April 1st 2009 to March 31st 2010

Performance Against Monitor’sCompliance FrameworkAs a Foundation Trust, the Trust is required todemonstrate that it is operating within Monitor’sCompliance Framework. The Framework sets outMonitor’s approach to regulating FoundationTrusts using a risk based methodology.A key element of the framework sets out theapproach by which the level of financial riskfacing the Trust is assessed and the likelihood thatthe Terms of Authorisation will be breached.A Foundation Trust that has a high risk ofbreaching the financial element of their Termsof Authorisation would achieve a financial riskrating of 1. A low risk would achieve a financialrisk rating of 5.The Trust will continue to build upon the strongfinancial base that it has developed and hasplanned for a £3.3m surplus in 2010/11. Thissupports the Trust’s strategy to deliver surplusesso that the cash generated can be invested inimproving its infrastructure and the quality ofservices provided to patients.At its meeting of 27th May 2010, the Board ofDirectors considered its Annual Plan for 2010/11and supporting financial plans for 2011/12 to2012/13. These plans are based on prudentactivity assumptions that have been agreedwith commissioners, combined with expenditurebudgets that have taken into account the likelycost risks in this period and the requirement for3.5% efficiencies as set out in the NHS OperatingFramework for 2010/11.On the basis of these plans the Board of Directorshas a reasonable expectation that the Trust hasadequate resources to continue in operationalexistence for the foreseeable future. For thisreason that Trust has adopted the going concernbasis in preparing the accounts.The Trust’s main accounting policies includingpolicies for pensions that are used to prepare theaccounts are set out in Annex E to this report.Details of the Directors remuneration is includedin the Remuneration Report. The format of theaccounts and the supporting accounting policieswere reviewed by the Trust’s Audit Committee atits meeting on 8th February 2010.In the opinion of the Directors there are noevents after the reporting date.The Board of Directors is not aware of anyrelevant audit information that has beenwithheld from the Trust’s auditors, and membersof the Board take all of the necessary stepsto make themselves aware of the relevantinformation and to ensure that this is passed tothe external auditors as appropriate.The Board is not aware of any circumstanceswhere market value of fixed assets is significantlydifferent to carrying value as described in theTrust’s financial statements. The Trust’s auditorshave provided an opinion on our 2009/10accounts, which is outlined at Annex D.Target(level 3 risk)2009/10plan2009/10AnnualPerformance2008/09AnnualPerformanceEBITDA % achieved >70% 100% 91.2% 123.9%EBITDA margin >5% 6.6% 5.8% 7.5%Rate of return on assets >3% 4.3% 4.5% 8.1%I&E surplus margin >1% 1.0% 1.0% 3.4%Liquidity ratio >15 days 15 days 21 days 48 days36Blackpool, Fylde and Wyre Hospitals