391)
(497)
24
(578)
328
19,097
13,519
8,269
14,486
2,165
19,991
14,238
8,617
13,200
1,907
(893)
(719)
(347)
1,286
257
7,708
6,724
4,738
7,187
470
(3,710)
(1,450)
(51)
(417)
(551)
Total Non-Pay Expenditure
4,657
5,507
(850)
31,892
33,006
(1,114)
57,536
57,952
(416)
26,827
(6,179)
Total NHS Expenditure
12,499
13,918
(1,419)
85,907
87,693
(1,785)
150,602
153,285
(2,683)
72,255
(15,437)
Commercial Trading Unit Costs
2,421
2,391
31
16,444
15,922
523
28,428
26,688
1,739
14,658
(1,264)
Total Expenditure
14,920
16,308
(1,388)
102,352
103,614
(1,263)
179,030
179,973
(943)
86,913
(16,701)
EBITDA
EBITDA Margin %
2,569
14.7%
957
(1,612)
9,087
8.2%
8,931
(155)
14,750
7.6%
12,737
(2,014)
11,253
11%
(2,321)
5.5%
687
683
4
4,575
4,533
42
8,163
8,302
(139)
3,855
(678)
906
3,606
783
3,616
123
1,588
5,000
1,433
154
3,002
(1,998)
803
6,595
20
(2,979)
0
3,606
0
3,616
8,500
(3,500)
8,500
(5,498)
(1,998)
0
6,595
0
(2,979)
5,883
6.4%
1,309
9,600
9.9%
5,067
3,717
8,433
5.3%
271
12,792
7.7%
4,491
4,359
7,302
9%
3,448
2,298
3,203
16.3%
2,298
(669)
-4.4%
(1,451)
(3,872)
6,317
18.2%
4,729
(56)
-0.2%
(1,489)
(6,373)
3,950
21%
3,147
(4,619)
Income
NHS Interest, Dividends, Depreciation
Trading Unit Interest, Depreciation, Dividends
Surplus / (Deficit) - before impairment
134
61
73
1,748
213
(1,536)
Impairment
Surplus / (Deficit)
0
0
0
1,748
213
(1,536)
NHS EBITDA
NHS EBITDA Margin %
NHS Surplus / (Deficit)
1,973
13.6%
1,286
1,208
8.0%
525
(764)
Commercial Trading Unit EBITDA
Commercial Trading Unit EBITDA Margin %
Commercial Trading Unit Surplus / (Deficit)
597
19.8%
463
(251)
-11.7%
(312)
(848)
(761)
(775)
7.9%
10
0
10
3,758
(3,749)
6.6%
0
4,220
(6,218)
1,620
(4,599)
5
Underlying Position
In Month
Overall Trust I&E Summary
Previous Month
Qtr 2
Qtr 1
Year to date
Budget
Actual
Budget
Actual
Budget
Actual
Budget
Actual
Budget
Actual
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
Total Income
17,490
17,265
16,842
16,609
48,323
50,684
45,626
44,597
111,438
112,546
Total NHS Expenditure
12,499
13,918
12,609
13,145
37,307
37,925
36,102
35,850
85,907
87,693
Commercial Trading Unit Costs
2,421
2,391
2,380
2,277
7,003
7,046
7,020
6,485
16,444
15,922
Total Expenditure
14,920
16,308
14,989
15,422
44,309
44,971
43,122
42,335
102,352
103,614
EBITDA
EBITDA Margin %
NHS Interest, Dividends, Depreciation
Trading Unit Interest, Depreciation, Dividends
Surplus / (Deficit)
2,569
14.7%
687
134
957
1,854
1,187
11.0%
653
133
7.1%
636
121
4,013
8.3%
1,914
398
5,712
5.5%
683
61
11.3%
1,949
361
2,504
7.0%
1,974
374
2,262
6.7%
1,901
360
9,087
7.0%
4,575
906
8,931
6.7%
4,533
783
1,748
213
1,068
430
1,702
3,402
156
1
3,606
3,616
(307)
(307)
(307)
(307)
0
(307)
(307)
Adjustment to Reach Underlying Position:
Income
- Release of prior year provision
- Project Oriel
Total Income
(3,486)
0
(3,486)
(3,486)
Expenditure
- Non-recurrent benefits
Staff award provision release
Fellow back-pay release
(91)
(211)
NHS rental and facilities charges prior 2013/14
(307)
(3,793)
(91)
(211)
(391)
(391)
- Non-recurrent costs
Project Oriel
243
Pay Restructuring costs
RTT Enhanced Pay Costs
Total Expenditure
139
243
506
506
264
264
770
770
(120)
314
314
148
351
490
0
139
243
271
506
780
264
(38)
770
881
Total
(307)
(168)
243
271
506
(2,706)
264
(38)
463
(2,912)
Revised Underlying Position
1,441
45
1,311
701
2,208
696
420
(37)
4,069
704
Notes:

Underlying position in month is break even. Last month’s underlying position is also shown here and was a surplus of £0.7M. This month has seen increased
costs in both NHS and Commercial divisions, which is above the increase in income, compared to last month. Increase in NHS costs is on activity related
expenditure.

The year to date underlying surplus is £0.7M compared to a year to date planned surplus of £4.1M.

Non-recurrent expenditure items total £0.9M in the year to date position, with a mixture of benefits and costs.

The full year forecast has reduced to £3.0M surplus before impairments, inclusive of non-recurrent items which total a benefit of £2.9M year to date.
6
NHS Income
Commentary:
 NHS income is above plan in
October, £0.4M from clinical activity
and £0.2M from other income.
 The overperformance in clinical
activity income is driven mainly by
high cost drugs and AMD injection
activity which has performed above
the year to date trend.
 Outpatient income was also above
plan in October which is also an
improvement on the year to date
trend.
 Elective income and A&E income
continue to be above plan.
 Moorfields North was above plan in
income in month which is an
improvement on last month. Patient
activity income is coming through
from the new developments,
although still below plan in month.
Ealing, Loxford and Potter’s Bar
have
high
levels
of
overperformance in month.
7
Elective Activity Analysis (Inpatients and Outpatients)
Elective income is above target again this
month. However the plan for elective income
anticipated theatre closures for routine
maintenance equivalent to 3 working days of
activity. The closures did not go ahead which
explains the increase in actual income per
working day from £144k to £153k.
The increase in target per working day from
£134k to £146k is due agreed increased
capacity in existing and new sites. Overall,
activity has not increased in line with these
plans. Any additional activity in areas where
extra capacity has been utilised has been
offset by a decrease elsewhere.
20
17
21
23
18
22
20
20
18
21
20
22
129
130
129
132
133
134
146
146
148
146
146
145 Target per working day (£'000)
Workings Days Inc. adjustments
142
13
151
21
131
1
134
2
161
28
144
10
153
6
Actual per working day (£'000)
Variance (£'000)
Forecast is for improvement in November, a
drop in line with budget for December and
slight overperformance to the end of the year.
Outpatient income is above plan in October
which is an improvement on trend.
Actual income per working day has increased
up to £242k, from £234k in September. The
increases are at City Road in paediatrics,
glaucoma and medical retina. Moorfields
North also has increases in outpatient income
this month at Ealing and Potter’s bar and
activity has started at Darent Valley.
The forecast is to continue to achieve plan.
20
227
222
(5)
17
228
233
5
21
227
221
(7)
23
222
212
(10)
18
235
235
1
22
233
234
1
23
236
242
7
20
237
18
239
21
237
20
237
22 Workings Days Inc. adjustments
236 Target per working day (£'000)
Actual per working day (£'000)
Variance (£'000)
8
NHS Operating Expenditure – Pay Costs by Staff Group and Area
Staff Group & Directorate
Medical
Moorfields North
Moorfields South
Outpatient & Diagnostic Servs
Surgical Services
Additional Enhanced RTT costs
Corporate Departments
Total
Average Monthly Expenditure (£'000)
Current
Year to Date
Month
Increase /
2014/15
2014/15
(Decrease)
175
231
56
374
496
122
1,063
1,149
86
789
868
79
24
(11)
(35)
41
48
7
2,466
2,780
314
Staff Group & Directorate
Nursing
Moorfields North
Moorfields South
Outpatient & Diagnostic Servs
Surgical Services
Additional Enhanced RTT costs
Corporate Departments
Total
Average Monthly Expenditure (£'000)
Current
Year to Date
Month
Increase /
2014/15
2014/15
(Decrease)
374
429
55
272
319
47
487
503
16
652
645
(7)
43
138
94
28
27
(1)
1,855
2,060
204
- Costs have increased further this month by £314k (13%) compared to
- Costs have increased further this month by £204k (11%) compared to
the year to date average.
- The increases are across all 4 directorates but particularly in Moorfields
South where is have been necessary to use medical locums at both St.
Georges and Croydon.
- Medical staff costs have increased to boost capacity with additional lists
at City Road and in Moorfields North.
the year to date average.
- £94k of the increase is relating to the enhanced element being paid for
all nursing bank shifts as part of the initiative to improve RTT waiting
times.
Other Clinical
Moorfields North
Moorfields South
Outpatient & Diagnostic Servs
Surgical Services
Corporate Departments
Total
Year to Date
2014/15
47
29
739
57
2
875
Current
Month
2014/15
64
35
756
59
3
917
Increase /
(Decrease)
17
6
16
2
1
42
- Again, an increase in expenditure this month in other clinical staff, £42k
(5%) compared to the year to date average.
- Agency pharmacist usage has been necessary in month to cover a
vacancy at City Road and to deliver the service at Darent Valley.
Non-Clinical
Moorfields North
Moorfields South
Outpatient & Diagnostic Servs
Surgical Services
Corporate Departments
Total
Year to Date
2014/15
180
157
370
243
1,170
2,120
Current
Month
Increase /
2014/15
(Decrease)
194
13
150
(7)
285
(85)
306
63
1,257
86
2,191
71
- Increase in expenditure of £71k (3%) compared to year to date average.
- The significant decrease in Outpatients and Diagnostics is due to
decrease in temporary staff usage. This is unfortunately offset by an
increase in Surgical Services due to pressures in medical records and
medical secretaries and corporate departments filling vacant posts.
NB. Research and Development Pay is excluded from the tables above and shown as part of the Research and Development position on page 11. Research and Development have a separate quarterly board report.
9
NHS Operating Expenditure – Pay Costs Agency and Bank Analysis
Staff Type
Current Month
Year To Date Average
Average Prior Year
Comments
Nursing Expenditure Current
Month
Nursing Expenditure YTD
Average
Average Nursing
Expenditure Prior Year
Increase in nursing costs has been mainly
through increased bank usage which is
preferential to increased agency usage.
The means the % of employed staff has
reduced.
Employed
Bank
Agency
Employed
Bank
3%
Nursing
Employed
75%
Bank
Agency
Employed
0%
Bank
Specific recruitment drives for overseas
nurses are being successfully undertaken
with first recruits due to start in
December.
91%
Other Clinical Expenditure YTD
Average
5%
Agency
2%
82%
Other Clinical Expenditure
Current Month
Employed
Bank
7%
15%
22%
0%
Agency
3%
Agency
Average Other Clinical
Expenditure Prior Year
Employed
5%
Bank
Agency
0% 5%
This staff group has seen a 4% increase in
costs compared to last financial year.
Other staff groups costs have increased
by 20% in the same timeframe. This
should be investigated as it could indicate
a future cost pressure.
Other Clinical
95%
95%
Non Clinical Expenditure Current
Month
Employed
Non-Clinical
Bank
Employed
15%
Bank
18%
8%
Agency
Average Non Clinical
Expenditure Prior Year
Employed
0%
Bank
Agency
76%
Non-clinical pay costs have increased by
3% but this has been through increase in
employed staff as temporary staffing
expenditure this month has reduced
slightly.
17%
6%
77%
Staff Type
Nursing
Other Clinical
Non-clinical
Agency
95%
Non Clinical Expenditure YTD
Average
Increase in costs by 5% compared to the
year to date average through agency
usage of pharmacists.
83%
Current Month (£'000)
Year To Date Average (£'000)
Average Prior Year (£'000)
Employed Bank
Agency Total
% Change Employed Bank
Agency Total
% Change Employed Bank
Agency Total
1,552
449
59
2,060
11%
1,532
270
54
1,855
20%
1,411
104
38
1,553
872
0
45
917
5%
834
2
39
875
4%
795
2
40
837
1,688
176
327
2,191
3%
1,609
120
391
2,120
20%
1,457
2
303
1,762
The temporary staffing reduction is in
patient administration at City Road where
a lot of agency and bank was used in the
first half of the year.
Employed staff increases have been seen
in corporate areas.
10
NHS Operating Expenditure – Non-Pay Costs
Comments:
October has a significant increase in non-pay expenditure across the
Directorates.
The largest increase is in drugs expenditure at £2.1M, this is £0.5M
above the year to date average. Two thirds of this is due to high cost
drugs expenditure. This is offset by income overperformance in this
area of £0.3M. Further drugs overspend this month is due to stocking
the pharmacy at Darent Valley and late backdated invoices for high
cost drugs from Croydon Health Services NHST exceeding the
accruals made for them.
Clinical consumables were also high in October, £0.2M above the
year to date average. The majority of this increase is within
Moorfields North due to increased set-up costs and increased stock
holdings at sites to reflect anticipated activity increases.
Comments:
Corporate department’s non-pay costs have decreased from the
peak seen in September but are still above budget and above the
average year to date.
This month is overspent on external consultants but this level of
expenditure is consistent with the year to date trend.
Other areas of overspend in month included nurse course fees, legal
fees, IT networking charges and utilities charges in estates.
The forecast is to remain at the level of expenditure with a consistent
overspend until the end of the year.
11
Efficiency Scheme Performance
Breakdown of Forecast Achievement
Efficiency Schemes Profile and Forecast
400
Clinical Supplies
350
12%
27%
300
Amount (£'000)
10%
42%
9%
250
Non-clinical supplies
Pay
Revenue
200
Target
Summary of Performance:
Actual
150
Forecast
50
0
Period
YTD Target
(original phased
budget)(£)
YTD Amount
Achieved (£)
- Year to date (YTD) achievement is £1,746k, 70% of YTD target and 40% of the full year
target.
- The year to date shortfall against the original phased target (including a phased share of
unidentified schemes) is £737k.
- Total schemes worth £4,081k have been identified. This is 94% and only £279k below the
target of £4,359k.
- Full year forecast delivery however, is only 74% of the target at £3,228k as achievement
against identified schemes decreases due to delays in implementation. All schemes not
delivering will be re-assessed for their potential full year recurrent value as part of setting
the budget for next financial year.
100
Directorate / Corporate Department
Drugs
Year to Date %
YTD Variance (£) Achievement
Value of
Full Year Target Schemes
(£)
Identified (£)
Full Year
Forecast
Amount (£)
Forecast %
YTD Amount
Achievement of Achieved as % of
Target
Full Year Target
Actions on Shortfall and Unidentified Amount
Although the full year forecast amount will exceed the original target, it is £184k
below the value of schemes identified. The schemes that have underperformed
49% are all related to additional revenue.
Moorfi el ds North
260,513
202,094
-58,419
78%
413,676
648,083
510,193
123%
Moorfi el ds South
173,579
146,179
-27,400
84%
325,359
325,359
276,084
85%
45% Forecast achievement remains at 85%.
Outpa ti ent & Di a gnos ti c Servi ces
908,595
653,954
-254,641
72%
1,579,730
1,457,366 1,026,635
65%
Unidentified amount of the full year target is £123k, however forecast
41% achievement is £533k below the target.
651,426
1,994,112
6,314
15,257
18,228
25,391
29,491
16,686
187,632
82,168
39,651
347,945
1,350,172
6,314
15,257
18,228
25,391
0
16,686
187,632
82,168
9,158
-303,481
-643,940
0
0
0
0
-29,491
0
0
0
-30,492
53%
68%
100%
100%
100%
100%
0%
100%
100%
100%
23%
1,082,281
3,401,046
10,819
26,154
31,248
43,527
61,014
31,096
399,748
140,860
67,972
748,901
603,584
3,179,709 2,416,496
10,819
10,824
26,154
26,154
31,248
31,248
43,527
43,527
50,909
32,319
28,605
28,605
321,654
321,654
140,860
140,860
15,700
15,700
56%
71%
100%
100%
100%
100%
53%
92%
80%
100%
23%
Unidentified amount has remained at £333k. Forecast full year achievement is
32% £604k, which is £478k below the full year target.
40%
58%
58%
58%
58%
0%
54%
47%
58%
13% Unidentified amount of £52k
56,318
23,666
-32,652
42%
126,716
212,996
141,997
112%
Scheme has achieved 42% of target in month. The forecast is to achieve 67% of the
19% identified schemes which will exceed the original target.
10,967
488,101
10,967
395,467
0
-92,635
100%
81%
18,800
957,954
18,800
901,272
18,800
811,688
100%
85%
58%
41%
2,482,214
1,745,639
-736,575
70%
4,359,000
4,080,981 3,228,184
74%
40%
Surgi ca l Servi ces
Clinical Directorates
Chi ef Executi ve's Offi ce
Chi ef Opera ti ng Offi cer
Corpora te Governa nce
Di rector of Nurs i ng
Di rector of Stra tegy
Educa ti on
Es ta tes a nd Fa ci l i ti es
Fi na nce
Huma n Res ources
Informa ti on Technol ogy
Qua l i ty a nd Sa fety
Corporate Department Initiatives
TRUST TOTAL
12
Research and Development Position
In Month
Year to Date
Full Year
Budget
Actual
Variance
Budget
Actual
Variance
Budget
Forecast
Variance
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
Total Income
881
872
(9)
6,320
6,015
(305)
10,725
10,392
(332)
Expenditure
Pay Costs
Non-Pay Costs
Total Expenditure
Interest, Dividends, Depreciation
594
175
769
26
537
143
680
26
56
32
88
0
4,213
1,349
5,562
142
3,916
1,021
4,937
142
297
328
625
0
7,160
2,165
9,324
226
7,174
1,907
9,081
226
(14)
257
243
0
Total Contribution to overhead
86
165
79
616
936
320
1,174
1,085
(89)
Research and Development
Income:

Income is on plan in month and adverse year to date by £0.3M. Income is forecast to end the year below plan by £0.3M.
Expenditure

Expenditure is £0.1M favourable in month and £0.6M favourable year to date. Expenditure is forecast to end the year £0.2M below plan as additional income
receipts are anticipated to be spent in year. Contribution remains significantly below the level for full cost recovery.
Commercial Trading Unit Position
In Month
Commercial Trading Units
Year to Date
Full Year
Prior Year YTD
Budget
Actual
Variance
Budget
Actual
Variance
Budget
Forecast
Variance
Actual
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
£000s
Total Income
3,095
2,158
(937)
20,079
15,463
(4,616)
35,525
26,966
(8,560)
19,145
(3,682)
Expenditure
Pay Costs
Non-Pay Costs
Total Expenditure
872
1,549
2,421
897
1,493
2,391
(25)
56
31
6,063
10,381
16,444
6,355
9,567
15,922
(292)
815
523
10,503
17,925
28,428
10,682
16,006
26,688
(179)
1,919
1,739
5,861
8,797
14,658
(494)
(770)
(1,264)
674
(233)
(906)
3,634
(459)
(4,093)
7,098
277
(6,820)
4,487
(4,946)
Commercial Trading Unit EBITDA
Commercial Trading Unit EBITDA Margin %
Variance
21.8%
-10.8%
18.1%
-3.0%
20.0%
1.0%
Interest, Dividends, Depreciation
134
61
73
906
783
123
1,588
1,433
154
23%
803
20
Commercial Trading Unit Surplus / (Deficit)
539
(294)
(833)
2,729
(1,242)
(3,970)
5,510
(1,156)
(6,666)
3,684
(4,926)
Internal Sales
(77)
(18)
(58)
(431)
(210)
(221)
(781)
(333)
(448)
(537)
327
Commercial Trading Unit Surplus / (Deficit) discounting internal sales
463
(312)
(775)
2,298
(1,451)
(3,749)
4,729
(1,489)
(6,218)
3,147
(4,599)
Income:

Income is £0.9M behind plan in month and adverse year to date by £4.6M. Income is forecast to end the year below plan by £8.6M.
Expenditure

Expenditure is on plan in month and £0.5M favourable year to date. Expenditure is forecast to end the year £1.7M favourable to plan.
Overall Position

£0.3M deficit in the with a year to date deficit position of £1.5M. Position is forecast to end the year with a £1.5M deficit.
13
Cash Flow
Current forecast
45,000
Receipt of loan funding
with associated
expenditure for property
purchase in the following
week.
40,000
Q3 Plan £21.0M
Forecast £15.4M.
(£5.6M adverse)
Additional property purchase
costs and commercial under
performance offset by timing of
other capital expenditure.
35,000
30,000
Q4 Plan £23.5M
Forecast £12.6M
(£10.9M adverse)
1: additional asset
acquisition costs
2: forecast commercial
under-performance
25,000
20,000
15,000
Spikes around the middle
of each month as £9M+ of
SLA income is received.
10,000
5,000
03 Apr 15
27 Mar 15
20 Mar 15
13 Mar 15
06 Mar 15
27 Feb 15
20 Feb 15
13 Feb 15
06 Feb 15
30 Jan 15
23 Jan 15
16 Jan 15
09 Jan 15
02 Jan 15
26 Dec 14
19 Dec 14
12 Dec 14
05 Dec 14
28 Nov 14
21 Nov 14
14 Nov 14
07 Nov 14
Oct 2014 actual
Sept 2014 actual
Aug 2014 actual
July 2014 actual
June 2014 actual
May 2014 actual
April 2014 actual
Actual 13/14 YE
0
14
Debtors Management and Credit Control
6 Mths +
5 Mths
4 Mths
3 Mths
2 Mths
1 Mth
Apr 14
1,154
631
1,785
2,134
0
414
May 14
8
143
151
107
0
50
Jun 14
7
912
919
164
118
52
Jul 14
21
782
803
224
50
131
Aug 14
13
1,472
1,485
182
84
134
Sep 14
19
2,426
2,445
468
65
235
4,333
308
1,253
1,208
1,885
3,213
12,200
4,521
16,721
Prior month £k
Change - £k
Change - %
5,908
(1,575)
(26.7%)
248
60
24.2%
503
750
149.1%
1,448
(240)
(16.6%)
1,454
431
29.6%
829
2,384
287.6%
10,390
1,810
17.4%
4,525
(4)
(0.1%)
14,915
1,806
12.1%
Type of Debt
Total
Type of Debt
Welsh Debts only
NHS Service Income
Total Contract Debts
Private Patients
Pharmacy Sales
Sundry Debtors
TOTAL
Welsh Debts only
NHS Service Income
Total Contract Debts
Private Patients
Pharmacy Sales
Sundry Debtors
TOTAL
Total
Overdue Current
1,222
(3)
6,366
1,923
7,588
1,920
3,279
659
317
432
1,016
1,510
12,200
4,521
Total
Total
Overdue Current
1,222
(3)
6,366
1,923
7,588
1,920
3,279
659
317
432
1,016
1,510
Oct 14
Total
1,219
8,289
9,508
3,938
749
2,526
Oct 14
Sep 14
Sep 14
Sep 14
% Var
% Var
% Var
Total
1,219
8,289
9,508
3,938
749
2,526
Overdue
1,191
4,190
5,381
3,585
301
1,123
Current
13
2,898
2,911
840
350
424
Total
1,204
7,088
8,292
4,425
651
1,547
Overdue
2.5%
34.2%
29.1%
(9.3%)
5.0%
(10.5%)
Current
551.4%
(50.8%)
(51.7%)
(27.3%)
19.0%
71.9%
Total
1.2%
14.5%
12.8%
(12.3%)
13.1%
38.8%
16,721
10,390
4,525
14,915
14.8%
(0.1%)
10.8%
Please note: Values shown in the above tables are for the stated types of debt only. Additional items comprise
overall debt for the Trust, including provisions and accruals.
Monthly highlights
NEL CCGs settled £1.1M of prior year
debts in October, contributing to the
significant fall in 6 month+ overdue
debts.
Overdue debts increased by £1.8M in
October due to £3.2M of current debts
coming through, offset by collection
efforts for the older balances.
Working Capital & Treasury Manager
appointed to the Finance team in
October, with responsibility for the
Accounts Receivable team (amongst
others) and reporting to the Financial
Controller. Duties will include working
capital forecasting and balance sheet
management information / reporting.
15
Overdue Debts by debtor,
£k as at October 2014
4,521
Overdue CCG debts
NEL, NWL and SWL CCGs and London Specialist Commissioning
collectively account for £4.5M (59%) of overdue contract debts,
significantly up from £2.8M (52%) at Q2. (£1.8M of this debt is 1
month overdue)
Total Contract Debts
7,588
Private Patients
Pharmacy Sales
Sundry Debtors
1,016
NEL had an overdue balance of £1.9M as at M7, of which £0.4M
related to 2013/14. This is a significant improvement on Q2 due to
settlement of £1.1M prior year debts in month.
Current
NWL has an overdue balance of £1.8M as at M7, of which £0.1M
related to 2013/14 and continues to be actively pursued.
317
3,279
NCA (Non-Contract Activity) debt includes Kent & Sussex Area
CCGs with £0.6M overdue as at M7 (£0.3M Q2), of which £0.2M
related to 2013/14. As is the case with all NCA debts, an individual
targeted approach is made for each debtor.
Overdue Debts by age,
£k as at October 2014
4,333
4,521
6 Mths +
5 Mths
4 Mths
3 Mths
308
1,253
2 Mths
1 Mth
Current
3,213
1,208
1,885
Overdue Sundry debts
Overdue sundry debts decreased by 9.5% in October. The total
comprises 316 debtors, the largest of which is Pfizer at £94k and
remains under dispute.
A note on collection and overdue contract debts
Standard NHS payment terms are 30 days from the invoice date.
SLA payments are mostly made on the 15th of each month and,
once set up, tend to run smoothly. Delays in payment occur when
data is delayed or disputed, or queries arise which require
investigation. Overdue contract debts are inevitable to some
degree due to entrenched commissioner-side behaviours related
to withholding total amounts rather than only disputed amounts.