Minutes of the Twenty First Meeting of the Board of NHS Leicester ...

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Paper CNHS Leicester City Board Meeting12 May 2011Key Financial Indicator5. Meet the “Better PaymentPractice Code” - To pay >95%valid purchase invoices withinthirty days of receiptRisk RatingNHSInvoicesNumberNHSInvoicesValueNon NHSInvoicesNumberNon NHSInvoicesValue96.7% 98.5% 95.3% 96.8%Risk Rating:- No Change- Improving performance than previous month- Worse performance than previous monthKey:- Immediate action required. Will not hit target by end of financial year- May not hit target by end of financial year unless action is taken- Forecast to meet targets for the current financial yearIncome and ExpenditureChange in allocations4. During the final month our resources decreased from £555.228 to £554.994m.The changes are reported in table 2.Table 2 – Change in Revenue Resource Limit during March 2011DescriptionRevenueResourceLimit £mBalance b/f 28 February 555.228DetailFHS Restructure costs 0.219 Costs of transferring FHS staff to NHSSBSCancer Drug Refund 0.197 National funding refundImpairment (1.674) Previously received £1.806m. Resourcesreduced to reflect actual impairment of£132k.Cost of Capital 0.947 Change in accounting policy from DHOther 0.077 NCG under spend on cancer drugs/miscTotal Resources 31 March 554.994Joel Martin 2Head of Corporate Finance
Paper CNHS Leicester City Board Meeting12 May 20115. The Department of Health (DH) has changed the accounting policy in reportingcost of capital (cost of capital was an interest charge of 3.5% on the averagenet relevant assets employed by the PCT). The DH has removed reporting ofthis cost and therefore the resources associated with this have also beenremoved. As our statement of financial position (previously known as theBalance Sheet) is a net liability, the cost of capital incurred is not a charge buta credit. We are awaiting a final letter from the Department of Healthconfirming this along with the final impairment adjustment (another financialtechnical adjustment), both of these values are known to the DH and this is aformality that affects most NHS organisations.End of year Position6. The end of year income and expenditure position is detailed in the OperatingCost Statement at Appendix 1.7. The operational position has deteriorated in month by £1.594m to £4.188madverse variance from budget. This deterioration is outlined in table 3:Table 3 - Movement in forecast operational variance£mPrimary Care -1.267Acute Commissioning -0.235Non Acute -0.498Infrastructure 0.405Total adverse movement -1.594Primary Care8. The majority of the movement relates to the end of year prescribing accrual.Following a review of our prescribing accrual methodology, we have adjusted itfrom 2 months to 2.2 months. This is a more accurate reflection of the end ofyear accrual required and is consistent with comments made by the AuditCommission during previous end of year audits. The result of this was anincrease in accrual of £0.814m. The rest of the movement on prescribingresulted from the final position provided by the PPA.9. GP commissioning improved by £0.170m due to lower costs relating to Qualityoutcomes framework, enhanced service payments and other monthly GPpayments.10. Dental and Ophthalmology combined position improved by £0.180m, howeverthis was offset by deterioration in the Pharmacy contract of £0.469m.Joel Martin 3Head of Corporate Finance
Page 1 and 2: Paper ANHS Leicester City Board Mee
Page 9 and 10: Paper BNHS Leicester City Board Mee
Page 11 and 12: NHS LEICESTER CITYMEETING: TRUST BO
Page 13: Paper CNHS Leicester City Board Mee
Page 17 and 18: Table 4 - Achievement of £6.192mPa
Page 19 and 20: Paper CNHS Leicester City Board Mee
Page 21 and 22: Paper C, Appendix 1NHS Leicester Ci
Page 23 and 24: Paper C, Appendix 2NHS Leicester Ci
Page 25 and 26: Paper DNHS Leicester City Board Mee
Page 27 and 28: PERFORMANCEPaper DNHS Leicester Cit
Page 29 and 30: GOVERNANCEPaper DNHS Leicester City
Page 31 and 32: PS/11/56To Receive A Report on the

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