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

I am pleased to be able to report that the financial statements,
which follow, demonstrate that in 2000/2001 the Trust once
again achieved all three of its required financial duties.
Taking each of the Trust’s main financial duties in turn:
1. To at least break-even
The Trust is required by statute to ensure that its income is at
least sufficient to cover its expenditure “taking one year with
another”. With total income of £69,378,000, operating
expenditure of £67,233,000 and other costs (principally net
financing costs) of £2,141,000, the out-turn for the year was a
small surplus of £4,000.
2. To remain with the approved External
Financing Limit.
days and therefore over-achieved the current 95%
compliance target. Performance for the year maintained the
compliance achieved in 1999/2000. (full details are provided
on page 55).
ii) Management and Administration Costs
The NHS Executive set the Trust a management cost target
of £2,717,000 for financial year 2000/2001. The actual
management and administration costs were £2,700,700,
which represents 3.9% of the Trust's total income.
(full details are provided on page 55).
The Trust has a further duty to ensure that it uses the resources
provided to best effect. This is achieved through the active
participation of clinical staff at all levels of decision and policy
making.
The External Financing Limit is a control set by the NHS Executive
on the net cash outflow of the Trust. The Trust is set a target,
which is either positive or negative, depending on whether the
Trust has to borrow funds, or has sufficient cash balances to meet
its capital expenditure commitments. Either way this target must
not be exceeded. The Trust's financing limit for 2000/2001 was
positive £39,000. The actual financing requirement was negative
£3,000 and therefore the Trust undershot its target by £42,000,
which was within the permitted tolerance.
3. To achieve a Capital Cost Absorption
Rate of 6.0%
The Trust is required to absorb the cost of capital at a rate of 6%
of average relevant net assets. The Trust paid in cash a total of
£2,207,000 in respect of dividends on Public Dividend Capital.
The average relevant net assets for the year were £36,155,000,
which therefore produces a capital cost absorption rate of 6.1%.
In addition to those duties described above, the Trust must also
report on its performance against the Public Sector Payment
Policy target and the level of its Management Costs.
i) Public Sector Payment Policy
In addition to the main financial statements that follow, full
details of directors’ remuneration are provided on pages 53
and 54.
The Trust participates in the Greater Manchester Education and
Training Consortium. Trafford Healthcare NHS Trust, as lead trust
for the consortium, accounts for the consortium’s income and
expenditure.
The financial performance in 2000/2001 continues the pattern of
firm financial control established since the inception of the Trust
in 1995. The sound financial position has allowed the Trust to
finance significant developments in clinical services whilst
continuing to maintain the estates infrastructure and replace
medical equipment. This has been achieved in collaboration with
Health Commissioners, Primary Care Groups, Primary Care Trusts
and the NHS Executive North West, each of whom plays an
important role in making available the resources necessary for
the provision of health care services and capital investment.
In conclusion, therefore, I would like to thank all Trust staff for
their continued efforts to deliver increased levels of patient care
at consistently high standards, along with a demanding
management agenda, within the resources available to the Trust.
The NHS Executive requires that Trusts pay their non-NHS
trade creditors in accordance with the CBI (Confederation of
British Industries) prompt payment code and Government
accounting rules. The Trust's performance demonstrates that
97% of its invoices were paid within agreed terms or 30
J. Wilbraham
Acting Director of Finance
46
Annual Report 2000 ~ 2001