Our finances

Finance

The key elements of the Trust’s financial plans for 2014/15 were to build on the strong performance of 2013/14 through the generation of a £1.8m surplus and the delivery of an ambitious £5.5m efficiency programme.  The Trust has exceeded the surplus target but fallen short of the recurrent efficiency programme target for the year.  The Trust has generated a £2.7m surplus this year (£3.1m in 2013/14) and remained within its resource limits set by the Department of Health.

Significant recurrent efficiency savings of £3.6m were achieved during the year through the Trust’s Cost Improvement Programme (£4.6m recurrent in 2013/14).  However, this was an underachievement of £1.9m against a plan of £5.5m (£7.7m planned in 2013/14).  Much of the saving was achieved through the continued redesign and modernisation of clinical services, as well as non-clinical savings from estates rationalisation and procurement initiatives.  The sustainable delivery of savings continues to present a challenge to the Trust.  Achieving sustainable recurrent efficiency savings means the Trust is able to continue delivering services in the long-term, and this is why it forms a key component of the Trust’s long-term strategy.

Despite the shortfall in CIP delivery (£1.9m), as well as absorbing additional cost pressures (£2.5m), the Trust over-achieved against its surplus plan through non-recurrent means as a result of not spending fully into its planned contingency budget (£1.3m) and generating net savings where vacancies were not able to be filled as quickly as planned (£4.0m). 

During the year, the Trust invested £4.9m in capital schemes, which was an underspend of less than £0.1m against the Trust’s plan and Capital Resource Limit set by the Department of Health.  Key areas of investment were the improvement of clinical environments and IT infrastructure to support the efficient delivery of patient care.  In addition, the Trust has invested £0.7m in new and replacement clinical equipment to support the quality of patient care.

Working capital has been stable throughout the year.  The Trust remains committed to prompt payment of suppliers by aiming to comply with the Confederation of British Industry (CBI) Better Payments Practice Code and is a signatory to the government’s Prompt Payments Code.  2014/15 saw an improvement on the previous year’s performance, with 85% of non-NHS trade payable invoices being paid within 30 days (84% in 2013/14).  84% of NHS payable invoices were paid within 30 days (80% in 2013/14). Details of compliance with the Better Payment Practice code are detailed in note 10.1 to the accounts.

Over the coming year the Trust plans to continue building on the strong financial position delivered over the past two years, in line with its long-term financial strategy and annual plan (both of which are available on the Trust’s website).  Focus remains on strengthening the Trust’s business platform as the basis for providing sustainable, high quality care to its patients.  This will be achieved through the continued development and delivery of the Cost Improvement Programme, mitigation of cost pressures, strengthening core business and developing new service opportunities.

Annual Report

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Full details of our finances can be found in our Annual Report and Annual Accounts.

Expenditure over £25,000

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The HM Treasury require all NHS organisations to publish their expenditure over £25,000 on a monthly basis.

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