Annual Report 2014/15 - · PDF fileBridgewater Annual Report 2014/15 5 Contents 1: Statement from Chairman and Chief Executive 7 2: Statement of the Chief Executive’s responsibilities

Bridgewater Annual Report 2014/15 1

Annual Report(part year 1 April 2014 – 31 October 2014)

Incorporating Financial Accounts

2014/15

Bridgewater Annual Report 2014/152


Bridgewater Community Healthcare NHS TrustAnnual Report and Accounts 2014/15 (part year 1 April 2014 to 31 October 2014)



Contents

1: Statement from Chairman and Chief Executive 7

2: Statement of the Chief Executive’s responsibilities as the

Accounting Officer of Bridgewater Community Healthcare NHS Trust 9

3: Strategic Report

4: Directors’ Report 31

5: Quality of Services 51

6: Remuneration Report 52

7: Annual Governance Statement 59

8: Full Annual Accounts for the part year ended 31 October 2014 71

9. Useful Contacts 112



We are pleased to introduce our final Annual Report and Accounts for Bridgewater Community Healthcare NHS Trust (Bridgewater) for the period 1 April 2014 to 31 October 2014. As we were granted NHS Foundation Trust status during the financial year 2014/15 we are required to produce two annual reports.

This report and accounts covers the period of our last seven months in operation as an NHS Trust before we were granted Foundation Trust status with effect from 1 November 2014 by the independent regulator Monitor. The financial accounts presented in this report also cover the period 1 April 2014 to 31 October 2014.

Bridgewater Community Healthcare NHS Foundation Trust has produced an annual report and accounts for the period 1 November 2014 to 31 March 2015. This document incorporates our Quality Report, providing high quality care for all our patients is at the core of our business.

The period has been one of success and development for the Trust, with a number of external ratings and awards demonstrating continued improvements in the services we provide.

We started 2014/15 with the publication of the Care Quality Commission (CQC) report into their inspection of our services and were delighted to receive a very positive report about the quality and safety of our services and particularly the many references within the report about the positive testimonies from our patients. As expected the report identified some specific areas where we needed to make improvements to systems and processes and details of our progress in these areas is contained within our 2014/15 Quality Report.

1. Statement from Chairman and Chief Executive


The publication of a positive report paved the way for us to commence the final phase of the assessment process to become a Foundation Trust. This was a major focus for many Trust staff during the period and was an intensive process with all aspects of our organisation including governance, finance, staff involvement put under intense scrutiny to ensure we are sustainable and fit for purpose as a Foundation Trust.

In the meantime it was business as usual for our staff who continued with the day to day business of patient care. During the period we launched several new services including a Stroke Psychology Service in Warrington and became an accredited provider of Ear, Nose and Throat Services in Halton. We also took on the contract to deliver GP services in Willaston, Western Cheshire.

A key priority during the period was to continually improve the quality of our services with the implementation of our action plan in response to the recommendations within the Francis Report. We also revised our Quality Strategy and refreshed our quality goals to ensure that we are not complacent about the quality of our services as we move forward.

As part of our preparations for becoming a Foundation Trust we were also delighted to begin working with our shadow Council of Governors and integrating the elected and nominated governor representatives into our Trust.

Our performance in the first part of the year provides a firm foundation for our continued success and development as Bridgewater Community Healthcare NHS Foundation Trust.

We are confident that with the continued support of all our staff and alongside our partner organisations and our members and governors we will maintain our reputation for effective, high quality community care.

ChairmanColin Scales* Chief Executive Officer

*During the period to which this report refers, Dr Kate Fallon was the Chief Executive of the Trust. She retired on the 31st March 2015 and Colin Scales was appointed as Chief Executive Officer.


2. Statement of the Accountable Officer’s Responsibilities

The Chief Executive of the NHS Trust Development Authority has designated that the Chief Executive should be the Accountable Officer to the Trust. The relevant responsibilities of Accountable Officers are set out in the Accountable Officers Memorandum issued by the Department of Health. These include ensuring that:

• There are effective management systems in place to safeguard public funds and assets and assist in the implementation of corporate governance;

• Value for money is achieved from the resources available to the Trust;

• The expenditure and income of the Trust has been applied to the purposes intended by Parliament and conform to the authorities which govern them;

• Effective and sound financial management systems are in place; and

• Annual statutory accounts are prepared in a format directed by the Secretary of State with the approval of the Treasury to give a true and fair view of the state of affairs as at the end of the financial year and the income and expenditure, recognised gains and losses and cash flows for the year.

To the best of my knowledge and belief, I have properly discharged the responsibilities set out in my letter of appointment as an Accountable Officer.

Colin Scales Chief Executive Officer


3. Strategic Report

Profile of the Trust

Bridgewater Community Healthcare NHS Trust (known as Bridgewater Community Healthcare NHS Foundation Trust from 1 November 2014) is a leading provider of community health services in the North West of England.

We provide community and specialised health services to 831,270 people living in Halton, St Helens, Warrington and Wigan. In addition we provide community dental services in these areas plus Bolton, Tameside, Glossop, Stockport and Western Cheshire.

Our aim is to bring more care closer to home and the majority of our services are delivered in patients’ homes or close to where they live, such as clinics, health centres, GP practices, community centres and schools.

As a dedicated provider of community health services with knowledge and understanding of our communities’ needs, we are firmly committed to providing our patients with the most up-to-date treatments.

Our population, in common with that of the rest of England, is living longer and many patients with long-term conditions are now able to live independently in their own homes with the support of our staff and our clinical and social care colleagues.

The communities we serve have pockets of unemployment and deprivation which are associated with poor lifestyle and a prevalence of long-term conditions such as diabetes, heart disease, lung disease and dementia.

Our staff are ideally placed to tell people about services and support which can lead to improved health and wellbeing. As at 31 October 2014 we employed 3237 staff – the majority of whom are frontline healthcare staff.

Our income for the reporting period 1 April 2014 to 31 October 2014 totalled £84.94m, including £56.2m from Clinical Commissioning Groups, £14.8m from NHS England, £9.3m from local authorities, £1.6m from education/training/research funding, £0.3m from other NHS Trusts and £0.6m from Foundation Trusts.

The Trust was created on 1 November 2010 by the Secretary of State for Health under powers conferred by the National Health Service Act 2006.

During the year 2014/15 we were in the final stages of the assessment to become a Foundation Trust so that we can transform the provision of services by providing opportunities for patients, local people and staff to have a say in our decisions about services.



Our Services

Bridgewater is commissioned to deliver a diverse range of community healthcare services in a number of boroughs including Halton, St Helens, Warrington and Wigan.

Our staff work in GP practices, health centres, schools and in many cases patients’ own homes.

The Trust also provides one inpatient unit, Newton Community Hospital, which has 30 beds plus outpatient facilities. We also deliver intermediate care and nursing support at Padgate House, Warrington, a facility owned and managed by Warrington Borough Council which provides care for 35 patients. Our therapists provide intermediate care and rehabilitation to patients at Alexandra Court care home in Wigan.

Our community dental services carry out specialised clinical procedures for the specific needs of vulnerable people and children.

Many of our services support people throughout their lives and as a provider of care our focus is to keep people out of hospital. We provide ongoing care and support to vulnerable people and those with complex and long-term conditions.

The delivery of services is organised into operational directorate structures to support the delivery of a Bridgewater standard of service in all areas that we serve. These directorates are Adults’ Services Directorate, Children and Families’ Services Directorate and Specialised Services Directorate. Each is led by a General Manager and supported by service managers and clinical managers for each care group.

Trust Areas



Table : A Summary of our ServicesAdults Services

Service Wigan St Helens Warrington HaltonAdult Continence • • • •Cancer & Palliative Care - medical • • • •Cancer & Palliative Care Specialist Nursing & Therapists • •Care Home Support • • •Lymphoedema Service •Community Matrons • • • •Integrated Teams • • • •District Nursing Domiciliary service • • • •District Nursing Out of Hours Service & evenings • • • •District Nursing Ear Care Service • • • •District Nursing Phlebotomy • • • •District Nursing Tissue Viability • • • •District Nursing Treatment Rooms • • • •District Nursing Support to Care Homes • • • •Stoma Care •Community Intravenous Therapies • • •Community Neurology Rehabilitation • • • •Acquired Brain Injury •Parkinson’s Nursing •Chronic Fatigue Syndrome •Community Neurosciences • •Community Integrated Equipment Service • • •Cardiac Rehabilitation • •Diabetes • • • •Respiratory/Chronic Obstructive Pulmonary Disease (COPD) •Heart Failure • • •Stroke Service •Ear Nose and Throat • •Musculoskeletal Clinical Assessment & Treatment Services (MSKCATS)

• •

Physio/Orthopaedics/Musculoskeletal • • •Podiatry & Biomechanics Service • • •Wheelchair, Specialist Seating • • • •Driving Assessment Services •Falls & Community Therapy • • • •Intermediate Care • • • •Community Hospital • Early Support Discharge Team •GP Out of Hours • •Walk in Centre • • •Pain Management •


Service Wigan St Helens Warrington HaltonChildren’s Audiology • • • •Newborn Hearing screening • • •Child and Adolescent Mental Health Service • • • •Eating Disorder Service •Child Safeguarding/Looked After Children • • • •Children’s Development • • •Children’s Therapies including Occupational Therapy, Physiotherapy, Speech & Language Therapy

• • •

Children’s Community Learning Disability Service • • Children’s Community Nursing & Complex Needs • • • •Children’s Continence • • •Children’s Continuing Healthcare • •Children’s Respiratory •Children’s Long Term Conditions •Child Health Service •Children Young People & Families Acute Community Nursing Team

•

Minor Illness Prevention Service •School Nursing • • • •Health Visiting • • • •Midwifery •Paediatric Liaison •Surgical Appliances •Child Health System Team •

Service Wigan St Helens Warrington HaltonAdult Learning Disability •Breastfeeding Support • • •Community Dental Services * • • • •Community Mental Health • • •Counselling Services •Dietetics (Children Young People & Families) • Dietetics •Diabetic Eye Screening •Dermatology • • • Health Improvement • • •Stop Smoking • •Neighbourhood Mums •

Children and Families’ Services

Specialised Services


Indicator to be measured

Comments2013/14 full year position

2012/13 full year position

Specialised Services

Service Wigan St Helens Warrington HaltonHomeless and Vulnerable • • •Open Mind •Offender Health • • Sexual Health ** • •Speech and Language Therapy (Adults) • •Weight Management • •

Notes* Bridgewater also provides community dental services in Bolton, Tameside, Glossop,

Stockport and Western Cheshire

** Bridgewater also provides sexual health services in Trafford

Please note: Bridgewater also provides a child lifestyle service in Western Cheshire.

As of 1 July 2014, Bridgewater delivers general practice services from the Willaston Surgery in Willaston, Western Cheshire.

Please note: these tables do not include every service Bridgewater is commissioned to provide in these areas.

A complete list of services provided in each area is available on our website www.bridgewater.nhs.uk


Our Mission

To improve local health and promote wellbeing in the communities we serve.

Our Values

OUR MISSION, VALUES AND OBJECTIVES

Our Strategic Objectives

• To deliver high quality, safe and effective care which meets both individual and community needs.

• To deliver innovative and integrated care close to home which supports and improves health, wellbeing and independent living.

• To deliver value for money, be financially sustainable and be commercially competitive.

• To achieve Foundation Trust status in 2014.

Patient CentredWe always prioritise patient care.

ProfessionalWe provide a quality service for patients by investing in our staff, recognising and valuing their contribution.

Encourage InnovationWe encourage and embrace new ideas to deliver improvements in patient care.

Locally LedWe continually develop our knowledge of the communities we serve, so that we can be responsive to local need.

Open and HonestWe communicate clearly to develop relationships based on mutual trust and respect.

EfficientWe use our resources wisely to ensure quality patient care and value for money.


Progress against our Strategic Objectives

During the seven months from April 2014 to October 2014 we made significant progress towards our strategic objectives. Some highlights from the period are listed below:

Strategic Objective: To deliver high quality, safe and effective care which meets both individual and community needs

• In April the Care Quality Commission (CQC) published their reports following the inspection of our Trust undertaken in early February 2014. The reports were positive

and the CQC highlighted many strengths and good practice within our services. There were some specific areas where we needed to make improvements to systems and processes and during the year we have made progress towards addressing these. A summary of the main findings is available on our website www.bridgewater.nhs.uk or on the CQC website www.cqc.org.uk.

• An unannounced inspection by the CQC of our healthcare services at Her Majesty’s Prison Hindley Young Offenders Institute received an exemplary report and concluded that the healthcare services provided (including dental) meet all standards. The full report is available on the CQC’s website www.cqc.org.uk.

• We continued to make progress towards implementing the recommendations from the Francis Report that apply to the services we provide. We are able to offer

evidence against 70 of the 95 recommendations and have incorporated outstanding recommendations into a Quality Action Plan.

• From April 2014 we published monthly data on the number of nursing and midwifery staff working on each ward at Newton Community Hospital, to support a national

safer staffing requirement for all hospitals.


• A refreshed Quality Strategy was launched in the summer which incorporated five Quality Statements based on the Care Quality Commission’s five domains of care.

• In May we undertook our first Patient Led Assessment of the Care Environment (PLACE) at Newton Community Hospital. The inspection team included Governors, staff and Patient Partners and looked at the care environment, the food served and the grounds.

• We held a series of Quality Improvement Seminars for our staff to enable them to generate ideas which would support continuous improvements in the quality of our services.

• We were named as one of Halton Clinical Commissioning Group’s accredited community ear, nose and throat service providers in Widnes and Runcorn. The service is designed to be easy to access offering both morning and evening appointments up to 8pm.

• We continued to develop professional networks within the Trust through the establishment of professional forums and a Professional Leadership Council.

• More than 30 staff attended ‘Exercise Noah’, a table top emergency planning exercise, in April. The purpose of the exercise was to enable us to review our major

incident plan and business continuity arrangements and identify any gaps or where improvements to plans and processes could be made.

• We launched a programme called Diabetes Education and Self-Management for Ongoing and Newly Diagnosed (DESMOND) in Wigan for people with Type 2 Diabetes.

Strategic Objective: To deliver innovative and integrated care close to home which supports and improves health, wellbeing and independent living

• In September Poppy Sydney, aged two, was the first patient to benefit from a new service to deliver intravenous antibiotics in the home to children and young people in Warrington. This helps avoid staying in or attending hospital. This service is a

collaborative approach by Warrington and Halton Hospitals NHS Foundation Trust and Bridgewater as an extension of the Paediatric Acute Response team (a team made up of experienced staff from both organisations).

• The Wigan Continence Service, provided jointly by Bridgewater in partnership with Wrightington, Wigan and Leigh NHS Foundation Trust, were named Continence Care Team of the Year at the inaugural National Continence Care Awards in May. The

service received the award for being “a multi-professional continence team which effectively delivers improvements in the patient experience and quality of life”.

• Our staff continued to support people in our communities to improve their health and wellbeing by providing information events covering breastfeeding, childhood

immunisations, stopping smoking, falls prevention and men’s health plus a range of other topics.


• A new Stroke Psychology Service was launched in Warrington, in partnership with Warrington Clinical Commissioning Group. The service is based at Orford Jubilee

Neighbourhood Hub and offers a range of general psychological support as well as more specialist assessment and therapy tailored to the needs of each patient.

• Our Health Visiting services in Runcorn responded to feedback and launched an early evening drop-in clinic for parents who find it difficult to access the daytime sessions due to work or family commitments.

• The Trust began to introduce a simple award-winning invention which helps to keep patients hydrated and aid recovery by making water easily accessible. The Hydrant

will be used in community nursing and community rehabilitation teams and offered to patients who have had repeated dehydration-related illnesses or hospital admissions. It provides a simple way for people to drink whilst allowing health practitioners to

monitor fluid intake.

• On Armed Forces Day in June 2014 we launched a campaign to encourage former members of the Armed Forces to use local NHS services and find out if they are

entitled to priority healthcare. The campaign was supported by the distribution of posters and leaflets to local health centres, veterans, charities and community

venues.

• In April Bridgewater launched a new Fracture Liaison Service in partnership with Wigan Borough Clinical Commissioning Group. The service which has received

support from the National Osteoporosis Society is designed to promote information about bone health and osteoporosis in order to prevent future fractures in patients and reduce hospital admissions.

Strategic Objective: To deliver value for money, be financially sustainable and be commercially competitive

• During the financial reporting period covered by this report, we generated a deficit of £0.8 million. We ended the period with a cash balance of £5.3 million, sufficient to fund in excess of 10 days operating expenses.

• On 1 July we started to deliver the contract for the management of GP services at Willaston Surgery in Western Cheshire. This new contract followed a rigorous

commissioning process carried out by NHS England.

Strategic Objective: To achieve Foundation Trust status in 2014• Our positive inspection from the Care Quality Commission (CQC) in February paved

the way for Monitor, the independent regulator of Foundation Trusts, to begin phase 2 of their assessment on 1 June.

• The Monitor assessment concluded with a successful Board to Board meeting, where the Monitor Board challenged our own Trust Board in September.

• During the assessment process we updated our five year Integrated Business Plan to


outline our service development and commercial priorities. This work was completed in June, ready to share with both the NHS Trust Development Authority and Monitor.

• We achieved our target of 10,000 members at the time of achieving Foundation Trust status in November 2014.

Our Quality Account which is available on our website www.bridgewater.nhs.uk contains more detail on specific service and quality improvements which have been made throughout the year.


Becoming a Foundation TrustWe were one of the first NHS community trusts in the application process to become a Foundation Trust (FT) and will use this to support our pioneering transformation of healthcare close to home. Becoming an FT will ensure that we have structures to support real and meaningful engagement with our patients, partners and communities.

The benefits of becoming a Foundation Trust include:

• Increased accountability to patients, local people and staff by having a local membership who are kept informed about developments within the Trust.

• Members are able to elect representatives onto our Council of Governors, who are able to influence decisions about design and development of services.

• Remaining part of the NHS but having a greater freedom to make decisions locally with the input of our patients, members and governors.

• Greater financial freedoms and flexibilities and the ability to generate a surplus to invest in new and improved services.

• Being able to use our freedoms to work with partners to respond quickly to the needs of our patients and local communities.

Environmental Matters and Sustainability Report The core focus of the Trust’s work during 2014/15 has been the consolidation of its accreditation to international Environmental Management System ISO 14001. Bridgewater is one of a handful of community healthcare trusts to have achieved this status and it takes the Trust well beyond the best practice requirements set out for the NHS. The Environmental Management System (EMS) focuses on four key themes, which form the basis of the EMS action plan: Energy Use in Buildings, Travel and Transport, Procurement and Waste. The EMS provides a framework, which helps to ensure that the Trust quantifies, monitors and reviews performance in all of these key areas.

Goal 1: A healthier environmentA healthier environment can contribute to better outcomes for all. This involves valuing and enhancing our natural resources, whilst also reducing harmful pollution and significantly reducing carbon emissions. Bridgewater has an overall carbon reduction target of 28% by 2020 (from 2013/14 baseline).

Goal 2: Communities and services that are ready and resilient for changing times and climatesWhen periods of heat, cold, flooding and other extreme events occur it is vulnerable people and communities that suffer the worst. Bridgewater will be part of multi-agency planning and organisational collaboration to provide a better solution to these events


Goal 3: Every opportunity contributes to healthy lives, healthy communities and healthy environments: Bridgewater will take every opportunity to support communities and people to be independent and self-manage conditions and events.

Success will only be achieved if Bridgewater as a whole takes positive action, if the Trust engages widely with staff, members and patients and if sustainability is embedded into the decision-making processes at every level. To achieve this aim the Trust has drafted an Environment Strategy to help Bridgewater and the communities it serves to become greener more resilient. The strategy will be published later in 2015.

2014/15 Environmental PerformanceFrom the information currently available the Trust’s overall carbon footprint for 2014/15 (on a ‘like for like’ basis) is 11,739 tCO2e, equating to 5.6kg of CO2e per patient contact. This is an increase in the overall footprint of 4.5% since 2013/14.

The figures in this report reflect full year figures as seasonal variations in energy usage would distort any part year results.

Organisation Carbon Footprint using HM Treasury Scope Aggregations

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The increase is mainly the result of shifts in energy use in buildings, increases in UK Government carbon intensity figures and increased miles travelled by employees in their own cars in the delivery of services.

Breakdown of Carbon Footprint according to Scope categories used by the Treasury Sustainability Development Unit

Scope 1 - Direct Scope 2 - Indirect Scope 3 - Indirect

Carbon Footprint using the SDU model and Treasury Scopes 2014/15

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Energy, Travel, Procurment and Waste as a proportion of Carbon Footprint

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Proportions of Carbon Footprint


Full Year 2014/15 Carbon Emissions (tC02) Units measuredEnergy* 1771 4.1 million kWhProcurement 7639 Non pay spend £22.5mTransport 1289 5.6 million kilometres Waste - 388 tonnes

Please note that this graph represents only those elements that can be currently quantified. The figures use the CO2e conversion factors provided by the Sustainability Development Unit in the Sustainability Reporting Framework 2014/15, these may vary from other factors used by the Trust in previous years.

Carbon Emissions breakdown

*Initial analysis suggests the rise in tC02 is due in part to the change in the amount of C02 the government calculates it takes to produce and distribute a KWh of electricity and in part due to a decrease in gas use that has been offset by an increase in electricity use.

Energy Use in Buildings: Overall there has been a 16% decrease in the number of kWh of energy Bridgewater used in its buildings to deliver health services for both electricity and gas combined falling from 4.8 million kWh in 2013/14 to 4.1 million kWh in 2014/15. However, despite this reduction there has been a 11% increase in the tCO2e between 2013/14 and 2014/15 rising from 1,593 to 1,771 tCO2e. Initial analysis suggests that this rise is due in part to the change in the amount of CO2e the government calculates it takes to produce and distribute a kWh of electricity (which has increased by 11% since 2013/14) and in part to a decrease in gas use that has been offset by an increase in electricity use. The latter being more carbon intensive than the former.

Procurement: Using the information currently available the Trust’s carbon footprint from the procurement of goods and services is 7,639 tCO2e. The figures clearly show that procurement is by far the largest part of the Trust’s carbon footprint. The breakdown of the procurement data provides us with an indication of the carbon hotspots for procurement, which includes businesses services, pharmaceuticals and medical equipment and instruments. The Trust is planning to work on this area in the coming year.

Transport: It is calculated that employees travelled approximately 5.6 million km in their own vehicles in the delivery of community health services during 2014/15, which resulted in 1,289 tCO2e. This is a 35% increase in miles travelled and emissions and further work will need to be undertaken to understand the factors contributing to this, including if it can in part be attributed to changes in the data collection methodologies.

Waste: It is calculated that the Trust produced 388 tonnes of waste during the last 12 months. Of this 346 tonnes can be described as general or domestic waste. The Trust recycled or recovered 80% of this domestic waste through external contractors. In addition the Trust produced a further 42 tonnes of clinical waste almost all of which was used to produce energy from waste or was processed to produce solid recovered fuel which is used in place of fossil fuels in the manufacture of cement. The Trust will continue to look for ways to recyle more of our waste but the core aim will always be to reduce the amount of waste produced.


Success will only be achieved if Bridgewater as a whole takes positive action, if the Trust engages widely with staff, members and patients and if sustainability is embedded into the decision-making processes at every level. To achieve this aim the Trust has drafted an Environment Strategy to help Bridgewater and the communities it serves to become greener more resilient. The strategy will be published later in 2015.

In 2015 Bridgewater will also be rolling out a series of engagement events called ‘Healthy Environment, Healthy You’ to provide information and advice to staff and patients alike, about the way slight changes in our daily activities can have a huge impact on our own health and the health of the environment. This will be followed up with further activities aimed at each of the four EMS themes.

Key Financial Headlines for 2014/15 (part year 1 April 2014 to 31 October 2014)

IntroductionFor the financial reporting period 1 April 2014 to 31 October 2014, Bridgewater Community NHS Trust has reported a deficit of £0.807m, this is the same figure as in the summarisation schedules that underpin the accounts.

The Trust had initially proposed an adjustment to the 2014/15 accounts amounting to £2.6m. This represents the capital value of all wheelchair and other community loan assets owned by the Trust, which have been purchased over a number of accounting periods. However, the new accounting treatment in respect of such items will only apply to the FT accounts. Unfortunately, due to a variety of issues, the Trust did not meet the filing deadline of the 29 May 2015 for Monitor.

A review of the circumstances and contributory issues in relation to the missed deadline is being undertaken by the Trust together with an external review of the Trusts processes.

Accounting PoliciesThe accounts have been prepared to comply with International Financial Reporting Standards (IFRS) as modified by the Department of Health Manual For Accounts.

Key Financial TargetsThe Trust has partly achieved its key financial targets for the part year 2014/15 with regard to reported surplus, break-even in year position (as measured by Department of Health - DH), capital expenditure target (Capital Resource Limit - CRL) and cash target (External Financing Limit - EFL). The table below presents these key results.

Target £000 Achieved £000 Under / Over ShootSurplus / (Defecit) 845 -807 -1652Capital Resource Limit (CRL) 1344 1344 0External Financing Limit (EFL) 961 961 0


Break even duty and performanceBreak even duty and performance is measured by the break-even in year position and this is the target against which DH judges the Trust. As shown in the table above the Trust has not achieved a break-even in year position.

Capital Resource Limit (CRL)The Trust’s CRL is set by the Department of Health. The performance criteria allows for an under shoot against CRL but not an overshoot as the limit is designed to test the Trust’s ability to manage within a fixed capital budget. The CRL of £1.34m has been achieved with no under/overshoot. The makeup of capital expenditure is summarised by scheme in the Capital Expenditure section of this report.

External Financing Limit (EFL)The Trust’s EFL is set by the Department of Health. The performance criteria allows for an under shoot against EFL but not an overshoot as the limit is designed to test the Trust’s ability to manage its cash inflows/outflows within a fixed cash budget. The Trust had a positive EFL for 2014/15 which represents a target to generate a cash inflow of £0.96m or more before financing i.e. in the Trust’s case before Public Dividend Capital (PDC) received. The table above shows that a cash inflow of £0.96m was generated. This represents an achievement of EFL with no under/over shoot.

PDC represents the Department of Health’s part financing of the Trust’s net assets and is analogous to share capital in a private sector company. PDC financing is comprised of an opening investment in the Trust at the time of establishment, and subsequent additions to this investment normally to finance nationally promoted capital expenditure initiatives or to facilitate structural changes within the NHS such as Transforming Community Services (TCS).

Capital Cost Absorption RateThe Trust is required to absorb the cost of capital at 3.5% of average relevant net assets. This means that the Trust should pay a dividend to DH of 3.5% of average relevant net assets. A payment of £0.26m was made in the accounting period.

Treasury Policies and CashThe Trust had an end of period cash target of £5.9m. Actual cash was £5.3m was achieved, whilst below plan was sufficient to meet the requirement to achieve ’10 days of forward operating expenses’. The Trust did not have any requirements for short-term loans during 2014/15 nor placed any funds for investment purposes during 2014/15.

Income The Trust generated income in 2014/15 of £84.94m. Income derived from Clinical Commissioning Groups (CCGs) was 66.5%. The vast majority of the Trust’s healthcare income is through ‘block service level agreements’. The balance of the Trust’s income was generated as shown in the chart below. This highlights the categorisation of all the Trust’s income taken from the accounts.


Expenditure

The Trust’s main source of expenditure is Employee Costs (staff) totalling £61.0m,representing 71% of total expenditure. The chart below highlights the breakdown of these costs.

Department of Health £0M (0.0%)

NHS Trusts £0.3M (0.4%)

NHS England £14.8M (17.5%)

Foundation Trusts £0.6M (0.7%)

Local Authorities £9.3M (10.9%)

Charitable and other contributions to revenue expenditure NONNHS £0M (0.0%)

Injury cost recovery £0.3M (0.3%)

Education, Training & Research £1.6M (1.9%)

Sources of Income 2014/15 M1-M7

Other £1.9M (2.2%)

Clinical Commissioning Groups £56.2M (66.1%)

Operating Expenses 2014/15 M1-M7

Services from Other NHS Organisations £3.5M (13.9%)

Supplies and Services - Clinical £6.1M (24%)

Supplies and Services - General £1.4M (5.5%)

Establishment £1.3M (5.1%)

Transpost £1.6M (6.2%)

Premises £7.7M (30.3%)

Consultancy Services £0.5M (1.9%)

Education and Training £0.2M (0.7%)

Depreciation / Amortisation £0.9M (3.5%)

Legal Fees £0.2M (0.8%)

Other £2M (7.9%)


Expenditure on Operating Expenses, excluding employee costs, amounted to £24.5m. The chart below provides an analysis of this expenditure by category.

Medical & Dental staff £4.6M (7.5%)

Qualified Nursing and Health Visiting staff £27.8M (45.5%)

Scientific, Therapeutic and Technical Staff £10.2M (16.8%)

Healthcare assistants and other support staff £3.8M(6.2%)

Administration and estates £13.8M (22.7%)

Others £0.1M (0.2%)

Exit Package Costs - Voluntary Redundancy £0.7M (1.1%)

Employee Costs 2014/15 M1-M7

Capital ExpenditureIn the accounting period the Trust spent £1.3m on capital assets. Of this total £1.2m was spent on IT infrastructure and £0.1m on medical equipment.

Events After the Reporting PeriodThere were no events after the reporting period.

Going ConcernThe financial statements have been prepared on a going concern basis. The Board receives monthly reports regarding the financial position of the Trust and updates on any key financial issues impacting the going concern basis for preparation of the financial statements. Additionally, as part of the annual planning cycle the Board reviews and approves the Trust’s five year financial plan. A detailed financial plan has been presented to and scrutinised by the Trust’s financial regulator the Trust Development Authority (TDA) and no concerns have been raised by the TDA as to financial sustainability.

From 1 November 2015 the Trust has been awarded Foundation Trust status and from this date will operate under the appropriate rules and regulations managed by Monitor, the Trust’s financial regulator.

Clinical Reference Groups (CRGs) lead each project (clinical services are grouped into three phases, each containing multiple services). Each service is supported by a project manager and clinical lead and is sponsored by an Executive Director.


Monitoring delivery is via the fortnightly CIP Programme Team (includes general managers, finance, HR, estates, information, service improvement, staff side and clinical governance). Monthly there is a report to the Trust Efficiency Assurance Committee (TEAC), a Board sub-committee chaired by a Non-Executive Director. Quality Impact Assessment (QIA) is reported to both the CIP Programme Team and TEAC in order to provide assurance that whilst the programme is on track from a financial perspective there is no compromise to quality or patient safety.

Future Financial PerformanceThe Trust faces a number of challenges over the next few years:

To control overall expenditure in line with income assumptions

The Trust has significant Cost Improvement Programme (CIP) targets detailed above for 2014/15 and beyond. This will require the Trust to continue to review all services to ensure that each service is performing efficiently whilst ensuring that the quality of service is not affected.

Business Priorities for 2015/16 Our priorities for 2015/16 are contained within our Foundation Trust part year annual report and accounts.

After making enquiries, the directors have a reasonable expectation that the NHS Foundation Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the accounts.

The Strategic Report for Bridgewater Community Healthcare NHS Trust was approved on behalf of the Board on 26th May 2015.

Accounting Officer Colin Scales (Chief Executive)May 2015


4. Directors’ ReportThe Board of DirectorsDuring the period 1 April 2014 to 31 October 2014 the Board of Directors had a maximum of 14 members as a number of Non-Executive Directors left their posts this reporting period. See below for details.

The Directors of the Bridgewater Community Healthcare NHS Trust for the period 1 April 2014 to 31 October 2014 were as follows:

Harry Holden – ChairmanHarry was confirmed in the post of Chairman of the Trust in November 2010 when the Trust was established as a statutory body and was re-appointed as Chair on 1 April 2013.

Prior to this he chaired the Board of Ashton, Leigh and Wigan Community Healthcare - the provider arm of NHS Ashton, Leigh and Wigan Primary Care Trust (PCT) and previously held roles on the board of the PCT, including the position of Vice-Chair.

During his career Harry served as a Chief Officer and member of the Cabinet at Wigan Council, holding the post of Director or Land and Property and Community Safety for 15 years. This role led him to becoming Chairman of the Community Safety Partnership Joint Commissioning Group. In these roles Harry provided strong leadership and worked with partners at all levels to develop a range of successful projects and organisations. Harry’s current term of office is until 1 November 2015.

Harry also chairs the shadow Council of Governors and the Nominations and Remuneration Committee.

QualificationsMember Association of Building Engineers (M.B.Eng) Fellow Chartered Association of Building (F.C.I.O.B)

Dr Kate Fallon – Chief ExecutiveKate was appointed to the post of Chief Executive when the Trust was established in November 2010. Kate qualified as a doctor in 1978 and practised as a GP in Wigan for more than 20 years.

In 1997 Kate became a part-time Clinical Director at the local hospital group in Wigan, where she helped establish a range of innovative care pathways for patients with conditions such as diabetes, lung problems and cancer. When the Primary Care Trust (PCT) was established in Wigan in 2002 she was appointed Medical Director, responsible for maintaining professional standards in high quality care. In 2004 she left GP practice to focus full-time on developing community health services in the town, initially as Managing Director of Ashton, Leigh and Wigan Community Healthcare – a predecessor to Bridgewater Community Healthcare NHS Trust.

During this time Kate has represented community health providers on a range of national forums including the Department of Health Transforming Community Services Programme and the national Community Foundation Trust pilot.


Qualifications1975 MA – First-Class Honours in Physiological Sciences, Oxford University. 1978 MB BS – University of Newcastle. GMC Registration: 2431240.

Karen Bliss – Non-Executive DirectorKaren qualified as a Chartered Accountant in 1991 after joining PricewaterhouseCoopers as a graduate trainee. She has held a variety of roles within the company at senior management level and has worked in audit, business assurance and due diligence.

She was originally appointed to the Board of Ashton, Leigh and Wigan Community Healthcare in 2008 and appointed to the Board of Bridgewater in 2010. She was most recently appointed on 1 April 2013 for a term of office until 31 March 2017.

Karen holds the position of Chair of Audit Committee within the Trust.

QualificationsBA (Hons) Engineering, Cambridge UniversityFellow of The Institute of Chartered Accountants (FCA)

Steve Cash – Non-Executive DirectorSteve has a range of experience in commercial and general management and currently holds a senior management position within the FTSE 100 company BT . He has broad business and leadership skills including strategy, finance, marketing and operational management.

He was originally appointed to the Board of Ashton, Leigh and Wigan Community Healthcare in 2008 and appointed to the Board of Bridgewater in 2010. He was most recently appointed on 1 April 2013 for a term of office until 31 March 2017.

Steve also holds the position of Chair of the Trust Efficiency Assurance Committee.

QualificationsGlobal Partner Vision programme – Harvard University Diploma In Marketing – Manchester University BA Business Studies – University of Central Lancashire Higher National Certificate – Business Studies

Baron Frankal – Non-Executive DirectorBaron is a qualified solicitor with experience in UK and international law and is a specialist in in European relations and issues such as migration, climate change policy, regulation, trade and economics . He currently holds the position of Director of Strategy and Policy at Manchester Airports Group and was previously Director of Economic Strategy at New Economy – a research and analysis organisation based in Manchester.

Baron was appointed to the Board of Bridgewater on 1 January 2012 until 31 December 2015 and has previously held a Non-Executive Director position in another NHS Trust.

Baron resigned from his position as a Non-Executive Director and Chair of the Investment Committee with effect from 31 May 2014.


QualificationsBA (hons), MA (Oxon) History Postgraduate Diploma in Law (PgDL) Legal Practice Course (LPC)

Sue Musson – Non-Executive DirectorSue moved to the UK after graduating and began her career in management consultancy working with the European Commission and UK government agencies and departments. She has more than 20 year’s experience as an Executive and Non-Executive Director in large commercial and public sector organisations. She currently runs her own management consultancy business and a property holding company. She was appointed to the Bridgewater Board in January 2012 for a term until 31 December 2015 and has previously held a Non-Executive Director position in another NHS Trust

Sue also holds the position of Designate Senior Independent Director. It is a requirement for Foundation Trusts to appoint a Senior Independent Director (SID) who is available to members and governors if they have concerns that cannot be resolved through normal channels.

QualificationsBA First-Class Honours in History (Columbia University, New York)

Christine Samosa – Director of People, Planning and DevelopmentChristine has more than 30 years’ experience in human resources ,training and organisational development. She has spent the majority of her career in NHS organisations including primary care trusts, community trusts, mental health trusts and a specialist tertiary centre and held a director level position for more than 20 years. She has extensive experience of working with local and regional officers of the main trade unions within the NHS.

Christine joined Bridgewater on 9 November 2011 and during the period covered by this report was a non-voting Director on the Board

Qualifications Fellow of the Chartered Institute of Personnel and Development.Masters Degree in Strategic HR Management with research into the impact of mergers and acquisitions on staff.HR Director Development Programme at the NHS North West Leadership Academy

Bob Saunders – Non-Executive DirectorBob started his career in environmental health in London and having worked in a number of local authorities was appointed to the post of Corporate Director at Wigan Council in 1989. In addition to responsibility for environmental health, housing, urban renewal, trading standards, licensing and community safety his portfolio also included corporate strategy, business planning and performance management.


Bob was originally appointed to the Board of Ashton, Leigh and Wigan Community Healthcare in 2009 and most recently re-appointed to the Bridgewater Board in April 2013 until 31 March 2017.

Bob also holds the position of Chair of the Quality and Safety Committee.

QualificationsBSc Zoology (London) BSc Environmental Health (Aston)Royal Society of Health, Chartered Institute of Housing and Institute of AcousticsPost Graduate Diploma in Management StudiesPRINCE 2 Project Manager

Colin Scales – Chief Operating OfficerColin joined the NHS in 1994 after leaving university and has undertaken a range or roles within commissioning, operational management and the Department of Health during his career. As an Executive Director he has been responsible for developing strong relationships between organisations, developing leadership capacity and introducing systems to support managers to improve the performance of services.

He has experience of working in a number of different NHS Trusts and was a member of a Trust Board that successfully achieved Foundation Trust status.

Colin joined the Trust on 9 November 2011.

QualificationsBA Hons Degree in Geography, University of SalfordCranfield University, School of Management, Strategic Leadership Executive Programme, May 2014NHS Top Leaders Programme 2014/15

Mike Treharne – Executive Director of FinanceMike is a finance professional with more than 30 years’ experience in the NHS and has been a Director of Finance for more than 16 years. He has held senior finance posts in a range of NHS organisations including primary care trusts, university hospitals, district general hospitals and health authorities. He has also sat on a number of national finance groups.

Mike joined the Board of Bridgewater on 28 February 2011 and also holds the post of Deputy Chief Executive. He has undertaken various development programmes including the Kings Fund Executive Director Development and study tours to Harvard & Berkley Universities and Melbourne, Australia.

QualificationsBSc (Econ) University College, Cardiff Member of the Chartered Institute of Public Finance Accountants (CPFA) Executive Director Development Programme 2003/04 (run jointly by the NHS Leadership Centre and King’s Fund)


Dr Stephen Ward – Executive Medical DirectorSteve qualified as a doctor in 1978 and worked for 30 years in primary care, as a principal GP in a seven doctor practice in Leyland, Lancashire. He then took on a part time position as Medical Director for NHS Central Lancashire before moving to the role full time. He has always had an interest in NHS management and is enthusiastic about the role of new technologies for the management of long-term conditions.

Steve joined the Board of Bridgewater on 1 July 2011.

Qualifications MBChB (University of Liverpool)Diploma Developmental Paediatrics and Ascertainment (University of Salford)MA Clinical Leadership (Manchester Business School)GMC Registration: 2439200

Dorothy Whitaker – Non-Executive DirectorDorothy originally trained as a nurse and worked in London before returning to the North West. She has 20 year’s experience in the voluntary sector and has undertaken a range roles involving the development of innovative solutions to health and social care issues. Her final post was as Chief Officer for Blackburn with Darwen Council for Voluntary Service.

Dorothy was appointed to the Board of NHS Ashton, Leigh and Wigan Primary Care Trust in 2006 and later joined the predecessor organisation to Bridgewater (Ashton, Leigh and Wigan Community Healthcare in March 2008). She was appointed to the Board of Bridgewater when the Trust was established on 1 November 2010 and was re-appointed on 1 April 2014 for a term until 31 October 2015.

Dorothy also holds the position of Vice Chair.

QualificationsState Registered Nurse CertificateOU Post Experience Certificate – Handicapped Person in the Community.

Dorian Williams – Executive Nurse/ Executive Director of GovernanceDorian qualified as a Staff Nurse and has worked in a number of major hospitals across the country before settling in the North West. He has held a number of senior nursing roles including Head of Nursing Surgery and Deputy Director of Nursing before moving into the role of Assistant Director for Clinical Quality where he was responsible for governance processes and procedures.

Dorian joined Ashton, Leigh and Wigan Community Healthcare – the predecessor organisation to Bridgewater – in his current role on 1 October 2008.

Dorian stepped down from his executive director role in August 2014. Dorothy Keates undertook the role of Interim Executive Nurse with effect from 1 September 2014 until 31 March 2015.


QualificationsRegistered General Nurse – Queen Elizabeth School of Nursing (Birmingham) NMC Registration 83C1070EENB Post Registration Orthopaedic Nursing – Royal National Orthopaedic Hospital Certificate in Health Service Management – Royal College of Nursing Master of Business Administration – Manchester Metropolitan University

Sally Yeoman – Non-Executive DirectorSally started her career working in services for adults with learning disabilities and has since had more than 10 years’ experience leading charitable organisations which support community, voluntary, not for profit and faith groups. She is an Institute of Directors certified Company Director and is currently Chief Executive Officer at Halton and St Helens Voluntary & Community Action.

Sally was appointed to the Board of Bridgewater on 1 January 2012 for a term until 31 December 2015.

QualificationsBSc (Hons) in Sociology

More detail on individual directors is available on the Board Profiles page of our Trust website www.bridgewater.nhs.uk

Trust Board meetingsThe Board of Directors met monthly during the period, holding a total of 7 meetings. The Board rotates its meetings so that they are held in the main boroughs that we serve. Members of staff, the public and the media are entitled to attend part one of the meeting, the papers for which are made available on the Trust website www.bridgewater.nhs.uk

Register of interestsA Register of Directors’ Interests is maintained by the Trust and can be accessed on request to the Trust Secretary.

Balance, completeness and appropriateness of Board membershipThe Board of Directors of the Trust comprises eight Non-Executive Directors, including the Chair, and five Executive Directors, including the Chief Executive, plus one other Director who whilst a member of the Board, does not have voting rights.

Performance Evaluation of BoardThe Board of Directors subjected itself to an external assessment of its effectiveness during the year.

The performance of the Chair of the Trust during 2014/15 was formally appraised by the NHS Trust Development Authority (TDA) which included an opportunity for directors and other stakeholders to contribute to this process. This external appraisal by the TDA is supplemented by an additional internal appraisal process.


The performance of the Chief Executive during 2014/15 was formally appraised by the Chairman.

Corporate GovernanceBoard committeesThe Board of Directors has five formal committees which met as follows during 2014/15.

• Audit Committee• Investment Committee • Nominations and Remuneration Committee• Quality and Safety Committee • Trust Efficiency Assurance Committee

Audit CommitteeThe main purpose of the Audit Committee’s work is related to internal financial control, the maintenance of proper accounting records, the reliability of financial information and a wider focus on the safety and quality of patient care.

Directors who were members of the Audit Committee during the reporting period are as follows:

Karen Bliss (Chair), Steve Cash, Baron Frankal, Bob Saunders and Dorothy Whitaker.

More detail on the work of the Audit Committee during the year is available in the Bridgewater NHS Foundation Trust Annual Report 2014/15 (part year 1 November 2014 to 31 March 2015).


Investment Committee This Committee did not meet during the reporting period. Its responsibilities have now been incorporated into those of the Finance Committee.

Nominations and Remuneration CommitteeThe overarching role and purpose of the Nominations and Remuneration Committee is to be responsible for identifying and appointing candidates to fill all the Executive Director positions on the Board and for determining their remuneration and other conditions of service. No appointments to the Board of Directors have been made during the year.

The Chairman of the Trust chairs this Committee and all Non-Executive Directors are members of it.

Further information on the governance framework of the organisation is contained within the Annual Governance statement.

Quality and Safety CommitteeThe Quality and Safety Committee enables the Board to obtain assurance that high standards of care are provided by the Trust and, in particular, that adequate and appropriate governance structures, processes and controls are in place throughout the Trust.

The Committee’s duties include the review and approval of the Trust’s Quality Strategy, underpinning frameworks and supporting plans/strategies and the agreement of quality governance priorities to inform strategy and to give direction to quality governance activities across service areas.

The Committee reviews compliance with policy in relation to Infection Prevention and Control, Health and Safety, Complaints, Claims, Incident reporting, Safeguarding and Equality and Diversity.

Trust Efficiency and Assurance Committee The Committee is responsible for monitoring the overall financial performance of the organisation including the delivery of the cash-releasing efficiency savings and within this to be satisfied that any risks to quality have been mitigated to an acceptable level.

Its duties are to: • Oversee the financial performance of the organisation, reporting to the Board the likely

future financial position of the Trust.• Ensure delivery of the Trust’s cash-releasing efficiency savings schemes (CRES). • Oversee the design and delivery of future CRES schemes. • Make recommendations as to the content of financial and investment policies. • Keep under review the content and application of the Trust’s financial, investment and

borrowing strategies and policies.

A schedule of attendance at the meetings is provided in Appendix 2.


Council of GovernorsThe Trust received approval from Monitor during the course of the year to establish a Council of Governors in shadow form, in anticipation of the Trust being licenced as an NHS Foundation Trust.

Following elections in September 2013, a Shadow Council of Governors was established on 14 October 2013.

The Council of Governors comprises a total of 33 Governor seats of which 18 are elected Public Governors, nine are elected Staff Governors and six are appointed Partner Governors. Details of the Council of Governors and their constituencies and tenures are available on our website www.bridgewater.nhs.uk.

Governor candidates for the Public and Staff Governor seats disclosed their interests as part of the election process and this disclosure requirement obliged Governors to declare any political affiliations and any financial or other interests in the Trust. A copy of these disclosures is lodged within the Governors section of the Trust’s website.

All Directors of the Trust have a standing invitation to attend Council of Governors meetings and similarly all Governors are routinely invited to attend to observe those meetings of the Board of Directors which are held in public. The agendas for these meetings are structured to enable Governors to ask questions of the Board of Directors.

More detail on the role and work of the Council of Governors is available in our NHS Foundation Trust Annual Report for 2014/15.

Valuing our staffStaff Health and WellbeingThe rolling sickness absence rate for the Trust at 31 October 2014 was 5.08%. The number of Full Time Equivalent days lost to due to sickness absence was 49605.74 and the average FTE working days lost per member of staff during this period was 18.92 days

Measures taken to reduce the sickness absence rate during the period include improving information provided to managers, including monthly absence reports.

In addition, an annual health and wellbeing week was held for staff in January which attracted 128 staff to a market place at various sites across the Trust which provided health checks plus advice on health improvement, occupational health services and counselling.

We continue to provide health and wellbeing support to all staff via counselling from Wellbeing Partners and Insight (our Employee Assistance Programme). From April to October 2014 there were 449 management referrals and 29 staff referrals to occupational health. During the same period 143 staff received physiotherapy treatment and 80 underwent counselling with Wellbeing Partners.


Staff SurveyThe Trust takes part in the national annual NHS staff survey which provides us with feedback on how we are doing and how staff are feeling in relation to 29 key findings. The survey was sent to a sample of 850 staff in October 2014 and 316 staff responded by the closing date. This is a 38% response rate which is below the average for community trusts in England. This is a lower response rate than the 2013 NHS Staff Survey results when 331 staff completed the survey giving a 39% response rate.

Our overall staff engagement score was 3.67. This was an improvement on our 2013 staff engagement score of 3.61 but is below the average of 3.75 for other community trusts. Possible scores range from 1 to 5 with 1 indicating that staff are poorly engaged (with their work, their team and their trust) and 5 indicating that staff are highly engaged.

The summary findings are published in the table below.

Staff Survey Results

2013/14 2014/15 Trust Improvement/ Deterioration

Trust National Average Trust National AverageResponse rate 39% 53% 38% 48% 1% deterioration

The five Key Findings for which Bridgewater Community Healthcare NHS Trust compares most favourably with other community trusts in England:

2013/14 2014/15 Trust Improvement/ Deterioration

Top five ranking scores Trust National Average Trust National Average

% of staff experiencing physical violence from staff in

last 12 months1% 1% 1% 1% 0% improvement

% of staff believing the trust provides equal opportunities

for career progression or promotion

91% 91% 94% 91% 3% improvement

% of staff experiencing harassment, bullying or abuse from staff

in the last 12 months

18% 20% 16% 19% 2% improvement

% of staff experiencing physical violence from

patients, relatives or the public in the last 12 months

4% 9% 5% 8% 1% deterioration

% of staff witnessing potentially harmful errors, near misses or incidents

in the last month

20% 26% 20% 23% 0% improvement


The five Key Findings for which Bridgewater Community Healthcare NHS Trust compares least favourably with other community trusts in England:

2013/14 2014/15 Trust Improvement/Deterioration

Bottom five ranking scores Trust National Average Trust National Average% of staff agreeing that their role makes a difference to

patients88% 91% 87% 90% 1% deterioration

% of staff agreeing that feedback from patients /

service users is used to make informed decisions in their

directorate / department

- - 41% 52%No information from

previous year

% of staff having well-structured appraisals in

last 12 months35% 37% 32% 38% 3% deterioration

% of staff reporting good communications between

senior management and staff21% 29% 23% 33% 2% improvement

% of staff agreeing that they would feel secure raising

concerns about unsafe clinical practice

- - 65% 72%No information from

previous year

We acknowledge that there has been a slight deterioration in the overall response rate however with exception of the percentage of staff that have been appraised in the past 12 months there are no significant changes since the key finding since the 2013 survey, although it needs to be noted that there are a number of key factors that the Trust is either below or average when compared to other community trusts. The results also need to be considered in the context that the Trust has gone through a period of significant organisational changes

It is important to continue to listen to our staff and take the survey feedback on board to ensure that our workforce is a healthy and motivated one. We will be developing a staff survey action plan to address staff concerns and will continue to work with staff side and staff in the development and achievement of the action plan. We are also currently running a Listening in Action programme (LiA) to ensure that staff opinions are listened to.

Employee EngagementThe key development during the period was signing up to Listening into Action (LiA) – a national programme that will help us to engage and empower our clinicians and staff. In addition to radically improving how engaged and valued our staff feel, LiA will support managers to lead through engagement and give teams permission to make positive changes. It will fundamentally change how we work.


The main work on this programme started in October 2014 with the launch of the LiA Pulse Check to gain a benchmark of staff views and concerns.

The Trust has a range of communications channels designed to keep staff informed and to support two-way dialogue and engagement. These include a monthly Team Brief system led by the Chief Executive, a fortnightly Bridgewater Bulletin e-newsletter, a Trust intranet and a monthly Chief Executive’s blog for staff.

As a Community Trust with a dispersed workforce the Trust also uses text messaging to alert staff to any urgent issues and to support emergency planning arrangements. Staff are also encouraged to follow the Trust’s social media accounts on Twitter and Facebook. A new staff voicemail for use in emergencies or bad weather was also introduced during the year to help alert staff to advice and information.

Staff are also kept involved in the business of the Trust via a range of events, including those with a focus on quality improvement and specific professional forums.

Staff are also offered a full range of education and training courses and more detail on this is available in our Quality Account 2014/15.

Celebrating our staffIn addition to our annual Staff Awards ceremony, which is held in March every year, a “Stars of the Month” scheme allows staff to celebrate the work of their colleagues throughout the year and receive a certificate from the Chief Executive. During the year staff submitted 184 separate nominations for individual colleagues or teams as part of the scheme. In October we introduced an Employee of the Month scheme to run in conjunction with our Stars of the Month.

Equality, Diversity and Inclusion Bridgewater’s mission ‘to improve local health and promote wellbeing in the communities we serve’ can only be fulfilled if we recognise the diversity and differing, individual needs of the people within these communities. Our Equality Statement demonstrates our commitment to providing health care services and employment that is equitable and free from discrimination and to upholding the values of dignity and respect for our staff and patients and their families and carers.

Within the large population served by the Trust there are groups that suffer worse health, poorer long term outcomes and shorter lives than the rest of the population. The Equality Act provides for nine protected characteristic groups that are recognised as suffering inequality when compared to the rest of the population. These protected characteristics are age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation. In addition, the Trust has recognised and committed to improving health inclusion for other vulnerable groups within our population, including those disadvantaged by lower socio-economic status, chaotic lifestyles (drug and alcohol abuse), the homeless, destitute asylum seekers and refugees, sex workers and carers.


In order to reduce health inequalities in our communities, the Trust must work to improve inclusion in healthcare by understanding and removing the barriers to access. We must:

• Ensure that the services we provide are accessible to all• Develop services which best meet the needs of our diverse communities• Employ, develop and retain a workforce which at all levels reflects the diversity and

make-up of the population we serve• Ensure that staff have information on equality, diversity and health inclusion• Eliminate from our services, polices and decision making any adverse impact on the

promotion of equality or potential adverse effect on any particular groups or communities

Health inequalities are a key feature of the framework within which all NHS organisations operate. This includes the Health and Social Care Act 2012, the NHS Constitution, the NHS Outcomes Framework and the Five Year Forward View.

The articles within the Human Rights Act 1998 have a big impact on healthcare, for example the right to life, the right not to be tortured or treated in an inhuman or degrading way and the right to respect for family and private life, home and correspondence. The FREDA (Fairness, Respect, Equality, Dignity and Autonomy) principles of human rights are important in the day-to-day work of all NHS trusts and this is reflected in two of the CQC essential standards (person centred care and dignity and respect). These basic rights are also reflected within the Trust’s values and are assessed and monitored through the equality analysis of services and policies, through the Talk to Us patient survey and through patient complaints and feedback.

The Trust operates its equality governance within the above frameworks and also within the requirements of the Equality Act 2010 and in particular the general and specific duties of the Public Sector Equality Duty. In order to demonstrate compliance with the duties the Trust produces an annual Public Sector Equality Duty (PSED) Summary report and uses the national NHS Equality Delivery System (EDS2) framework to assess and grade equality performance for staff and patients. The information provided within the PSED and EDS2 is used, along with the information in the equality analysis of services and current national equality and inclusion initiatives to produce Equality Objectives and an Equality and Health Inequalities Action Plan that set out the plans for the coming years to improve equality performance across the Trust.

All services have an equality analysis that seeks to identify barriers for service users whether they be access barriers or assistance or attitude barriers. All service redesigns undergo an equality analysis to assess potential impacts, positive or negative, on the protected characteristic and vulnerable groups. Patient access is monitored through the PSED using population information from the 2011 Census.

The Trust believes in equality of opportunity for all staff. Staff breakdown is monitored as part of the annual PSED and from April 2015 we will be monitoring race/ethnicity in nine key indicators set down in the NHS Workforce Race Equality Standard.

We regularly monitor the gender distribution among our workforce and as at 31 October our figure our total workforce was 91% female and 9% male. Our Board of Directors is composed of 46% female and 54% male directors and among senior managers (band 8a to 8d) 79% were female and 21% are male.


As part of the PSED employee relations cases are monitored for any potential discrimination issues, this includes dignity and respect and bullying and harassment. Within the last year figures were too low to report, but no issues were identified in the analysis. The NHS Staff Survey 2014 shows that 94% of staff believe the Trust provides equal opportunities for career progression and promotion, which is above the national average for community trusts.

All staff undertake annual mandatory eLearning training, this includes a module on equality and diversity and all new staff attending corporate induction receive the newly updated health inclusion information. Compliance with these is monitored at Board level.

There is a suite of human resources policies in place to support, advise and protect staff, these include Dignity and Respect at Work; Disciplinary; Grievance and Absence Management policies. All policies undergo a review that includes checking by a member of the health inequalities and inclusion team. Each policy has an equality impact assessment that is reviewed during the bi-annual policy review and a member of the health inequalities and inclusion team sits on the final policy approval group.

The Trust is committed to the Two Ticks, Age Positive, Mindful Employer and Personal Fair Diverse Champions initiatives and this is reflected in job advertisements.

The Trust has no current or previous equal pay claims against it.

Existing and new staff with disabilities are supported in their work through the implementation of reasonable adjustments recommended by Occupational Health and the Access to Work scheme. Staff have access to occupational health and counselling services when required. Reference is made to the particular needs of employees with disabilities in the Absence Management; Dignity and Respect at Work and Recruitment policies.

The health inequalities and inclusion team are planning to focus on barriers to access for our patients in the coming year. This will mean work on several fronts, including the following:

• Signing of British Deaf Association British Sign Language Charter• Production of reasonable adjustments guidance for Trust staff• Production of religion and belief guidance for staff• A rolling programme of access audits of Trust services• Review of language interpretation and translation provision• Awareness raising through the Personal Fair Diverse Trust Champions• Submission to Stonewall Workplace Equality Index

Detailed Trust equality information such as our Equality Statement, the Public Sector Equality Duty reports, our EDS (and EDS2) grading results and service equality analysis are published on our website www.bridgewater.nhs.uk.


Improving services for patientsMembershipOur Foundation Trust members play an active role in helping to shape health services for the future. Membership is free and open to anyone aged 14 years and above who lives inEngland.

In October 2014 we achieved our ambition to recruit 10,000 public members representing the nine North West boroughs served by the organisation. This increased from 9,221 at the end of the 2013/14 reporting period.

Our staff are automatically enrolled as members unless they choose to opt out and as at the 31 October 2014 we had 3,253 staff members.

Our public members are recruited from those communities and play an important role in our business. Working with colleagues in the local authority, Clinical Commissioning Groups (CCGs) and hospital trusts we canvas the views of our members to find out what is working well and where we can make improvements.

Our members regularly receive a newsletter outlining the main developments and achievements of the Trust and are invited to a number of public events including our annual staff awards, annual members meeting and annual general meeting.

Members can decide how involved they would like to be in the work of the Trust. Many have also attended one of several workshops, focus groups organised by our staff and partners looking at the work they do and how it might be improved to better meet the needs of the communities we serve.

If you wish to become a member you can find out more and sign up online at www.bridgewater.nhs.uk/ft/ or contact our Membership Team on 01942 482672 or email [email protected] to find out more.

Any member – public or staff – can raise issues with governors representing the area in which they live or work through a dedicated email address [email protected]

Engagement and ConsultationThere were no formal consultations during the year 2014/15.

Details of our engagement and consultation with staff, our members and patients are included in the relevant sections of this report.

Patient Advice and handling of complaints We recognise that when people have issues or concerns we should aim to resolve these as soon as possible. Our Patient Services function helps patients, carers and families resolve any issues and concerns.

Where people feel the need to lodge a formal complaint we make every effort to learn from the issues so that we can improve our patients’ experience of our services.


Bridgewater is committed to the Ombudsman’s Principles for Remedy in its complaints handling procedure. This ensures that when handling complaints we are getting it right, being customer focused, being open and accountable, acting fairly and proportionately, putting things right and seeking continuous improvement.

More detail on our approach is contained within our Policy and Procedure for the Handling of Compliments, Comments, Concerns and Complaints which is available on our website www.bridgewater.nhs.uk.

More detail on patient advice and complaints received during the year 2014/15 is available in our Quality Account.

Working in partnershipAs a community trust we aim to make a significant positive difference to the health and wellbeing of local people, not just through the quality of the services we provide but by being a good corporate citizen. We do this by creating job opportunities, offering student placements and apprenticeships and supporting local suppliers.

Health, Safety and Management of Risk Bridgewater has clear, consistent policies that set out the Trust’s commitment to complying with the statutory and mandatory requirements for Health and Safety, Fire Safety, Violence and Aggression, and Security.

Specific strategies aligned to the Trust’s mission and its Risk Management Strategy set the long-term direction for Health and Safety and Fire Safety management and performance. These strategies assist the Trust in protecting its employees and all others from the risks


arising from its work activities, and there are six principal objectives intended to ensure the Trust is an organisation where there is: strong leadership for safety, a resilient safety management system, coherence of policies and procedures, compliance, competency and capability all set within a cycle of continuous improvement.

The Trust has engaged competent contractors to carry out compliance surveys across its premises for the management of asbestos, water hygiene, electrical and gas services, pressure vessels, medical gas systems, building structures and fire protection. Findings of these surveys, together with existing risk assessments, have been used to produce risk profiles for the estate so that informed decisions can be made about future improvements.

The Trust uses Ulysses Safeguarding Risk Management system for reporting operational risks and incidents, with the Health and Safety Manager and Local Security Management Specialist offering advice to support service managers.

Further details on significant operational risks and serious untoward incidents are in the Annual Governance Statement.

Information Governance Security of patient and staff information is considered to be of paramount importance to the Trust.

In the reporting period April to October 2014, the Trust had three data breaches, including loss of patient identifiable data. . The three data breaches were thoroughly investigated and as a result of the investigations, processes and procedures were reviewed, and all staff were asked to undertake the ‘Secure Transfer of Personal Data’ ELearning module.

Lessons learned following the investigation were communicated to all staff via monthly Team Briefs and staff meetings. The data breaches were reported to the Information Commissioners Office (ICO) via the Information Governance Toolkit, as ‘Serious Incidents Requiring Investigation’ (SIRI). The Information Commissioner’s Office (ICO) conducted a thorough investigation into all three incidents and was satisfied that the Trust had taken the necessary measures to minimise the risk of any further data breaches, and concluded that the three incidents did not meet the criteria set out in their Data Protection Regulatory Action Policy necessitating further action.

More detail on assessments of our systems, standards and processes for managing information is available in our Quality Account 2014/15.

Bridgewater does not routinely charge for information produced by the Trust. However, the Trust does set charges for information under The Freedom of Information and Data Protection (Appropriate Limit and Fees) Regulations 2004 which may apply for some requests. Therefore we can confirm that we comply with Department of Health and Treasury guidance for information requests.


Emergency Preparedness, Resilience and Response As a provider of NHS-funded healthcare, the Trust has defined roles and responsibilities under the Civil Contingencies Act 2004, the Health & Social Care Act 2012, NHS England Emergency Planning Framework 2013, NHS England Core Standards for EPRR 2014 and other associated guidance.

All NHS-funded organisations must identify a Board-level Accountable Emergency Officer (AEO) who is responsible for ensuring they comply with legal and policy EPRR requirements. The Trust’s AEO is the Chief Operating Officer, who is supported in discharging these duties by the Head of EPRR.

We have an Emergency Planning Steering Group to coordinate and oversee the EPRR function and ensure that we have major incident, business continuity and other emergency plans which are regularly reviewed and tested. This group also monitors the action plans we have in place to address any areas for development which have been identified.

Planning for emergencies cannot be undertaken in isolation, so we work closely with the wider health economies in the areas we serve and take part in joint training and exercising opportunities. We are represented on the Greater Manchester, Cheshire and Merseyside Local Health Resilience Partnerships, each of which provides a strategic forum for joint planning for emergencies.

Some of the work covered during this reporting period for 2014/15 is highlighted below.In April 2014 we held our annual table top emergency exercise to test our major incident and business continuity plans. The scenario focused on severe weather and was based on real events earlier in the year when high winds, flooding and power outages affected a number of local services. We also carry out a communication test every six months to ensure that we are able to contact key staff in the event of an emergency.

In October 2014 the senior management team approved a new Trust-wide business continuity procedure and business continuity plan template, aligned to ISO 22301 as required by the NHS England Business Continuity Management Framework.

As part of their annual assurance process, Merseyside Clinical Commissioning Groups (CCGs) commissioned a review of each of their providers’ business continuity plans. Plans from four of our services were chosen for the review in October 2014 and each was rated as green.

Anti-Fraud MeasuresAll NHS organisations in England and Wales have an appointed Anti-Fraud Specialist. The Audit Committee oversees a programme of counter fraud arrangements, including a contract with Mersey Internal Audit Agency for a local Anti-Fraud Specialist.

Bridgewater works with its specialist to protect staff and resources from fraudulent activities and all NHS employees have responsibilities when it comes to reporting suspicions or concerns relating to fraud, bribery or corruption.

Staff are regularly surveyed to help establish awareness levels of fraud within the NHS and staff are made aware of antifraud measures through the corporate induction and staff awareness sessions. Information on policies and guidance relating to fraud, including the Whistleblowing policy, is available on the Trust intranet for staff.


Better Payment Practice Code (BPPC) The Trust agrees to pay all undisputed invoices within contract terms or in 30 days where there are no terms agreed. The Trust is measured separately for payment of NHS and Non NHS invoices. The results for 2014/15 are presented in the table below which shows underperformance in both categories. Payment performance for non NHS Payables is better than for NHS. The poor performance reflects a number of issues during the year, the key ones being:

• Failure across many divisions/directorates to authorise invoices promptly.• An inability to resolve inter NHS disputes with other organisations quickly enough to

enable invoices to be paid promptly.

BPPC Summary As At 31st October 2014

Target /Description Number £’000

Non-NHS:Total Invoices paid in the year 18,502 14,608

Total Invoices paid within target 15,761 12,195

Percentage of Invoices paid within target 85% 83%

NHS:Total Invoices paid in year 1,018 10,762

Total Invoices paid within target 767 9,720


Total Non-NHS and NHS:Total Invoices paid within the year 19,520 25,370

Total Invoices paid within target 16,528 21,915


The Trust has signed up to the Prompt Payments Code.

Exit Packages and Severance Payments The number and cost of exit packages is as follows:

Exit packages - disclosures Number of exit packages

agreements

Total value of package

agreements

Number £’000Voluntary redundancies including early retirement contractual costs 20 700

Total 20 700Non-contractural payments made to individuals where the payment value was more than 12 months of their annual salary

0 0


Number

No. of existing engagements as of 31 March 2015Of which:

5

Number that have existed for less than one year at the time of reporting 1Number that have existed for between one and two years at the time of reporting 1Number that have existed for between two and three years at the time of reporting 3Number that have existed for between three and four years at the time of reporting -Number that have existed for more than four years at the time of reporting -

All of these off-payroll engagements have been subject to a risk based assessment as to whether assurance is required that the individual is paying the right amount of tax, and where necessary assurance has been sought.

Off-payroll EngagementsThe Trust had the following off-payroll engagements as of 31 March 2015, for more than £220 per day that last longer than six months.

Pension Liabilities

Past and present employees are covered by the provisions of the NHS Pension Scheme. Details of the benefits payable under these provisions can be found on the NHS Pension website at www.nhsbsa.nhs.uk/pensions. The scheme is an unfunded, defined benefit scheme that covers NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. The scheme is not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, the scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS Body of participating in the scheme is taken as equal to the contributions payable to the scheme for the accounting period. A fuller explanation with regard to pension liabilities is included at note 9.6 of the statutory accounts.

Auditor Disclosures

The directors have taken all steps that they ought to have taken as directors to make themselves aware of any relevant audit information. Furthermore, the Trust has made all relevant audit information available to the external auditors. The Trust’s external auditors are Grant Thornton and the cost of work performed by them in the accounting period is as follows:

Category Amount (£000)Audit services 47 Further assurance services 0Other services 0

Total 47


5. Quality of ServicesEach year NHS Trusts are required to publish a Quality Account as required by the NHS Act 2009 and the NHS (Quality Accounts) Regulations 2010. We have produced one Quality Report to cover the reporting period 2014/15 and this is available within our NHS Foundation Trust Annual Report (part year 1 November 2014 to 31 March 2015)

This document aims to provide a publicly available account and assurance on the quality of care we provide through providing evidence and progress against key measures. It includes a statement of assurance regarding quality from our Chief Executive, details of progress against our quality improvement priorities for 2014/15 and an outline of the priorities for 2015/16 and what we intend to achieve.

The report also contains details of service improvements within Bridgewater and how we have worked with our partners to improve the quality of care we provide.

During the year 2014/15 we linked our quality improvement priorities to the five areas of focus for the new Care Quality Commission inspection regime. These form the basis for our quality reporting framework during the year. These are linked to the following statements:

• We are safe

• We are effective

• We are caring

• We are responsive

• We are well-led

Our Quality Account can be found within our Foundation Trust Annual Report 2014/15 (part year 1 November 2014 to 31 March 2015) or is available as a separate document on our website.


6. Remuneration Report

The tables shown on the following pages provide information on the remuneration and pension benefits for Senior Managers for the year ended 31 March 2014. These tables plus their associated narrative (including pay multiples) are subject to External Audit review.

The remuneration report includes:

• Salaries and Allowances Table

• Pay Multiples

• Exit Packages

• Appointments and Remuneration Committee

• Pension Benefits Table

• Cash Equivalent Transfer Values (CETV)

• Real Increase in CETV


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Pay MultiplesReporting bodies are required to disclose the relationship between the remuneration of the highest-paid director in their organisation and the median remuneration of the organisation’s workforce.

The mid-point of the banded remuneration of the highest paid director in Bridgewater Community Healthcare NHS Trust in the period from 1 April to 31 October 2014 was £82,500 (2013-14, £137,500). This was 5.0 times (2013-14, 5.0) the median remuneration of the workforce, which was £16,522 (2013-14, £27,901).

Total remuneration includes salary, non-consolidated performance-related pay, benefits-in-kind, but not severance payments. It does not include employer pension contributions and the cash equivalent transfer value of pensions.

Exit PackagesDuring 2014/5 there have been 22 severance payments totalling £759k made in the year. All of these payments relate to voluntary redundancies. All payments have been made in accordance with the NHS Pension Scheme procedures and National Terms and Conditions, as a result Treasury Approval has not been required.

One of the severance payments relates to a named senior manager (Director of Clinical Performance). This payment was made up of one component being a cash payment equating to two years’ salary.

Appointments & Remuneration CommitteeThe Appointments and Remuneration Committee is attended by all Non-Executive Directors and is chaired by the Chairman of the Trust.

The committee sets the levels of pay for Executive Directors and senior managers not remunerated under Agenda for Change pay arrangements.

The committee approves the proposed appointment of Executive Directors. Contracts for Executive Directors are substantive unless or until the individual elects to resign from the role or is removed from the role. Notice periods for such directors are six months. There are no contractual provisions for early termination of Executive Directors.

The Appointments Commission appoints Non-Executive Directors, generally on 3 year contracts which can be renewed on expiry. Notice periods are generally one month. There are no contractual provisions for the early termination of Non-Executive Directors.

Furthermore, the committee operates an annual Performance Development Review process whereby each individual has a named ‘parent’. At the outset, the postholder and parent jointly agree the objectives for the following year and performance against these is then jointly assessed after the twelve month period elapses. The cycle is then repeated on an annual basis.


Executive Directors

Real increase / (decrease) in pension at

aged 60

Real increase / (decrease) in pension lump

sum at aged 60

Total accrued pension as

aged 60 at 31 October 2014

Lump sum at aged 60 related

to accrued pension at 31 October 2014

Cash Equivalent

Transfer Value at 1 April 2014

Cash Equivalent

Transfer Value at 31 October

2014

Real increase /

(decrease) in Cash

Equivalent Transfer

Value

Name Bands of£2,500£’000s

Bands of£2,500£’000s



£’000s £’000s £’000s

Kate FallonChief Executive

0-2.5 0-2.5 25-30 85-90 1,478 0 0

Linda AgnewDirector of CorporateDevelopment

0-2.5 0-2.5 30-35 90-95 578 593 5

Dorian WilliamsExecutive Nurse / Director of Governance in post to 31/08/2014

0-2.5 0-2.5 35-40 105-110 679 688 0

Dorothy KeatesInterim Executive Nurse / Director of Governancein post from 01/09/2014

0-2.5 0-2.5 15-20 55-60 382 392 1

Mike TreharneDirector of Finance& Performance

0-2.5 0-2.5 35-40 110-115 687 723 25

Stephen WardMedical Director

0 0 0 0 1,447 0 0

Colin ScalesChief Operating Officer

0-2.5 0-2.5 10-15 40-45 205 218 10

ChristineSamosaDirector of People,Planning andDevelopment

0-2.5 0-2.5 35-40 110-115 659 696 26

Seamus McGirrDirector of ClinicalPerformancein post to 04/08/2013

0 0 0 0 679 0 0

Pension Benefits – Period ended 31 October 2014Executive Directors

There are no entries in respect of pensions for Non-Executive Directors as they do not receive pensionable remuneration. Additionally there were no contributions to Stakeholder Pensions on behalf of any of the Directors of the Trust.


Cash Equivalent Transfer ValuesThe benefits valued are the member’s accumulated benefits and any contingent spouse’s pension payable from the scheme.

A CETV is a payment made by a pension scheme, or arrangement to secure pension benefits in another pension scheme or arrangement when a member leaves a scheme and chooses to transfer the benefits accrued in their former scheme.

The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the scheme, not just their service in a senior capacity to which the disclosure applies. The CETV figures, and the other pension details, include the value of any pension benefits in another scheme or arrangement which the individual has transferred to the NHS pension scheme. They also include any additional pension benefit accrued to the member as a result of their purchasing additional years of pension service in the scheme at their own cost. CETV’s are calculated within the guidelines and framework prescribed by the Institute and Faculty of Actuaries.

Real Increase in CETV

This reflects the increase in CETV effectively funded by the employer. It takes account of the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement). There has been a change in the actuarial factors set by the Government Actuary’s Department (GAD) with effect from 8 December 2011. NHS Pensions has used the most recent set of actuarial factors produced by GAD when calculating the CETV for inclusion in the remuneration report.


7. Annual Governance Statement 2014/15 Organisation Code RY2April 2014 to October 2014 Annual Governance StatementScope of responsibility

The Board is accountable for systems of internal control. As Accountable Officer, and Chief Executive of this Board, I have responsibility for maintaining a sound system of internal control that supports the achievement of the organisation’s policies, aims and objectives. I also have responsibility for safeguarding the public funds and the organisation’s assets for which I am personally responsible as set out in the Accountable Officer Memorandum.

The Board Assurance Framework is submitted to the Board for review following scrutiny by the Quality and Safety Committee and these provide part of the information and assurance required. The AGS is drafted by the Head of Risk Management. The Head of Internal Audit Opinion contributes towards the required assurance and this report has been reviewed by Quality and Safety Committee and the Board. The AGS is discussed at director management team and updated for any comments and a draft reported to the Board for information. It is then subsequently signed by the Chief Executive.

The Internal Audit function has completed its Annual Opinion for 2014/15 and stated Significant Assurance overall.

The governance framework of the organisationThe Board meets on a monthly basis and delegates specific monitoring responsibilities in order to receive assurance reports from the Quality and Safety Committee as a committee of the Board. The Trust Chair was responsible for the leadership of the Board and ensured that members of the Board had access to relevant information to assist them in the delivery of their duties. Records of Board attendance are reported in the Annual Report. The NEDs actively provided scrutiny and contributed challenge at Board and Board-committee level. The Board and its committees comprised membership and representation from appropriate officers and NEDs with sufficient experience and knowledge to support the committees in discharging their duties. The Board was well attended by all Executives and NEDs throughout the year, ensuring that the Board was able to make fully informed decisions to support and deliver the strategic objectives.

During 2014/15 (April to October) the Executive Nurse/Director of Governance stepped down from an executive post from the Board and the responsibilities at Board-level were assumed by the Deputy Director of Nursing and Governance as the Interim Executive Nurse. The Executive Nurse/Director of Governance role as Caldicott Guardian was transferred to the Interim Executive Nurse. In May 2014 a Non-Executive Director resigned from the Board and was not replaced.

The Trust Caldicott Guardian would be notified of any breaches of patient confidentiality that require notification to the Information Commissioner. The following Information Governance incidents were uploaded on the national Strategic Executive Information System (STEIS) as Serious Untoward Incidents (SUIs) to the attention of the relevant commissioner during the period: -

• STEIS reference 2014/15834, Ulysses reference 15657: clinical safeguarding record found by a member of the public


• STEIS reference 2014/19362, Ulysses reference 16036: clinical safeguarding record found by a member of the public

• STEIS reference 2014/29769, Ulysses reference 17070/17084: clinical safeguarding letter sent to the wrong address

The Board assessed its own performance as part of the Quality Governance (QGAF) and Board Governance Assurance (BGAF) Frameworks, the underpinning evidence of which were independently appraised. The Quality and Safety Committee and the Audit Committee both assessed their own performance and effectiveness using Self-Assessment Questionnaires.

The Board and directors are accountable for the establishment and ongoing delivery of services within the requirements of the Provider Licence, risk assessment framework, and maintained regulatory compliance, including against CQC ratings and feedback from inspections leading up to achieving Foundation Trust status.

Directors oversaw all aspects of organisational performance, including unprecedented challenges in achieving financial duties, ongoing financial viability, delivery of Quality, Innovation, Productivity and Prevention (QIPP) initiatives, service pressures, and maintaining key relationships and partnership working across the wider local health economy and with Commissioners including engagement with Integrated Commissioning Plans and transformation programmes.

For the financial reporting period 1 April 2014 – 31 October 2014, the trust is declaring a deficit of £0.807m. This figure has been derived following a prior period adjustment of expenditure totalling £0.933m that was incurred in 2014/15 but related to the financial year 2013/14. Due to national consolidation rules associated with the summarisation schedules that underpin the accounts, the total deficit reported to the Trust Development Authority and Department of Health is actually £1.74m. These rules do not allow prior period adjustments but the ‘local accounts’ are allowed to reflect prior period adjustments providing they are appropriate.

The Trust had initially proposed an adjustment to the 2014/15 accounts amounting to £2.6m. This represents the capital value of all wheelchair and other community loan assets owned by the Trust, which have been purchased over a number of accounting periods. However, the new accounting treatment in respect of such items will only apply to the FT accounts. Therefore, only those costs incurred by the Trust in the five months from 1st November to 31st March 2015 may be properly capitalised.

Unfortunately, due to a variety of issues, the Trust did not meet the filing deadline of the 5 June 2015 for the TDA.

A review of the circumstances and contributory issues in relation to the missed deadline is being undertaken by the Trust together with an external review of the Trusts processes.

Whilst the Trust made a deficit in the part-year 2014/15, the statutory break-even duty for NHS Trusts is defined as “Each NHS Trust must ensure that its revenue is not less than sufficient, taking one financial year with another, to meet outgoings properly chargeable to revenue account. An agreement was reached in 1997 with the Treasury and the Audit Commission


that the duty will be assumed to have been met if expenditure is covered by income over a rolling 3 year period.”

As such therefore, the Trust has met its statutory break-even duty.

2014/15 2013/14 2012/13

Part YearApril to October 2014 £000s £000s

Turnover 84,939 147,310 175,302Retained surplus/(deficit) for the year

(807) 659 1,715

Break-even in-year position (801) 668 1,715Break-even cumulative position 3,774 4,575 3,907Materiality test (i.e. is it equal to or less than 0.5%):

-0.94% 0.45% 0.98%

Break-even in-year position as a percentage of turnover

A prior period adjustment has been made under IAS 8, the value of which is £933k. This has the impact of reducing the retained surplus for 2013/14 by £933k.

Throughout 2014/15, the Trust developed the Council of Governors in preparation for Foundation Trust status, along with communication and engagement with the membership, key stakeholders and other partners.

Trusts are not required to comply with the UK Corporate Governance Code. When reporting on Corporate Governance arrangements they are advised to draw on best practice available including those aspects of the UK Governance Code considered to be relevant to the trust and best practice. This Trust confirms that it has not complied with the UK Corporate Governance Code.

A Board Assurance Framework (BAF) was in place throughout April 2014 to October 2014 and was presented to the Quality and Safety Committee in full after the end of each quarter, and also in summary with any significant Operational Risks to the Quality and Safety Committee each month in between. The Internal Audit review provided the highest level of assurance on the Assurance Framework Opinion (Level A) that was submitted to the Audit Committee. The Audit Committee has separate internal and external audit plans. The Committee meets on a bi-monthly basis with representation from both internal and external audit functions. The terms of reference have been reviewed in line with the Intelligent Board and Audit Committee Handbook publications. An annual work plan is produced which dovetailed with the Board’s calendar. The Audit Committee’s primary role is to conclude upon the adequacy and effective operation of the organisation’s overall internal control system.

The main focus of an Audit Committee’s work is related to internal financial control matters, the maintenance of proper accounting records, the reliability of financial information, and a wider focus on the safety and quality of patient care. However, within Bridgewater the Audit Committee also considers the findings of Clinical Audit across operational services.


MIAA presented a progress report to the April 2014 and September 2014 Audit Committee, updating the Committee of the assurances, key issues, and the Internal Audit Plan.

The Integrated Performance Report and the Quality Dashboard were reviewed regularly by Board and the Trust’s Senior Management Team (SMT). Each responsible Director reviews his/her component contribution and these are triangulated to provide a holistic picture of outcomes and impact.

The governance arrangements that the Trust adopted followed the recommendations within the joint Monitor and Audit Commission good practice guide entitled ‘Delivering Sustainable Cost Improvement Programmes’.

The Trust Efficiency Assurance Committee (TEAC) oversaw delivery of the Trust’s efficiency programmes, and provided appropriate assurance directly to the Board that delivery was on track and that the potential impact on services was adequately assessed.

Bridgewater had a robust process, monitored by the TEAC, which assessed the viability of the Trust’s Cost Improvement Plans (CIP) both from a financial stand point and a quality impact perspective.

Integral to the CIP was the rolling Quality Impact Assessment (QIA) programme, undertaken by the Trust’s QIA panel at the beginning of each project (at project scope stage), at the design stage, and immediately prior to sign off. If a scheme was deemed likely to have an adverse impact on quality or patient safety, then the sponsor was required to address the concerns of the QIA panel and to resubmit for further assessment. If the panel’s concerns prevailed, the scheme would be replaced with another scheme. Overall responsibility for each project proceeding to implementation rested with the Executive Medical Director and the Executive Nurse/Director of Governance. The Quality and Safety Committee was in receipt of quarterly QIA summaries for monitoring and assurance purposes. After the initial sign off of a CIP initiative, there was an ongoing process in place to monitor the progress and effect of the initiative on service quality and delivery.

There was an Escalation Framework that ensured Board members were briefed on any significant events/news between Board meetings. When this happened, Board members received an email entitled ‘Flash Report’ from the Trust Secretary, with detail including the nature of the issue, immediate remedial action, consider any likely media interest, long-term action, and to which Board or committee meeting a formal report on the issue will be presented.

The Bridgewater Quality Strategy was developed to ensure the Trust has adequate process-es and structures to provide a robust quality framework (monitored by the Quality and Safety Committee) for delivery of safe, effective care which includes the sharing of best practice and lessons learnt.

The monthly Quality Management Group (QMG) provided corporate management and assurances for the Trust’s quality governance functions, including review of Service Group / Directorates and Borough performance and escalated concerns in all areas of clinical governance. At an operational level, all risks to the safe delivery of clinical services are considered by Directorate Management Teams each month and significant issues escalated within a framework to QMG.


The Quality and Safety Committee was in receipt of the Corporate Risk Report (comprising all strategic risks and all significant operational risks) each month to consider the level of assurance regarding the identification and management of the risks, and received notification of the rationale for the addition or removal or strategic risks, or significant change in risk scores.

Risks were a standing agenda item on the Quarterly Borough Performance Review Meetings, Directorate Management Teams, and the QMG.

The Quality and Safety Committee’s business cycle was predicated on an annual business plan. At an operational level, quality and safety was discussed at the Directorate Management Team meetings. QMG then reviewed and scrutinized issues of quality and safety in advance of the formal meeting of the Quality and Safety Committee.

Responsibility for quality and safety were included within job descriptions for all executive roles. The Chief Operating Officer received reports from across the Directorates at the QMG and reports to the SMT and onwards to the Quality and Safety Committee.

Quality is a core part of Board meetings, with monthly Quality & Safety agenda items. Quality performance is discussed at the monthly Quality & Safety Committee with regularly attending membership.

The Quality & Safety Committee received regular reports on: -

• Child and Adult Safeguarding• NICE compliance• CQC compliance• Clinical audit• Accountable officers report• Infection control• Strategic and Significant Operational Risk• Quality Strategy and associated framework and action plan • Equality and diversity• Information governance• Patient experience• Policy approval

By way of reviews, advice, and reports from specialised functions (governance, infection control, medicines management etc.) to the Quality and Safety Committee, the Trust ensures that it adheres to its regulatory and requirements and discharges its statutory functions adequately. Between Quality and Safety Committee meetings, the SMT also received exception information from Directors in order to report exceptions and concerns directly to the Board.

Two Audit Committee reports were received by the Board in April 2014 and September 2014 (June 14 and July 14) NB: Remove. Notable points raised by the Audit Committee over the year are included within the Audit Committee Chair’s Annual Audit Report.

The Trust published an annual Quality Account document which includes details of Serious Untoward Incidents (receiving Significant Assurance on the Follow Up audit), Clinical Audit,


and Never Events. Processes are in place to manage these issues as they arise and undergo internal and external scrutiny reported to the Board and the Chief Executive.

Risk assessmentThere are two types of risk monitored within the Trust: -

1. Strategic Risks: principal risks recorded on the BAF that may foreseeably impede the ability of the organisation to deliver its objectives.

These are collated by the SMT and members of the Board from: -• outstanding strategic principal risks recorded on the BAF from the previous financial

year,• as identified as part of the Board’s annual Risk Management Seminar, and• risks identified as part of the Integrated Business Planning process (including

sense-checking the narrative within the Integrated Business Plan)

The Board approved the following strategic risks for monitoring during 2014/15: -

• 14/15.1 A culture across all levels of the organisation that: -• tolerates poor quality of service quality and provision• fails to support and encourage staff

• 14/15.2 Substandard quality of care and service delivery due to: -• failure adhere to best practice• inadequate capacity and skills• failure to adhere to agreed Trust policy and procedure• failure to recognise or embed lessons learned from adverse events

• 14/15.4 Failure to adopt technology to improve quality and efficiency of healthcare including: -

• mobile technology• technological innovation• telehealth• electronic patient record• single cross-borough Trust network platform• an investment programme that takes into account CCG disinvestment

• 14/15.5 Commercial competitiveness limited by failing to: -• retain business• gain new business• respond adequately/in a timely manner to commissioning need• respond to emerging opportunities• adequately identify and engage appropriately with all strategic partners

• 14/15.7 Financial/political initiatives affecting the health economy that influence in-creasing demands without sufficiently matched income growth

• 14/15.8 Failure to consistently deliver services that meet contractual obligations: -• Commissioning for Quality and Innovation (CQUIN) targets• Care Quality indicators


• Specific KPI breaches• agreed activity levels• quality schedules

• 14/15.9 Failure to sustain and demonstrate long term financial viability: -• poor forecasting of costs and control expenditure• failure to identify income streams and opportunities• income fails to keep pace with increasing costs

With reference to strategic risk 14/15.9, the Trust experienced challenges in respect of its financial forecasting. Going forward the Trust will need to improve its forecasting capability, and the Trust has commissioned a review of its processes in order to both identify areas for improvement and also to provide assurance for 2015/16.

• 14/14.10 Impact of the CIP programmes -• Non-delivery or slippage on the delivery of CIPs• Adverse influence of initiatives on quality of care• Failure to demonstrate realisation of CIP savings

• 14/15.12 Failure to maintain and improve sound systems of governance and effective internal control that: -

• offers clear and readily available escalation processes in a timely way• provides relevant and adequate Board assurance• offer sufficient quality assurance• mitigates reputational regulatory, and commercial damage• offer a proactive succession planning program

• 14/15.13 Inconsistent data between similar services across Boroughs: -• Activity recording• Data quality• Technology issues

• 14/15.15 Failure to demonstrate benefits of organisational transition and structures, specifically: -

• Matrix working• Lines of escalation and communications• Benefits realisation• Combining operational control and relationship management• Loss of commissioning legacy information

The Board directed that these be added to during the year with: -

• 14/15.18 Income loss: -• Income loss• Failure to maintain financial viability• Reputational damage

The strategic risk profile at October 2014 appears: -


• No Extreme Risks• Two risks scoring High (12)• Nine risks scoring High (8 to 10)

2. Operational Risk: risks identified by operational staff and managers that may foreseeablyimpede the safe delivery of high quality service to patients on a day to day basis. The potential implication from this is that a high operational risk could adversely affect a service’s ability to meet the organisational objectives.

In accordance with the Risk Management Strategy and Policy, operational risks are identified, assessed, and documented at service level and monitored by the Directorate Management Teams with any significant issues escalating to the QMG and the Quality and Safety Committee (with strategic risks from the BAF) for assurance.

The Operational Risk profile at the October 2014 comprises: -

• No Extreme Risks• 53 High Risks• 405 Moderate Risks• 97 Low Risks

The Trust used a consistent risk assessment methodology as defined in the Risk Management Strategy for all risk (both Strategic and Operational) based on: -

• Hazard identification• Impact evaluation• Identification of Controls, Assurance and any gaps in these,• Using the NPSA Risk Matrix for grading and initially prioritising risks, and• Treating Control and Assurance gaps through Action Plans with completion dates to

reach target tolerable levels of risk

This methodology remained consistent since 2012/13. Due to the clinical services re-structure, the review date for the Risk Management Strategy was extended and approved later in 2014.

Risk Registers were held in a ‘live’ database that changed regularly as risks were reviewed and treated and, as such, individual risks escalated or decreased in priority over the period.

The Trust identified a range of potential significant risks at different points and the Board monitored the management of these, some of which are detailed later in this document.

The risk and control frameworkRisk is inherent within much of the work that a healthcare organisation delivers. Consequently, the risk management process is designed to minimise the potential impact of risks and avoid unnecessary patient and staff harm.

The most consistent set of principal Controls the Board expects are established policies and procedures. Assurance of implementation and adherence to these standards and processes are monitored through staff training figures and incidents or complaints captured in the Integrated Performance Report and the Quality Dashboard to the Board. The Board


focuses on patient and service experience as a reflection of the culture of the Trust. A range of fundamental policies and procedures remained in place to support staff and these were independently reviewed as part of the successful NHS Litigation Authority Level 1 assessment which remains in place since 2013/14.

The Trust employed specialists, for example in Health and Safety, Medicines Management, Information Governance, Security, and Equality and Diversity, to maintain Trust adherence to regulations and additionally offer advice to management on expected operational Controls to mitigate risks.

The Audit Committee oversees a programme of counter fraud arrangements, including the contract with MIAA for a Counter Fraud Officer. An MIAA Internal Audit Plan was developed and produced to address and ensure coverage of key risk areas of the Trust, with reference to strategic risks identified within the BAF, management requests into areas of potential gaps and weaknesses etc.

The online Ulysses Safeguard Risk Management System acted as a central database for collating and reporting operational risks with the Head of Risk Management responsible for the management of this software and embedding it across the Trust. The software enabled the collation of incidents, risks, patient experience, medical equipment, subject access and freedom of information requests, and national alert reports to all staff and management across the Trust.

All managers across the Trust maintained a responsibility for the safety of their staff and patients, and the safe and effective delivery of care as part of the Trust objectives. Anything that presented a foreseeable hazard to these was risk assessed and recorded on the Risk Management System or, if something adverse occurred it was recorded on the same system as an incident.

Significant operational risks are reported to the Chief Operating Officer as they arise in directorates and, and Directors may offer immediate advice, intervention or support to mitigate the issue. Controls and Assurance that affect local operational process are managed and recorded by managers at a directorate level.

Review of the effectiveness of risk management and internal controlThe Board assessed its own performance as part of the QGAF and BGAF exercises and the underpinning evidence of the internal controls in place. These were also independently appraised. These took into account the requirements of the NHS TDA Accountability Framework, also, the Integrated Performance Report is received by both the Board and the Quality and Safety Committee to scrutinise both Performance and Quality issues, including Waiting Times for elective care and to receive assurance that the data is accurate via a series of free text areas within the report to explain any exceptions each month. A range of formal internal committees and reports have been developed to scrutinise the effectiveness of the ongoing business of the organisation.


The overall opinion from the Director of Audit was:

“Significant Assurance can be given that there is a generally sound system of internal control designed to meet the organisation’s objectives, and that controls are generally being applied consistently. However, some weaknesses in the design or inconsistent application of controls put the achievement of particular objectives at risk.”

Although Significant Assurance has been identified, a range of actions have been developed to address risks identified in the audits and will be monitored by the Audit Committee in 2015/16. Follow up reports were provided to the Audit Committee regularly to confirm the Trusts actions and implementation of recommendations raised in Audit Reports.

An Internal Audit Plan was developed to address a set of specific concerns and potential risks raised by management. In addition, the BAF is the key document which MIAA consider when producing the Internal Audit Plan to ensure that they produce a risk-based Audit Plan bespoke to the Trust. During 2014/15 the Internal Audit function reviewed the following areas and offered: -

High Assurance: -

• Nil

Significant Assurance: -

• Emergency Preparedness Review• General Ledger• Income & Debtors• Non-Pay Expenditure• Treasury Management• SystemOne and IG Governance Arrangements• Recruitment Processes Follow Up• Serious Untoward Incidents Follow Up• New Domain Review• Information Governance Toolkit• Safeguarding Follow UP Review

Limited Assurance: -

• Telephony Review• Data Consistency Phase I Review• Network Infrastructure Review• School Nursing Service Review• Financial Systems Technical Security Review• 20 Working Day Dental Target• Specialised Services Governance Arrangements Review• ESR (HR/Payroll) Review

Detailed action plans have been developed in response to all recommendations from the MIAA reports, regardless of the overall level of assurance, and will be monitored by the Audit


Committee and the Quality and Safety Committee with follow up visits planned by MIAA during 2015/16 to receive updates and assurance that these have been addressed.

The Audit Committee was in receipt of full reports and progress reports on all of the audits and recommendations during 2014/15.

Significant Issues

At the end of October 2014 the BAF was reviewed by the Board, representing the principal strategic risks to the Trust. At that time the October Corporate Risk Report identified that there were no Extreme Risks. The following significant risks were managed between April and October the period: -

• Quarter One• No Extreme Risks

• Quarter Two• No Extreme Risks• Added 14/15.18 Income loss

• Failure to maintain financial viability• Reputational damage

Between April 2014 and October 2014 there were 44 SUIs uploaded to STEIS.

Each incident was subjected to a detailed Root Cause Analysis (RCA) to identify trends and practice concerns and provided to the Trusts commissioners.

Type TotalCommunication error 1Confidential information breach 3Drug incident 1Failure of medical Equipment 1Pressure ulcer Grade 3 20Pressure Ulcer Grade 4 6Safeguarding 1Slips / Trips 7Suicide 3Unit Closure 1


External AssessmentDuring 2013/14 the Trust came under scrutiny by the Monitor team as part of its application for Foundation Trust status, Professor Sir Mike Richards, Chief Inspector of Hospitals, said at the time:

“Overall, we found services provided by Bridgewater Community Healthcare NHS Trust were safe, although there is need to improve systems for sharing learning from incidents across the Trust as a whole.

“Most of the patients and carers we met described staff as caring and compassionate and felt that services were responsive to people’s needs. We noticed that staff worked well in multidisciplinary teams across organisations to provide support to patients in the community.

“There was some evidence that waiting times could be longer than expected, and this was a source of frustration for some patients. I am sure the Trust will want to address that as a priority.”

The Chief Executive, supported by Directors, and with constructive critical challenge from the Non-Executive Members of the Board, continued to receive information and monitor plans and initiatives across the Trust during 2014/15 based on the solutions identified during 2013/14.

Following the findings of the CQC inspection, the Trust was able to progress to the final stage of the Foundation Trust application process, and re-engaged with Monitor in June 2014.

During this final stage, Monitor’s assessment team visited the Trust to conduct on-site interviews with the Board of Directors, clinical staff, Governors and partner agencies.

Following this rigorous process, the Trust Board met with Monitor’s Board in London in September and, from 1 November, Bridgewater was one of the first two community trusts to be awarded a Foundation Trust licence.

ConclusionAs Chief Operating Officer during the whole period that the previous Accounting Officer was in post, I can confirm that I am fully aware and was involved in the governance and systems of internal control in place prior to taking up my current role as Accounting Officer.

The systems of internal control remain sound in that they have been reviewed and appear robust and are able to identify and escalate any significant issues speedily and appropriately to the proper level. The Trust identified risks to income loss and commerciality during 2014/15 and, although they remain a significant risk to the organisation, suitable Assurance and Controls are in place to mitigate the effect on the organisation.

Accountable Officer: Colin Scales (Chief Executive)

Organisation: Bridgewater Community Healthcare NHS Trust

Signature: Date: May 2015


8. Full Annual Accounts for the part year ended 31 October 2014 Foreword to the StatementsThese accounts for the period ended 31 October 2014 have been prepared by Bridgewater Community Healthcare NHS Trust under section 98(2) of the National Health Service Act 1977 (as amended by section 24(2), schedule 2 of the National Health Service and Community Care Act 1990) in the form which the Secretary of State has, with the approval of the Treasury, directed.

Statement of the Chief Executive’s Responsibilities as the Accountable Officer of the TrustThe Chief Executive of the NHS Trust Development Authority has designated that the Chief Executive should be the Accountable Officer to the trust. The relevant responsibilities of Accountable Officers are set out in the Accountable Officers Memorandum issued by the Chief Executive of the NHS Trust Development Authority. These include ensuring that:

• There are effective management systems in place to safeguard public funds and assets and assist in the implementation of corporate governance;• Value for money is achieved from the resources available to the trust;• The expenditure and income of the trust has been applied to the purposes intended

by Parliament and conform to the authorities which govern them;• Effective and sound financial management systems are in place; and• Annual statutory accounts are prepared in a format directed by the Secretary of State

with the approval of the Treasury to give a true and fair view of the state of affairs as at the end of the financial year and the income and expenditure, recognised gains and losses and cash flows for the year.

To the best of my knowledge and belief, I have properly discharged the responsibilities set out in my letter of appointment as an Accountable Officer.

Signed: Colin Scales (Chief Executive)

Date: 12 June 2015


Statement of Directors’ Responsibilities in Respect of the Accounts The directors are required under the National Health Service Act 2006 to prepare accounts for each financial year. The Secretary of State, with the approval of the Treasury, directs that these accounts give a true and fair view of the state of affairs of the trust and of the income and expenditure, recognised gains and losses and cash flows for the year. In preparing those accounts, directors are required to:

• Apply on a consistent basis accounting policies laid down by the Secretary of State with the approval of the Treasury;

• Make judgements and estimates which are reasonable and prudent; • State whether applicable accounting standards have been followed, subject to any

material departures disclosed and explained in the accounts.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the trust and to enable them to ensure that the accounts comply with requirements outlined in the above mentioned direction of the Secretary of State. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors confirm to the best of their knowledge and belief they have complied with the above requirements in preparing the accounts.

By order of the Board

Colin Scales, Chief Executive Date: 12 June 2015

Mike Treharne, Director of Finance Date: 12 June 2015


Auditor Opinion and Report

Independent Auditor’s Report to the Directors of Bridgewater Community Healthcare NHS Trust We have audited the financial statements of Bridgewater Community Healthcare NHS Trust for the seven month period ended 31 October 2014 under the Audit Commission Act 1998. The financial statements comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Taxpayers’ Equity, the Statement of Cash Flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and the accounting policies directed by the Secretary of State with the consent of the Treasury as relevant to the National Health Service in England.

We have also audited the information in the Remuneration Report that is subject to audit, being:

• The table of salaries and allowances of senior managers • The table of pension benefits of senior managers • The pay multiples narrative notes

This report is made solely to the Board of Directors of Bridgewater Community Healthcare NHS Trust in accordance with Part II of the Audit Commission Act 1998 and for no other purpose, as set out in paragraph 44 of the Statement of Responsibilities of Auditors and Audited Bodies published by the Audit Commission in March 2014. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Trust’s directors and the Trust as a body, for our audit work, for this report, or for opinions we have formed.

Respective responsibilities of Directors and auditor As explained more fully in the Statement of Directors’ Responsibilities in respect of the accounts, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards also require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Trust’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trust; and the overall presentation of the financial statements. Inaddition, we read all the financial and non-financial information in the annual report which comprises to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.


Opinion on financial statementsIn our opinion the financial statements:

• Give a true and fair view of the financial position of Bridgewater Community Healthcare NHS Trust as at 31 October 2014 and of its expenditure and income for the

year then ended; and• Have been prepared properly in accordance with the accounting policies directed

by the Secretary of State with the consent of the Treasury as relevant to the National Health Service in England.

Opinion on other mattersIn our opinion:

• The part of the Remuneration Report subject to audit has been prepared properly in accordance with the requirements directed by the Secretary of State with the consent of the Treasury as relevant to the National Health Service in England; and

• The information given in the annual report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we report by exceptionWe report to you if:

• In our opinion the governance statement does not reflect compliance with the Trust Development Authority’s Guidance

• We refer the matter to the Secretary of State under section 19 of the Audit Commission Act 1998 because we have reason to believe that the Trust, or an officer

of the Trust, is about to make, or has made, a decision involving unlawful expenditure, or is about to take, or has taken, unlawful action likely to cause a loss or deficiency; or

• We issue a report in the public interest under section 8 of the Audit Commission Act 1998.

We have nothing to report in these respects.

CertificateWe certify that we have completed the audit of the accounts of Bridgewater Community Healthcare NHS Trust in accordance with the requirements of the Audit Commission Act 1998 and the Code of Audit Practice issued by the Audit Commission.

Mark Heapfor and on behalf of Grant Thornton UK LLP, Appointed Auditor

4 Hardman SquareSpinningfields Manchester M3 3EB

15 June 2015


73

Statement of Comprehensive Income for period ended

31 October 2014

2014-15 Part Year April to October

2014

2013-14 Restated

NOTE £000s

£000s

Gross employee benefits 9.1 (60,988)

(105,174) Other operating costs 7 (24,510)

(41,499)

Revenue from patient care activities 4 82,970

143,627 Other Operating revenue 5 1,969

3,683

Operating surplus/(deficit)

(559)

637

Investment revenue 11 14

22 Surplus/(deficit) for the financial period

(545)

659

Public dividend capital dividends payable

(262)

0 Retained surplus/(deficit) for the period

(807)

659

Other Comprehensive Income


2014

2013-14 Restated

£000s

£000s

Net gain/(loss) on revaluation of property, plant & equipment

331

1,308 Total other comprehensive income for the period

331

1,308

Total Comprehensive Income for the period

(476)

1,967

Financial performance for the period

Retained surplus/(deficit) for the period

(807)

659 Adjustments in respect of donated gov't grant asset reserve

elimination

6

9 Adjusted retained surplus/(deficit)

(801)

668

A prior period adjustment has been made under IAS 8, the value of which is £933k, mainly premises costs relating to 2013/14 but not presented for payment until the current period of account. This has the impact of increasing Other operating costs from £40,566k to £41,499k in 2013-14, and reducing Other operating costs in the part year to October by £933k.

The notes on pages 23 to 44 form part of this account.

Statement of Financial Position as at

31 October 2014

31 October 2014

31 March 2014

Restated

Statement of Comprehensive Income for period ended 31 October 2014

Other comprehensive Income

A prior period adjustment has been made under IAS 8, the value of which is £933k, mainly premises costs relating to 2013/14 but not presented for payment until the current period of account. This has the impact of increasing other operating costs from £40,566k to £41,499k in 2013-14, and reducing other operating costs in the part year to October by £933k.


Financial performance for the period


31 March 2014

Restated

74

NOTE £000s

£000s

Non-current assets: Property, plant and equipment 12 17,386

16,676

Intangible assets 13 128

62 Trade and other receivables 17.1 686

768

Total non-current assets

18,200

17,506 Current assets:

Inventories 16 952

653 Trade and other receivables 17.1 11,746

9,946

Cash and cash equivalents 20 5,349

5,741 Sub-total current assets

18,047

16,340

Non-current assets held for sale 21 0

0 Total current assets

18,047

16,340

Total assets

36,247

33,846

Current liabilities Trade and other payables 22 (16,784)

(14,500)

Provisions 28 (47)

(23) Total current liabilities

(16,831)

(14,523)

Net current assets/(liabilities)

1,216

1,817 Total assets less current liabilities

19,416

19,323

Non-current liabilities

Trade and other payables 22 0

0 Provisions 28 0

0

Total non-current liabilities

0

0 Total Assets Employed:

19,416

19,323

FINANCED BY:

Public Dividend Capital

4,121

3,552 Retained earnings 10,841

11,648

Revaluation reserve

4,454

4,123 Total Taxpayers' Equity:

19,416

19,323

A prior period adjustment has been made under IAS 8, the value of which is £933k. This has the impact of increasing Trade and other

payables from £13,567k to £14,500k at 31st March 2014 and reducing Retained earnings to £11,648k at 31st March 2014.


The financial statements on pages 19 to 44 were approved by the Audit Committee (under delegated authority from the Board)

on 12 June 2015 and signed on its behalf by:

Chief Executive: Date: 12th June 2015

Statement of Financial Position as at 31 October 2014

NOTE

31 October 2014

A prior period adjustment has been made under IAS 8, the value of which is £933k. This has the impact of increasing Trade and other payables from £13,567k to £14,500k at 31 March 2014 and reducing Retained earnings to £11,648k at 31 March 2014.


The financial statements on pages 75 to 111 were approved by the Audit Committee (under delegated authority from the Board) on 12 June 2015 and signed on its behalf by:

Signed: Colin Scales (Chief Executive) Date: 12 June 2015


75

Statement of Changes in Taxpayers' Equity

For the period ended 31 October 2014

Public

Dividend

capital

Retained

earnings

Revaluation

reserve

Other reserv

es

Total reserv

es

£000s £000s £000s £000s £000s Balance at 1 April 2014 - Restated 3,552 11,648 4,123 0 19,323 Changes in taxpayers’ equity for 2014-15

Part Year April to October 2014

Retained surplus/(deficit) for the period (807) (807) Net gain / (loss) on revaluation of property,

plant, equipment 331 331

New temporary and permanent PDC received - cash

569 569

Net recognised revenue/(expense) for the period

569 (807) 331 0 93

Balance at 31 October 2014 4,121 10,841 4,454 0 19,416

Balance at 1 April 2013 2,119 3,745 21 0 5,885

Changes in taxpayers’ equity for the year ended 31 March 2014

Retained surplus/(deficit) for the year - Restated

659 659

Net gain / (loss) on revaluation of property, plant, equipment

1,308 1,308

Transfers under Modified Absorption Accounting - PCTs & SHAs

10,038 10,038

New temporary and permanent PDC received - cash

190 190

New PDC Received/(Repaid) - PCTs and SHAs Legacy items paid for by Department of Health

1,243 1,243

Net recognised revenue/(expense) for the year - Restated

1,433 10,697 1,308 0 13,438

Transfers between reserves in respect of modified absorption - PCTs & SHAs

(2,794) 2,794 0 0

Balance at 31 March 2014 Restated 3,552 11,648 4,123 0 19,323

A prior period adjustment has been made under IAS 8, the value of which is £933k. This has the impact of reducing the balance of Retained earnings to £11,648k at 31st March 2014,

STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED

31 October 2014

Statement of Changes in Taxpayers’ EquityFor the period ended 31 October 2014

Public Dividend

capital

Retainedearnings

Revaluationreserve

Other reserves

Totalreserves

A prior period adjustment has been made under IAS 8, the value of which is £933k. This has the impact of reducing the balance of Retained earnings to £11,648k at 31 March 2014,


76

2014-15 Part Year

April to October

2014

2013-14 Restated

NOTE £000s

£000s

Cash Flows from Operating Activities Operating Surplus/(Deficit)

(559)

637 Depreciation and Amortisation

899

1,298

Dividend (Paid)/Refunded

(224)

0 (Increase)/Decrease in Inventories

(299)

(653)

(Increase)/Decrease in Trade and Other Receivables

(1,718)

(4,845) Increase/(Decrease) in Trade and Other Payables

2,748

6,498

Provisions Utilised

(530) Increase/(Decrease) in movement in non cash provisions

24

(5)

Net Cash Inflow/(Outflow) from Operating Activities

871

2,400

CASH FLOWS FROM INVESTING ACTIVITIES Interest Received

14

22 (Payments) for Property, Plant and Equipment

(1,770)

(2,502)

(Payments) for Intangible Assets

(76)

(26) Proceeds of disposal of assets held for sale (PPE)

36

Net Cash Inflow/(Outflow) from Investing Activities

(1,832)

(2,470)

NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING

(961)

(70)

CASH FLOWS FROM FINANCING ACTIVITIES Gross Temporary and Permanent PDC Received

569

1,445 Gross Temporary and Permanent PDC Repaid

0

(12)

Net Cash Inflow/(Outflow) from Financing Activities

569

1,433

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS

(392)

1,363

Cash and Cash Equivalents (and Bank Overdraft) at Beginning of the Period

5,741

4,378

Cash and Cash Equivalents (and Bank Overdraft) at period end 20 5,349

5,741

A prior period adjustment has been made under IAS 8, the value of which is £933k. This has the impact of reducing the Operating Surplus for 2013-14 to £637k and increasing the movement in trade payables to £6,498k

NOTES TO THE ACCOUNTS

1. Accounting Policies

The Secretary of State for Health has directed that the financial statements of NHS trusts shall meet the accounting requirements of the Department of Health Group Manual for Accounts, which shall be agreed with HM Treasury. Consequently, the following financial statements have been prepared in accordance with the DH Group Manual for Accounts 2014-15 issued by the Department of Health. The accounting policies contained in that manual follow International Financial Reporting Standards to the extent that they are meaningful and appropriate to the NHS, as determined by HM Treasury, which is advised by the Financial Reporting Advisory Board. Where the Manual for Accounts permits a choice of accounting policy, the accounting policy which is judged to be most appropriate to the particular circumstances of the trust for the purpose of giving a true and fair

STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 October 2014

A prior period adjustment has been made under IAS 8, the value of which is £933k. This has the impact of reducing the Operating Surplus for 2013-14 to £637k and increasing the movement in trade payables to £6,498k


NOTES TO THE ACCOUNTS

1. Accounting Policies The Secretary of State for Health has directed that the financial statements of NHS

trusts shall meet the accounting requirements of the Department of Health Group Manual for Accounts, which shall be agreed with HM Treasury. Consequently, the following financial statements have been prepared in accordance with the DH Group Manual for Accounts 2014-15 issued by the Department of Health. The accounting policies contained in that manual follow International Financial Reporting Standards to the extent that they are meaningful and appropriate to the NHS, as determined by HM Treasury, which is advised by the Financial Reporting Advisory Board. Where the

Manual for Accounts permits a choice of accounting policy, the accounting policy which is judged to be most appropriate to the particular circumstances of the trust for the purpose of giving a true and fairview has been selected. The particular policies adopted by the trust are described below. They have been applied consistently in dealing with items considered material in relation to the accounts.

1.1 Accounting Convention These accounts have been prepared under the historical cost convention modified to

account for the revaluation of property, plant and equipment, intangible assets, inventories and certain financial assets and financial liabilities.

1.2 Acquisitions and discontinued operations Activities are considered to be ‘acquired’ only if they are taken on from outside the

public sector. Activities are considered to be ‘discontinued’ only if they cease entirely. They are not considered to be ‘discontinued’ if they transfer from one public sector body to another.

1.3 Movement of assets within the DH Group Transfers as part of reorganisation fall to be accounted for by use of absorption accounting in line with the Treasury FReM. The FReM does not require retrospective

adoption, so prior year transactions (which have been accounted for under merger accounting) have not been restated. Absorption accounting requires that entities

account for their transactions in the period in which they took place, with no restatement of performance required when functions transfer within the public sector.

Where assets and liabilities transfer, the gain or loss resulting is recognised in the SOCNE/SOCNI, and is disclosed separately from operating costs.

Other transfers of assets and liabilities within the Group are accounted for in line with IAS20 and similarly give rise to income and expenditure entries.

For transfers of assets and liabilities from those NHS bodies that closed on 1 April 2013, Treasury has agreed that a modified absorption approach should be applied. For these transactions only, gains and losses are recognised in reserves rather than the SOCNE/SOCNI.


1.4 Critical accounting judgements and key sources of estimation uncertainty In the application of the Trust’s accounting policies, management is required to make

judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and

associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from those estimates and the

estimates and underlying assumptions are continually reviewed. Revisions to accounting estimates are recognised in the period in which the estimate is revised if

the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical judgements, apart from those involving estimations (see below) that management has made in the process of applying the Trust’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

A full valuation of the Trusts estate was undertaken on 31 March 2014 by the District Valuer who is a qualified surveyor registered with the Royal Institute of Chartered

Surveyors. The impact of this valuation was reflected in the accounts as at 31st March 2014. Subsequently a desk top valuation of the Trust’s estate was obtained on 31 October 2014 and this has been the basis for the valuation as at 31st October 2014.

1.4.1 Critical judgements in applying accounting policies Critical judgements have been made in assessing the classification of estates rental

charges, between operating and finance leases. Department of Health guidance has been followed in applying IAS1 and merger accounting guidance.

Critical judgements have been made in following Department of Health guidance as it relates to the application of modified absorption accounting applied to the transfer of assets and liabilities from those NHS bodies that closed on 1 April 2013.

Additionally a critical judgement has been made not to consolidate the Bridgewater element of the registered charity 5 Boroughs Partnership NHS Trust Charitable Fund (charity number 1061651). The Bridgewater element of this fund is managed under an SLA with 5 Boroughs Parnership NHS Trust. Whilst Bridgewater is able to requisition expenditure from this fund within the constraints of the fund objective, corporate

trusteeship of the fund remains with 5 Boroughs Partnership NHS Trust. Bridgewater does not therefore possess control.

1.4.2 Key sources of estimation uncertainty The nature of transactions incurred during the year is such that there has been a very

limited need to make estimations in the accounts and as a consequence there is little risk of estimation uncertainty.

The Trust has used estimation in determining a limited value of accruals based on recent historic information (see note 22).


1.5 Revenue Revenue in respect of services provided is recognised when, and to the extent that,

performance occurs, and is measured at the fair value of the consideration receivable. The main source of revenue for the trust is from commissioners for healthcare

services.

Where income is received for a specific activity that is to be delivered in the following year, that income is deferred.

The Trust receives income under the NHS Injury Cost Recovery Scheme, designed to reclaim the cost of treating injured individuals to whom personal injury compensation has subsequently been paid e.g. by an insurer. The Trust recognises the income when it receives notification from the Department of Work and Pension’s Compensation Recovery Unit that the individual has lodged a compensation claim. The income is measured at the agreed tariff for the treatments provided to the injured individual, less a provision for unsuccessful compensation claims and doubtful debts.

1.6 Employee Benefits Short-term employee benefits Salaries, wages and employment-related payments are recognised in the period in

which the service is received from employees. The cost of leave earned but not taken by employees at the end of the period is recognised in the financial statements to the extent that employees are permitted to carry forward leave into the following period.

Retirement benefit costs Past and present employees are covered by the provisions of the NHS Pensions

Scheme. The scheme is an unfunded, defined benefit scheme that covers NHS employers, General Practices and other bodies, allowed under the direction of the

Secretary of State, in England and Wales. The scheme is not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, the scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS body of participating in the scheme is taken as equal to the contributions payable to the scheme for the accounting period.

For early retirements other than those due to ill health the additional pension liabilities are not funded by the scheme. The full amount of the liability for the additional costs is charged to expenditure at the time the Trust commits itself to the retirement,

regardless of the method of payment.

1.7 Other expenses Other operating expenses are recognised when, and to the extent that, the goods or

services have been received. They are measured at the fair value of the consideration payable.


1.8 Property, plant and equipment Recognition Property, plant and equipment is capitalised if:

• it is held for use in delivering services or for administrative purposes;• it is probable that future economic benefits will flow to, or service potential will be

supplied to the Trust;• it is expected to be used for more than one financial year;• the cost of the item can be measured reliably; and• the item has cost of at least £5,000; or• Collectively, a number of items have a cost of at least £5,000 and individually

have a cost of more than £250, where the assets are functionally interdependent, they had broadly simultaneous purchase dates, are anticipated

to have simultaneous disposal dates and are under single managerial control; or• Items form part of the initial equipping and setting-up cost of a new building,

ward or unit, irrespective of their individual or collective cost.

Where a large asset, for example a building, includes a number of components with significantly different asset lives, the components are treated as separate assets and depreciated over their own useful economic lives.

Valuation All property, plant and equipment are measured initially at cost, representing the cost

directly attributable to acquiring or constructing the asset and bringing it to the location and condition necessary for it to be capable of operating in the manner intended by management. All assets are measured subsequently at fair value.

Land and buildings used for the Trust’s services or for administrative purposes are stated in the statement of financial position at their revalued amounts, being the fair value at the date of revaluation less any impairment.

Revaluations are performed with sufficient regularity to ensure that carrying amounts are not materially different from those that would be determined at the end of the

reporting period. Fair values are determined as follows:

•Land and non-specialised buildings – market value for existing use •Specialised buildings – depreciated replacement cost

HM Treasury has adopted a standard approach to depreciated replacement cost valuations based on modern equivalent assets and, where it would meet the location requirements of the service being provided, an alternative site can be valued.

Properties in the course of construction for service or administration purposes are carried at cost, less any impairment loss. Cost includes professional fees but not

borrowing costs, which are recognised as expenses immediately, as allowed by IAS 23 for assets held at fair value. Assets are revalued and depreciation commences when they are brought into use.


Fixtures and equipment are carried at depreciated historic cost as this is not considered to be materially different from fair value.

An increase arising on revaluation is taken to the revaluation reserve except when it reverses an impairment for the same asset previously recognised in expenditure, in which case it is credited to expenditure to the extent of the decrease previously charged there. A revaluation decrease that does not result from a loss of economic value or service potential is recognised as an impairment charged to the revaluation reserve to the extent that there is a balance on the reserve for the asset and,

thereafter, to expenditure. Impairment losses that arise from a clear consumption of economic benefit should be taken to expenditure. Gains and losses recognised in the revaluation reserve are reported as other comprehensive income in the Statement of Comprehensive Income.

Subsequent expenditure Where subsequent expenditure enhances an asset beyond its original specification,

the directly attributable cost is capitalised. Where subsequent expenditure restores the asset to its original specification, the expenditure is capitalised and any existing carrying value of the item replaced is written-out and charged to operating expenses.

Use of buildings Bridgewater owns those buildings which were transferred from the former PCTs on 1 April 2013 in line with Transforming Community Services (TCS) asset transfer guidance published by the Department of Health (DH). Bridgewater continues to

occupy other buildings which are not owned but for which an occupancy charge is incurred from Community Health Partnerships, NHS Property Services and other

commercial landlords. These charges are disclosed as required in Leases Note 9.

1.9 Intangible assets Recognition Intangible assets are non-monetary assets without physical substance, which are

capable of sale separately from the rest of the trust’s business or which arise from contractual or other legal rights. They are recognised only when it is probable that

future economic benefits will flow to, or service potential be provided to, the trust; where the cost of the asset can be measured reliably, and where the cost is at least £5000.

Intangible assets acquired separately are initially recognised at fair value. Software that is integral to the operating of hardware, for example an operating system, is

capitalised as part of the relevant item of property, plant and equipment. Software that is not integral to the operation of hardware, for example application software, is

capitalised as an intangible asset. Expenditure on research is not capitalised: it is recognised as an operating expense in the period in which it is incurred. Internally-generated assets are recognised if, and only if, all of the following have

been demonstrated:

• the technical feasibility of completing the intangible asset so that it will be available for use• the intention to complete the intangible asset and use it


• the ability to sell or use the intangible asset• how the intangible asset will generate probable future economic benefits or service potential• the availability of adequate technical, financial and other resources to complete

the intangible asset and sell or use it• the ability to measure reliably the expenditure attributable to the intangible asset during its development

Measurement The amount initially recognised for internally-generated intangible assets is the sum of

the expenditure incurred from the date when the criteria above are initially met. Where no internally-generated intangible asset can be recognised, the expenditure is

recognised in the period in which it is incurred.

Following initial recognition, intangible assets are carried at fair value by reference to an active market, or, where no active market exists, at amortised replacement cost (modern equivalent assets basis), indexed for relevant price increases, as a proxy for fair value. Internally-developed software is held at historic cost to reflect the opposing effects of increases in development costs and technological advances.

1.10 Depreciation, amortisation and impairments Freehold land, properties under construction, and assets held for sale are not depreciated. Otherwise, depreciation and amortisation are charged to write off the costs or valuation of property, plant and equipment and intangible non-current assets, less

any residual value, over their estimated useful lives, in a manner that reflects the consumption of economic benefits or service potential of the assets. The estimated useful life of an asset is the period over which the Trust expects to obtain economic benefits or service potential from the asset. This is specific to the Trust and may be shorter than the physical life of the asset itself. Estimated useful lives and residual values are reviewed each year end, with the effect of any changes recognised on a prospective basis. Assets held under finance leases are depreciated over their

estimated useful lives.

At each reporting period end, the Trust checks whether there is any indication that any of its tangible or intangible non-current assets have suffered an impairment loss. If there is indication of an impairment loss, the recoverable amount of the asset is

estimated to determine whether there has been a loss and, if so, its amount. Intangible assets not yet available for use are tested for impairment annually. A revaluation decrease that does not result from a loss of economic value or service potential is recognised as an impairment charged to the revaluation reserve to the extent that there is a balance on the reserve for the asset and, thereafter, to expenditure. Impairment losses that arise from a clear consumption of economic

benefit should be taken to expenditure. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount but capped at the amount that would have been determined had there been no initial impairment loss. The reversal of the impairment loss is credited


to expenditure to the extent of the decrease previously charged there and thereafter to the revaluation reserve.

1.11 Donated assets Donated non-current assets are capitalised at their fair value on receipt, with a matching credit to Income. They are valued, depreciated and impaired as described

above for purchased assets. Gains and losses on revaluations, impairments and sales are as described above for purchased assets. Deferred income is recognised only where conditions attached to the donation preclude immediate recognition of the gain.

1.12 Government grants

The value of assets received by means of a government grant are credited directly to income. Deferred income is recognised only where conditions attached to the grant preclude immediate recognition of the gain.

1.13 Leases

Leases are classified as finance leases when substantially all the risks and rewards of ownership are transferred to the lessee. All other leases are classified as operating leases.

The trust as lessee Operating lease payments are recognised as an expense on a straight-line basis over

the lease term. Lease incentives are recognised initially as a liability and subsequently as a reduction of rentals on a straight-line basis over the lease term. Where a lease is for land and buildings, the land and building components are separated and individually assessed as to whether they are operating or finance leases.

1.14 Inventories Inventories are valued at the lower of cost and net realisable value using the first-in

first-out cost formula. This is considered to be a reasonable approximation to fair value due to the high turnover of stocks.

1.15 Cash and cash equivalents

Cash is cash in hand and deposits with any financial institution repayable without penalty on notice of not more than 24 hours. Cash equivalents are investments that mature in 3 months or less from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

1.16 Provisions

Provisions are recognised when the Trust has a present legal or constructive obligation as a result of a past event, it is probable that the Trust will be required to

settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the expenditure required to settle the obligation at the end of the reporting period, taking

into account the risks and uncertainties. Where a provision is measured using the


cash flows estimated to settle the obligation, its carrying amount is the present value of those cash flows using HM Treasury’s discount rate of 2.2% in real terms 2.2% for employee early departure obligations.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursements will be received and the amount of

the receivable can be measured reliably. A restructuring provision is recognised when the Trust has developed a detailed formal plan for the restructuring and has raised a valid expectation in those affected

that it will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. The measurement of a restructuring provision includes only the direct expenditures arising from the restructuring, which are those amounts that are both necessarily entailed by the restructuring and not associated with ongoing activities of the entity.

1.17 Clinical negligence costs

The NHS Litigation Authority (NHSLA) operates a risk pooling scheme under which the trust pays an annual contribution to the NHSLA which in return settles all clinical

negligence claims. The contribution is charged to expenditure. Although the NHSLA is administratively responsible for all clinical negligence cases the legal liability

remains with the Trust’.

1.18 Non-clinical risk pooling The Trust participates in the Property Expenses Scheme and the Liabilities to Third

Parties Scheme. Both are risk pooling schemes under which the Trust pays an annual contribution to the NHS Litigation Authority and, in return, receives assistance

with the costs of claims arising. The annual membership contributions, and any excesses payable in respect of particular claims are charged to operating expenses

as and when they become due.

1.19 Carbon Reduction Commitment Scheme (CRC) CRC and similar allowances are accounted for as government grant funded intangible

assets if they are not expected to be realised within twelve months, and otherwise as other current assets. They are valued at open market value. As the Trust makes

emissions, a provision is recognised with an offsetting transfer from deferred income. The provision is settled on surrender of the allowances. The asset, provision and deferred income amounts are valued at fair value at the end of the reporting period.

1.20 Contingencies A contingent liability is a possible obligation that arises from past events and whose

existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Trust, or a present

obligation that is not recognised because it is not probable that a payment will be required to settle the obligation or the amount of the obligation cannot be measured sufficiently reliably. A contingent liability is disclosed unless the possibility of a

payment is remote.


Where the time value of money is material, contingencies are disclosed at their present value.

1.21 Financial assets Financial assets are recognised when the Trust becomes party to the financial instrument contract or, in the case of trade receivables, when the goods or services

have been delivered. Financial assets are derecognised when the contractual rights have expired or the asset has been transferred.

Financial assets are classified into the following categories: financial assets at fair

value through profit and loss; held to maturity investments; available for sale financial assets, and loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable

payments which are not quoted in an active market. After initial recognition, they are measured at amortised cost using the effective interest method, less any impairment. Interest is recognised using the effective interest method.

Fair value is determined by reference to quoted market prices where possible, otherwise by valuation techniques.

The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, to the initial fair value of the financial asset.

At the end of the reporting period, the Trust assesses whether any financial assets,

other than those held at ‘fair value through profit and loss’ are impaired. Financial assets are impaired and impairment losses recognised if there is objective evidence of impairment as a result of one or more events which occurred after the initial

recognition of the asset and which has an impact on the estimated future cash flows of the asset.

For financial assets carried at amortised cost, the amount of the impairment loss is

measured as the difference between the asset’s carrying amount and the present value of the revised future cash flows discounted at the asset’s original effective interest rate. The loss is recognised in expenditure and the carrying amount of the

asset is reduced directly, or through a provision for impairment of receivables.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through

expenditure to the extent that the carrying amount of the receivable at the date of the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

1.22 Financial liabilities Financial liabilities are recognised on the statement of financial position when the Trust

becomes party to the contractual provisions of the financial instrument or, in the case


of trade payables, when the goods or services have been received. Financial liabilities are de-recognised when the liability has been discharged, that is, the liability

has been paid or has expired.

1.23 Value Added Tax Most of the activities of the trust are outside the scope of VAT and, in general, output

tax does not apply and input tax on purchases is not recoverable. Irrecoverable VAT is charged to the relevant expenditure category or included in the capitalised

purchase cost of fixed assets. Where output tax is charged or input VAT is recoverable, the amounts are stated net of VAT.

1.24 Foreign currencies The Trust’s functional currency and presentational currency is sterling. Transactions

denominated in a foreign currency are translated into sterling at the exchange rate ruling on the dates of the transactions. At the end of the reporting period, monetary items denominated in foreign currencies are retranslated at the spot exchange rate on 31 October. Resulting exchange gains and losses for either of these are recognised in the trust’s surplus/deficit in the period in which they arise.

1.25 Public Dividend Capital (PDC) and PDC dividend

Public dividend capital represents taxpayers’ equity in the NHS trust. At any time the Secretary of State can issue new PDC to, and require repayments of PDC from, the trust. PDC is recorded at the value received. As PDC is issued under legislation rather than under contract, it is not treated as an equity financial instrument.

An annual charge, reflecting the cost of capital utilised by the trust, is payable to the

Department of Health as public dividend capital dividend. The charge is calculated at the real rate set by HM Treasury (currently 3.5%) on the average carrying amount of all assets less liabilities (except for donated assets, net assets transferred from NHS bodies dissolved on 1 April 2013 and cash balances with the Government Banking Service). The average carrying amount of assets is calculated as a simple average of opening and closing relevant net assets.

1.26 Losses and Special Payments

Losses and special payments are items that Parliament would not have contemplated when it agreed funds for the health service or passed legislation. By their nature they are items that ideally should not arise. They are therefore subject to special control procedures compared with the generality of payments. They are divided into different categories, which govern the way that individual cases are handled.

Losses and special payments are charged to the relevant functional headings in expenditure on an accruals basis, including losses which would have been made

good through insurance cover had the Trust not been bearing their own risks (with insurance premiums then being included as normal revenue expenditure).

1.27 Accounting Standards that have been issued but have not yet been adopted

The Treasury FReM does not require the following Standards and Interpretations to be applied in 2014-15. The application of the Standards as revised would not have a


material impact on the accounts for 2014-15, were they applied in that year: IFRS 9 Financial Instruments - subject to consultation - subject to consultation IFRS 13 Fair Value Measurement - subject to consultation IFRS 15 Revenue from Contracts with Customers

2. Operating segments Bridgewater Community Heathcare operates in a single segment, the provision of healthcare community services. There are therefore no reportable segments. Income from transactions with the following organisations is in excess of 10% of total income:

3. Income generation activitiesBridgewater Community Healthcare has not undertaken any material income generation activities during the part year to October (2013/14: £nil).

85

The Treasury FReM does not require the following Standards and Interpretations to be applied in 2014-15. The application of the Standards as revised would not have a material impact on the accounts for 2014-15, were they applied in that year: IFRS 9 Financial Instruments - subject to consultation - subject to consultation IFRS 13 Fair Value Measurement - subject to consultation IFRS 15 Revenue from Contracts with Customers

2. Operating segments Bridgewater Community Heathcare operates in a single segment, the provision of healthcare community services.

There are therefore no reportable segments.

Income from transactions with the following organisations is in excess of 10% of total income:

Organisation

2014-15 Part Year April to October 2014

2013-14

£000

£000 CCGs 56,175

96,889

NHS England 14,829

19,709 Local Authorities 9,266

18,436

3. Income generation activities

Bridgewater Community Healthcare has not undertaken any material income generation activities during the part year to October (2013/14: £nil).

4. Revenue from patient care activities


2014

2013-14 £000s

£000s

NHS Trusts 309

678

NHS England 14,829

19,709 Clinical Commissioning Groups 56,175

96,889

NHS Foundation Trusts 577

729 Department of Health 3

14

NHS Other (including Public Health England and Prop Co) 547

387 Non-NHS:

Local Authorities 9,266

18,436 Injury costs recovery 287

773

Other* 977

6,012 Total Revenue from patient care activities 82,970

143,627

Organisation

85





Organisation


2013-14

£000

£000 CCGs 56,175

96,889

NHS England 14,829


18,436





2014

2013-14 £000s

£000s

NHS Trusts 309

678

NHS England 14,829


96,889



14


387 Non-NHS:



773

Other* 977


143,627

4. Revenue from patient care activities 85





Organisation


2013-14

£000

£000 CCGs 56,175

96,889

NHS England 14,829


18,436





2014

2013-14 £000s

£000s

NHS Trusts 309

678

NHS England 14,829


96,889



14


387 Non-NHS:



773

Other* 977


143,627


86

5. Other operating revenue


2014

2013-14

£000s

£000s

Education, training and research 1,626

2,601

Charitable and other contributions to revenue expenditure -non- NHS 10

13

Other revenue 333

1,069 Total Other Operating Revenue 1,969

3,683

Total operating revenue 84,939

147,310

6. Revenue

2014-15 Part Year

April to October

2014

2013-14

£000

£000

From rendering of services 84,939

147,310 From sale of goods 0

0

7. Operating expenses


2014

2013-14 Restated

£000s

£000s

Services from other NHS Trusts

1,555

2,134 Services from CCGs/NHS England

273 298

Services from other NHS bodies

0 0 Services from NHS Foundation Trusts

1,708 1,853

Services from Primary Care Trusts

Total Services from NHS bodies

3,536 4,285

Purchase of healthcare from non-NHS bodies

630 1,096 Trust Chair and Non-executive Directors

36 66

Supplies and services - clinical

6,104 9,850 Supplies and services - general

1,412 2,862

Consultancy services

487 1,064 Establishment

1,308 2,332

Transport

1,585 2,908 Premises

7,785 13,721

Hospitality

6 11 Insurance

5 11

Legal Fees

204 91 Impairments and Reversals of Receivables

0 89

6. Revenue




86



2014

2013-14

£000s

£000s

Education, training and research 1,626

2,601

Charitable and other contributions to revenue expenditure -non- NHS 10

13

Other revenue 333

1,069 Total Other Operating Revenue 1,969

3,683

Total operating revenue 84,939

147,310

6. Revenue

2014-15 Part Year

April to October

2014

2013-14

£000

£000

From rendering of services 84,939

147,310 From sale of goods 0

0



2014

2013-14 Restated

£000s

£000s

Services from other NHS Trusts

1,555

2,134 Services from CCGs/NHS England

273 298

Services from other NHS bodies

0 0 Services from NHS Foundation Trusts

1,708 1,853

Services from Primary Care Trusts

Total Services from NHS bodies

3,536 4,285

Purchase of healthcare from non-NHS bodies

630 1,096 Trust Chair and Non-executive Directors

36 66

Supplies and services - clinical

6,104 9,850 Supplies and services - general

1,412 2,862

Consultancy services

487 1,064 Establishment

1,308 2,332

Transport

1,585 2,908 Premises

7,785 13,721

Hospitality

6 11 Insurance

5 11

Legal Fees

204 91 Impairments and Reversals of Receivables

0 89

87

Depreciation

889 1,276 Amortisation

10

22

Audit fees

47

69 Other auditor's remuneration

0

8

Clinical negligence

153

265 Education and Training

190

378

Other

123

1,095 Total Operating expenses (excluding employee benefits)

24,510

41,499

Employee Benefits Employee benefits excluding Board members

60,465

104,345

Board members

523

829 Total Employee Benefits

60,988

105,174

Total Operating Expenses

85,498

146,673

A prior period adjustment has been made under IAS 8, the value of which is £933k. This has the impact of increasing expenditure on Premises by £433k and expenditure categorised as Other by £500k for 2013-14.

8 Operating Leases Bridgewater Community Healthcare has included within lease costs occupancy charges in relation to occupancy of

premises owned and controlled by NHS Property Services Ltd and Community Health Partnerships.

Whilst we occupy properties from CHP and NHS Property Services under arrangements which we consider to be operating leases, we do not have agreed formal lease agreements in place. The future years minimum lease payments disclosed below therefore only include our expected costs for these properties in 2015/16.


2014 8.1 Trust as lessee Land

Buildings

Other

Total

2013-14

£000s

£000s

£000s

£000s

£000s

Payments recognised as an expense Minimum lease payments

5,540

345

5,885

10,158

Contingent rents

0

0 Sub-lease payments

0

0

Total

5,885

10,158 Payable:

No later than one year 0 9,856

400

10,256

9,744 Between one and five years 0 1,933

375

2,308

2,292

After five years 0 1,723

0

1,723

1,960 Total 0 13,512

775

14,287

13,996

8.2 Trust as lessor Bridgewater Community Healthcare does not have any lease arrangements as a

lessor.

9 Employee benefits and staff numbers

9.1 Employee benefits


8. Operating LeasesBridgewater Community Healthcare has included within lease costs occupancy charges in relation to occupancy of premises owned and controlled by NHS Property Services Ltd and Community Health Partnerships.


Employee Benefits


87

Depreciation

889 1,276 Amortisation

10

22

Audit fees

47

69 Other auditor's remuneration

0

8

Clinical negligence

153

265 Education and Training

190

378

Other

123

1,095 Total Operating expenses (excluding employee benefits)

24,510

41,499

Employee Benefits Employee benefits excluding Board members

60,465

104,345

Board members

523

829 Total Employee Benefits

60,988

105,174

Total Operating Expenses

85,498

146,673


8 Operating Leases Bridgewater Community Healthcare has included within lease costs occupancy charges in relation to occupancy of

premises owned and controlled by NHS Property Services Ltd and Community Health Partnerships.



2014 8.1 Trust as lessee Land

Buildings

Other

Total

2013-14

£000s

£000s

£000s

£000s

£000s

Payments recognised as an expense Minimum lease payments

5,540

345

5,885

10,158

Contingent rents

0

0 Sub-lease payments

0

0

Total

5,885

10,158 Payable:

No later than one year 0 9,856

400

10,256

9,744 Between one and five years 0 1,933

375

2,308

2,292

After five years 0 1,723

0

1,723

1,960 Total 0 13,512

775

14,287

13,996

8.2 Trust as lessor Bridgewater Community Healthcare does not have any lease arrangements as a

lessor.

9 Employee benefits and staff numbers

9.1 Employee benefits

8.1 Trust as lessee

8.2 Trust as lessorBridgewater Community Healthcare does not have any lease arrangements as a lessor.

9. Employee benefits and staff numbers 9.1 Employee benefits

88

Total

Permanently employed

Other

£000s

£000s

£000s Employee Benefits - Gross Expenditure to 31st October 2014

Salaries and wages 51,291

48,203

3,088 Social security costs 3,222

3,222

0

Employer Contributions to NHS BSA - Pensions Division 6,237

6,237

0 Other pension costs 2

2

0

Termination benefits 715

715

0 Total employee benefits including capitalised costs 61,467

58,379

3,088

Employee costs capitalised 479

71

408

Gross Employee Benefits excluding capitalised costs 60,988

58,308

2,680

Employee Benefits - Gross Expenditure 2013-14 Total


Other

£000s

£000s

£000s


83,976 4,313 Social security costs 5,626

5,626 0


10,827 0 Other pension costs 2

2 0

Termination benefits 1,119

1,119 0 Total employee benefits including capitalised costs 105,863

101,550 4,313


138

551


101,412

3,762

9.2 Staff Numbers


2013-14

Total


Other

Total

Number

Number

Number

Number

Average Staff Numbers Medical and dental 83

67

16

86

Administration and estates 707

677

30

787 Healthcare assistants and other support staff 296

296

0

312

Nursing, midwifery and health visiting staff 1,271

1,240

31

1,294 Nursing, midwifery and health visiting learners 23

23

0

12

Scientific, therapeutic and technical staff 400

374

26

425 Other 31

0

31

7

TOTAL 2,811

2,677

134

2,923

Of the above - staff engaged on capital projects 11

3

8

24

9.3 Staff Sickness absence and ill health retirements

2014-15 Part Year April to

October 2014

2013-14

Number

Number

Employee Benefits - Gross Expenditure to 31st October 2014

88

Total


Other

£000s

£000s



48,203


3,222

0


6,237


2

0


715


58,379

3,088


71

408


58,308

2,680



Other

£000s

£000s

£000s



5,626 0



2 0



101,550 4,313


138

551


101,412

3,762

9.2 Staff Numbers


2013-14

Total


Other

Total

Number

Number

Number

Number


67

16

86


677

30


296

0

312


1,240

31


23

0

12


374

26

425 Other 31

0

31

7

TOTAL 2,811

2,677

134

2,923


3

8

24



October 2014

2013-14

Number

Number

Employee Benefits - Gross Expenditure 2013-14


88

Total


Other

£000s

£000s



48,203


3,222

0


6,237


2

0


715


58,379

3,088


71

408


58,308

2,680



Other

£000s

£000s

£000s



5,626 0



2 0



101,550 4,313


138

551


101,412

3,762

9.2 Staff Numbers


2013-14

Total


Other

Total

Number

Number

Number

Number


67

16

86


677

30


296

0

312


1,240

31


23

0

12


374

26

425 Other 31

0

31

7

TOTAL 2,811

2,677

134

2,923


3

8

24



October 2014

2013-14

Number

Number

9.2 Staff Numbers

88

Total


Other

£000s

£000s



48,203


3,222

0


6,237


2

0


715


58,379

3,088


71

408


58,308

2,680



Other

£000s

£000s

£000s



5,626 0



2 0



101,550 4,313


138

551


101,412

3,762

9.2 Staff Numbers


2013-14

Total


Other

Total

Number

Number

Number

Number


67

16

86


677

30


296

0

312


1,240

31


23

0

12


374

26

425 Other 31

0

31

7

TOTAL 2,811

2,677

134

2,923


3

8

24



October 2014

2013-14

Number

Number

9.3 Staff Sickness absence and ill healthretirements

89

Total Days Lost

18,209

30,611 Total Staff Years

1,544

2,711

Average working Days Lost

11.79

11.29


October 2014

2013-14

Number

Number Number of persons retired early on ill health grounds

4

7

£000s

£000s Total additional pensions liabilities accrued in the year

223

399


9.

4 Ex

it Pa

ckag

es a

gree

d in

201

4-15

Par

t Yea

r Apr

il to

Oct

ober

20

14

2014

-15

Part

Yea

r Apr

il to

Oct

ober

201

4

Exit

pack

age

cost

ba

nd (i

nclu

ding

any

sp

ecia

l pay

men

t el

emen

t)

Num

ber o

f co

mpu

lsor

y re

dund

anci

es

Cos

t of

com

puls

ory

redu

ndan

cies

Num

ber

of o

ther

de

part

ure

s ag

reed

Cos

t of

othe

r de

part

ure

s ag

reed

Tota

l num

ber o

f exi

t pac

kage

s

Tota

l cos

t of

exi

t pa

ckag

es

Num

ber o

f de

part

ures

w

here

sp

ecia

l pa

ymen

ts

have

bee

n m

ade

Cos

t of

spec

ial

paym

ent

elem

ent

incl

uded

in

exit

pack

ages

N

umbe

r

£s

N

umbe

r

£s

N

umbe

r

£s

N

umbe

r

£s

Le

ss t

han

£10,

000

1

3,75

9

4

19,8

26

5

23

,585

0

0

£10,

000-

£25,

000

0

0

5

77,9

25

5

77

,925

0

0

£25,

001-

£50,

000

0

0

5

185,

663

5

18

5,66

3

0

0

£50,

001-

£100

,000

1

54

,998

6

416,

496

7

47

1,49

4

0

0

£100

,001

- £1

50,0

00

0

0

0

0

0

0

0

0

£150

,001

- £2

00,0

00

0

0

0

0

0

0

0

0

>£20

0,00

0 0

0

0

0

0

0

0

0

To

tals

2

58

,757

20

69

9,91

0

22

75

8,66

7

0

0

2013

-14

Exi

t pac

kage

cos

t ba

nd (i

nclu

ding

any

sp

ecia

l pay

men

t el

emen

t)

Num

ber o

f co

mpu

lsor

y re

dund

anci

es

Cos

t of

com

puls

ory

redu

ndan

cie

s

Num

ber

of o

ther

de

partu

res

agre

ed

Cos

t of

othe

r de

partu

res

agre

ed

To

tal n

umbe

r of e

xit p

acka

ges

Tota

l cos

t of

exi

t pa

ckag

es

Num

ber o

f de

partu

res

whe

re

spec

ial

paym

ents

ha

ve b

een

mad

e

Cos

t of

spec

ial

paym

ent

elem

ent

incl

uded

in

exit

pack

ages

N

umbe

r

£s

N

umbe

r

£s

N

umbe

r

£s

N

umbe

r

£s

Le

ss t

han

£10,

000

0

0

4

28,4

58

4

28

,458

0

0

£10,

000-

£25,

000

0

0

5

74,6

14

5

74

,614

0

0

£25,

001-

£50,

000

0

0

5

167,

992

5

16

7,99

2

0

0

£50,

001-

£100

,000

0

0

5

38

9,72

0

5

389,

720

0

0

£1

00,0

01 -

£150

,000

0

0

2

25

7,59

1

2

257,

591

0

0

£1

50,0

01 -

£200

,000

0

0

0

0

0

0

0

0

>£

200,

000

0

0

1

200,

844

1

20

0,84

4

0

0

Tota

ls

0

0

22

1,

119,

219

22

1,11

9,21

9

0

0

E

xit c

osts

in th

is n

ote

are

acco

unte

d fo

r in

full

in th

e pe

riod

of d

epar

ture

. W

here

the

Trus

t has

agr

eed

early

retir

emen

ts, t

he a

dditi

onal

cos

ts a

re m

et b

y th

e Tr

ust a

nd n

ot b

y th

e N

HS

pe

nsio

ns s

chem

e. Il

l-hea

lth re

tirem

ent c

osts

are

met

by

the

NH

S p

ensi

ons

sche

me

and

are

not i

nclu

ded

in th

e ta

ble.

9.4

Exi

t P

acka

ges

ag

reed

in 2

014-

15 P

art

Year

Ap

ril t

o O

cto

ber

201

4

2014

-15

Par

t Yea

r A

pril

to O

ctob

er 2

014

Tota

l cos

tof

exi

tpa

ckag

es

Num

ber o

f de

part

ures

whe

resp

ecia

lpa

ymen

tsha

ve b

een

mad

e

Num

ber o

fco

mpu

lsar

yre

dund

anci

es

Num

ber

of o

ther

depa

rtur

esag

reed

Cost

of

oth

erde

part

ures

agre

ed

Cost

of

com

puls

ary

redu

ndan

cies

Cost

of

depa

rtur

esw

here

spec

ial

paym

ents

have

bee

nm

ade

Tota

l num

ber o

f exi

t pac

kage

s

Num

ber o

fco

mpu

lsar

yre

dund

anci

es

Num

ber

of o

ther

depa

rtur

esag

reed

Cost

of

oth

erde

part

ures

agre

ed

Cost

of

com

puls

ary

redu

ndan

cies

Exi

t cos

ts in

this

not

e ar

e ac

coun

ted

for i

n fu

ll in

the

perio

d o

f dep

artu

re. W

here

the

Trus

t has

agr

eed

early

retir

emen

ts, t

he a

dditi

onal

cos

ts a

re m

et b

y th

e Tr

ust a

nd n

ot b

y th

e N

HS

pen

sion

s sc

hem

e. Il

l-hea

lth re

tirem

ent c

osts

are

met

by

the

NH

S p

ensi

ons

sche

me

and

are

not i

nclu

ded

in th

e ta

ble.

This

dis

clos

ure

repo

rts th

e nu

mbe

r and

val

ue o

f exi

t pac

kage

s ag

reed

in th

e pe

riod.

Not

e: th

e ex

pens

e as

soci

ated

with

thes

e de

partu

res

has

been

fully

reco

gnis

ed in

the

perio

d.


2013-14

Agreements Total value of agreements

AgreementsTotal value of agreements

Number £000s Number £000s

Voluntary redundancies including early retirement contractual costs

0 0 22 1,119

Mutually agreed resignations (MARS) contractual costs 20 700 0 0

Total 20 700 22 1,119

9.5 Exit Packages - Other Departures analysis


9.6 Pension costs Past and present employees are covered by the provisions of the NHS Pensions Scheme. Details of the benefits payable under these provisions can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions. The scheme is an unfunded, defined benefit scheme that covers NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. The scheme is not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, the scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS Body of participating in the scheme is taken as equal to the contributions payable to the scheme for the accounting period. In order that the defined benefit obligations recognised in the financial statements do not differ materially from those that would be determined at the reporting date by a formal actuarial valuation, the FREM requires that “the period between formal valuations shall be four years, with approximate assessments in intervening years”. An outline of these follows: a) Full actuarial (funding) valuation The purpose of this valuation is to assess the level of liability in respect of the benefits due under the scheme (taking into account its recent demographic experience), and to recommend the contribution rates to be paid by employers and scheme members. The last such valuation, which determined current contribution rates was undertaken as at 31 March 2004 and covered the period from 1 April 1999 to that date. The conclusion from the 2004 valuation was that the scheme had accumulated a notional deficit of £3.3 billion against the notional assets as at 31 March 2004. In order to defray the costs of benefits, employers pay contributions at 14% of pensionable pay and most employees had up to April 2008 paid 6%, with manual staff paying 5%.Following the full actuarial review by the Government Actuary undertaken as at 31 March 2004, and after consideration of changes to the NHS Pension Scheme taking effect from 1 April 2008, his Valuation report recommended that employer contributions could continue at the existing rate of 14% of pensionable pay, from 1 April 2008, following the introduction of employee contributions on a tiered scale from 5% up to 8.5% of their pensionable pay depending on total earnings.

On advice from the scheme actuary, scheme contributions may be varied from time to time to reflect changes in the scheme’s liabilities.

The Remuneration Report includes disclosure of exit payments payable to individuals named in the report.


b) Accounting valuation A valuation of the scheme liability is carried out annually by the scheme actuary as at the end of the reporting period by updating the results of the full actuarial valuation. Between the full actuarial valuations at a two-year midpoint, a full and detailed member data-set is provided to the scheme actuary. At this point the assumptions regarding the composition of the scheme membership are updated to allow the scheme liability to be valued. The valuation of the scheme liability as at 31 March 2011, is based on detailed membership data as at 31 March 2008 (the latest midpoint) updated to 31 March 2011 with summary global member and accounting data. The latest assessment of the liabilities of the scheme is contained in the scheme actuary report, which forms part of the annual NHS Pension Scheme (England and Wales) Resource Account, published annually. These accounts can be viewed on the NHS Pensions website. Copies can also be obtained from The Stationery Office. c) Scheme provisions The NHS Pension Scheme provided defined benefits, which are summarised below. This list is an illustrative guide only, and is not intended to detail all the benefits provided by the Scheme or the specific conditions that must be met before these benefits can be obtained: The Scheme is a “final salary” scheme. Annual pensions are normally based on 1/80th for the 1995 section and of the best of the last three years pensionable pay for each year of service, and 1/60th for the 2008 section of reckonable pay per year of membership. Members who are practitioners as defined by the Scheme Regulations have their annual pensions based upon total pensionable earnings over the relevant pensionable service. With effect from 1 April 2008 members can choose to give up some of their annual pension for an additional tax free lump sum, up to a maximum amount permitted under HMRC rules. This new provision is known as “pension commutation”. Annual increases are applied to pension payments at rates defined by the Pensions (Increase) Act 1971, and are based on changes in retail prices in the twelve months ending 30 September in the previous calendar year. Early payment of a pension, with enhancement, is available to members of the scheme who are permanently incapable of fulfilling their duties effectively through illness or infirmity. A death gratuity of twice final year’s pensionable pay for death in service, and five times their annual pension for death after retirement is payable. For early retirements other than those due to ill health the additional pension liabilities are not funded by the scheme. The full amount of the liability for the additional costs is charged to the statement of comprehensive income at the time the Trust commits itself to the retirement, regardless of the method of payment. Members can purchase additional service in the NHS Scheme and contribute to money purchase AVCs run by the Scheme’s approved providers or by other Free Standing Additional Voluntary Contributions (FSAVC) providers.


93

The Scheme is a “final salary” scheme. Annual pensions are normally based on 1/80th for the 1995 section and of the best of the last three years pensionable pay for each year of service, and 1/60th for the 2008 section of reckonable pay per year of membership. Members who are practitioners as defined by the Scheme Regulations have their annual pensions based upon total pensionable earnings over the relevant pensionable service.

With effect from 1 April 2008 members can choose to give up some of their annual pension for an additional tax free lump sum, up to a maximum amount permitted under HMRC rules. This new provision is known as “pension commutation”.

Annual increases are applied to pension payments at rates defined by the Pensions (Increase) Act 1971, and are based on changes in retail prices in the twelve months ending 30 September in the previous calendar year.

Early payment of a pension, with enhancement, is available to members of the scheme who are permanently incapable of fulfilling their duties effectively through illness or infirmity. A death gratuity of twice final year’s pensionable pay for death in service, and five times their annual pension for death after retirement is payable.

For early retirements other than those due to ill health the additional pension liabilities are not funded by the scheme. The full amount of the liability for the additional costs is charged to the statement of comprehensive income at the time the Trust commits itself to the retirement, regardless of the method of payment.

Members can purchase additional service in the NHS Scheme and contribute to money purchase AVC’s run by the Scheme’s approved providers or by other Free Standing Additional Voluntary Contributions (FSAVC) providers.

10 Better Payment Practice Code

10.1 Measure of compliance


2014

2014-15 Part Year

April to October

2014

2013-14

2013-14

Number

£000s

Number

£000s

Non-NHS Payables Total Non-NHS Trade Invoices Paid in the period 18,502

14,608

32,098

27,475

Total Non-NHS Trade Invoices Paid Within Target 15,761

12,195

29,145

24,937 Percentage of NHS Trade Invoices Paid Within Target 85.19%

83.48%

90.80%

90.76%

NHS Payables Total NHS Trade Invoices Paid in the period 1,018

10,762

1,756

15,756

Total NHS Trade Invoices Paid Within Target 767

9,720

1,497

12,597 Percentage of NHS Trade Invoices Paid Within Target 75.34%

90.32%

85.25%

79.95%

The Better Payment Practice Code requires the NHS body to aim to pay all valid invoices by the due date or within 30 days of receipt of a valid invoice, whichever is later.

10.2 The Late Payment of Commercial Debts (Interest) Act 1998 No payments were made for the late payment of commercial debts (2013/14: £nil).

10. Better Practice Code

10.1 Measure of compliance

10.2 The Late Payment of Commercial Debts (Interest) Act 1998 No payments were made for the late payment of commercial debts (2013/14: £nil).

94

11 Investment Revenue


2014

2013-14

£000s

£000s

Interest revenue Bank interest 14

22

Total investment revenue 14

22

The Better Payment Practice Code requires the NHS body to aim to pay all valid invoices by the due date or within 30 days of receipt of a valid invoice, whichever is later.

11. Investment Revenue


12.1

Pro

pert

y, p

lant

and

equ

ipm

ent

2014

-15

Part

Yea

r Apr

il to

Oct

ober

201

4

La

nd

B

uild

ings

ex

clud

ing

dwel

lings

D

wel

lings

Ass

ets

unde

r co

nstr

uctio

n &

pay

men

ts

on a

ccou

nt

Pl

ant &

m

achi

nery

Tran

spor

t eq

uipm

ent

In

form

atio

n te

chno

logy

Furn

iture

&

fitti

ngs

To

tal

£000

's

£0

00's

£000

's

£0

00's

£000

's

£0

00's

£000

's

£0

00's

£000

's

Cos

t or v

alua

tion:

A

t 1 A

pril

2014

2,39

8

8,88

5

0

0

1,76

6

0

5,27

5

656

18

,980

A

dditi

ons

Pur

chas

ed

0

0

84

1,18

4

0

1,26

8 D

ispo

sals

oth

er th

an fo

r sal

e

0

0

0

0

0

0 R

ecla

ssifi

catio

n

0

0

0

0

0

0 U

pwar

d re

valu

atio

n/po

sitiv

e in

dexa

tion

26

305

0

0

0

33

1 A

t 31

Oct

ober

201

4

2,42

4

9,19

0

0

0

1,85

0

0

6,45

9

656

20

,579

D

epre

ciat

ion

At 1

Apr

il 20

14

0

26

0

0

0

712

0

1,

251

81

2,30

4 D

ispo

sals

oth

er th

an fo

r sal

e

0

0

0

0

0

0 C

harg

ed D

urin

g th

e P

erio

d

0

175

11

2

556

46

889

At 3

1 O

ctob

er 2

014

0

43

5

0

0

824

0

1,

807

12

7

3,19

3 N

et B

ook

Valu

e at

31

Oct

ober

201

4

2,42

4

8,75

5

0

0

1,02

6

0

4,65

2

529

17

,386

A

sset

fina

ncin

g:

Ow

ned

- Pur

chas

ed

2,

388

8,

555

1,

009

4,

652

52

9

17,1

33

Ow

ned

- Don

ated

0

0

17

0

0

17

O

wne

d - G

over

nmen

t Gra

nted

36

20

0

0

0

0

236

Tota

l at 3

1 O

ctob

er 2

014

2,

424

8,

755

0

0

1,

026

0

4,

652

52

9

17,3

86

R

eval

uatio

n R

eser

ve B

alan

ce fo

r Pro

pert

y, P

lant

& E

quip

men

t

Land

Bui

ldin

gs

D

wel

lings

Ass

ets

unde

r co

nstr

uctio

n &

pay

men

ts

on a

ccou

nt

Pl

ant &

m

achi

nery

Tran

spor

t eq

uipm

ent

In

form

atio

n te

chno

logy

Furn

iture

&

fitti

ngs

To

tal

£000

's

£0

00's

£000

's

£0

00's

£000

's

£0

00's

£000

's

£0

00's

£000

's

At 1

Apr

il 20

14

1,

366

2,

678

0

0

73

0

0

6

4,12

3 M

ovem

ents

25

30

6

0

0

0

0

0

0

331

At 3

1 O

ctob

er 2

014

1,

391

2,

984

0

0

73

0

0

6

4,45

4

12.2

Pro

pert

y, p

lant

and

equ

ipm

ent p

rior-

year

2013

-14

La

nd

B

uild

ings

ex

clud

ing

dwel

lings

D

wel

lings

Ass

ets

unde

r co

nstr

uctio

n &

pay

men

ts

on a

ccou

nt

Pl

ant &

m

achi

nery

Tran

spor

t eq

uipm

ent

In

form

atio

n te

chno

logy

Furn

iture

&

fitti

ngs

Tota

l

£000

s

£000

s

£000

s

£000

s

£000

s

£000

s

£000

s

£000

s

£000

s C

ost o

r val

uatio

n:

At 1

Apr

il 20

13

0

80

0

0

1,12

2

0

3,03

6

33

4,

271

Tran

sfer

s un

der M

odifi

ed A

bsor

ptio

n A

ccou

ntin

g -

PC

Ts &

SH

As

2,

411

7,

148

0

0

65

3

0

400

60

4

11,2

16

Add

ition

s P

urch

ased

0

336

0

16

0

1,85

6

19

2,

227

Dis

posa

ls o

ther

than

for s

ale

0

0

0

(2

5)

0

(1

7)

0

(4

2)

Upw

ard

reva

luat

ion/

posi

tive

inde

xatio

n

(13)

1,32

1

0

0

0

0

0

1,30

8

12.1

P

rop

erty

, pla

nt a

nd e

qui

pm

ent


96

At 3

1 M

arch

201

4

2,39

8

8,88

5

0

0

1,76

6

0

5,27

5

656

18

,980

D

epre

ciat

ion

At 1

Apr

il 20

13

0

0

0

0

52

8

0

499

7

1,

034

Dis

posa

ls o

ther

than

for s

ale

0

0

0

0

(3

)

0

(3)

0

(6

) C

harg

ed D

urin

g th

e Y

ear

0

26

0

0

187

0

75

5

74

1,

276

At 3

1 M

arch

201

4

0

260

0

0

71

2

0

1,25

1

81

2,

304

Net

boo

k va

lue

at 3

1 M

arch

201

4

2,39

8

8,62

5

0

0

1,05

4

0

4,02

4

575

16

,676

A

sset

fina

ncin

g:

Ow

ned

- Pur

chas

ed

2,

362

8,

426

0

0

1,

035

0

4,

024

57

5

16,4

22

Ow

ned

- Don

ated

0

0

0

0

19

0

0

0

19

O

wne

d - G

over

nmen

t Gra

nted

36

19

9

0

0

0

0

0

0

235

Tota

l at 3

1 M

arch

201

4

2,39

8

8,62

5

0

0

1,05

4

0

4,02

4

575

16

,676

12.3

. Pro

pert

y, p

lant

and

equ

ipm

ent

All

of th

e Tr

usts

ow

ned

Land

& B

uild

ings

hav

e be

en re

valu

ed a

t 31st

Oct

ober

201

4. T

he re

valu

atio

n w

as c

arrie

d ou

t ind

epen

dent

ly

by:

D

VS

- P

rope

rty S

ervi

ces

arm

of t

he V

OA

(Dip

Sur

v M

RIC

S R

ICS

Reg

iste

red

Val

uer)

Cre

we

Val

uatio

n O

ffice

2n

d Fl

oor W

ellin

gton

Hou

se

Del

amer

e S

treet

C

rew

e

C

W1

2LQ

Th

e re

valu

atio

n w

as u

nder

take

n in

acc

orda

nce

with

Inte

rnat

iona

l Fin

anci

al R

epor

ting

Sta

ndar

ds (I

FRS

) as

inte

rpre

ted

and

appl

ied

by th

e N

HS

Man

ual f

or A

ccou

nts.

The

ass

umpt

ion

has

been

m

ade

that

the

prop

ertie

s va

lued

will

con

tinue

to b

e he

ld fo

r the

fore

seea

ble

futu

re h

avin

g re

gard

to th

e pr

ospe

ct a

nd v

iabi

lity

of th

e co

ntin

uanc

e of

occ

upat

ion.

The

bas

is o

f val

uatio

n is

Fai

r Val

ue

whi

ch h

as b

een

inte

rpre

ted

as m

arke

t val

ue fo

r exi

stin

g us

e.

Fo

r tho

se p

rope

rties

whe

re th

ere

is m

arke

t-bas

ed e

vide

nce

to s

uppo

rt th

e us

e of

‘Exi

stin

g U

se V

alue

’ (E

UV

) to

arriv

e at

Fai

r Val

ue th

e co

mpa

rativ

e m

etho

d of

val

uatio

n ha

s be

en a

dopt

ed.

Fo

r tho

se p

rope

rties

whe

re th

ere

is n

o m

arke

t bas

ed e

vide

nce

to s

uppo

rt th

e us

e of

EU

V to

arr

ive

at F

air V

alue

, the

Dep

reci

ated

Rep

lace

men

t Cos

t (D

RC

) app

roac

h ha

s be

en u

sed.

12.1

Pro

pert

y, p

lant

and

equ

ipm

ent

2014

-15

Part

Yea

r Apr

il to

Oct

ober

201

4

La

nd

B

uild

ings

ex

clud

ing

dwel

lings

D

wel

lings

Ass

ets

unde

r co

nstr

uctio

n &

pay

men

ts

on a

ccou

nt

Pl

ant &

m

achi

nery

Tran

spor

t eq

uipm

ent

In

form

atio

n te

chno

logy

Furn

iture

&

fitti

ngs

To

tal

£000

's

£0

00's

£000

's

£0

00's

£000

's

£0

00's

£000

's

£0

00's

£000

's

Cos

t or v

alua

tion:

A

t 1 A

pril

2014

2,39

8

8,88

5

0

0

1,76

6

0

5,27

5

656

18

,980

A

dditi

ons

Pur

chas

ed

0

0

84

1,18

4

0

1,26

8 D

ispo

sals

oth

er th

an fo

r sal

e

0

0

0

0

0

0 R

ecla

ssifi

catio

n

0

0

0

0

0

0 U

pwar

d re

valu

atio

n/po

sitiv

e in

dexa

tion

26

305

0

0

0

33

1 A

t 31

Oct

ober

201

4

2,42

4

9,19

0

0

0

1,85

0

0

6,45

9

656

20

,579

D

epre

ciat

ion

At 1

Apr

il 20

14

0

26

0

0

0

712

0

1,

251

81

2,30

4 D

ispo

sals

oth

er th

an fo

r sal

e

0

0

0

0

0

0 C

harg

ed D

urin

g th

e P

erio

d

0

175

11

2

556

46

889

At 3

1 O

ctob

er 2

014

0

43

5

0

0

824

0

1,

807

12

7

3,19

3 N

et B

ook

Valu

e at

31

Oct

ober

201

4

2,42

4

8,75

5

0

0

1,02

6

0

4,65

2

529

17

,386

A

sset

fina

ncin

g:

Ow

ned

- Pur

chas

ed

2,

388

8,

555

1,

009

4,

652

52

9

17,1

33

Ow

ned

- Don

ated

0

0

17

0

0

17

O

wne

d - G

over

nmen

t Gra

nted

36

20

0

0

0

0

236

Tota

l at 3

1 O

ctob

er 2

014

2,

424

8,

755

0

0

1,

026

0

4,

652

52

9

17,3

86

R

eval

uatio

n R

eser

ve B

alan

ce fo

r Pro

pert

y, P

lant

& E

quip

men

t

Land

Bui

ldin

gs

D

wel

lings

Ass

ets

unde

r co

nstr

uctio

n &

pay

men

ts

on a

ccou

nt

Pl

ant &

m

achi

nery

Tran

spor

t eq

uipm

ent

In

form

atio

n te

chno

logy

Furn

iture

&

fitti

ngs

To

tal

£000

's

£0

00's

£000

's

£0

00's

£000

's

£0

00's

£000

's

£0

00's

£000

's

At 1

Apr

il 20

14

1,

366

2,

678

0

0

73

0

0

6

4,12

3 M

ovem

ents

25

30

6

0

0

0

0

0

0

331

At 3

1 O

ctob

er 2

014

1,

391

2,

984

0

0

73

0

0

6

4,45

4

12.2

Pro

pert

y, p

lant

and

equ

ipm

ent p

rior-

year

2013

-14

La

nd

B

uild

ings

ex

clud

ing

dwel

lings

D

wel

lings

Ass

ets

unde

r co

nstr

uctio

n &

pay

men

ts

on a

ccou

nt

Pl

ant &

m

achi

nery

Tran

spor

t eq

uipm

ent

In

form

atio

n te

chno

logy

Furn

iture

&

fitti

ngs

Tota

l

£000

s

£000

s

£000

s

£000

s

£000

s

£000

s

£000

s

£000

s

£000

s C

ost o

r val

uatio

n:

At 1

Apr

il 20

13

0

80

0

0

1,12

2

0

3,03

6

33

4,

271

Tran

sfer

s un

der M

odifi

ed A

bsor

ptio

n A

ccou

ntin

g -

PC

Ts &

SH

As

2,

411

7,

148

0

0

65

3

0

400

60

4

11,2

16

Add

ition

s P

urch

ased

0

336

0

16

0

1,85

6

19

2,

227

Dis

posa

ls o

ther

than

for s

ale

0

0

0

(2

5)

0

(1

7)

0

(4

2)

Upw

ard

reva

luat

ion/

posi

tive

inde

xatio

n

(13)

1,32

1

0

0

0

0

0

1,30

8

12.2

P

rop

erty

, pla

nt a

nd e

qui

pm

ent

pri

or-

year


All of the Trusts owned Land & Buildings have been revalued at 31 October 2014. The revaluation was carried out independently by: DVS - Property Services arm of the VOA (DipSurv MRICS RICS Registered Valuer) Crewe Valuation Office 2nd Floor Wellington House Delamere Street Crewe CW1 2LQ

The revaluation was undertaken in accordance with International Financial Reporting Standards (IFRS) as interpreted and applied by the NHS Manual for Accounts. The assumption has been made that the properties valued will continue to be held for the foreseeable future having regard to the prospect and viability of the continuance of occupation. The basis of valuation is Fair Value which has been interpreted as market value for existing use. For those properties where there is market-based evidence to support the use of ‘Existing Use Value’ (EUV) to arrive at Fair Value the comparative method of valuation has been adopted. For those properties where there is no market based evidence to support the use of EUV to arrive at Fair Value, the Depreciated Replacement Cost (DRC) approach has been used.

An estimate of the Remaining Economic Life of each asset has been provided in the table opposite:

12.3 Property, plant and equipment


97

12

.3. P

rope

rty,

pla

nt a

nd e

quip

men

t (C

ontin

ued)

An

estim

ate

of th

e R

emai

ning

Eco

nom

ic L

ife o

f eac

h as

set h

as b

een

prov

ided

in th

e ta

ble

belo

w:

M

in li

fe

M

ax li

fe

(yea

rs)

(y

ears

)

B

uild

ings

exc

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5

88

P

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and

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ry

0

10

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form

atio

n te

chno

logy

1

5

Fu

rnitu

re a

nd fi

tting

s

1

5

13.1

Inta

ngib

le n

on-c

urre

nt a

sset

s

2014

-15

Part

Yea

r Apr

il to

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201

4

IT

- in

-hou

se &

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are

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101

0

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76

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76

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17

7

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177

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14

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201

4

55

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N

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Valu

e at

31

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201

4

122

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31

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201

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122

0

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201

4

122

0

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2

13

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non

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r yea

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13

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bsor

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35

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35

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26

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4

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98

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62

13.3

Inta

ngib

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sset

s (li

ves)

The

rem

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live

s of

inta

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sset

s ar

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follo

win

g ra

nges

:

Min

life

Max

life

(y

ears

)

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rs)

IT -

in-h

ouse

& 3

rd p

arty

sof

twar

e

0

5

14 C

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ts

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l com

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ents

C

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cted

cap

ital c

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ts a

t 31

Oct

ober

not

oth

erw

ise

incl

uded

in th

ese

finan

cial

sta

tem

ents

:

31 O

ctob

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014

31

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ch 2

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s

£000

s

P

rope

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lant

and

equ

ipm

ent

17

17

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17

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ents

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ridge

wat

er C

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unity

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lthca

re h

as n

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s w

here

a fi

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ncel

latio

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13.2

In

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ible

no

n-cu

rren

t as

sets

pri

or

year

97

12

.3. P

rope

rty,

pla

nt a

nd e

quip

men

t (C

ontin

ued)

An

estim

ate

of th

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nom

ic L

ife o

f eac

h as

set h

as b

een

prov

ided

in th

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ble

belo

w:

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in li

fe

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ax li

fe

(yea

rs)

(y

ears

)

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ings

exc

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gs

5

88

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and

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ry

0

10

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1

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re a

nd fi

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le n

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nt a

sset

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2014

-15

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r Apr

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201

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101

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13

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13.1

In

tang

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no

n-cu

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t as

sets


14 Commitments

14.1 Capital commitmentsContracted capital commitments at 31 October not otherwise included in these financial statements:

14.2 Other financial commitments Bridgewater Community Healthcare has not entered into any other contracts where a financial commitment arises on cancellation.

A prior period adjustment has been made under IAS 8, the value of which is £933k. This has the impact of increasing Balances with bodies external to government by £933k.

Min Life Years Max Life Years

IT - In house & 3rd party software 0 5

13.3 Intangible non-current assets (lives)The remaining economic lives of intangible assets are within the following ranges:

31 October 2014 31 March 2014 £000s £000s Property, plant and equipment 17 17Intangible Assets 0 0Total 17 17

15 Intra-Government and other balances

15 Intra-Government and other balances Current receivables

Non-current receivables

Current payable

s

Non-current payables

£000s £000s

£000s £000s Balances with other Central Government Bodies 6,758

0

7,667 0

Balances with Local Authorities 3,465

0

380 0 Balances with NHS Trusts and Foundation Trusts 946

0

1,707 0

Balances with bodies external to government 577

686

7,030 0 At 31 October 2014 11,746

686

16,784

0

prior period: Balances with other Central Government Bodies 3,562

0

6,548 0


0

580 0 Balances with NHS Trusts and Foundation Trusts 1,057

0

2,011 0

Balances with bodies external to government 2,161

768

5,361 0 At 31 March 2014 9,946

768

14,500

0

A prior period adjustment has been made under IAS 8, the value of which is £933k. This has the impact of increasing

Balances with bodies external to government by £933k.

16 Inventories Drugs

Other*

Total

Of which held at NRV

£000s

£000s

£000s

£000s

Balance at 1 April 2014 28

625

653

625 Additions 3 296 299 296 Disposals 0 0 0 0 Balance at 31 October 2014 31 921 952 921

* Other inventories are made up of wheelchairs and items in the Community Equipment Store.

17.1 Trade and other receivables Current

Non-current

31 October 2014

31 March 2014

31 October

2014

31 March 2014

£000s

£000s

£000s

£000s

NHS receivables - revenue 4,947

3,020

0

0 NHS prepayments and accrued income 2,780

910

0

0

Non-NHS receivables - revenue 3,300

3,019

0

0 Non-NHS prepayments and accrued income 869

2,406

0

0

Provision for the impairment of receivables (238)

(98)

(132)

(111) VAT 88

683

0

0

Other receivables 0

6

818

879 Total 11,746

9,946

686

768

Total current and non current 12,432

10,714

The great majority of trade is with NHS England, Clinical Commissioning Groups and Local Authorities . As NHS bodies and Local Authorities are funded by Government to buy NHS patient care services, no credit scoring of them is considered necessary. 17.2 Receivables past their due date but not impaired

31 October

31 March 2014

7,667380

1,7077,030




Current payable

s


£000s £000s


0

7,667 0


0


0

1,707 0


686

7,030 0 At 31 October 2014 11,746

686

16,784

0


0

6,548 0


0


0

2,011 0


768

5,361 0 At 31 March 2014 9,946

768

14,500

0




Other*

Total


£000s

£000s

£000s

£000s


625

653




Non-current

31 October 2014

31 March 2014

31 October

2014

31 March 2014

£000s

£000s

£000s

£000s


3,020

0


910

0

0


3,019

0


2,406

0

0


(98)

(132)

(111) VAT 88

683

0

0

Other receivables 0

6

818

879 Total 11,746

9,946

686

768


10,714


31 October

31 March 2014

16 Inventories

17.1 Trade and other receivables


The great majority of trade is with NHS England, Clinical Commissioning Groups and Local Authorities . As NHS bodies and Local Authorities are funded by Government to buy NHS patient care services, no credit scoring of them is considered necessary.

102

2014

£000s

£000s

By up to three months

4,328

4,165 By three to six months

114

1,233

By more than six months

1,659

503 Total

6,101

5,901

17.3 Provision for impairment of receivables

2014-15 Part Year

April to October

2014

2013-14

£000s

£000s

Balance at 1 April 2014

(209)

(120) Amount written off during the year

0

0

Amount recovered during the year

0

0 (Increase)/decrease in receivables impaired

(162)

(89)

Balance at 31 October 2014

(371)

(209)

The non-current provision for impairment of receivables is in respect of injury cost recovery income due. A percentage of the amount receivable is provided for which is currently set at 15.8%.

18 Other Financial Assets Bridgewater Community Healthcare had no other financial assets at 31 October 2014 (31 March 2014:

£nil).

19 Other current assets

Bridgewater Community Healthcare had no other current assets at 31 October 2014 (31 March 2014: £nil).

20 Cash and Cash Equivalents 31 October

2014

31 March 2014

£000s

£000s Opening balance 5,741

4,378

Net change in year (392)

1,363 Closing balance 5,349

5,741

Made up of

Cash with Government Banking Service 5,319

5,711 Commercial banks 0

0

Cash in hand 30

30 Cash and cash equivalents as in statement of

financial position 5,349

5,741 Cash and cash equivalents as in statement of

cash flows 5,349

5,741

21 Non-current assets held for sale Bridgewater Community Healthcare had no non-current assets held for sale at 31 October 2014 (31 March

2014: £nil).

17.2 Receivables past their due date but not impaired


102

2014

£000s

£000s


4,328


114

1,233


1,659

503 Total

6,101

5,901


2014-15 Part Year

April to October

2014

2013-14

£000s

£000s


(209)


0

0


0


(162)

(89)


(371)

(209)



£nil).




2014

31 March 2014

£000s


4,378



5,741

Made up of



0

Cash in hand 30




cash flows 5,349

5,741


2014: £nil).



Current payable

s


£000s £000s


0

7,667 0


0


0

1,707 0


686

7,030 0 At 31 October 2014 11,746

686

16,784

0


0

6,548 0


0


0

2,011 0


768

5,361 0 At 31 March 2014 9,946

768

14,500

0




Other*

Total


£000s

£000s

£000s

£000s


625

653




Non-current

31 October 2014

31 March 2014

31 October

2014

31 March 2014

£000s

£000s

£000s

£000s


3,020

0


910

0

0


3,019

0


2,406

0

0


(98)

(132)

(111) VAT 88

683

0

0

Other receivables 0

6

818

879 Total 11,746

9,946

686

768


10,714


31 October

31 March 2014



21 Non-current assets held for saleBridgewater Community Healthcare had no non-current assets held for sale at 31 October 2014 (31 March 2014: £nil).

18 Other Financial Assets Bridgewater Community Healthcare had no other financial assets at 31 October 2014 (31 March 2014: £nil). 19 Other current assets Bridgewater Community Healthcare had no other current assets at 31 October 2014 (31 March 2014: £nil).

20 Cash and Cash Equivalents

102

2014

£000s

£000s


4,328


114

1,233


1,659

503 Total

6,101

5,901


2014-15 Part Year

April to October

2014

2013-14

£000s

£000s


(209)


0

0


0


(162)

(89)


(371)

(209)



£nil).




2014

31 March 2014

£000s


4,378



5,741

Made up of



0

Cash in hand 30




cash flows 5,349

5,741


2014: £nil).

102

2014

£000s

£000s


4,328


114

1,233


1,659

503 Total

6,101

5,901


2014-15 Part Year

April to October

2014

2013-14

£000s

£000s


(209)


0

0


0


(162)

(89)


(371)

(209)



£nil).




2014

31 March 2014

£000s


4,378



5,741

Made up of



0

Cash in hand 30




cash flows 5,349

5,741


2014: £nil).

103

22 Trade and other payables Current

Non-current

31 October 2014

31 March 2014

Restated

31 October 2014

31 March 2014

£000s

£000s

£000s

£000s

NHS payables - revenue 1,516

2,661

0

0 NHS payables - capital 0

261

0

0

NHS accruals and deferred income 6,124

2,391

0

0 Non-NHS payables - revenue 5,620

5,652

0

0

Non-NHS payables - capital 0

241

0

0 Non-NHS accruals and deferred income 1,778

1,416

0

0

Social security costs 1,734

1,786

Other 12

92

0

0

Total 16,784

14,500

0

0

Total payables (current and non-current) 16,784

14,500

A prior period adjustment has been made under IAS 8, the value of which is £933k. This has the impact of increasing Balances with bodies external to government by

£933k.

Included above: Outstanding Pension Contributions at the period end 1,434 1,460

23 Other liabilities Bridgewater Community Healthcare had no other liabilities at 31 October 2014 (31

March 2014: £nil).

24 Borrowings Bridgewater Community Healthcare had no borrowings at 31 October 2014 (31 March

2014: £nil).

25 Deferred income Current

Non-current

31 October 2014

31 March 2014

31 October 2014

31 March 2014

£000s

£000s

£000s

£000s

Opening balance at 1 April 2014 16

88

0

0 Deferred income addition 1,412

16

0

0

Transfer of deferred income (16)

(88)

0

0 Current deferred Income at 31 October 2014 1,412

16

0

0

Total deferred income (current and non-current) 1,412

16

26 Finance lease obligations as lessee Bridgewater Community Healthcare had no finance lease obligations at 31 October 2014 (31 March 2014:

£nil).

27 Finance lease receivables as lessor Bridgewater Community Healthcare had no finance lease receivables at 31 October 2014 (31 March 2014:

£nil).

22 Trade and other payables

£933k.


103

22 Trade and other payables Current

Non-current

31 October 2014

31 March 2014

Restated

31 October 2014

31 March 2014

£000s

£000s

£000s

£000s

NHS payables - revenue 1,516

2,661

0

0 NHS payables - capital 0

261

0

0

NHS accruals and deferred income 6,124

2,391

0

0 Non-NHS payables - revenue 5,620

5,652

0

0

Non-NHS payables - capital 0

241

0

0 Non-NHS accruals and deferred income 1,778

1,416

0

0

Social security costs 1,734

1,786

Other 12

92

0

0

Total 16,784

14,500

0

0

Total payables (current and non-current) 16,784

14,500

A prior period adjustment has been made under IAS 8, the value of which is £933k. This has the impact of increasing Balances with bodies external to government by

£933k.

Included above: Outstanding Pension Contributions at the period end 1,434 1,460

23 Other liabilities Bridgewater Community Healthcare had no other liabilities at 31 October 2014 (31

March 2014: £nil).

24 Borrowings Bridgewater Community Healthcare had no borrowings at 31 October 2014 (31 March

2014: £nil).

25 Deferred income Current

Non-current

31 October 2014

31 March 2014

31 October 2014

31 March 2014

£000s

£000s

£000s

£000s

Opening balance at 1 April 2014 16

88

0

0 Deferred income addition 1,412

16

0

0

Transfer of deferred income (16)

(88)

0

0 Current deferred Income at 31 October 2014 1,412

16

0

0

Total deferred income (current and non-current) 1,412

16

26 Finance lease obligations as lessee Bridgewater Community Healthcare had no finance lease obligations at 31 October 2014 (31 March 2014:

£nil).

27 Finance lease receivables as lessor Bridgewater Community Healthcare had no finance lease receivables at 31 October 2014 (31 March 2014:

£nil).

23 Other liabilities Bridgewater Community Healthcare had no other liabilities at 31 October 2014 (31 March 2014: £nil). 24 Borrowings Bridgewater Community Healthcare had no borrowings at 31 October 2014 (31 March 2014: £nil). 25 Deferred Income

26 Finance lease obligations as lessee Bridgewater Community Healthcare had no finance lease obligations at 31 October 2014 (31 March 2014: £nil). 27 Finance lease receivables as lessor Bridgewater Community Healthcare had no finance lease receivables at 31 October 2014 (31 March 2014: £nil).


28 Provisions

Comprising:

Total

Early Depart

ure Costs

Legal Claim

s Restructuring

Continuing Care

Equal

Pay (inc

l. Agenda for Change

Other

Redundancy

£000s

£000s

£000s

£000s

£000s

£000s

£000s

£000s


0

23

0

0

0

0

0 Arising During the Year 27

0

27

0

0

0

0

0

Utilised During the Year 0

0

0

0

0

0

0

0 Reversed Unused (3)

0

(3)

0

0

0

0

0

Balance at 31 October 2014 47

0

47

0

0

0

0 0

Expected Timing of Cash Flows:

No Later than One Year 47

0

47

0

0

0

0

0 Later than One Year and not later than Five Years 0

0

0

0

0

0

0

0

Later than Five Years 0

0

0

0

0

0

0

0

Amount Included in the Provisions of the NHS Litigation Authority in Respect of Clinical Negligence Liabilities:

As at 31 October 2014 120 As at 31 March 2014 71

"Legal claims" provisions relate to LTPS provisions as notified by the NHS Litigation Authority. The provision reflects the probability of the cases being settled as estimated by the NHS Litigation Authority.

29 Contingencies

31 October

2014

31 March 2014

£000s

£000s Contingent liabilities

Equal Pay 0

0 Other

(16)

Amounts Recoverable Against Contingent Liabilities 0

0

Net Value of Contingent Liabilities 0

(16)

"Other" contingent liabilities are in relation to the legal claims notified by the NHS Litigation Authority.

Contingent Assets

Bridgewater Community Healthcare had no contingent assets at 31 October 2014 (31 March 2014: £nil).

28 Provisions

“Legal claims” provisions relate to LTPS provisions as notified by the NHS Litigation Authority. The provision reflects the probability of the cases being settled as estimated by the NHS Litigation Authority.

29 Contingencies

“Other” contingent liabilities are in relation to the legal claims notified by the NHS Litigation Authority. Contingent Assets Bridgewater Community Healthcare had no contingent assets at 31 October 2014 (31 March 2014: £nil).

Comprising

LegalClaims

Restructuring ContinuingCaare

EqualPayIncl.

Agendafor

Change

£000s

Other

£000s

RedundancyTotal EarlyDeparture

Costs

28 Provisions

Comprising:

Total

Early Depart

ure Costs

Legal Claim

s Restructuring

Continuing Care

Equal

Pay (inc

l. Agenda for Change

Other

Redundancy

£000s

£000s

£000s

£000s

£000s

£000s

£000s

£000s


0

23

0

0

0

0

0 Arising During the Year 27

0

27

0

0

0

0

0

Utilised During the Year 0

0

0

0

0

0

0

0 Reversed Unused (3)

0

(3)

0

0

0

0

0

Balance at 31 October 2014 47

0

47

0

0

0

0 0

Expected Timing of Cash Flows:

No Later than One Year 47

0

47

0

0

0

0

0 Later than One Year and not later than Five Years 0

0

0

0

0

0

0

0

Later than Five Years 0

0

0

0

0

0

0

0

Amount Included in the Provisions of the NHS Litigation Authority in Respect of Clinical Negligence Liabilities:

As at 31 October 2014 120 As at 31 March 2014 71

"Legal claims" provisions relate to LTPS provisions as notified by the NHS Litigation Authority. The provision reflects the probability of the cases being settled as estimated by the NHS Litigation Authority.

29 Contingencies

31 October

2014

31 March 2014

£000s

£000s Contingent liabilities

Equal Pay 0

0 Other

(16)

Amounts Recoverable Against Contingent Liabilities 0

0

Net Value of Contingent Liabilities 0

(16)

"Other" contingent liabilities are in relation to the legal claims notified by the NHS Litigation Authority.

Contingent Assets

Bridgewater Community Healthcare had no contingent assets at 31 October 2014 (31 March 2014: £nil).


30 Financial Instruments 30.1 Financial risk management Financial reporting standard IFRS 7 requires disclosure of the role that financial instruments have had during the period in creating or changing the risks a body faces in undertaking its activities. Because of the continuing service provider relationship that the NHS Trust has with NHS England, Clinical Commissioning Groups and Local Authorities and the way NHS England, Clinical Commissioning Groups and Local Authorities are financed, the NHS Trust is not exposed to the degree of financial risk faced by business entities. Also financial instruments play a much more limited role in creating or changing risk than would be typical of listed companies, to which the financial reporting standards mainly apply. The NHS Trust has limited powers to borrow or invest surplus funds and financial assets and liabilities are generated by day-to-day operational activities rather than being held to change the risks facing the NHS Trust in undertaking its activities. The Trust’s treasury management operations are carried out by the finance department, within parameters defined formally within the Trust’s standing financial instructions and policies agreed by the board of directors. Trust treasury activity is subject to review by theTrust’s internal auditors. Currency risk The Trust is principally a domestic organisation with the great majority of transactions, assets and liabilities being in the UK and sterling based. The Trust has no overseas operations. The Trust therefore has low exposure to currency rate fluctuations. Interest rate risk The Trust borrows from government for capital expenditure, subject to affordability as confirmed by the department of health. The borrowings are for 1 – 25 years, in line with the life of the associated assets, and interest is charged at the National Loans Fund rate, fixed for the life of the loan. The Trust therefore has low exposure to interest rate fluctuations. Credit risk Because the majority of the Trust’s revenue comes from contracts with other public sector bodies, the Trust has low exposure to credit risk. The maximum exposures as at 31 October 2014 are in receivables from customers, as disclosed in the trade and other receivables note. Liquidity risk The Trust’s operating costs are incurred under contracts with other NHS bodies, which are financed from resources voted annually by Parliament . The Trust funds its capital expenditure from funds obtained within its prudential borrowing limit. The Trust is not, therefore, exposed to significant liquidity risks.


106

NHS payables 6,430 6,430 Non-NHS payables 5,778 5,778 Total at 31 October 2014 0 12,208 12,208

NHS payables 5,313 5,313 Non-NHS payables 6,468 6,468 Total at 31 March 2014 0 11,781 11,781

The fair value of financial instruments is considered to be equivalent to the transaction value.

31 Events after the end of the reporting period

The Trust was authorised as a foundation Trust with effect from 1st November 2014 and so ceased trading as an NHS Trust as of 31st October 2014. All of the balances in the Statement of Financial Position at 31st October 2014 shown on page 19 have transferred in full to the new foundation trust as opening balances.

32 Related party transactions

During the period none of the Department of Health Ministers, Trust board members or members of the key management staff, or parties related to any of them, has undertaken any material transactions with Bridgewater Community Healthcare NHS Trust.

The Department of Health is regarded as a related party. During the period Bridgewater has had a significant number of material transactions (totalling £1million or more) with the Department, and with other entities for which the Department is regarded as the parent Department. For example :


2014

2013/14

31 October 2014

2013/14

£000 £000

£000

£000

Payments From Related Party

Payments To Related Party



Amounts due from Related Party

Amounts owed to Related Party



CCGs NHS Halton CCG 10,553

36

16,887

0

1,494

1,046

515

0

NHS St Helens CCG 14,537

68

23,942

0

747

36

395

0 NHS Warrington CCG 12,980

0

22,221

0

1,161

0

218

0

NHS Wigan Borough CCG 18,251

0

32,569

0

427

0

161

0

NHS England Cheshire,

Warrington & Wirral LAT 3,079

0

3,430

1

0

0

283

0

Greater Manchester LAT 5,288

0

7,295

0

0

168

298

0

Lancashire LAT 2,302

0

3,931

0

0

0

10

0 Merseyside LAT 4,078

0

4,911

0

0

11

163

0

The fair value of financial instruments is considered to be equivalent to the transaction value. 31 Events after the end of the reporting period The Trust was authorised as a foundation Trust with effect from 1 November 2014 and so ceased trading as an NHS Trust as of 31 October 2014.

All of the balances in the Statement of Financial Position at 31 October 2014 shown on page 76 have transferred in full to the new foundation trust as opening balances.

30 Financial Instruments 30.1 Financial risk management

Financial reporting standard IFRS 7 requires disclosure of the role that financial instruments have had during the period in creating or changing the risks a body faces in undertaking its activities. Because of the continuing service provider relationship that the NHS Trust has with NHS England, Clinical Commissioning Groups and Local Authorities and the way NHS England, Clinical Commissioning Groups and Local Authorities are financed, the NHS Trust is not exposed to the degree of financial risk faced by business entities. Also financial instruments play a much more limited role in creating or changing risk than would be typical of listed companies, to which the financial reporting standards mainly apply. The NHS Trust has limited powers to borrow or invest surplus funds and financial assets and liabilities are generated by day-to-day operational activities rather than being held to change the risks facing the NHS Trust in undertaking its activities.

The Trust’s treasury management operations are carried out by the finance department, within parameters defined formally within the Trust’s standing financial instructions and policies agreed by the board of directors. Trust treasury activity is subject to review by theTrust’s internal auditors.

Currency risk The Trust is principally a domestic organisation with the great majority of transactions, assets and liabilities being in the UK

and sterling based. The Trust has no overseas operations. The Trust therefore has low exposure to currency rate fluctuations.

Interest rate risk The Trust borrows from government for capital expenditure, subject to affordability as confirmed by the department of

health. The borrowings are for 1 – 25 years, in line with the life of the associated assets, and interest is charged at the National Loans Fund rate, fixed for the life of the loan. The Trust therefore has low exposure to interest rate fluctuations.

Credit risk

Because the majority of the Trust’s revenue comes from contracts with other public sector bodies, the Trust has low exposure to credit risk. The maximum exposures as at 31 October 2014 are in receivables from customers, as disclosed in the trade and other receivables note.

Liquidity risk The Trust’s operating costs are incurred under contracts with other NHS bodies, which are financed from resources voted

annually by Parliament . The Trust funds its capital expenditure from funds obtained within its prudential borrowing limit. The Trust is not, therefore, exposed to significant liquidity risks.

30.2 Financial Assets At ‘fair value through

profit and loss’

Loans and receivables

Available for sale

Total

£000s £000s £000s £000s

Receivables - NHS 7,589 7,589 Receivables - non-NHS 2,042 2,042 Cash at bank and in hand 5,349 5,349 Total at 31 October 2014 0 14,980 0

14,980

Receivables - NHS 3,930 3,930 Receivables - non-NHS 2,607 2,607 Cash at bank and in hand 5,741 5,741 Total at 31 March 2014 0

12,278

0

12,278

30.3 Financial Liabilities At ‘fair value

through profit and

loss’

Other Total

£000s £000s £000s

30.2 Financial Assets

30.3 Financial Liabilities


32 Related party transactions During the period none of the Department of Health Ministers, Trust board members or members of the key management staff, or parties related to any of them, has undertaken any material transactions with Bridgewater Community Healthcare NHS Trust. The Department of Health is regarded as a related party. During the period Bridgewater has had a significant number of material transactions (totalling £1million or more) with the Department, and with other entities for which the Department is regarded as the parent Department. For example :

106










2014

2013/14

31 October 2014

2013/14

£000 £000

£000

£000










36

16,887

0

1,494

1,046

515

0


68

23,942

0

747

36

395


0

22,221

0

1,161

0

218

0


0

32,569

0

427

0

161

0



0

3,430

1

0

0

283

0


0

7,295

0

0

168

298

0


0

3,931

0

0

0

10


0

4,911

0

0

11

163

0

107

NHS Trusts St Helens and

Knowsley NHS Trust 252

1,634

429

2,268

364

770

347

1,045

NHS FTs Warrington and

Halton Hospitals NHS Foundation Trust 51

1,037

123

1,380

105

393

63

351

NHS Pension Scheme 0

6,237

0

10,997

0

1,434

0

912

Health Education England 1,640

1

2,674

0

197

24

29

0

In addition, the Trust has had a number of material transactions with other government departments and other central and local government bodies. Most of these transactions have been with the following entities:

Local Authorities

Halton Borough Council 2,748 88 4,588 200

1,423

71

813 32 St Helens Borough Council 2,188 118 5,256 586

904

0

1,343

204

Trafford Borough Council 900 0 1,076 5

4

0

326

0 Warrington Borough Council 1,467 82 3,067 167

362

58

518

161

Wigan Borough Council 1,894 294 4,291 256

771

137

127

183

National Insurance Fund 0 3,490 0 5,626

0

495

0 481

33 Losses and special payments The total number of losses cases in 2014-15 Part Year April to October 2014 and their total value was as

follows:

Total Value

Total Number

of Cases

of Cases

£s

Losses

862 4 Special payments

0 0

Total losses and special payments

862

4

The total number of losses cases in 2013-14 and their total value was as follows:

Total Value

Total Number

of Cases

of Cases

£s

Losses


0 0


306

27

34. Financial performance targets

34.1 Breakeven performance


107



1,634

429

2,268

364

770

347

1,045



1,037

123

1,380

105

393

63

351


6,237

0

10,997

0

1,434

0

912


1

2,674

0

197

24

29

0


Local Authorities


1,423

71


904

0

1,343

204


4

0

326


362

58

518

161


771

137

127

183


0

495

0 481


follows:

Total Value

Total Number

of Cases

of Cases

£s

Losses


0 0


862

4


Total Value

Total Number

of Cases

of Cases

£s

Losses


0 0


306

27



PaymentsFrom

RelatedParty

PaymentsTo

RelatedParty

PaymentsFrom

RelatedParty

PaymentsTo

RelatedParty

AmountsDueFrom

RelatedParty

AmountsOwed

ToRelatedParty

AmountsDueFrom

RelatedParty

AmountsOwed

ToRelatedParty

106










2014

2013/14

31 October 2014

2013/14

£000 £000

£000

£000










36

16,887

0

1,494

1,046

515

0


68

23,942

0

747

36

395


0

22,221

0

1,161

0

218

0


0

32,569

0

427

0

161

0



0

3,430

1

0

0

283

0


0

7,295

0

0

168

298

0


0

3,931

0

0

0

10


0

4,911

0

0

11

163

0


107



1,634

429

2,268

364

770

347

1,045



1,037

123

1,380

105

393

63

351


6,237

0

10,997

0

1,434

0

912


1

2,674

0

197

24

29

0


Local Authorities


1,423

71


904

0

1,343

204


4

0

326


362

58

518

161


771

137

127

183


0

495

0 481


follows:

Total Value

Total Number

of Cases

of Cases

£s

Losses


0 0


862

4


Total Value

Total Number

of Cases

of Cases

£s

Losses


0 0


306

27



33 Losses and special payments The total number of losses cases in 2014-15 Part Year April to October 2014 and their total value was as follows:

34. Financial performance targets34.1 Breakeven performance

108

2014-15 Part Year

April to October 2014

2013-14

2012-13

2011-12

2010-11

£000s

£000s

£000s

£000s

£000s

Turnover

84,939

147,310

175,302

166,304

52,583

Retained surplus/(deficit) for the year

(807)

659

1,715

1,804

388 Break-even in-year position

(801)

668

1,715

1,804

388

Break-even cumulative position

3,774

4,575

3,907

2,192

388

2014 2013-14 2012-13 2011-12 2010-11% % % % %

Materiality test (I.e. is it equal to or less than 0.5%):Break-even in-year position as a percentage of turnover -0.94% 0.45% 0.98% 1.08% 0.74%Break-even cumulative position as a percentage of turnover 4.44% 3.11% 2.23% 1.32% 0.74% The statutory rate of return target is not applicable for the part year period of account as it is a full year target. The Table above is therefore for illustration only.

A prior period adjustment has been made under IAS 8, the value of which is £933k. This has the impact of reducing

the retained surplus for 2013/14 by £933k.

34.2 Capital cost absorption rate

The dividend payable on public dividend capital is based on the actual (rather than forecast) average relevant net assets and therefore the actual capital cost absorption rate is automatically 3.5%.

In the period Bridgewater Community Healthcare paid a PDC dividend of £262,000. The PDC dividend paid in 2013/14 was £nil.

34.3 External financing

The Trust is given an external financing limit which it is permitted to undershoot.

2014-15 Part Year

April to October

2014

2013-14

£000s

£000s

External financing limit (EFL)

961

109 Cash flow financing

70

External financing requirement

961

70 Under/(Over) Shoot against EFL *

0

39

* The cash flow financing figure is deducted from the external financing limit to calculate the undershoot.

34.4 Capital resource limit

The Trust is given a capital resource limit which it is not permitted to exceed.

The statutory rate of return target is not applicable for the part year period of account as it is a full year target. The Table above is therefore for illustration only.

A prior period adjustment has been made under IAS 8, the value of which is £933k. This has the impact of reducing the retained surplus for 2013/14 by £933k.

34.2 Capital cost absorption rateThe dividend payable on public dividend capital is based on the actual (rather than forecast) average relevant net assets and therefore the actual capital cost absorption rate is automatically 3.5%.

In the period Bridgewater Community Healthcare paid a PDC dividend of £262,000. The PDC dividend paid in 2013/14 was £nil.

2014-15PartYear

April toOctober

2014


35 Third party assets Bridgewater Community Healthcare held no monies on behalf of patients or other parties at 31 October 2014 (31 March 2014: £nil).

Gross capital expenditureLess: book value of assets disposed ofLess: capital gains grantsLess: donations towards the aquisition of non-current assetsCharge against the capital resource limitCapital resource limit(Over)/underspend against the capital resource limit

1,344000

1,3441,344

0

2,253(36)

00

2,2172,225

8

2014-15 Part Year April to October 2014 2013-14 £000s £000s

34.3 External financingThe Trust is given an external financing limit which it is permitted to undershoot.

External financing limit (EFL)Cash flow financingExternal financial requirementsUnder/(Over) Shoot gainst EFL*

961961

9610

70109

7039

2014-15 Part Year April to October 2014 2013-14 £000s £000s

* The cash flow financing figure is deducted from the external financing limit to calculate the undershoot.

34.4 Capital resource limitThe Trust is given a capital resource limit which it is not permitted to exceed.


9. Useful Contacts

Your viewsWe welcome your comments and feedback on our Annual Report and Accounts.Please contact 01942 482655 or email [email protected] if you:

• Have any further questions or need help understanding any aspect of this document• Would like to view this document in another language or format such as Braille or

audio• Would like us to send you a printed copy of this document or parts of this document

Giving feedback on our servicesIf you wish to tell us about your experience of our services please contact Patient Services:Email: [email protected] Telephone: 0800 587 0562

MembershipIf you would like to have a say and help us to develop our services to meet local needs, thenplease consider becoming a member. Membership is open to anyone aged 14 years or over who lives in England.

Please contact us to find out more:

• Email: [email protected] • Telephone: 01942 482672

Want to know more about us?You can:

• Find out more about us on our website: www.bridgewater.nhs.uk• Follow us on Twitter: www.twitter.com/Bridgewater_NHS • “Like” us on Facebook www.facebook.com/BridgewaterNHS • Contact our Headquarters:

Bevan House17 Beecham CourtSmithy Brook RoadWigan WN3 6PR.Telephone: 01942 482630 orEmail: [email protected]

AcknowledgementsBridgewater Community Healthcare NHS Trust wishes to thank all the staff who contributed to this document.





Bridgewater Community Healthcare NHS TrustBevan House17 Beecham CourtSmithy Brook RoadWiganWN3 6PR

Tel: 01942 482630 | Fax 01942 482662

Email: [email protected] | www.bridgewater.nhs.uk

www.facebook.com/BridgewaterNHS

www.twitter.com/Bridgewater_NHS

Documents

Annual Report 2014/15 - · PDF fileBridgewater Annual Report 2014/15 5 Contents 1: Statement from Chairman and Chief Executive 7 2: Statement of the Chief Executive’s responsibilities