Annual Report and Accounts 2012/13 - Royal Bournemouth Hospital

Financial Accounts23 Prudential borrowing limit31 March 2013 31 March 2012£’000 £’000Limit Utilised Limit UtilisedTotal long-term borrowing limit 45,600 1,624 43,200 2,043Working capital facility 0 0 0 0Prudential borrowing limit set by Monitor 45,600 1,624 43,200 2,043Ratios 2012/13 2011/12Approved Actual Approved ActualMinimum dividend cover > 1x 3.7x > 1x 4.2xMinimum interest cover > 3x 284x > 3x 307xMinimum debt service cover > 2x 40x > 2x 48xMaximum debt service to revenue < 2.5% 0.0% < 2.5% 0.0%The Foundation Trust is required to comply and remain within a prudential borrowinglimit. This is made up of two elements:l the maximum cumulative amount of long-term borrowing. This is set by referenceto the five ratio tests set out in Monitor’s Prudential Borrowing Code. The financialrisk rating set under Monitor’s Compliance Framework determines one of the ratiosand therefore can impact on the long-term borrowing limit.l the amount of any working capital facility approved by Monitor.Further information on the Foundation Trusts’ Prudential Borrowing Code andCompliance Framework can be found on the website of Monitor, the IndependentRegulator of Foundation Trusts.Annual Report and Accounts 2012/13 43