Trust Board Meeting: Wednesday 22 January 2014
TB2014.8
Title
Financial Performance to 30 November 2013
Status
A paper for report
History
Regular report
Board Lead(s)
Mr Mark Mansfield, Director of Finance and Procurement
Key purpose
TB2014.8 Finance Report
Strategy
Assurance
Policy
Performance
Page 1 of 23
Oxford University Hospital
TB2014.8
Executive Summary
1. This report informs the Board of the Trust’s financial position for the period 1 April to 30
November 2013.
2. The financial position at the end of the eight months of the year was £70,000 better than plan.
(Page 4)
3. It is currently forecast that the Trust will generate its planned surplus for the year.
Recommendation
The Trust Board is asked to note this report.
TB2014.8 Finance Report
Page 2 of 23
Oxford University Hospital
TB2014.8
Contents
The report contains information on the following:
− The Trust’s Statement of Comprehensive Income [income & expenditure (I&E)] position after
the first eight months of the year (Pages 4 to 16), including:
−
Statements on the Trust’s overall I&E position
−
Details about its income and expenditure position
−
Details about non-operational income & expenditure
Pages 4 to 6
Pages 7 to 13
Page 14
−
The Statement of Financial Position at 30 November 2013
Pages 15 to 17
−
The Statement of Cashflow and cashflow forecast
Pages 18 to 20
−
The Trust performance against Monitor’s financial risk ratings
Page 21
−
The position of the capital programme
Page 22
TB2014.8 Finance Report
Page 3 of 23
Oxford University Hospitals
TB2014.8
Statement of Comprehensive Income (Income & Expenditure Account) – including Research
Annual
I&E (including R&D)
Year to Date
Plan
Plan
Actual
Variance
£000
£000
£000
£000
690,507
463,299
482,040
18,741
13,578
9,056
7,134
(1,922)
131,947
87,897
86,361
(1,536)
836,032
560,252
575,535
15,283
Operating Incom e
Commissioning Income
PP, Overseas & RTA Income
Other Income
Total Incom e
Operating Expenditure
Pay
(465,196)
(311,772)
(321,132)
(9,360)
Non-Pay
(296,974)
(197,533)
(204,547)
(7,014)
(762,170)
(509,305)
(525,679)
(16,374)
73,862
50,947
49,856
(1,091)
(65,492)
(43,686)
(42,719)
967
8,370
7,261
7,137
(124)
2,501
1,664
1,858
194
10,871
8,925
8,995
70
Total Expenditure
EBITDA
Non-Operating Expenditure
Retained Surplus/(Deficit)
Technical Adjustments
Break Even Surplus
TBC2014.8 Finance Report
•
The figures shown left reflect the way in which financial performance is
reported in the Trust’s Statutory Statements.
•
The Trust’s financial position was £70,000 better than plan against its
break even duty after eight months of the year.
•
Commissioning income was £18.7m, or 4.0%, above plan (October =
£15.7m). Details of performance by type of activity are shown on Pages 7 to
9 of this report.
•
Private patient, overseas & RTA income was £1.9m below plan (October =
£1.9m) – see Page 10.
•
“Other” income was £1.5m behind plan (October = £2.0m). However this
includes R&D income where funds have been deferred because
expenditure is behind plan – see Pages 5 and 11 for further details.
•
Pay costs after the first eight months of the year were £9.4m overspent.
This is being driven by the continuing high use of bank & agency staff, and
additional payments made to staff to work those weekend sessions required
to meet waiting list and activity targets. It is estimated that an additional
£13.1m has been incurred through paying these premium rates to meet
activity demands and provide day-to-day operational staff cover. Further
information can be found on Page 12.
•
Non-pay expenditure was £7.0m, or 3.55%, above plan. The amount by
which the cost of “pass through” drugs and devices exceeds plan is £3.8m.
Drugs and clinical supplies are overspent by £4.5m; services received from
outside bodies, (which are also largely activity-related) are also overspent
by £1.75m. Further details can be found on Page 13.
•
The Trust’s overall EBITDA (earnings before interest, tax, dividend and
amortisation) was 8.7% of Trust turnover (October = 8.6%). The annual plan
is for the Trust’s EBITDA to be 8.8% of turnover for the full year.
•
The Trust’s underlying financial performance on its operations, excluding
R&D, can be found on Page 5.
Page 4 of 23
Oxford University Hospitals
TB2014.8
Statement of Comprehensive Income (Income & Expenditure Account) – excluding Research
Annual
Research & Developm ent
£000
Year to Date
Plan
Actual
Variance
£000
£000
£000
Incom e
− At the end of November expenditure on R&D was £2.7m less than plan with pay
being £2.2m below plan and non-pay £0.5m less than anticipated. R&D income
for this amount was therefore adjusted to take this into account, resulting in an
adverse variance against plan on “other” income.
Commissioning Income
PP & Overseas Income
Other Income
Total Incom e
43,873
29,249
26,561
(2,688)
43,873
29,249
26,561
(2,688)
(34,791)
(23,194)
(20,980)
2,214
(9,082)
(6,055)
(5,581)
474
(43,873)
(29,249)
(26,561)
2,688
Expenditure
Pay
Non-Pay
Total Expenditure
EBITDA
0
0
Annual
I&E (excluding R&D)
0
0
Year to Date
Plan
Plan
Actual
Variance
£000
£000
£000
£000
18,741
− This table excludes the effect of research (R&D) activities on the Trust’s financial
position. It sets out the underlying operational performance in healthcare
activities.
Operating Incom e
690,507
463,299
482,040
PP, Overseas & RTA Income
Commissioning Income
13,578
9,056
7,134
Other Income
88,074
58,648
59,800
1,152
792,159
531,003
548,974
17,971
(11,574)
Total Incom e
(1,922)
Operating Expenditure
Pay
(430,405)
(288,578)
(300,152)
Non-Pay
(287,892)
(191,478)
(198,966)
(7,488)
(718,297)
(480,056)
(499,118)
(19,062)
Total Expenditure
EBITDA
Non-Operating Expenditure
Retained Surplus/(Deficit)
Technical Adjustments
Break Even Surplus
TBC2014.8 Finance Report
73,862
50,947
49,856
(65,492)
(43,686)
(42,719)
(1,091)
967
8,370
7,261
7,137
(124)
2,501
1,664
1,858
194
10,871
8,925
8,995
70
Page 5 of 23
Oxford University Hospitals
TB2014.8
Statement of Comprehensive Income (Income & Expenditure Account) – excluding “Pass Through” Expenditure
Pass Through Incom e - Year-to-Date
Activity
Plan
£000
Actual
£000
Diff.
£000
Diff.
%
Drugs (Pass Through)
37,534
39,529
1,995
5.3%
Devices (Pass Through)
10,247
12,097
1,850
18.1%
47,781
51,626
3,845
8.0%
"Pass Through" Totals
Year to Date
I&E (excl. "Pass Through")
Plan
Actual
Variance
£000
£000
£000
415,518
430,414
14,896
9,056
7,134
(1,922)
58,648
59,800
1,152
483,222
497,348
14,126
Pay
(288,578)
(300,152)
(11,574)
Non-Pay
(143,697)
(147,340)
(3,643)
(432,275)
(447,492)
(15,217)
50,947
49,856
(1,091)
(43,686)
(42,719)
967
7,261
7,137
(124)
1,664
1,858
194
8,925
8,995
70
Operating Incom e
Commissioning Income
PP, Overseas & RTA Income
Other Income
Total Incom e
Operating Expenditure
Total Expenditure
EBITDA
Non-Operating Expenditure
Retained Surplus/(Deficit)
Technical Adjustments
Break Even Surplus
TBC2014.8 Finance Report
− Year-to-date income and expenditure on “pass through” drugs and devices is
£3.8m (October = £3.4m), or 8.0% higher than plan.
− If both R&D and the difference between plan and actual expenditure for “pass
through” items are disregarded then:
−
Commissioning income is £14.9m above plan; and
−
Non-pay expenditure is £3.6m overspent against plan. A proportion of
this may be activity-driven – see Page 13.
− The Trust’s EBITDA (earnings before interest, taxation, dividend and
amortisation) remains £1.1m less than plan. This is offset by the £1.0m
underspend against non-operating items (see Page 14). The Trust remains
on plan to achieve both its retained surplus and its “break even” target.
Page 6 of 23
Oxford University Hospitals
TB2014.8
Analysis of Activity and Activity-Related Income
Activity - Year-to-Date
Activity
YTD
Plan
YTD
Actual
YTD
Diff.
Incom e - Year-to-Date
YTD Diff.
%
Plan
£000
Actual
£000
Diff.
£000
Diff.
%
Elective (incl. day cases)
64,141
68,566
4,425
6.9%
101,003
105,523
4,520
Non-Elective
50,697
52,050
1,353
2.7%
109,442
111,835
2,393
2.2%
Out-Patients
589,839
631,437
41,598
7.1%
91,707
98,592
6,885
7.5%
Chemotherapy
17,556
18,708
1,152
6.6%
14,855
16,716
1,861
12.5%
Critical Care
32,233
31,762
(471)
(1.5%)
36,476
36,571
95
0.3%
Excess Beds
31,547
29,848
(1,699)
(5.4%)
8,044
7,716
(328)
(4.1%)
Drugs & Devices (Pass Through)
47,781
51,626
3,845
8.0%
Other Activity
61,782
60,111
(1,671)
(2.7%)
471,090
488,690
17,600
3.7%
Total before Adjustm ents
Adjustment for Thresholds
Com m issioning Incom e
(7,791)
463,299
(6,650)
482,040
4.5%
1,141
18,741
4.0%
•
The Trust’s commissioning income position for the first eight months of the year was calculated from data for the first seven months only. There
therefore remains an element of estimation within the figures. Pages 8 and 9 show the month-by-month trends for activity and income for the
year to date.
•
The Trust is ahead of, or on, plan for most areas of activity. In particular out-patient activity is higher than expected – the Trust has seen almost
10,200 more first attendances than planned (7.0%), and carried out almost 26,700 more out-patient procedures, such as diagnostic or imaging
tests, than anticipated (14.0%).
•
The cost of “pass through” drugs and devices is 8.0% higher than anticipated.
TBC2014.8 Finance Report
Page 7 of 23
Oxford University Hospitals
TB2014.8
Analysis of Activity and Activity-Related Income (continued)
The month-by-month pattern of clinical activity for in-patient and out-patient activity in the first eight months of the year is shown below and compared
to the last two financial years:
Jun
Jul
Oct
Nov
Jun
Jul
Oct
Nov
2013-14
14,257
15,096
14,661
15,885
15,221
14,832
15,799
15,217
2013-14
86,404
89,251
84,813
94,994
85,128
88,306
95,492
90,291
2012-13
13,065
15,022
13,977
14,584
14,457
13,983
16,227
15,789
2012-13
72,390
85,530
72,389
82,430
79,552
77,496
88,854
85,711
2011-12
11,857
12,245
13,178
12,762
12,130
12,244
13,177
13,475
2011-12
59,197
66,283
68,085
64,711
66,263
66,797
65,524
67,768
Year
•
Apr
May
Aug
Sep
In-patient activity has generally been higher in 2013/14 than for the
same period in 2012/13. Although the trend has dropped slightly over
the past two months the number of in-patients is 3.3% above the
year-to-date figure for last year.
TBC2014.8 Finance Report
Year
•
Apr
May
Aug
Sep
Out-patient activity has been consistently higher throughout 2013/14
compared to 2012/13. Year-to-date the volume of activity is 10.9%
higher than the first eight months of last year.
Page 8 of 23
Oxford University Hospitals
TB2014.8
Analysis of Activity and Activity-Related Income (continued)
The income trends for (i) in-patients, (ii) out-patients, (iii) the “pass through” cost of drugs and devices, and (iv) other activities are shown below:
TBC2014.8 Finance Report
Page 9 of 23
Oxford University Hospitals
TB2014.8
Private Patient, Overseas and Road Traffic Accident (RTA) Income
Last Year
YTD Actual
Year to Date
Annual
Analysis - PP, Overseas, RTA
£000
Plan
Plan
Actual
Variance
£000
£000
£000
£000
PP, Overseas & RTA Incom e
7,407
1
1,405
284
9,097
Private Patients
Overseas Patients
RTA Income
Other non-NHS Patient Activity
Total - PP, Overseas, RTA
TBC2014.8 Finance Report
10,943
7,299
5,308
(1,991)
227
151
11
(140)
2,350
1,567
1,815
58
39
13,578
9,056
248
(39)
7,134
(1,922)
• Income from private and overseas patients, and road traffic
accidents (RTAs), is £1.9m behind plan with private patient
income £2.1m lower than for the first eight months of 2012/13.
• Private patient income is below plan for all Divisions. The chart
below shows that income from private patients only (i.e.
excluding RTA income) has increased over the past three
months although it has remained below 2012/13 levels. This
reflects the work undertaken to improve processes. It is now
believed that the shortfall against last year’s levels is due to a
decline in supply of private patient activity.
Page 10 of 23
Oxford University Hospitals
TB2014.8
Other Income
Last Year
YTD Actual
Annual
Other Incom e (excl. R&D)
£000
Year to Date
Plan
Plan
Actual
Variance
£000
£000
£000
£000
44,785
29,983
30,924
941
Other Incom e
30,420
Training & Education
5,256
Research
6,580
4,342
4,146
(196)
2,093
Income Generation
3,496
2,315
2,438
123
2,551
Rental Revenues
2,905
2,296
2,477
181
184
13,264
Patient Transport
Services to Other Bodies
1,979
Donations
5,656
Other Income & Charges
61,403
Total - Other Incom e
TBC2014.8 Finance Report
302
201
136
(65)
23,297
14,854
14,643
(211)
312
210
58
(152)
6,397
4,447
4,978
531
88,074
58,648
59,800
1,152
• “Other” income is £1.15m above plan if funding for R&D projects
is excluded, although £1.6m less than the position after the first
eight months of 2012/13.
• The main difference between the two years is that the Trust
received a higher level of donations towards its capital
programme in 2012/13 compared to this year.
Page 11 of 23
Oxford University Hospitals
TB2014.8
Bank & Agency Spend
An analysis of bank and agency staff costs by staff group for the first eight months of the year is shown below:
Mth 1
Mth 2
Mth 3
Mth 4
Mth 5
Mth 6
Mth 7
Mth 8
Mth 8
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
YTD
£000
£000
£000
£000
£000
£000
£000
£000
£000
Bank
Nurses (excl. Midw ives)
340
500
504
506
593
529
565
588
4,125
Clinical Support - Nursing
232
151
146
147
177
144
131
146
1,274
Allied Health Professionals
2
1
2
1
6
Admin. & Estates
5
4
2
5
13
5
3
3
40
579
656
652
658
783
678
701
738
5,445
Total - Bank Staff
Agency
Consultants
4
34
39
71
341
29
147
219
884
Medical and Dental
174
178
216
330
182
189
331
364
1,964
7,186
Nurses (excl. Midw ives)
729
765
728
1,025
1,044
816
1,147
932
Clinical Support - Nursing
28
14
12
32
21
20
37
37
201
Allied Health Professionals
166
178
225
265
180
179
297
349
1,839
Healthcare Scientists
160
66
130
70
57
80
46
601
23
94
122
56
121
66
31
19
532
19
5
21
(41)
5
2
43
Other Scientific, Tech., Therapeutic
(8)
Clinical Support - ST&T
5
Clinical Support - Other
12
20
4
10
7
8
37
32
38
136
31
342
293
364
361
95
371
354
2,211
Total - Agency Staff
1,332
1,695
1,656
2,285
2,349
1,447
2,478
2,360
15,602
Total Bank & Agency
1,911
2,351
2,308
2,943
3,132
2,125
3,179
3,098
21,047
Managers
Admin. & Estates
5
• The Trust has spent £21.0m on pay bank and agency staff costs in the eight months of the year. (The figures above include bank and agency staff
employed on R&D projects.)
• The Trust has spent £5.9m more on bank and agency staff in the first eight months of 2013/14 compared to the same period for 2012/13 – £1.0m
more on bank staff and £4.9m more on agency staff.
• The year-to-date spend on bank & agency staff is 6.55% of total pay costs.
TBC2014.8 Finance Report
Page 12 of 23
Oxford University Hospitals
TB2014.8
Non-Pay Expenditure
Year to Date
OUH (excluding R&D)
Plan
Actual
Variance
£000
£000
£000
Drugs & Blood Products
16,506
17,215
(709)
Non-Pay
Drugs - Pass Through
37,534
39,529
(1,995)
Clinical Supplies & Services
46,805
50,594
(3,789)
Devices - Pass Through
10,247
12,097
(1,850)
General Supplies
3,268
3,387
(119)
Office Expenses
7,749
8,810
(1,061)
Staff Related Expenditure
1,598
2,333
(735)
Training, Education & Research
1,048
706
Consultancy & Professional Fees
342
4,970
5,296
(326)
41,984
41,569
415
(20,354)
(20,354)
Premises & Transport
17,704
17,833
Insurance
14,255
14,243
12
2,580
2,957
(377)
2,352
4,105
(1,753)
(2,016)
(2,422)
PFI Expenditure
PFI Interest & Creditor Adjustments
Services Received (NHS)
Services Received (non-NHS)
Internal Recharges
Other Non-Pay Expenditure
Total Non-Pay
TBC2014.8 Finance Report
5,248
1,068
191,478
198,966
(129)
406
• Non-pay expenditure to date is £7.5m overspent (if R&D activity is excluded). Of
this, £3.8m is the overspend on “pass through” drugs and devices.
• £4.5m of the remainder of the non-pay overspend is on drugs and clinical supplies,
and therefore is activity-related.
• Drugs spend (including “pass through” drugs) is £5.55m, or 10.8%, higher than for
the first eight months of 2012/13, while clinical supplies (including “pass through”
devices) is £4.5m, or 7.8%, higher. Activity-related income is about 7.9% higher
than last year (see Pages 7 & 8).
• PFI interest & creditor adjustments are the technical accounting entries made to
remove the interest and principal repayments from the PFI unitary payments and
other lease agreements.
• Part of the overspend on “services received” is also activity-related. This includes
expenditure with other NHS organisations and the private sector to support the
provision of additional patient volumes.
• Services received from non-NHS organisations include work out-sourced to the
Manor and Ramsay and form part of the Trust’s plans to manage its waiting lists.
4,180
(7,488)
Page 13 of 23
Oxford University Hospitals
TB2014.8
Non-EBITDA Income & Expenditure
The year-to-date position, and full year plan, figures for the Trust’s non-EBITDA items of income & expenditure are shown below:
Annual
Non-EBITDA Item s
Year to Date
Plan
Plan
Actual
Variance
£000
£000
£000
£000
Incom e
Donated Asset Additions
260
176
(176)
Im pact on EBITDA
260
176
(176)
Non-Operating Item s
Depreciation
Investment Revenue
Other Gains & Losses
(36,171)
298
(24,112)
194
(24,151)
(39)
152
(42)
394
527
(200)
(133)
(21,235)
(14,179)
(13,719)
460
(8,184)
(5,456)
(5,395)
61
Sub-Total: Non-Op. Exps.
(65,492)
(43,686)
(42,719)
967
Im pact on Retained Surplus
(65,232)
(43,510)
(42,719)
791
(260)
(176)
Finance Costs
PDC Dividend Payable
Technical Adjustments
Donated Asset Additions
176
Donated Asset Depreciation
2,761
1,840
1,858
18
Sub-Total: Technical
2,501
1,664
1,858
194
(62,731)
(41,846)
(40,861)
985
Im pact on Break Even Duty
TBC2014.8 Finance Report
Non-Operating Items – refers to items of income or expenditure that are not
regarded as being directly associated with the day-to-day running costs of
the Trust and are included in a summary line in the Statement of
Comprehensive Income on Pages 4 to 6 of this report.
• “Other Gains & Losses” is above plan following the disposal of the
residential flats in Girdlestone Road where the net amount received from
the sale was higher than the book value of the asset.
Technical Adjustments – refers to items of income or expenditure that are
included within the Trust’s income & expenditure in the Statement of
Comprehensive Income on Pages 4 to 6 of this report but are disregarded
under NHS accounting rules when the Trust’s financial duty to break even
is measured.
• Donated asset accounting adjustments for additions and depreciation are
not included in the Trust’s performance against its break even duty and
hence are removed as “technical adjustments”.
• Technical adjustments are also made for accounting entries relating to any
impairment in the value of the Trust’s assets, or any reversal of
impairments made in previous years. Any adjustments for impairments will
only be known once the DV values the assets in March 2014.
• The other “technical adjustment” compares the impact on the Trust’s
financial position resulting from its PFI buildings being classified as “on
balance sheet” rather than “off balance sheet” following the adoption of
IFRS by the NHS. If the effect of this change is to worsen the position of the
Statement of Comprehensive Income then the financial impact is removed
as a technical adjustment. Currently the financial impact of the change in
2013/14 is having a positive effect on the retained surplus, and therefore no
technical adjustment is required under NHS accounting rules.
Page 14 of 23
Oxford University Hospitals
TB2014.8
Statement of Financial Position (Balance Sheet)
Opening
Balance
Closing
Balance
01-Apr-13
30-Nov-13
681,746
663,179
7,745
8,041
Movem ent
Mvm t. In
Month
NON-CURRENT ASSETS
Property, Plant & Equipment
Intangible Assets
(18,567)
296
943
(2,811)
425
Trade & Other Receivables
3,774
4,717
NON-CURRENT ASSETS
693,265
675,937
(17,328)
Inventories
11,353
12,493
1,140
Trade & Other Receivables
27,054
46,364
19,310
(1,807)
Cash & Cash Equivalents
65,657
85,142
19,485
(6,989)
CURRENT ASSETS
104,064
143,999
39,935
(8,631)
(109,204)
(133,476)
(24,272)
10,798
(11,458)
(12,749)
(1,291)
(2,902)
(2,194)
(123,564)
(148,419)
(19,500)
165
CURRENT LIABILITIES
Trade & Other Payables
Current Provisions
CURRENT LIABILITIES
NET CURRENT ASSETS/(LIABILITIES)
708
• Property, plant & equipment was also reduced by £2.1m
following the disposal of the Girdlestone flats.
286
(2,100)
CURRENT ASSETS
Borrow ings
• The value for Non-Current Assets has reduced because
depreciation on the existing asset base continues to exceed
new capital additions to date.
• The fall in borrowings reflects the regular repayments on the
capital element of the contracts with the Trust’s PFI providers.
These repayments are made through the monthly PFI unitary
payments.
• Further information about Trade & Other Receivables can be
found on Page 16, about Trade & Other Payables on Page 17,
and about the movement in cash balances on Page 18.
(222)
128
(24,855)
10,704
(4,420)
15,080
2,073
(289,162)
(280,283)
8,879
1,022
(11,616)
(11,109)
507
24
NON-CURRENT LIABILITIES
Borrow ings
Trade & Other Payables
Non-Current Provisions
(1,602)
(1,603)
NON-CURRENT LIABILITIES
(302,380)
(292,995)
9,385
(1)
1,046
TOTAL ASSETS EMPLOYED
371,385
378,522
7,137
1,019
207,673
207,673
14,609
21,746
7,137
1,019
147,360
147,360
1,743
1,743
371,385
378,522
7,137
1,019
FINANCED BY TAXPAYERS EQUITY
Public Dividend Capital
Retained Earnings
Revaluation Reserve
Other Reserve
TOTAL TAXPAYERS EQUITY
TBC2014.8 Finance Report
Page 15 of 23
Oxford University Hospitals
TB2014.8
Analysis of Accounts Receivable (Debtors)
• Total debt fell by £1.9m in the month
• The amount due from non-NHS customers over 60 days old was
£1.3m at the end of November (October = £1.5m).
• Debt owed for more than 90 days by non-NHS customers and
private patients was £3.3m at 30 November (October= £3.1m).
TBC2014.8 Finance Report
Sales Ledger
Prepayments & Accrued Income
Private Patients
Recoverables
Other (including VAT)
Jun-13
48,577
12,616
2,854
736
2,638
Jul-13
35,728
16,655
3,105
702
2,743
Aug-13
28,209
20,192
2,733
716
2,468
Sep-13
28,839
18,052
2,632
708
4,358
Oct-13
26,938
20,058
2,702
750
2,620
Nov-13
26,111
18,624
3,340
776
2,317
67,421
58,934
54,318
54,589
53,068
51,168
Page 16 of 23
Oxford University Hospitals
TB2014.8
Analysis of Accounts Payable (Creditors)
• Accounts Payable exceeded their performance target for making
payments to suppliers by £1.4m in the month. Some suppliers, which
previously had been “on hold” whilst disputes were resolved, were
paid in the month and hence purchase ledger creditors reduced by
£5.2m.
• The amount deferred for R&D increased by £3.7m in October and this
sum was released again in November. £1.4m of the funding for the
Academic Health Sciences Network (AHSN) was also deferred.
Accruals & Deferred Income
Purchase Ledger
Recoverables
Capital
Tax & Social Security
Other (including VAT)
Jun-13
55,616
34,566
16,020
1,532
8,968
9,750
126,452
Jul-13
69,582
30,162
16,178
1,489
8,771
9,374
135,556
Aug-13
72,782
23,619
16,391
1,391
8,717
9,485
132,385
Sep-13
71,436
26,496
16,113
1,691
8,936
7,108
131,780
Oct-13
75,540
33,463
16,724
1,924
8,947
7,677
144,275
Nov-13
68,875
28,264
16,549
1,290
8,837
8,761
132,577
• To date the Trust has paid 85.7% of its non-NHS creditor invoices
within 30 days or within the terms of supplier contracts.
• The Trust moved to a fully electronic requisitioning system in
November. These changes should lead to more control over
procurement practices and in due course to an improved BPPC
(better payment practice code) performance.
TBC2014.8 Finance Report
Page 17 of 23
Oxford University Hospitals
TB2014.8
Statement of Cashflows
Q1
2013/14
Q2
2013/14
Oct
2013
Nov
2013
Year-toDate
£000
£000
£000
£000
£000
Cash Flow s from Operating Activities
Operating Surplus/(Deficit)
7,241
8,982
6,093
3,387
25,703
Depreciation & Amortisation
9,131
8,919
2,941
3,160
24,151
(5,108)
(1,719)
(1,660)
(13,467)
Interest Paid
(4,980)
Dividend Paid
(Increase) in Inventories
(Increase) in Trade & Other Receivables
Increase in Trade & Other Payables
Increase in Provisions
Cash Flow from Operating Activities
(3,095)
(389)
(789)
(3,095)
203
(165)
(1,140)
(35,887)
11,539
1,641
1,488
(21,219)
19,354
6,316
11,305
(10,882)
26,093
(146)
(5,676)
(90)
(341)
26,674
20,123
55
18
(128)
(4,801)
• Cash fell by £7.0m in November. This was largely due to the fall
in trade and other payables. Further information on this
movement can be found on Page 17.
• Cash held was lower than forecast because £2m in R&D
receipts were held up by the Department of Health due to
processing issues. This funding was released on 19 December.
• The Trust held enough cash to cover 41 working days of
planned operating expenditure at 30 November, and £23.9m
more than it held at the end of November 2012.
(705)
36,320
Cash Flow s from Investing Activities
Interest Received
(Payments) for Fixed Assets
58
151
(2,638)
(1,273)
(1,409)
(11,885)
(4,020)
(2,583)
(1,255)
(1,388)
(9,246)
(2,488)
(2,857)
(742)
(800)
(6,887)
(2,488)
(3,559)
(742)
(800)
(7,589)
(12,184)
20,532
18,126
(6,989)
19,485
Cash - Beginning of the Period
65,657
53,473
74,005
92,131
65,657
Cash - End of the Period
53,473
74,005
92,131
85,142
85,142
Receipts from Disposal of Fixed Assets
Cash Flow from Investing Activities
(6,565)
20
2,487
2,487
Cash Flow s from Financing Activities
Capital Loans - Repayment of Principal
Capital Element of Finance Leases & PFI
Cash Flow from Financing Activities
Net Increase/(Decrease) in Cash
TBC2014.8 Finance Report
(702)
(702)
Page 18 of 23
Oxford University Hospitals
TB2014.8
Cashflow Forecast
2012/13
Full Year
FORECAST STATEMENT OF CASH FLOWS
2013/14
2013/14
2013/14
2013/14
2013/14
2013/14
2014/15
2014/15
2014/15
2014/15
2014/15
M8 YTD
M09
M10
M11
M12
Full Year
Q1
Q2
Q3
Q4
Full Year
Actual
Actual
£000
£000
Forecast Forecast Forecast Forecast
£000
£000
£000
£000
Forecast
£000
Forecast Forecast Forecast Forecast
£000
£000
£000
£000
Forecast
£000
Cash Flow s from Operating Activities
27,491
Operating Surplus/(Deficit)
25,703
2,138
4,204
2,565
3,561
38,171
7,322
10,152
9,426
9,491
36,391
36,758
Depreciation & Amortisation
24,151
3,133
3,133
3,133
3,133
36,683
9,222
9,222
9,222
9,222
36,888
(1,797)
(1,794)
(1,792)
(1,977)
(20,827)
(5,069)
(5,331)
(5,062)
(4,240)
(7,335)
(45)
(174)
4,568
Impairments & Reversals
(20,697)
Interest Paid
(13,467)
(9,374)
Dividend Paid
(3,095)
(923)
1,408
Receipt of Donated Assets
(Increase) in Inventories
10,331
(Increase) in Trade & Other Receivables
18,858
Increase in Trade & Other Payables
(5,336)
Increase in Provisions
63,084
Cash Flow from Operating Activities
(43)
(43)
(43)
(3,741)
(68)
(1,140)
279
279
279
283
(20)
(21,219)
1,217
441
2,488
2,488
(14,585)
(7,095)
(3,604)
(7,559)
12,850
4,098
26,093
(705)
36,321
(533)
83
4,477
(1,547)
(83)
4,590
181
(7)
3,207
(4,363)
(531)
44,232
160
8,570
(68)
(68)
887
4,223
3,589
5,071
(260)
14,450
(421)
22,391
(5,311)
(20,773)
(3,741)
(7,482)
(68)
(272)
4,533
2,548
(14,380)
(1,622)
(862)
(1,383)
(1,116)
44,295
Cash Flow s from Investing Activities
179
(26,239)
Interest Received
(Payments) for Fixed Assets
Receipts from Disposal of Fixed Assets
(26,060)
Cash Flow from Investing Activities
151
(11,885)
31
(782)
31
(2,234)
33
(2,960)
30
(4,554)
2,487
(9,247)
276
(22,415)
74
81
86
88
329
(4,885)
(4,835)
(6,190)
(10,187)
(26,097)
(4,811)
(4,754)
(6,104)
(10,099)
(25,768)
2,487
(751)
(2,203)
(2,927)
(4,524)
(19,652)
(1,800)
(1,800)
(702)
(1,404)
Cash Flow s from Financing Activities
800
Public Dividend Capital Received/(Repaid)
(1,404)
Capital Loans - Repayment of Principal
(3,326)
Working Capital Loans - Principal Repayment
(11,321)
(15,251)
Capital Element of Finance Leases & PFI
Cash Flow from Financing Activities
(702)
(6,887)
(1,033)
(1,033)
(1,033)
(1,703)
(11,689)
(3,236)
(4,938)
(3,236)
(4,939)
(16,349)
(7,589)
(1,033)
(1,033)
(1,033)
(4,205)
(14,893)
(3,236)
(4,938)
(3,236)
(4,939)
(16,349)
(753)
(13,092)
9,687
523
4,758
13,051
(16,154)
2,178
21,773
Net Increase/(Decrease) in Cash
19,485
2,693
1,354
43,884
Cash - Beginning of the Period
65,657
85,142
87,835
89,189
88,436
65,657
75,344
75,867
80,625
93,676
75,344
65,657
Cash - End of the Period
85,142
87,835
89,189
88,436
75,344
75,344
75,867
80,625
93,676
77,522
77,522
TBC2014.8 Finance Report
Page 19 of 23
Oxford University Hospitals
TB2014.8
Cashflow Forecast – Assumptions
The main assumptions that lie behind the cashflow forecast are:
1.
Operating activities
(i)
The operating surplus will be achieved according to forecast;
(ii) Depreciation, impairments, donated assets have been forecast from year-to-date and expected capital changes such as the completion of
agreed capital projects;
(iii) Inventories – it is expected that there will be some further stock movements following a review of the Trust’s inventory policy;
(iv) It is assumed that there will be further reductions in the amounts owed to the Trust following the introduction of improved debt collection
processes for private patient debts;
(v) It is assumed there will be some acceleration of trade payables to mirror increased debt recovery and improve prompt payment performance.
2.
Investing activities
(i)
3.
It is assumed that capital payments will be made in accordance with the Trust’s capital programme.
Financing activities
(i)
It is assumed that loan principal repayments will be made in accordance with Department of Health agreements;
(ii) It is assumed that the capital element of finance payments are those as set out within the Trust’s PFI lease agreements.
TBC2014.8 Finance Report
Page 20 of 23
Oxford University Hospitals
TB2014.8
Financial Risk Rating
Novem ber 2013
Scores
Financial Criteria
Risk Rating
October 2013
Weight
5
4
3
2
1
Metric
Score
Metric
Score
Achievement of Plan
EBITDA % achieved
10%
100%
85%
70%
50%
<50%
98.2%
4
98.9%
4
Underlying Performance
EBITDA margin
25%
11%
9%
5%
1%
<1%
8.7%
3
8.6%
3
Net return after Financing
20%
3%
2%
(0.5%)
(5%)
< (5%)
1.5%
3
1.5%
3
I & E Surplus Margin
20%
3%
2%
1%
(2%)
< (2%)
1.2%
3
1.1%
3
Liquid ratio (days)
25%
60
25
15
10
<10
21
3
20
3
Financial Efficiency
Liquidity
Weighted Average
Overall Rating (see rules below )
3.10
3.10
3
3
Monitor - Rules Used to Adjust the Financial Risk Rating
Previous year's annual rating w orse
2
No more than 2 points better
than previous year
Less than 1 year as an NHS Foundation Trust
4
Deficit forecast in year 2 or 3
3
Deficit forecast in both years 2 and 3
2
1
1.00
0
0.00
Overall FRR
Mar-14
1
2.00
Feb-14
Tw o financial criteria at '1'
2
Jan-14
2
Dec-13
3
Tw o financial criteria scored at '2'
3.00
Nov-13
One financial criterion scored at '2'
3
Oct-13
2
Sep-13
One financial criterion scored at '1'
Aug-13
2
4.00
Jul-13
PDC dividend not paid in full
4
Jun-13
3
5.00
May-13
Plan not submitted complete and correct
5
Weighted Average Score
3
Unplanned breach of Prudential Borrow ing Code (PBC)
•
Maxim um Rating
Overall Financial Risk Rating
Situation
Plan not submitted on time
Weighted Average
The Trust’s weighted average score remained at 3.1 in November.
TBC2014.8 Finance Report
Page 21 of 23
Oxford University Hospitals
TB2014.8
Capital Programme
OUH Capital Program m e 2013/14
Mth 8
Mth 8
Mth 8
Annual
YTD Plan
YTD Spend
Variance
Plan
Forecast
Variance
£000s
£000s
£000s
£000s
£000s
£000s
Maintenance - medical and surgical equipment 13/14
780
812
32
2,600
2,000
Maintenance - IT/EPR 13/14-15/16
468
1,422
954
1,560
4,770
Maintenance - general estates 13/14 and 14/15
312
410
98
1,040
1,000
14
100
Maintenance - w ard relocations
312
Maintenance - laboratories block 4
560
Maintenance - laboratory IT system replacement
312
Maintenance - other schemes below £1m
593
2,627
(298)
1,040
(560)
1,865
(312)
1,040
2,034
1,976
Maintenance - JR theatre 2 remodelling
Radiotherapy
IMRT - rapid arc installation and upgrade
Other schemes below £1m
PFI lifecycle and Managed Equipment Service (IFRS - IFRIC12)
5
775
1,756
4,160
238
797
(1,365)
981
79
Cardiac Eco
Conversion of MHA
(40)
400
100
(3,840)
2,129
(456)
2,211
(2,135)
(797)
1,197
1,197
500
500
260
260
98
500
500
49
49
1,330
1,330
300
300
300
300
9
9
300
300
200
200
Home Dialysis modification
4
4
15
15
Renal Inpatient CH
2
2
50
50
Anaesthetic room link to vascular IR room
8
8
500
500
PET/CT Scanner
5
5
2,900
2,900
Delivery Suite Theatre AHU
5
5
500
500
24,249
26,343
2,094
Total Capital Program m e Spend
Capital Resource Lim it 2013/14
Total Capital Program m e Spend
10,518
7,843
(2,675)
Mth 8
Mth 8
Mth 8
Forecast
Forecast
YTD Plan
YTD Spend
Variance
Outturn
Outturn
Variance
£000s
£000s
£000s
£000s
£000s
£000s
10,518
7,843
2,675
24,249
26,343
(2,094)
2,094
Asset Disposals
(133)
(2,094)
1,961
(200)
(2,294)
Donations
(176)
(177)
1
(260)
(260)
Capital Resource Lim it 2013/14
TBC2014.8 Finance Report
10,209
5,572
4,637
23,789
The Trust expects to spend the programme
in full.
2,025
2,585
Daycase Unit Churchill remodel or 23 hour unit
•
(1,040)
4,001
177
Pre operative assessment
The sale of the Girdlestone Flats provides
additional “capital cash” resource for
potential spend. Because of this, and
slippage against some of the original
projects planned for the year, a number of
schemes have been brought forward in the
plan.
(940)
4,346
Clinical Genetics Mayfair w ard
•
(600)
3,210
(3,922)
Equipment leasing (IFRS non-IFRIC12)
Donations
4,240
The Trust has charged £7.8m against its
capital programme in the eight months of the
year.
(1,865)
100
1,370
•
23,789
Page 22 of 23
Oxford University Hospitals
TB2014.8
Recommendation
The Board is asked to note the content of this report.
Mr Mark Mansfield
Director of Finance and Procurement
Report Prepared By:
Mr Kevin Davis
Senior Business Partner
January 2014
TBC2014.8 Finance Report
Page 23 of 23