5 Boroughs Partnership NHS Foundation Trust Annual ... - Monitor

Financial Viability
This theme relates to our ability to operate within our financial targets and
budgets. It is about how we manage our resources in the most effective way
we can. We have fully met objectives agreed with the Trust Board for this
year, for this strategic theme.
What have we done against this Strategic Objective in 2011/12?
Meeting our Statutory Financial Duties and Financial Targets in addition
to Meeting our Terms of Authorisation
In 2011-12 we have posted an underlying surplus of £4.4m and paid over 95
percent of our invoices within 30 days for the third consecutive year. We have
£12.5m of cash in the bank to make sure that we can continue to meet our
payment obligations. This has meant that overall our regulator Monitor has
given us a Financial Risk Rating of 4, which is good and shows that we
remain financially healthy and viable as a Foundation Trust.
Budget-Holder Management and Ownership
Overall the Trust has exceeded the surplus target of £4 million it set itself at
the start of the financial year, which means that overall the budgetary control
in the Trust has been very good. This has been borne out by an independent
assessment of our budgetary control systems by our auditors, which has
provided the Board with significant assurance that the way in which we
manage our budgets is effective.
Whilst this continues to be good news for the Trust, not every budget holder in
the organisation is able to manage to their original planned budget. This is
almost always as a consequence of factors outside of their control, such as
higher-than-expected sickness rates or maternity leave or particularly complex
service users who require additional clinical support. In these instances the
costs are met by individual budget holders, but the senior managers overall
find a way of funding these costs so that even if an individual budget
overspends the Trust stays within plan.
What else have we achieved against this Strategic Theme during the
reporting year?
During the reporting period we have continued to maintain a strong financial
position and have increased our surplus a little when compared with last year.
We acquired Knowsley Integrated Provider Services - the community services
provider arm from NHS Knowsley – on 1 April 2011. This brought in an extra
£45million of income in 2011-12 and has improved our overall financial
standing.
We have developed and delivered on a range of cost improvement initiatives
that have helped to underpin our strong financial performance and still
maintain the quality of our service.
Annual Report and Annual Accounts 2011-12 57