Trust Board Meeting: Wednesday 10 September 2014
TB2014.98
Title
Financial Performance to 31 July 2014
Status
A paper for report.
History
Regular report
Board Lead
Mr Mark Mansfield,
Procurement
Key purpose
Strategy
TB2014.98 Financial Performance
Assurance
Director
Policy
of
Finance
and
Performance
Page 1 of 24
Oxford University Hospitals
TB2014.98
Summary
This report informs the Board of the Trust’s financial position for the first four months of the
financial year 2014/15.
Contents
The report contains information on the following:
− The Trust’s Statement of Comprehensive Income [income & expenditure (I&E)] position
after the first four months of the year (Pages 3 to 13), including:
−
Statements on the Trust’s overall I&E position
Pages 3 & 4
−
Details about its income and expenditure position
Pages 5 to 10
−
Details about its savings programme
Pages 11 & 12
−
Details about non-operational income & expenditure
Page 13
−
The Statement of Financial Position at 31 July 2014
Pages 14 to 16
−
The Statement of Cashflow and cashflow forecast
Pages 17 & 18
−
The Trust performance against Monitor’s Continuity of Services rating
Pages 19 & 20
−
The position of the capital programme
TB2014.98 Financial Performance
Page 21
Oxford University Hospitals
TB2014.98
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
736,400
245,286
244,618
(668)
13,823
4,602
4,568
(34)
137,467
46,480
44,743
(1,737)
887,690
296,368
293,929
(2,439)
Pay
(482,524)
(161,451)
(163,113)
(1,662)
Non-Pay
(330,003)
(108,644)
(104,355)
4,289
(812,527)
(270,095)
(267,468)
2,627
75,163
26,273
26,461
188
(66,193)
(22,128)
(22,615)
(487)
8,970
4,145
3,846
(299)
2,512
836
1,158
322
11,482
4,981
5,004
23
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
• The figures shown in the table on the left reflect the way in which
financial performance is reported in the Trust’s Statutory Statements.
• The Trust’s financial position was £23,000 better than plan against its
break even duty after the first four months of the year.
• Commissioning income was £0.7m below plan. If performance for
“pass through” drugs and devices is excluded, then the position is
£2.6m worse than plan. Further details are shown on Page 5 of this
report.
• Private patient income is slightly below plan after the first four months
of 2014/15 – see Page 6.
• The deferment of R&D income is causing an adverse variance.
Without this “other” income is £0.7m better than plan – see Pages 4
and 7.
• The pay trends from 2013/14 have continued into the new financial
year with the premium costs of staff more than offsetting vacancies in
establishment – Pages 8 & 9 provide further detail. The Trust has set
up a workforce group under the Director of Organisational
Development and Workforce to address the issue, reduce the level of
premium payments and improve recruitment & retention.
• Non-pay is affected by some one-off benefits relating to its PFI
contracts. Further information is shown on Page 10.
• The Trust has used part of its contingency to support its year-to-date
financial position and this also impacts on the reported non-pay
position.
TB2014.98 Financial Performance
Page 3 of 24
Oxford University Hospitals
TB2014.98
Statement of Comprehensive Income (Income & Expenditure Account) – excluding Research
Annual
Year to Date
• At the end of July expenditure on research & development (R&D) was
Research & Developm ent
Plan
Plan
Actual
Variance
£2.4m less than plan with pay being £1.95m below plan and non-pay
£000
£000
£000
£000
£0.5m less than anticipated. R&D income for this amount should
Incom e
therefore be adjusted to take this into account, resulting in an adverse
Other Income
46,020
15,339
12,924
(2,415)
variance against plan on “other” income.
Total Incom e
46,020
15,339
12,924
(2,415)
(36,136)
(12,044)
(10,094)
1,950
(9,884)
(3,295)
(2,830)
465
(46,020)
(15,339)
(12,924)
2,415
Expenditure
Pay
Non-Pay
Total Expenditure
EBITDA
0
0
Annual
I&E (excluding R&D)
0
0
• This table excludes the effect of R&D activities on the Trust’s financial
Year to Date
Plan
Plan
Actual
Variance
£000
£000
£000
£000
736,400
245,286
244,618
(668)
13,823
4,602
4,568
(34)
Operating Incom e
Commissioning Income
PP, Overseas & RTA Income
Other Income
Total Incom e
91,447
31,141
31,819
678
841,670
281,029
281,005
(24)
position. It sets out the underlying operational performance in
healthcare activities.
• The information about income and expenditure presented in the
remainder of this report is based on this approach, which reflects the
Trust’s operational activities excluding R&D.
Operating Expenditure
Pay
(446,388)
(149,407)
(153,019)
(3,612)
Non-Pay
(320,119)
(105,349)
(101,525)
3,824
(766,507)
(254,756)
(254,544)
212
75,163
26,273
26,461
188
(66,193)
(22,128)
(22,615)
(487)
8,970
4,145
3,846
(299)
2,512
836
1,158
322
11,482
4,981
5,004
23
Total Expenditure
EBITDA
Non-Operating Expenditure
Retained Surplus/(Deficit)
Technical Adjustments
Break Even Surplus
TB2014.98 Financial Performance
Page 4 of 24
Oxford University Hospitals
TB2014.98
Commissioning Income – Analysis of Activity and Activity-Related Income
Activity - Year-to-Date
Activity
Elective (incl. day cases)
YTD
Plan
35,343
YTD
Actual
35,482
Incom e - Year-to-Date
YTD Diff.
%
YTD
Diff.
Plan
£000
Actual
£000
139
0.4%
54,575
54,747
Diff.
£000
172
0.3%
Non-Elective
25,857
26,626
769
3.0%
55,565
54,392
Out-Patients
334,829
341,032
6,203
1.9%
49,736
49,958
Chemotherapy
10,737
10,713
(24)
(0.2%)
1,672
1,800
128
7.7%
Critical Care
15,955
15,434
(521)
(3.3%)
18,351
17,416
(935)
(5.1%)
Excess Beds
14,127
14,662
535
3.8%
3,602
3,312
(290)
(8.1%)
Drugs & Devices (Pass Through)
32,479
34,393
1,914
5.9%
Other Activity
30,082
30,261
179
0.6%
246,062
246,279
217
0.1%
Total before Adjustm ents
Adjustment for Thresholds
Penalties & Denials
Prior Year Income
Com m issioning Incom e
530
(2,116)
(1,173)
Diff.
%
222
(2.1%)
0.4%
(530)
(2,116)
810
455
(355)
245,286
244,618
(668)
(0.3%)
•
The Trust’s commissioning income position for the first four months of the year was calculated from data for the first three months
only. There therefore remains an element of estimation within the figures.
•
Activity-related income is £0.2m better than plan but this is largely due to funding for “pass through” drugs and devices being
£1.9m higher than expected.
•
The level of income recognised for critical care is currently calculated only when patients are discharged. Following advice
provided by the auditors in their review of the Trust’s 2013/14 accounts, the Audit Committee will be asked to consider whether this
accounting policy should be changed this year.
TB2014.98 Financial Performance
Page 5 of 24
Oxford University Hospitals
TB2014.98
Private Patient, Overseas and Road Traffic Accident (RTA) Income
Annual
PP, Overseas, RTA
• Income from private and overseas patients, and road traffic
Year to Date
Plan
Plan
Actual
Variance
£000
£000
£000
£000
PP, Overseas & RTA Incom e
Private Patients
Overseas Patients
RTA Income
11,408
3,810
3,724
(86)
65
9
17
8
2,350
783
827
44
13,823
4,602
4,568
Other non-NHS Patient Activity
Total - PP, Overseas, RTA
TB2014.98 Financial Performance
accidents (RTAs), is in line with plan for the first four
months of the year.
• Private patient income is a little below planned. The
Associate Director for Transformation is leading a project
which expects to resolve some of the historical issues the
Trust has faced in the generation of private patient income.
(34)
Page 6 of 24
Oxford University Hospitals
TB2014.98
Other Income
Other Incom e (excl. R&D)
• “Other” income is £0.7m above plan if specific funding for
Year to Date
Annual
Plan
Plan
Actual
Variance
£000
£000
£000
£000
48,701
18,514
18,550
Other Incom e
Training & Education
36
Research
7,196
2,399
2,446
47
Income Generation
3,667
1,165
1,306
141
Rental Revenues
1,921
640
688
48
Patient Transport
193
64
64
20,561
6,805
6,866
61
Services to Other Bodies
274
93
252
159
Other Income & Charges
Donations
5,714
387
554
167
Income Savings Targets
3,220
1,074
1,093
19
91,447
31,141
31,819
678
Total - Other Incom e
TB2014.98 Financial Performance
R&D projects is excluded (per the analysis on page 4).
• The Trust received £0.197m in donated assets in July. This
is removed as a “technical adjustment” when overall
performance against the break even target is assessed
(see Page 13).
Page 7 of 24
Oxford University Hospitals
TB2014.98
Pay Expenditure – Analysis by Staff Group
Staff Group
Consultants
Staff
Plan
Actual
Variance
Type
£000
£000
£000
Payroll
Agency
Consultants
• The table on the left shows the year-to-date spend on pay by
Year to Date
OUH (excluding R&D)
Total
31,200
(9)
30,917
195
staff group against plan (excluding R&D).
• The overspend on pay is occurring mainly against the budgets
283
(204)
31,191
31,112
79
22,786
21,928
858
for non-consultant medical staff (£1.17m) but for all staff
groups the cost of bank & agency staff is higher than any
savings generated from vacancies within established posts.
• The Trust has also spent £0.75m on overtime payments in the
Other Medical Staff
Payroll
Bank
Agency
Other Medical Staff
Nurses & Midw ives
Total
Payroll
Bank
Agency
Nurses & Midw ives
Scientific, Tech., Therapeutic
Total
Payroll
(40)
Scientific, Tech., Therapeutic
Other Staff
Total
Payroll
1,500
(1,540)
23,916
(1,170)
45,830
40,296
5,534
56
2,390
(2,334)
(172)
3,999
(4,171)
45,714
46,685
(971)
19,836
18,886
950
14
(14)
1,682
(1,828)
19,690
20,582
(892)
30,066
27,975
(146)
Bank
OUH (excluding R&D)
Total
Payroll
Bank
Agency
OUH (excluding R&D)
TB2014.98 Financial Performance
Total
(699)
2,050
(2,050)
30,066
30,724
(658)
149,718
140,002
56
3,591
(3,535)
(367)
9,426
(9,793)
153,019
(3,612)
149,407
first four months of the year. This compares to £0.72m in
2013/14 over the same period.
• Furthermore £2.58m has been spent on medical staff
sessional payments compared to £2.2m in the first four
months of 2013/14.
2,091
699
Agency
Other Staff
(488)
22,746
Bank
Agency
488
9,716
Page 8 of 24
Oxford University Hospitals
TB2014.98
Bank & Agency Spend
An analysis of bank and agency staff costs by staff group for the first four months of the year is shown below:
OUH (excluding R&D)
Apr
May
Jun
Jul
YTD
Analysis of Bank Spend
£000
£000
£000
£000
£000
Consultants
Other Medical Staff
159
162
111
56
488
Nurses & Midw ives
531
712
612
535
2,390
1
2
4
7
14
127
216
160
195
698
818
1,092
887
793
3,590
Scientific, Tech., Therapeutic
Other Staff
OUH (excluding R&D)
OUH (excluding R&D)
Apr
May
Jun
Jul
YTD
Analysis of Agency Spend
£000
£000
£000
£000
£000
Consultants
Other Medical Staff
39
47
56
54
196
319
327
452
403
1,501
Nurses & Midw ives
958
989
969
1,083
3,999
Scientific, Tech., Therapeutic
550
234
424
475
1,683
Other Staff
397
423
647
582
2,049
2,263
2,020
2,548
2,597
9,428
OUH (excluding R&D)
•
The Trust has spent £13.0m on pay bank and agency staff costs in the four months of the year. This compares to a figure of £9.4m for
the first four months of 2013/14 and is therefore 38% higher than a year ago.
•
Average agency spend is £2.36m per month compared to £1.72m for the year-to-date position in 2013/14 and compared to £2.04m for
the last quarter of 2013/14.
• The year-to-date spend on agency staff was 6.2% of total pay costs compared to 5.6% for the last quarter of last year. Therefore
agency costs have not only increased in volume but have also increased as a proportion of the Trust’s total pay bill.
TB2014.98 Financial Performance
Page 9 of 24
Oxford University Hospitals
TB2014.98
Non-Pay Expenditure
Annual
OUH (excluding R&D)
• When the impact of “pass through” drugs and devices, and the
Year to Date
Plan
Plan
Actual
Variance
£000
£000
£000
£000
Drugs & Blood Products
10,197
2,219
2,162
57
Clinical Supplies & Services
75,244
21,348
21,457
(109)
General Supplies
5,350
1,783
1,961
(178)
Office Expenses
12,369
4,010
3,748
262
3,362
1,138
1,273
(135)
Training, Education & Research
7,615
1,591
971
Consultancy & Professional Fees
7,107
2,865
2,518
347
64,964
21,713
20,191
1,522
(31,304)
(10,435)
(10,449)
14
Premises & Transport
28,537
9,922
9,677
245
Insurance
20,108
8,038
8,032
6
Services Received (NHS)
4,515
1,505
1,709
(204)
Services Received (non-NHS)
6,735
3,006
3,507
(501)
(4,216)
(1,323)
(1,207)
(116)
4,592
1,419
1,582
(163)
(5,575)
(2,729)
Staff Related Expenditure
PFI Expenditure
PFI Interest & Creditor Adjustments
Internal Recharges
Other Non-Pay Expenditure
Non-Pay Savings
Sub-Total - excl. Pass Through
620
release of reserves, is discounted then non-pay expenditure is
£1.1m overspent as shown in the table below. This is caused
primarily through a shortfall against savings plans which is offset
by non-recurrent movements being made against the PFI
contracts.
• The
overspend against services received from non-NHS
organisations is the result of additional costs being incurred to
achieve activity performance targets.
• “Pass through” drugs and devices are overspent by £1.94m.
These are matched by income.
• The Trust has allocated £6.8m of its contingency reserves to
support activity and cost pressures.
Variance
£m
(2,729)
209,600
66,070
67,132
(1,062)
Non-Pay Variance (excl. Reserves)
Drugs - Pass Through
79,474
26,632
28,213
(1,581)
Less:
Devices - Pass Through
17,611
5,847
6,180
(333)
Total Non-Pay excl. Reserves
306,685
98,549
13,454
6,800
320,139
105,349
101,525
(2,976)
Drugs - Pass Through
1.581
Devices - Pass Through
0.333
Net Underlying Position
Application of Reserves
Total Non-Pay
TB2014.98 Financial Performance
(2.976)
(1.062)
6,800
101,525
3,824
Page 10 of 24
Oxford University Hospitals
TB2014.98
Analysis of the Savings Programme
Plan
Theme
£000
YTD Plan YTD Act.
£000
£000
Diff.
£000
Divisional General Efficiency
25,304
7,694
7,266
(428)
Transformation
10,519
2,242
1,627
(615)
Workforce
3,366
743
769
Other
6,850
1,630
1,417
(213)
46,039
12,309
11,079
(1,230)
Total
26
Savings - Pay (Skill Mix)
15,591
5,009
4,711
(298)
Savings - Pay (WTE reductions)
12,262
1,474
705
(769)
6,784
2,024
2,264
240
11,402
3,802
3,399
(403)
46,039
12,309
11,079
(1,230)
44,039
11,641
10,147
(1,494)
2,000
668
932
46,039
12,309
11,079
(1,230)
(809)
Income
Total
the year. This represents 90% of the year-to-date plan.
• In their monthly performance review meetings Divisions have been
asked to identify new schemes to make up any shortfall resulting
from slippage in the schemes they originally identified.
• £2.0m of Divisional schemes (on a full year basis) are non-recurrent
and Divisions will have to identify alternative recurrent plans ahead
of 2015/16.
Analysis of Savings by Type
Savings Non Pay
• The Trust has delivered £11.1m in savings in the first four months of
• A number of cross-Divisional and transformation schemes are not
planned to start until the second half of 2014/15.
Recurrent & Non-Rec. Savings
Recurrent
Non-Recurrent
Total
264
Analysis of Savings by Risk Rating
4,810
1,376
567
Medium
High
14,812
3,152
3,216
64
Low
26,417
7,781
7,296
(485)
46,039
12,309
11,079
(1,230)
Total
TB2014.98 Financial Performance
Page 11 of 24
Oxford University Hospitals
TB2014.98
Forecast for the Savings Programme
Recurrent Savings
Forecast Savings
Non-Recurrent Savings
Total Savings 2014/15
Plan
Forecast
Fct v Plan
Plan
Forecast
Fct v Plan
Plan
Forecast
Fct v Plan
£000
£000
£000
£000
£000
£000
£000
£000
£000
Divisional General Efficiency
24,149
26,732
2,583
26,149
28,698
2,549
Transformation
10,558
8,145
(2,413)
10,558
8,145
(2,413)
Workforce
2,804
2,681
(123)
2,804
2,681
(123)
Other
6,528
6,155
(373)
6,528
6,155
(373)
44,039
43,713
(326)
46,039
45,679
(360)
(3,098)
(3,098)
Total
2,000
2,000
1,966
1,966
(34)
(34)
Savings by Risk Rating
High
4,810
1,712
Medium
14,812
15,348
536
Low
24,417
26,653
2,236
44,039
43,713
Total
•
(326)
4,810
1,712
14,812
15,348
536
2,202
2,000
1,966
(34)
26,417
28,619
2,000
1,966
(34)
46,039
45,679
(360)
The Trust forecasts that it will deliver £45.7m in savings in 2014/15. £44m of the savings identified are considered to be recurrent.
TB2014.98 Financial Performance
Page 12 of 24
Oxford University Hospitals
TB2014.98
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 Income
260
88
197
109
Im pact on EBITDA
260
88
197
109
Non-Operating Item s
Depreciation
(38,436)
Investment Revenue
Other Gains & Losses
Finance Costs
(12,812)
300
100
(200)
(66)
(13,413)
104
(601)
4
66
(20,654)
(6,950)
(6,906)
(7,203)
(2,400)
(2,400)
Sub-Total: Non-Op. Exps.
(66,193)
(22,128)
(22,615)
(487)
Im pact on Retained Surplus
(65,933)
(22,040)
(22,418)
(378)
PDC Dividend Payable
44
Technical Adjustments
IFRIC 12 Technical Deficit (PFI)
Donated Asset Income
(260)
(88)
125
125
(197)
(109)
Donated Asset Depreciation
2,772
924
1,230
306
Sub-Total: Technical
2,512
836
1,158
322
(21,260)
(56)
Im pact on Break Even Duty
(63,421)
(21,204)
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 3 & 4 of this report.
• A significant element of the variance to plan on depreciation is for a
one-off adjustment relating to the Trust’s donated assets, which is
removed as a “technical adjustment” when the Trust’s financial
performance is measured against its break even duty – see below.
• “Other Gains & Losses” is a technical accounting adjustment that is
made following the disposal of assets. There have been no disposals
in the year to date.
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 3 & 4 of this report
but are disregarded under NHS accounting rules when the Trust’s
financial duty to break even is measured.
• The IFRIC 12 “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. The adjustment for this to date is £125,000.
• 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”. The Trust
received £0.197m in donated assets in July.
• Technical adjustments are also made for accounting entries relating
to any impairment in the value of the Trust’s assets, or any reversal
TB2014.98 Financial Performance
Page 13 of 24
Oxford University Hospitals
TB2014.98
of impairments made in previous years. Any adjustments for
impairments in 2014/15 will only be known once the District Valuer
assesses the value of the Trust’s estate in the third quarter of
2014/15.
TB2014.98 Financial Performance
Page 14 of 24
Oxford University Hospitals
TB2014.98
Statement of Financial Position (Balance Sheet)
Opening
Balance
Closing
Balance
01-Apr-14
31-Jul-14
Movem ent
Mvm t. In
Month
NON-CURRENT ASSETS
Property, Plant & Equipment
696,042
690,527
(5,515)
123
Intangible Assets
9,215
6,954
(2,261)
(405)
Trade & Other Receivables
4,945
5,213
NON-CURRENT ASSETS
710,202
702,694
Inventories
11,807
12,460
653
Trade & Other Receivables
24,361
33,210
8,849
268
(7,508)
3
(279)
• The value for Non-Current Assets has reduced because
depreciation on the existing asset base since the start of
the year has exceeded new capital additions to date,
although in July itself capital spend on property, plant &
equipment was greater than depreciation charged.
• Current trade and other payables was 16.9% of planned
operating expenditure at the end of July (June = 16.4%).
CURRENT ASSETS
138
(2,289)
Cash & Cash Equivalents
86,448
105,090
18,642
7,692
CURRENT ASSETS
122,616
150,760
28,144
5,541
(115,675)
(137,395)
(21,720)
(4,355)
(11,261)
(11,354)
(93)
(139)
CURRENT LIABILITIES
Trade & Other Payables
Borrow ings
Current Provisions
CURRENT LIABILITIES
(4,251)
(3,293)
(131,187)
(152,042)
(8,571)
958
1,009
(20,855)
(3,485)
(1,282)
7,289
2,056
(275,107)
(271,660)
3,447
970
Trade & Other Payables
(14,251)
(13,695)
556
Non-Current Provisions
(2,447)
(2,385)
62
NON-CURRENT LIABILITIES
(291,805)
(287,740)
4,065
969
TOTAL ASSETS EMPLOYED
409,826
413,672
3,846
2,746
208,935
208,935
3,846
2,746
3,846
2,746
NET CURRENT ASSETS/(LIABILITIES)
• 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 15, Trade & Other Payables on Page
16, and the movement in cash balances on Page 17.
NON-CURRENT LIABILITIES
Borrow ings
(1)
FINANCED BY TAXPAYERS EQUITY
Public Dividend Capital
Retained Earnings
Revaluation Reserve
Other Reserve
TOTAL TAXPAYERS EQUITY
TB2014.98 Financial Performance
34,413
38,259
164,735
164,735
1,743
1,743
409,826
413,672
Page 15 of 24
Oxford University Hospitals
TB2014.98
Analysis of Accounts Receivable (Debtors)
This M onth
NHS
Non-NHS
£000s
£000s
Private
Patie nts
£000s
TOTAL
£000s
In terms
3,996
2,084
669
6,749
1-30 days overdue
1,656
3,226
338
5,220
31-60 days
223
370
239
832
61-90 days
3,034
473
115
3,622
1,264
1,100
1,790
4,154
10,173
7,253
3,151
20,577
In excess of 90 days
A/R De btors
Las t M onth
NHS
Non-NHS
£000s
£000s
Private
Patie nts
£000s
3,926
430
10,326
1-30 days overdue
1,668
579
370
2,617
31-60 days
3,488
546
180
4,214
61-90 days
778
390
136
1,304
1,015
884
1,728
3,627
12,919
6,325
2,844
22,088
A/R De btors
TB2014.98 Financial Performance
Mar-14
16,916
6,383
3,091
553
4,283
Apr-14
17,190
8,559
3,180
557
4,769
May-14
20,232
13,727
3,069
615
5,396
Jun-14
20,612
11,058
3,056
618
7,494
Jul-14
18,589
10,887
3,307
555
7,574
39,250
31,226
34,255
43,038
42,837
40,913
An increasing amount of NHS debt is now greater than 90 days old
and NHS organisations are being pursued actively for payment.
Total aged debt that is more than 90 days old is now 0.9% of
annual planned turnover (June = 0.4%).
•
The table below shows the reduction in average monthly sales
ledger debt for the past four months compared to the last four
months of 2013/14.
£000s
5,970
Feb-14
20,465
10,135
3,192
783
4,675
•
TOTAL
In terms
In excess of 90 days
Sales Ledger
Prepayments & Accrued Income
Private Patients
Recoverables
Other (including VAT)
Page 16 of 24
Oxford University Hospitals
TB2014.98
Sales Ledger
TB2014.98 Financial Performance
2013/14
Dec - Mar
Average
25,234
2014/15
Apr - Jul
Average
19,156
Page 17 of 24
Oxford University Hospitals
TB2014.98
Analysis of Accounts Payable (Creditors)
July YTD
Num ber
Non-NHS
Bills paid in the year
39,456
104,047
Bills paid w ithin target
35,935
88,171
91.1%
NHS
84.7%
Bills paid in the year
1,568
32,536
Bills paid w ithin target
1,456
31,548
92.9%
All
Value
(£000)
97.0%
Bills paid in the year
41,024
136,583
Bills paid w ithin target
37,391
119,719
91.1%
TB2014.98 Financial Performance
Accruals & Deferred Income
Purchase Ledger
Recoverables
Capital
Tax & Social Security
Other (including VAT)
Feb-14
74,175
28,234
16,624
2,176
9,098
10,246
140,553
Mar-14
54,274
29,892
16,895
6,337
59
8,220
115,677
Apr-14
59,021
34,792
17,037
5,627
9,293
8,655
134,425
May-14
73,010
29,691
17,283
3,822
9,355
9,128
142,289
Jun-14
60,625
32,726
17,729
2,574
9,216
10,174
133,042
Jul-14
64,383
32,469
17,504
3,602
9,054
10,386
137,398
• The Trust’s performance against the Better Payment Practice
Code (BPPC) is shown in the table to the left.
87.7%
Page 18 of 24
Oxford University Hospitals
TB2014.98
Statement of Cashflows
April
2014
May
2014
June
2014
July
2014
Year-toDate
£000
£000
£000
£000
£000
Cash Flow s from Operating Activities
Operating Surplus/(Deficit)
2,247
2,100
3,651
5,049
13,048
Depreciation & Amortisation
3,492
3,328
3,302
3,291
13,413
(1,685)
(1,687)
(1,686)
(1,685)
(6,742)
(197)
(197)
Interest Paid
Receipt of Donated Assets
(Increase) in Inventories
(132)
20
(Increase) in Trade & Other Receivables
(2,599)
(8,694)
Increase in Trade & Other Payables
18,842
9,052
Increase in Provisions
Cash Flow from Operating Activities
(403)
4,120
(653)
2,262
(9,210)
(9,173)
2,708
21,429
(1,009)
(1,023)
10,281
30,065
(14)
20,151
(138)
(178)
(4,487)
• The Trust received two months of VAT refund in July because
the amount usually received in June was delayed due to
technical issue at HMRC.
• £5.5m in R&D income was also received in July. This will be
spent over the next quarter of the year.
• The Trust held enough cash to cover 47 working days of
planned operating expenditure at 31 July 2014.
Cash Flow s from Investing Activities
Interest Received
(Payments) for Fixed Assets
Cash Flow from Investing Activities
26
29
24
25
104
(1,181)
(3,119)
(2,090)
(1,784)
(8,174)
(1,155)
(3,090)
(2,066)
(1,759)
(8,070)
(806)
(868)
(848)
(831)
(3,353)
(806)
(868)
(848)
(831)
(3,353)
Cash Flow s from Financing Activities
Capital Element of Finance Leases & PFI
Cash Flow from Financing Activities
Net Increase/(Decrease) in Cash
18,190
161
Cash - Beginning of the Period
86,448
104,638
104,638
104,799
Cash - End of the Period
TB2014.98 Financial Performance
(7,401)
7,692
18,642
104,799
97,399
86,448
97,399
105,090
105,090
Page 19 of 24
Oxford University Hospitals
TB2014.98
Cashflow Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
Aug 14
Sep 14
Oct 14
Nov 14
Dec 14
Jan 15
Feb 15
Mar 15
Apr 15
May 15
Jun 15
Jul 15
£000
£000
£000
£000
£000
£000
£000
£000
£000
£000
£000
£001
Cash Flow s from Operating Activities
Operating Surplus/(Deficit)
Depreciation & Amortisation
Interest Paid
(394)
3,304
(1,706)
Dividend Paid
(Increase) in Inventories
(Increase) in Trade & Other Receivables
Increase in Trade & Other Payables
Increase in Provisions
Cash Flow from Operating Activities
4,671
5,496
3,085
1,354
2,652
2,603
2,852
1,815
1,037
4,877
5,842
3,304
3,304
3,304
3,304
3,304
3,304
3,095
3,176
3,176
3,176
3,176
(1,811)
(1,706)
(1,706)
(1,706)
(1,706)
(1,706)
(1,868)
(1,693)
(1,693)
(1,693)
(1,693)
(3,827)
(236)
3,785
(7,396)
40
(2,603)
(3,408)
(400)
211
(1,746)
3,766
(234)
12,429
40
(3)
39
23,539
(172)
(672)
948
(286)
(10,002)
40
(4,503)
8,181
842
1,555
(534)
2,810
(475)
1,434
3,504
(504)
(3,350)
1,079
39
40
39
10,214
3,275
7,595
(42,500)
244
(3,359)
(114)
(184)
(2,295)
(11,601)
25,734
717
3,020
9,196
27,994
122
6,971
4,736
1,221
(35,549)
Cash Flow s from Investing Activities
Interest Received
(Payments) for Fixed Assets
Cash Flow from Investing Activities
25
25
25
25
25
25
25
21
20
20
20
20
(2,126)
(1,358)
(2,521)
(3,599)
(3,042)
(4,879)
(3,698)
(3,543)
(5,680)
(3,205)
(2,442)
(2,609)
(2,101)
(1,333)
(2,496)
(3,574)
(3,017)
(4,854)
(3,673)
(3,522)
(5,660)
(3,185)
(2,422)
(2,589)
Cash Flow s from Financing Activities
Public Dividend Capital Received
980
Public Dividend Capital Repaid
(1,800)
Capital Loans - Repayment of Principal
(702)
(702)
Loans received from DH - FT Liquidity Loans
Capital Element of Finance Leases & PFI
Cash Flow from Financing Activities
Net Increase/(Decrease) in Cash
Cash - Beginning of the Period
Cash - End of the Period
•
10,000
(754)
(793)
(786)
(794)
(795)
(814)
(834)
(2,002)
(852)
(852)
(852)
(852)
(754)
(1,495)
(786)
(794)
(795)
(814)
(834)
6,476
(852)
(852)
(852)
(852)
(5,458)
(2,831)
20,257
105,090
99,632
96,801
117,058
108,187
114,589
99,632
96,801
117,058
108,187
114,589
112,196
(8,871)
6,402
(2,393)
3,088
(32,595)
21,482
112,196
115,284
82,689
115,284
82,689
104,171
(3,915)
3,697
1,295
104,171
100,256
103,953
100,256
103,953
105,248
A rolling 12-month cash forecast is shown in the table above. The Trust plans to take out a liquidity loan of £10m in March 2015.
TB2014.98 Financial Performance
Page 20 of 24
Oxford University Hospitals
TB2014.98
Risk Rating – Continuity of Services
After the first four months of 2014/15 Trust’s Continuity of Service scores are:
Liquidity score = 3 (Month 3 score = 2)
Capital Servicing Capacity score = 3 (Month 3 score = 3)
The average of these two scores is 3 (Month 3 score = 3). The calculation of the individual scores is shown below.
Balance
Sheet
31-Jul-14
Liquidity score
Working Capital Balance
In this measure the Trust’s working capital balance is reflected as a ratio (in days) of the
Trust’s annual operating expenditure.
Current Assets
150,760
The Trust’s working capital balance was (£13.809m) at 31 July 2014.
Less: Inventories
(12,460)
138,300
The Trust’s year-to-date operating expenses was £266.599m and therefore, based on
Monitor’s assumption of there being 360 working days in the year, annual operating
expenditure will be £799.797m (= £266.599m x 360/120).
Current Liabilities
The liquidity ratio calculation is therefore ((13.809 x 360 / 799.797) = -6 days.
Working Capital Balance
(152,042)
Less: PFI Prepayments
(67)
(13,809)
Against Monitor’s ratings this scores 3.
Financial Criteria
Liquidity Ratio (Days)
Score:
Days
2
3
4
Ratio Days
Score
-14
-7
0
-6.2
3
Full Year Op. Expenditure
2014/15
YTD
Expend.
£000
From I&E
Year-to-date Operating Expenditure
Less: Impairment of Receivables
TB2014.98 Financial Performance
267,468
(869)
Year-to-Date Op. Expenditure
266,599
Annual Operating Expenditure
799,797
Page 21 of 24
Oxford University Hospitals
TB2014.98
Capital Servicing Capacity score
2014/15
Revenue for Servicing Capital
In this measure/rating the amount of revenue available for servicing capital is compared to the
amount required to service the debt.
EBITDA
The amount of revenue available for servicing capital is (i) the EBITDA surplus, plus (ii) the
cash received from interest earned, less (iii) any donated asset additions credited to the
Statement of Comprehensive Income.
YTD
£000
26,461
Add:
Investment Revenue
104
Less:
The Trust’s year-to-date revenue available is £26.368m.
Donated Asset Additions
The amount of debt that requires servicing includes (i) the repayment of the principal on any
loans, including the PFI commitments, plus (ii) all interest payable, plus (iii) the contingent rents
on the PFI schemes, plus (iv) the PDC dividend.
Revenue Available
(197)
26,368
2014/15
The year-to-date debt is £12.659m.
Year-to-date Debt
The capital servicing capacity ratio is therefore 26.368 / 12.659 = 2.08.
Extracts from Cashflow
Against Monitor’s ratings this scores 3.
Loans repaid to DH (Capital)
Other Loans Repaid
Financial Criteria
Score:
YTD
£000
2
3
4
Ratio
Score
1.25
1.75
2.50
2.08
3
0
3,353
Extracts from I&E
Capital Servicing Capacity
Ratio
Finance Costs
6,906
PDC Dividend Payable
2,400
Year-to-date Debt
TB2014.98 Financial Performance
12,659
Page 22 of 24
Oxford University Hospitals
TB2014.98
Capital Programme
Annual
OUH Capital Program m e 2014/15
Mth 4
Mth 4
Mth 4
Plan
Forecast
Variance
YTD Plan
YTD Act.
Variance
£000s
£000s
£000s
£000s
£000s
£000s
•
The Trust has charged £5.6m against its capital
programme in the first four months of the year. This is
£0.1m less than planned.
•
A review of the capital programme, and year-to-date
slippage against schemes, is being carried out with
the relevant project managers.
Trust & PDC Funded
EPR Implementation
3,500
3,000
1,167
469
Medical and Surgical Equipment
2,000
2,000
222
692
470
IT General
2,000
2,000
666
545
(121)
666
73
(593)
300
6
(294)
Respiratory Ward Relocations
2,200
2,200
Major Radiological Equipment
2,700
2,700
Estates General
2,000
2,000
(500)
13
Day Surgery Unit Churchill
900
900
Outpatient Horton
800
1,100
300
Ultrasound - JR | Horton
969
1,428
459
321
1,300
1,500
200
868
100
250
150
68
Small Schemes
1,500
1,263
Other Ward Relocations
Expansion of EAU - link to day hospital
Centralisation of Sw itchBoard
(237)
(698)
13
5
5
736
415
(868)
11
(57)
375
375
529
1,312
1,540
228
240
769
Other Medical Equipment Schemes
571
91
(480)
86
12
(74)
Other Estates
300
721
421
167
167
R&D
400
400
102
102
Renal Inpatient Churchill
SEND Project
End to end electronic prescribing' project
Improving Maternity Care Settings
Radiotherapy Milton Keynes
Radiotherapy Sw indon
Theatre Remodelling - JR
345
Total - Trust Funded
1
1
694
349
197
197
(40)
309
34
4
200
200
66
7
(59)
2,500
625
167
(458)
550
350
420
4,688
PFI lifecycle
420
2,311
(2,377)
1,367
1,367
52
52
791
791
191
115
(76)
21
8
(13)
31,375
31,364
(11)
5,350
5,202
(148)
Microbiology automation
Welcome Centre
Carbon Energy Fund
1,280
1,280
500
500
750
1,047
3,000
3,000
400
297
428
28
5
5
33
6,000
6,000
Total - Externally Funded
11,530
11,827
297
400
433
Total Capital Program m e Spend
42,905
43,191
286
5,750
5,635
TB2014.98 Financial Performance
Capital Resource Limit 2014/15
Annual
Mth 4
Mth 4
Mth 4
Plan
YTD Plan
YTD Act.
Variance
£000s
£000s
£000s
£000s
(200)
Externally Funded
Equipment leasing
Capital Resource Limit 2014/15
(30)
2,500
Completion of 13/14 schemes
Other
5
40
309
Adult Critical Care
EPR Reprocurement
5
Total Capital Programme Spend
42,905
5,750
Asset Disposals
(200)
(66)
Donations
(260)
(87)
(197)
110
42,445
5,597
5,438
159
Capital Resource Limit 2014/15
5,635
115
(66)
(115)
Page 23 of 24
Oxford University Hospitals
TB2014.98
Conclusion
The Board is asked to note the content of this report.
Mr Mark Mansfield, Director of Finance and Procurement
Mr Kevin Davis, Senior Business Partner
August 2014
TB2014.98 Financial Performance
Page 24 of 24