Item 8 - Sheffield Health and Social Care

15.0 Annual AccountsDirector of finance’s introductionto the accountsThe Financial Plan for 2012/2013 submitted toand agreed by Monitor (the Independent Regulator),has been successfully delivered to the target surplus,however, the significant cost improvements requiredby the Government has only been achieved bynon-recurrent measures.The effort and work undertaken by Directorsand staff alike has been excellent, although thecontinued request for financial efficiency savings isnow becoming more difficult to achieve recurrently.For the second year running there is an increasingamount of non-recurrent cost improvements ofaround £3m to carry forward into next year.The NHS, along with all other public services, will befacing even more financial challenges over the nextfew years. It is, therefore, pleasing to see we haveachieved and exceeded our targets in the last 4½years as a Foundation Trust.The main elements of the Trust’s financialperformance are as follows:• Achievement of surplus of £3,512k• Delivery of EBITDA (Earnings Before Interest,Tax, Depreciation and Amortisation)• Delivery of planned financial risk rating of4 with the Independent Regulator, Monitor• An expectation that the Trust will pay itsnon-NHS creditors within 30 days. We achieved84.85% by value and 85.34% by numberaveraged over the year, however improvementsto payment processes saw the Trust achieve90.42% by value and 88.83% by number inMarch 2013. It is incumbent upon public bodieslike the Trust to support the general economyand ensure this target is increased wherepossible, especially in the economic downturnwhich will be facing the broader economy overthe next few years.A major benefit of Foundation Trust status isthat the organisation can retain any income andexpenditure surplus. This has resulted in a healthycash balance. This cash will enable the Trust tospend on its buildings to ensure we have a qualityenvironment, fit for the population we serve.We have already committed funds for:• Intensive Support Service Unit (new build) forour Learning Disability client group (circa £3m)• Psychiatric Intensive Care Unit to replace existingcramped environment (circa £3m)• Vehicle replacement; various IT schemes andequipment replacement (circa £600k)The major project will be to upgrade ourin-patient facilities and this will be anothersignificant challenge as we need approximately£25m to complete this scheme.During the financial year the Trust’s external auditors,the Audit Commission, who are appointed by theTrust’s Governors, were disbanded and followingagreement with Governors, their contract wastransferred to KPMG, which is a globally recognisedcompany of accountants and financial advisors.We have seen a number of financial challenges overthe years and we have been successful in deliveringfinancial performance and care quality standards, bytargeting inefficient areas of high cost. The financialchallenges facing the Trust over the coming years isunprecedented, combined with significant cuts inother public services, including the Local Authority,will make the delivery of financial savings targetseven more difficult at the same time as deliveringsafe, quality services to the population we serve.Paul RobinsonExecutive Director of FinanceForeword to the accountsSheffield Health and Social Care NHS Foundation TrustThese accounts for the year ended 31st March 2013have been prepared by Sheffield Health and SocialCare NHS Foundation Trust in accordance withparagraphs 24 and 25 of Schedule 7 of the NationalHealth Service Act 2006 in the form which Monitor,the Independent Regulator of NHS Foundation Trusts,has, with the approval of HM Treasury, directed.Kevan TaylorChief Executive (as Accounting Officer)28th May 2013151152