Agenda item: 16/23 b
WEST HERTFORDSHIRE HOSPITALS NHS TRUST
FINANCE COMMITTEE
Minutes of the Finance Committee Meeting held on Thursday 6 November 2014
West Herts meeting room
Watford General Hospital
Chair:
John Brougham
Present:
Samantha Jones, Chief Executive (from Item 7)
Mahdi Hasan, Trust Board Chairman
Geoff Brown, Healthwatch
Helen Brown, Director of Transformation
Lisa Emery, Chief Information Officer
Stephen Hay, Non Executive
Lynn Hill, Deputy Chief Executive
Don Richards, Chief Financial Officer
Phil Townsend, Non Executive
Mike Van der Watt, Medical Director
Jonathan West, Associate Director of HR
In attendance:
Dave Self,
Jackie Collier, Ernst Young
Lisa Morris, Clerk to the Committee
Apologies:
Paul Cartwright, Non Executive
Ginny Edwards, Non Executive
Jonathan Rennison, Non Executive
Gill Balen, Patients Panel
Jackie Ardley, Director of Governance and Corporate Affairs
Paul Da Gama, Director of HR
Clare Stafford, Acting Chief Financial Officer
Antony Tiernan, Director of Corporate Affairs and Communications
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MEETING MINUTES
Action
Who
2.
Chairman’s Introduction
JB welcomed everyone to the meeting and reminded
members that he would take the papers as read.
Apologies for absence
2.1
As recorded above.
2.2
JB added that Gill Balen has stated that she no longer wished
to attend Finance Committee and that another member of the JB
Patients’ Panel would be approached and invited to future
meetings.
1.
1.1
3.
3.1
4.
Declarations of Interest
None for this meeting. However, two changes were to be
made to the Register. Mahdi Hasan asked for both Project
Advisor to Maersk Drilling Co and Consultant to
Schlumberger Business Consulting to be removed and Mike
Van der Watt declared that he was no longer a Business
Partner in Bushey Cardiac Centre. The Register of Finance
LM
Committee Members’ Interests would be updated accordingly.
Minutes of the Finance Committee held on 2 October
2014 (7/04)
4.1
The minutes of the previous meeting were approved for
accuracy and matters arising.
5.
Action Log (6/05)
5.1
5.1.1 Finance Committee Workplan – LTFM on agenda
5.1.2 PDC Application – On Agenda
6.
Committee Workplan 2014/15 (7/06)
The Committee noted the Committee Workplan and MH
suggested that the year should be removed from the monthly
headings to allow for a rolling programme. To be updated
accordingly.
Month 6 Reports (7/07)
6.1
7.
7.1
7.1.1
7.1.2
7.1.3
Finance Report M5 FY15 (7/07a)
DR reported that, in August, the Trust delivered an actual
deficit of £2.4m.
DR further reported on the key drivers behind the variances to
budgeted revenue, cost and cost improvements and the
actions being taken to address them. The forecast for the
year remains as budgeted, a deficit of £14m.
The Committee noted that the figures to the end of the
second quarter included accrued income of £6m to cover
costs in support of the Trust’s transformation. The Trust
expects to receive £12m relating to this support by the end of
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When
6 Jan 15
6 Nov 14
6 Jan 15
Action
Who
When
the financial year.
7.1.4
7.1.5
7.1.6
7.1.7
7.2
7.2.1
7.2.2
7.3
7.3.1
7.3.2
7.3.3
7.3.4
The new Appendix 13 to the Board report was well received
by the Committee. This was considered a helpful visual to
targeting further action in managing financial risks.
MVdW suggested that it would be useful to have the medical
pay variance broken down between the RTT element and
other reasons.
The Committee approved the application for cash support in
the form of additional Public Dividend Capital to support
revenue cash consequences of £22.7m and capital cash
consequences of £11.1m (spread over FY15 and FY16).
DR also reported on MRET and that the CCG has confirmed
that it would honour its proposed £2.5m concession against
the MRET penalty, which leaves a maximum risk of £1.5m
over and above the £4.0m included in the forecast.
Efficiency Programme update – Month 6 (7/07b)
The Committee received an update on the progress made to
date with regards to the Efficiency Programme and key
objectives and JC reported on the £8.7m savings against the
previous forecast of £10m.
JB expressed concern that there was some confusion over
the figures.
SJ asked EY to produce a report for the next meeting
showing how these figures compared to this point last year
and the previous year.
FY15 Efficiency Programme – options for in-year delivery
support (7/07c)
The Committee received a paper on the current status of the
Efficiency Programme and the options for future delivery
support.
It was noted that a significant amount of work had been
completed and the two Service Reviews, Cardiac Catheter
Lab and Elective Moves to SACH, would be completed by
end of November and a paper would be prepared for TLEC.
JC also added that there were many initiatives in place.
JC left the meeting.
EY
6 Jan 15
DR
6 Feb 15
Regarding the proposal to extend the EY contract, the
Committee agreed that they were supportive of Ernst Young.
However, PT asked why it was not predicted that they would
be needed longer. SJ responded that it was known but did
not want to commit.
HB commented that we now need a longer-term view for the
medium term with skills transfer etc.
SJ asked that one of the Workstream leads is invited to
present to the Committee.
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7.3.5
8.0
8.1
9.0
9.1
10.0
11.0
11.1
11.2
12.
12.1
12.2
14.
14.1
15.
15.1
Action
The Committee agreed that, whilst the efficiency programme
remains challenging, it is essential to recommend to the
Board to continue with support from Ernst Young.
ITFF funding application and long term financial model
(7/08)
The Committee noted the application for cash support in the
form of additional Public Dividend Capital to support revenue
cash consequences of £22.7m and capital cash
consequences of £11.1m (spread over FY15 and FY16).
The Committee recommends that the Board approves this
ITFF application.
Report on the out-turn of the 2013/14 Reference Cost
return (7/09)
The Committee noted that all NHS Trusts are obliged to
produce a reference cost return each year which provides
information on the unit costs of clinical activity undertaken by
the Trust and allows Reference Cost Index (RCI) scores to be
produced. The Committee noted the recommendations
contained in the report.
TDA approval for Watford Health Campus development
(7/10)
The Committee received and noted the contents of the letter
to the NTDA regarding the Watford Health Campus
development. It was noted that this paper would be taken to
Part 2 of the Trust Board.
Land sale – PPAS site (7/11)
The Committee noted that a favourable offer had been made
for the PPAS building in St Albans and this would be put to
the Board for its approval.
The Committee approved the recommendation to proceed
with the sale of PPAS at the subject to contract offer price of
£900,000.
Report on finance for referral to treatment programme
(7/12)
The Committee noted the summary of the revenue
consequences linked to the delivery of the Trust’s RTT plan.
It was reported that TLEC approved the Executive Directors’
decision to dedicate additional resources to the plan.
Items for Escalation to the Board (7/13)
1. Report of this meeting.
2. Recommendation to continue with the support from Ernst
Young.
3. Recommendation to approve the ITFF funding
application.
Agenda for next meeting (7/14)
The Committee noted and agreed the draft Agenda for the
next meeting.
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Who
When
DR
13 Nov 14
DR
13 Nov 14
DR
Nov 14
Action
16.
Who
16.1
Any other business (7/15)
There being no further business the meeting closed at 15.30.
17.0
Date of Next Meeting (7/16)
When
The next meeting of the Finance Committee will be on 6
January 2015 from 09.15 to 10.45
5 in A&E Seminar room at Watford General Hospital.
Signed
Name: John Brougham
(Committee Chairman)
Dated
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