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1
Monthly Finance Report For April 2015
Prepared by:
Stephen Dunham Financial Controller
Charlotte Sparrow Head of Financial Performance and Decision Support
Steven Davies
NHS Finance Director & Deputy Chief Financial Officer
Presented By:
Charles Nall Chief Financial Officer
Board of Directors Meeting 26
th May 2015
Date produced 18th May 2015
Action for Board:
For information
For consideration
For decision
Item 11
2
Contents of Main Report
Page Number
Executive Financial Summary 3 Detailed Income and Expenditure Position 4 Underlying Position 5 NHS Income 6
NHS Operating Expenditure 8
Efficiency Scheme Performance 11 Research & Development and Commercial Trading Position 12 Cashflow 13 Debtors Management and Credit Control 14
3
Plan (£M) Actual (£M) Var (£M) Plan (£M) Actual (£M) Var (£M) Plan (£M) Actual (£M) Var (£M)
0.2 0.2 0.0 0.2 0.2 0.0 2.0 2.0 0.0
Plan (£M) Actual (£M) Var (£M) Plan (£M) Actual (£M) Var (£M) Plan (£M) Actual (£M) Var (£M)
13.3 12.7 (0.6) 13.3 12.7 (0.6) 162.6 162.6 0.0
12.4 11.8 0.6 12.4 11.8 0.6 155.9 155.9 0.0
0.0 0.0 0.0 0.0 0.0 0.0 (3.5) (3.5) 0.0
20%
1% Plan (£M) Actual (£M) Var (£M) Plan (£M) Actual (£M) Var (£M)
58% 0.5 0.1 (0.4) 6.5 3.7 (2.8)
Plan (£M) Actual (£M) Var (£M) Plan (£M) Actual (£M) Var (£M) Plan (£M) Actual (£M) Var (£M)
0.1 0.1 0.0 0.1 0.1 0.0 1.0 1.0 0.0
Plan (£M) Actual (£M) Var (£M) Plan (£M) Actual (£M) Var (£M) Plan (£M) Actual (£M) Var (£M)
0.1 0.1 0.0 0.1 0.1 0.0 4.5 4.5 0.0
YTD
4
4
4
Year End
2013/14
End of Q1
14/15
End of Q3
14/15
Year End
2014/15
April (P1)
2015/16
24.29 17.76 13.23 19.80 15.31
3- 6 Mths 2 Mths Total
Last Qtr
Total
(£M) (£M) (£M) (£M)
1.17 0.60 12.60 7.51
0.62 0.23 2.73 2.31
0.45 0.15 3.66 3.37
2.24 0.97 19.00 13.19
Full Year Forecast
Full Year Forecast
Full Year Forecast
Full Year Forecast
% Full Year achieved
Full Year % forecast
Cash Balance (£M)
11.87
Debtors
Overdue Debts 6 Mths +
3.92
2.63
NHS Contract Debts 2.41 8.43
Commercial Debts 1.08 0.81
TOTAL
Continuity of
Service Risk Rating
Indicator Comment
Debt Service Cover Rating of 4 (highest rating) is maintained in April. The
liquidity rating will come under pressure until CCG
contract terms are finalised, as will the debt service cover
rating as we see the full-year effects of additional
2014/15 borrowing and new 2015/16 borrowing.
Liquidity
Continuity of Service Risk Rating
1 Mth
(£M)
Other 0.44
(£M)
Cash FlowEnd of Q2
14/15
16.91
Research &
Development
Position
In Month Year to Date
Commercial
Trading Unit
Position
In Month Year to Date
Executive Financial Summary
Overall Position -
Surplus / (Deficit)
In Month Year to Date Key Risks and Actions RequiredFull Year Forecast
NHS In Month Year to Date
(exc. R&D)
Income
Expenditure
Overall Position
Efficiency Scheme
Performance
YTD % achieved Year to Date
Key Income and Expenditure Risks:
The net position in month is on plan for both NHS
Commercial Trading Units, however there are income risks.
NHS clinical income is below plan in month by £0.6M,
elective, outpatients, high cost drugs and community
contracts are all below plan. This is a risk to RTT 18.
Efficiencies at the end of April were below plan by £0.4m.
£0.2M underperformance on identified scheme and a
further £0.2M unidentified target which has been spread
evenly across the financial year.
Actions:
Focus on delivering existing efficiency schemes and make up
month 1 shortfall through additional savings.
Continued focus on identifying further efficiency schemes to
bridge the £2.6M shortfall in identified schemes.
Investigate clinical income variances in month 1, any
significant shortfalls to be made up in future months to
ensure the full year planned activity is achieved.
Review commercial unit plans to recover income shortfall.
Implementing controls to manage temporary staff bookings
to help cover efficiency scheme shortfall.
Cashflow and Balance Sheet Risks:
Overdue debts total £19.0M (£12.6M of NHS contract
debts).
Cash decrease in month of £4.5M to £15.3M due to
additional creditor payment run in month, as well as capex
and inventory & debtor increases.
Additional loan funding for capital expenditure, plus ongoing
debtor recovery efforts, represent the most significant
cashflows and management challenges for 2015/16.
Actions:
Increase formality of debtor process with commissioners.
Review spending priorities for capital.
4
£000s £000s £000s £000s £000s £000s £000s £000s £000s £000s £000s
Income
NHS Clinical Income 12,514 11,930 (585) 12,514 11,930 (585) 153,267 153,267 0 11,191 738
Commercial Trading Units 2,363 2,226 (137) 2,363 2,226 (137) 29,398 29,398 0 2,382 (155)
Other Income 1,772 1,631 (142) 1,772 1,631 (142) 20,570 20,570 0 1,651 (20)
Total Income 16,649 15,786 (863) 16,649 15,786 (863) 203,235 203,235 0 15,224 563
NHS Expenditure
Pay Exenditure
Medical 2,534 2,415 119 2,534 2,415 119 30,347 30,347 0 2,315 (99)
Nursing 1,897 1,856 41 1,897 1,856 41 22,859 22,859 0 1,608 (247)
Scientific, Professional & Technical 983 947 36 983 947 36 11,879 11,879 0 836 (111)
Admin and Clerical 2,065 1,926 139 2,065 1,926 139 24,810 24,810 0 1,893 (34)
Ancillary Services 163 158 6 163 158 6 1,968 1,968 0 161 4
Research & Development Pay 644 590 54 644 590 54 7,759 7,759 0 549 (41)
Total Pay Expenditure 8,286 7,891 395 8,286 7,891 395 99,621 99,621 0 7,363 (529)
Non-Pay Exenditure
Drugs 1,840 1,707 133 1,840 1,707 133 22,973 22,973 0 1,460 (248)
Clinical Supplies and Services 1,218 1,169 49 1,218 1,169 49 14,901 14,901 0 892 (277)
Premises 822 848 (27) 822 848 (27) 9,493 9,493 0 684 (165)
Other Expenditure 899 779 121 899 779 121 16,476 16,476 0 951 172
Research & Development Non-Pay 184 110 74 184 110 74 2,207 2,207 0 237 127
Total Non-Pay Expenditure 4,963 4,614 349 4,963 4,614 349 66,050 66,050 0 4,224 (390)
Total NHS Expenditure 13,249 12,505 744 13,249 12,505 744 165,671 165,671 0 11,586 (919)
Commercial Trading Unit Costs 2,242 2,108 134 2,242 2,108 134 24,522 24,522 0 2,154 47
Total Expenditure 15,491 14,613 878 15,491 14,613 878 190,194 190,194 0 13,740 (872)
EBITDA 1,158 1,174 16 1,158 1,174 16 13,042 13,042 0 1,483 (309)
EBITDA Margin % 7.0% 7.4% 7.0% 7.4% 6.4% 6.4% 10%
NHS Interest, Dividends, Depreciation 970 971 (1) 970 971 (1) 10,501 10,501 0 632 (339)
Trading Unit Interest, Depreciation, Dividends 44 43 1 44 43 1 540 540 0 121 79
Surplus / (Deficit) 144 160 16 144 160 16 2,000 2,000 0 730 (570)
NHS EBITDA 1,037 1,055 18 1,037 1,055 18 8,166 8,166 0 1,256 (201)
NHS EBITDA Margin % 7.3% 7.8% 7.3% 7.8% 4.7% 4.7% 10%
NHS Surplus / (Deficit) 67 84 17 67 84 17 (2,336) (2,336) 0 624 (540)
Commercial Trading Unit EBITDA 121 119 (2) 121 119 (2) 4,876 4,876 0 227 (109)
Commercial Trading Unit EBITDA Margin % 5.1% 5.3% 5.1% 5.3% 16.6% 16.6% 10%
Commercial Trading Unit Surplus / (Deficit) 77 76 (1) 77 76 (1) 4,336 4,336 0 106 (30)
Prior Year
Variance Actual VarianceBudget Actual Variance Budget Actual Variance Budget ActualOverall Trust I&E Summary
In Month Year To Date Full Year
Detailed Income and Expenditure Position - Surplus / (Deficit)
5
£000s £000s £000s £000s
Total Income 16,649 15,786 16,649 15,786
Total NHS Expenditure 13,249 12,505 13,249 12,505
Commercial Trading Unit Costs 2,242 2,108 2,242 2,108
Total Expenditure 15,491 14,612 15,491 14,612
EBITDA 1,158 1,174 1,158 1,174
EBITDA Margin % 7.0% 7.4% 7.0% 6.7%
NHS Interest, Dividends, Depreciation 970 971 970 971
Trading Unit Interest, Depreciation, Dividends 44 43 44 43
Surplus / (Deficit) 144 160 144 160
Adjustment to Reach Underlying Position:
Income
Total Income 0 0 0 0
Expenditure
- Non-recurrent benefits
Benefit from prior year accruals for activity related recharges (365) (365)
- Non-recurrent costs
Project Oriel 77 23 77 23
Ocular Oncology Set Up 66 66
Change in Provisions 6 6 6 6
Other Trading non-recurrent pay costs 194 59 194 59
Other Trading non-recurrent non-pay costs 136 143 136 143
Impairments 0 0 0 0
Total Expenditure 413 (69) 413 (69)
Total 413 (69) 413 (69)
Revised Underlying Position 557 91 557 91
Overall Trust I&E Summary
In Month Year to Date
Budget Actual Budget Actual
Underlying Position
Notes:
Underlying position in month is a £0.1M surplus.
Commercial divisions plans have allowed for non-recurrent costs in quarter 1 of this financial year.
Project Oriel costs have also been built in to the plan this year but are removed in this underlying summary.
6
NHS Income
Commentary:
NHS clinical income is £0.6M below plan, due to underperformance in elective activity (£0.3M), outpatients (£0.1M), high cost drugs income (£0.1M) and community contracts.
Elective activity is below plan in both City Road directorates and Moorfields North. Specialities of glaucoma, vitreo retinal, adnexal, corneal and paediatrics are all below plan at city road. In Moorfields North, St. Anns and Potters bar are below plan, partially offset by overperformance at Ealing.
High cost drugs income is below plan in Moorfields North as activity is below target in Darent Valley, Northwick Park, Ealing and Ludwig Guttman centre.
£0.1M of the NHS clinical income underperformance is underachievement on revenue efficiency schemes.
Research & Development income is £0.1M below plan.
7
20 15 22 23 16 22 22 21 17 20 20 21
148 148 148 151 151 151 151 151 151 151 151 151
135
(13)
Workings Days Inc. adjustments
Target per working day (£'000)
Actual per working day (£'000)
Variance (£'000)
20 15 22 23 16 22 22 21 17 20 20 21
262 263 262 264 265 266 266 266 266 266 266 266
255
(7)
Workings Days Inc. adjustments
Target per working day (£'000)
Actual per working day (£'000)
Variance (£'000)
Elective Activity Analysis (Inpatients and Outpatients)
Elective income is £0.3M (9%) below target
this month. Areas of underperformance are
glaucoma, vitreo retinal, adnexal, corneal
and paediatrics at city road. Activity is being
impacted by theatre closures despite
replacement theatre lists being provided
elsewhere. In Moorfields North St. Anns and
Potters bar are below plan, partially offset by
overperformance at Ealing.
April target of £148k per working day is only
slightly above the £146k at the end of
2014/15. Amount achieved is £135k.
A detailed forecast will be carried out in
future months.
The target this year has been phased to take
into account working days, holiday periods
and other clinical staff absence.
Outpatient income is £0.1M (3%) below
target this month with attendances also 3%
below target. Attendance numbers at City
Road are 4.5% below plan overall. The
following specialities are more than 10%
below plan in April, glaucoma, external,
vitreo retinal and support services. General
Ophthalmology, Medial Retina and
Optometry are all above plan in month.
The target in April is £262k per working day,
Amount achieved is £255k.
A detailed forecast will be carried out in
future months.
Target is phased as per elective income.
8
NB. Research and Development Pay is excluded from the tables above and shown as part of the Research and Development position on page 11. Research and Development have a separate quarterly board report.
Staff Group & Directorate Staff Group & Directorate
MedicalPrior Year Average
(2014/15)
Current Month
2014/15
Increase /
(Decrease)Nursing
Prior Year Average
(2014/15)
Current Month
2014/15
Increase /
(Decrease)
Moorfields North 185 231 45 Moorfields North 400 427 26
Moorfields South 386 366 (20) Moorfields South 281 301 20
Outpatient & Diagnostic Servs 1,042 999 (43) Outpatient & Diagnostic Servs 498 487 (11)
Surgical Services 787 770 (17) Surgical Services 649 671 22
Additional Enhanced RTT costs 14 0 (14) Additional Enhanced RTT costs 60 0 (60)
Corporate Departments 46 49 3 Corporate Departments 31 37 7
Total 2,459 2,415 (45) Total 1,918 1,922 4
Average Monthly Expenditure (£'000) Average Monthly Expenditure (£'000)
Other ClinicalPrior Year Average
(2014/15)
Current Month
2014/15
Increase /
(Decrease)Non-Clinical
Prior Year Average
(2014/15)
Current Month
2014/15
Increase /
(Decrease)
Moorfields North 50 69 19 Moorfields North 196 204 8
Moorfields South 28 27 (0) Moorfields South 157 152 (5)
Outpatient & Diagnostic Servs 756 796 39 Outpatient & Diagnostic Servs 355 341 (14)
Surgical Services 57 53 (3) Surgical Services 257 277 20
Corporate Departments 3 2 (2) Corporate Departments 1,189 1,143 (46)
Total 894 947 53 Total 2,155 2,117 (38)
NHS Operating Expenditure – Pay Costs by Staff Group and Area
- Expenditure in month of £947k is a £53k increase on the average
monthly expenditure last financial year of £894k.
- Scientific, professional and technical staff pay is £36k below budget.
- Increases in optometry staff costs within Outpatients & Diagnostics
seen at the end of last financial year have been funded this year.
- Expenditure in month of £2,117k is a £38k decrease on the average
monthly expenditure last financial year of £2,155k.
- Admin and clerical pay is £139k below budget.
- Increased expenditure in Surgical Services is funded and is within
budget in month 1. Outpatients and diagnostics, however, is overspent
by £37k in month 1 despite the decrease in costs compared to last year.
- Nursing expenditure of £1,922k is a £4k increase in the average monthly
expenditure last financial year of £1,918.
- Prior year expenditure was inflated by enhanced RTT costs averaging
£60k per month. The last 2 months of the prior year did not have this
cost pressure but expenditure was an average of £1,999k. This month is
a 4% decrease on this figure due to a decrease in bank usage.
- Nursing pay is £41k below budget due to underspends in Surgical
Services and Outpatients & Diagnostics.
- Expenditure in month of £2,415k is a £45k decrease on the average
monthly expenditure last financial year of £2,459.
- Medical pay is also £119k below budget.
- The increase in costs in Moorfields North is accompanied by a medical
pay overspend of £13k with additional costs for Consultant overtime at
both Bedford and Ealing.
9
Staff Type
Employed Bank Agency Total % Change Employed Bank Agency Total % Change Employed Bank Agency Total
Nursing 1,642 219 61 1,922 0% 1,642 219 61 1,922 0% 1,566 304 49 1,918
Other Clinical 909 0 38 947 0% 909 0 38 947 6% 855 1 38 894
Non-clinical 1,734 188 194 2,117 0% 1,734 188 194 2,117 -2% 1,649 148 357 2,155
Staff Type
Current Month (£'000) Year To Date Average (£'000) Average Prior Year (£'000)
Comments
Nursing
Other Clinical
Non-Clinical
Current Month Year To Date Average Average Prior Year
86%
11%
3%
Nursing Expenditure Current Month
Employed Bank Agency
86%
11%
3%
Nursing Expenditure YTD Average
Employed Bank Agency
96%
0% 4%
Other Clinical Expenditure Current Month
Employed Bank Agency
96%
0% 4%
Other Clinical Expenditure YTD Average
Employed Bank Agency
82%
9%
9%
Non Clinical Expenditure Current Month
Employed Bank Agency
82%
9%9%
Non Clinical Expenditure YTD Average
Employed Bank Agency
82%
16%
2%
Average Nursing Expenditure Prior Year
Employed Bank Agency
96%
0% 4%
Average Other Clinical Expenditure Prior Year
Employed Bank Agency
76%
7%
17%
Average Non Clinical Expenditure Prior Year
Employed Bank Agency
NHS Operating Expenditure – Pay Costs Agency and Bank Analysis
Nursing costs in month 1 are close to the average monthly expenditure last year.
Bank expenditure however has dropped from £304k to £219k and from 16% to 11% of total expenditure. This is due mainly to the pressure last year of RTT enhanced rates.
The main corresponding increase has been in substantive staff following recruitment drives during 2014/15.
Other Clinical staff costs in month 1 of
£947k is a 6% increase on last financial
year’s average of £894k.
The increase has been in the recruitment
of substantive staff across many
outpatient & diagnostics departments
most notably pharmacy and optometry.
Non-clinical staff costs in month 1 of
£2,117k is a 2% decrease on last financial
year’s average of £2,155k.
The decrease is on agency expenditure,
partially offset by an increase in bank
expenditure and substantive recruitment.
10
NHS Operating Expenditure – Non-Pay Costs
Comments:
Corporate department non-pay expenditure is £0.4M below plan in
month. This is due to a non-recurrent benefit of £0.4m on accruals
made last financial year relating to outstanding activity recharges for
contracts with other NHS Trust host sites.
The corporate departments do have areas of overspend, including
IT with £0.1M on external consultants and software costs and
estates and facilities overspend of £0.1M partly due to unachieved
efficiency schemes.
Comments:
Directorate non-pay expenditure is £0.1M above plan in month.
Clinical Supplies and drugs are £0.2M below budget in month 1.
The main adverse variance to budget of £0.2M is due to a share of
the unidentified efficiency target which sits under other non-pay.
A further £0.1M overspend on other non-pay is set up costs for the
ocular oncology service.
11
YTD Target
(original phased
budget)(£)
YTD Amount
Achieved (£) YTD Variance (£)
Year to Date %
Achievement
Full Year Target
(£)
Value of
Schemes
Identified (£)
Full Year
Forecast
Amount (£)
Forecast %
Achievement of
Target
YTD Amount
Achieved as % of
Full Year Target
Moorfields North 36,425 16,667 -19,758 46% 817,004 680,456 672,077 82% 2%
Moorfields South 27,681 4,167 -23,514 15% 460,991 181,187 180,990 39% 1%
Croydon 27,500 0 -27,500 0% 330,000 0 0 0% 0%
Outpatient & Diagnostic Services 144,335 22,444 -121,891 16% 2,074,020 1,701,720 1,610,854 78% 1%
Surgica l Services 106,951 5,665 -101,286 5% 1,460,396 244,989 244,986 17% 0%
Clinical Directorates 342,892 48,943 -293,949 14% 5,142,411 2,808,352 2,708,907 53% 1%
Chief Operating Officer 5,000 1,517 -3,483 30% 60,000 18,204 18,204 30% 3%
Corporate Governance 3,666 3,062 -604 84% 43,992 36,744 36,744 84% 7%
Director of Nurs ing 6,417 6,417 0 100% 77,004 77,004 77,004 100% 8%
Director of Strategy 7,666 7,666 0 100% 91,992 91,992 91,992 100% 8%
Estates and Faci l i ties 43,749 9,791 -33,958 22% 524,988 414,984 390,193 74% 2%
Finance 14,209 9,332 -4,877 66% 228,006 228,006 240,586 106% 4%
Human Resources 9,667 0 -9,667 0% 116,004 0 0 0% 0%
Information Technology 15,750 1,667 -14,083 11% 189,000 189,000 174,917 93% 1%
Qual i ty and Safety 1,917 0 -1,917 0% 23,004 0 0 0% 0%
Corporate Department Initiatives 108,041 39,452 -68,589 37% 1,353,990 1,055,934 1,029,640 76% 3%
TRUST TOTAL 450,933 88,395 -362,538 20% 6,496,401 3,864,286 3,738,547 58% 1%
Directorate / Corporate Department Actions on Shortfall and Unidentified Amount
Outpatient revenue scheme not achieved in month 1.
Revenue schemes have underperformed in month 1 and a delay on take up of
alternative suppliers for procurement savings have delaying achievement of non-
pay efficiency schemes
Schemes regarding stratification of theatre lists has not been achieved in month 1.
No schemes have been identified yet.
Identified Schemes are achieved but this Directorate has an unidentified target of
£1,215k, the equivalent of £101k per month.
Schemes not achieved in month 1 include postage and utilities.
Shortfall on Pay schemes in month 1.
No schemes have been identified yet.
External Consultants savings not achieved in month 1.
No schemes have been identified yet.
0
100
200
300
400
500
600
700
Am
ou
nt
(£'0
00
)
Period
Efficiency Schemes Profile and Forecast
Target
Actual
Forecast
Summary of Performance:- Month 1 achievement is £88k, 20% of YTD target and 1% of the full year target.
- The month 1 target of £451k includes an evenly phased share of the unidentified amount of £218k.- Identified schemes for month 1 total £233k and therefore the % achievement of schemes identified is 38%.
- Full year forecast assumes that all identified schemes will deliver in future months. This is 58% of the full year target. A more detailed forecast will be carried out in future months.- Some schemes are planned to take effect later in the year, particularly revenue schemes
in the clinical directorates as schemes to provide additional capacity to meet demand come to fruition.
8%
5%
23%
18%
46%
Breakdown of Forecast Achievement
Clinical Supplies
Drugs
Non-clinical supplies
Pay
Revenue
Efficiency Scheme Performance
12
Budget Actual Variance Budget Actual Variance Budget Forecast Variance£000s £000s £000s £000s £000s £000s £000s £000s £000s
Total Income 936 822 (114) 936 822 (114) 11,230 11,230 0
Expenditure
Pay Costs 644 590 54 644 590 54 7,759 7,759 0
Non-Pay Costs 184 110 74 184 110 74 2,207 2,207 0
Total Expenditure 828 700 128 828 700 128 9,966 9,966 0
Interest, Dividends, Depreciation 43 43 0 43 43 0 250 250 0
Total Contribution to overhead 65 79 14 65 79 14 1,014 1,014 0
Research and DevelopmentIn Month Year to Date Full Year
£000s £000s £000s £000s £000s £000s £000s £000s £000s £000s £000s
Total Income 2,375 2,248 (127) 2,375 2,248 (127) 29,590 29,590 0 2,450 (202)
Expenditure
Pay Costs 883 824 59 883 824 59 9,065 9,065 0 848 24
Non-Pay Costs 1,359 1,283 75 1,359 1,283 75 15,458 15,458 0 1,306 23
Total Expenditure 2,242 2,108 134 2,242 2,108 134 24,522 24,522 0 2,154 47
Commercial Trading Unit EBITDA 134 141 7 134 141 7 5,068 5,068 0 296 (155)
Commercial Trading Unit EBITDA Margin % 5.6% 6.3% 5.6% 6.3% 17.1% 17.1% 12%
Interest, Dividends, Depreciation 44 43 1 44 43 1 540 540 0 121 79
Commercial Trading Unit Surplus / (Deficit) 90 98 8 90 98 8 4,527 4,527 0 174 (76)
Internal Sales (13) (22) 9 (13) (22) 9 (192) (192) 0 (68) 46
Commercial Trading Unit Surplus / (Deficit) -
discounting internal sales 77 76 (1) 77 76 (1) 4,336 4,336 0 106 (30)
Commercial Trading Units
In Month Year to Date Full Year Prior Year YTD
Forecast Variance Actual VarianceBudget Actual Variance Budget Actual Variance Budget
Research and Development Position
Commercial Trading Unit Position
Income:
Income is £0.1M behind plan in month. Expenditure
Expenditure is £0.1M below plan in month.
Income:
Income is £0.1M behind plan in month. Expenditure
Expenditure is £0.1M behind plan in month.
Overall Position is a £0.1M surplus which matches plan.
Current assumed forecast is that the planned surplus of £4.3M will be achieved. A more detailed forecast will be conducted in future months.
13
Cash Flow
Loan receipt £10M
offset by capex Q3
and Q4
14
Type of Debt 6 Mths + 5 Mths 4 Mths 3 Mths 2 Mths 1 Mth Overdue Current Total
Oct 2014 Nov 2014 Dec 2014 Jan 2015 Feb 2015 Mar 2015 Apr 2015 Apr 2015 Apr 2015
Welsh Debts only 1,220 12 16 0 14 34 1,296 0 1,296
NHS Service Income 1,185 482 662 0 581 8,397 11,307 10,268 21,575
Total Contract Debts 2,405 494 678 0 595 8,431 12,603 10,268 22,871
Private Patients 1,077 159 155 166 209 422 2,188 756 2,944
Pharmacy Sales 0 0 116 19 22 388 545 900 1,445
Sundry Debtors 436 107 191 156 146 2,626 3,662 1,029 4,691
TOTAL 3,918 760 1,140 341 972 11,867 18,998 12,953 31,951
Prior quarter - K 5,221 300 1,453 1,548 1,553 3,118 13,193 13,555 26,748
Change - £k (1,303) 461 (313) (1,207) (581) 8,749 5,805 (602) 5,202
Change - % (25.0%) 153.7% (21.6%) (78.0%) (37.4%) 280.5%
Debtors Management and Credit Control
Please note: Values shown in the above tables are for the stated types of debt only.
Additional items comprise overall debt for the Trust, including provisions and accruals.
Type of Debt Overdue Current Total Overdue Current Total % Var % Var % Var
Apr 2015 Apr 2015 Apr 2015 Mar 2015 Mar 2015 Mar 2015 Overdue Current Total
Welsh Debts only 1,296 0 1,296 1,279 16 1,295 1.3% (100.0%) 0.0%
NHS Service Income 11,307 10,268 21,575 6,233 8,259 14,492 81.4% 24.3% 48.9%
Total Contract Debts 12,603 10,268 22,871 7,512 8,276 15,788 67.8% 24.1% 44.9%
Private Patients 2,188 756 2,944 2,082 637 2,719 5.1% 18.8% 8.3%
Pharmacy Sales 545 900 1,445 225 1,113 1,338 142.2% (19.2%) 8.0%
Sundry Debtors 3,662 1,029 4,691 3,374 3,530 6,904 8.5% (70.9%) (32.1%)
TOTAL 18,998 12,953 31,951 13,193 13,555 26,748 44.0% (4.4%) 19.4%
Analysis
Total debt rose by £5.2M in April to
£31.9M (£26.7M March 2015).
NHS debt rose by £7.1M during April as
CCGs were not able to make the
necessary SLA payments on time. This
matter has now been resolved with
CCGs and all material SLA payments for
April and May have now been paid
reducing the debtors position
considerably.
In addition outstanding debtors relating
to over performance are now being
settled as final performance data is
agreed and challenges resolved.
Receipts have received in May after
direct action with CCGs and receipts are
expected to continue to be received
during June and July which will reduce
debtors considerably.
Other debtor balances for Pharma and
private have increased marginally and
remain under scrutiny as the new
Pharma business model is adopted and
administrative changes to the
processing of billing are implemented.
15
NHS Service Income12,603
Pharmacy Sales 545Private
Patients 2,188
Sundry Debtors,
3,662
Current debtors12,953
6 Mths + 3,918
5 Mths 760
4 Mths 1,140
3 Mths 341
2 Mths 972
1 Mth11,867
Current12,953
Overdue CCG debts
NEL, NWL and SWL CCG groups collectively account for £8.9M (71%) of
overdue English contract debts, £7.0M of which is 1 or 2 months overdue.
The NWL overdue balance improved significantly at the end of April with
the receipt of £1.6M from Harrow and £0.8M from Ealing CCGs, closing the
month at £2.5M.
NCA (Non-Contract Activity) debt includes Kent & Sussex Area CCGs with
60% of the total overdue balance of £1.0M. As is the case with all NCA
debts, an individual targeted approach is made for each debtor, £433K was
received in respect of overdue CCG debt from 1-11 May 2015.
Overdue Sundry debts
Overdue sundry debts increased significantly in April (149%) due to R&D
infrastructure invoicing of £2.4M. This invoice has now been agreed for
payment by the CFO at NHE England and is subject to final invoice
processing. Total debt comprises 357 other debtors, the next largest of
which is a disputed Q1-3 debt of £138K with Princess Alexandra Hospital.
£189K was received up to 12 May, of which £149K was in respect of
overdue amounts.
A note on collection and overdue contract debts
Standard NHS payment terms are 30 days from the invoice date. SLA
payments are mostly made on the 15th of each month and, once set up,
tend to run smoothly. Delays in payment occur when data is delayed or
disputed, or queries arise which require investigation.
Year-end 2014/15 billing was based on flex data for accounting purposes,
with final data reconciliations by 3 June 2015. It is at this point that most
of these debts will begin to be paid, and May 2015 balances will therefore
remain relatively high.
Overdue by age,
£k as at Apr 2015
Overdue by
debtor, £k as at
Apr 2015
