2000 - 2001 - Central Manchester University Hospitals - NHS ...

Introduction
Income and Expenditure
The summary financial statements for the year ended 31st March
2001 are included later in this report. These are an extract of the
full audited accounts adopted by the Trust Board on 7th August
2001, which are available from the Finance Directorate on
0161 276 4936.
The Trust’s income continues to rise each year and in 2000/2001
totalled £222m. In particular the Trust received additional income Capital Absorption Rate
for critical care and coronary heart disease. As a major teaching
Trust the income comes from many different sources as the
diagram below illustrates.
Income Analysis
External Financing Limit
2% 2% 1% Manchester
Greater
13%
Manchester
Levy
10%
Other Health
Authorities
35%
Management costs
Other
13%
Provider to
Provider
24%
Private Patient
Distinction
Awards
Capital Expenditure
Pay Analysis
The provision of healthcare is labour intensive and approximately
60% of expenditure was used to pay staff salaries. The majority
of this is for Medical and Nursing staff, as set out in the following
diagram:
Nursing Staff
4% 4% Medical Staff Senior Manager Pay Awards
5%
Professional &
Technical
7%
10%
12%
27%
31%
Admin &
Clerical
Ancillary Staff
Professions
Allied to
Medicine
Senior
Managers
Agency
The Trust was set a target to break-even in the year, this required
the Trust to implement savings of £1.25m as part of an ongoing
financial plan. In fact the Trust has produced a surplus of £857k
for the year. This has offset deficits made in previous years and
the Trust now has a cumulative deficit of £2,694k, since the
introduction of the revised break-even performance by the NHS
Executive in 1997/98.
The Trust made a surplus before interest and dividends were paid,
of £9,991k. A dividend of £9,041k was paid, which is 5.6% of
net relevant assets, which is within the materiality range set by
the in the NHS financial regime.
The Trust was allowed to borrow an additional £5,549k during
the year. In fact it borrowed £5,539k which is well within the
£50k tolerance set by the NHS Executive. The borrowing
facilitated the financing of the £17m capital programme.
The management costs of the organisation have shown a slight
increase over the last financial year to £7,167k, which is 3.53%
of income. This is well within the target figure of £7,625k.
Details of management and administration costs are given on
page 31.
Capital expenditure for the financial year 2000/2001 totalled
£17.3m and sees the continuation of major capital work in
respect of redevelopment of the site. The largest item of
expenditure was £6.7m on the building of four wards and two
theatres to assist with the transfer of services form Withington
Hospital. Other major expenditure included the purchase of
clinical equipment, health and safety expenditure and the
commencement of the building of a multi-storey car park.
The Secretary of State Health requires Trusts not to have pay rises
for senior managers of more than 3.25% in total. This Trust
complied with this requirement.
Public Sector Payment Policy
The Trust aims to pay all its suppliers on time. The NHS Executive
set a target to pay at lease 95% of all invoices within 30 days.
In 2000/01 it achieved 94% against the target. Full details of
compliance with the code are given on page 31.
Annual Report 2000 ~ 2001 23