January 2012 - Sandwell & West Birmingham Hospitals

SWBTB (1/12) 267 (a)
Financial Performance Report – December 2011
Conclusions
• Measured against the DoH target, the Trust generated an actual surplus of £180,000 during December
bringing its financial performance for the first six months of the year to an overall surplus of £771,000.
•The Trust’s year to date performance against both its Department of Health control total (i.e. the bottom line
budget position it must meet) and the statutory accounts target shows a positive variance of £11,000 against
the planned position.
• The £180,000 surplus in December is £13,000 better than planned for the month.
• Year to date capital expenditure is £4,260,000 which remains significantly lower than plan. Expected
expenditure on Grove Lane land is now expected to amount to only around £3.75m for the year although this
represents a phasing issue rather than a real change with deferred expenditure expected to take place in
2012/13.
•At 31st December, cash balances are approximately £25.1m higher than the cash plan which is around £0.9m
greater than the position at 30th November. This includes receipt of an £8m DoH capital expenditure loan
planned to be used to fund land acquisition in Grove Lane.
• The only material adverse variance in month is within Reserves and Miscellaneous which is the result of
transfers of resources to operational areas to reflect movements in the SLA position with Sandwell PCT and
the recognition of trust cost pressures.
• Monitoring and review of the measures implemented in Medicine & Emergency Care, Surgery A,
Anaesthetics & Critical Care and Women and Child Health Divisions continues on an ongoing basis. The
current situation in these and all other divisions is being actively monitored and managed as any failure to
deliver key financial targets will present a significant risk to the Trust’s overall financial position including its
agreed yearend surplus target. The finance committee continues to hold Divisions to account for financial &
operational performance especially those in financial turnaround. As such it continues with its cycle of
divisional attendance each month.
Recommendations
The Trust Board is asked to:
i. NOTE the contents of the report;
ii.
iii.
APPROVE the amendments to the capital programme; and
ENDORSE any actions taken to ensure that the Trust remains on target to achieve its planned
financial position.
Robert White
Director of Finance & Performance Management
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