For Information Finance Report May 2023 (Month 2),

Transcript:For Information Finance Report May 2023 (Month 2),:
For Information Finance Report May 2023 (Month 2), FY24 Report to Board of Directors Executive Summary Income Statement Capital Investment Programme Directorate Financial Performance Summary Pay Trends Agency Analysis Cost Improvement Plan Productivity Improvement Plan Out of Area Placements Statement of Position Cash-flow Working Capital Indicators Contents A risk assessment has been undertaken around the legal issues that this paper presents and there are no issues that need to be referred to the Trust Solicitors. 1 2 Executive Summary Highlights: The month 2 Income and Expenditure YTD position is a surplus of £0.7m, £0.2m favourable to plan. This includes a £0.3m YTD cost pressure from the 5% Agenda for Change pay award (more details on page 3). Significant adverse variances are reported in: Buckinghamshire Mental Health £0.9m Forensic Mental Health £0.5m Community £0.4m At month 2 £6.7m has been spent on agency staff, which is 11.0% of total staff costs. The Trust has a total savings target of £18.3m for the year (CIP & PIP). £1.0m has been saved YTD which is £2.0m adverse to plan and the forecast is £15.9m, £2.4m adverse to plan. Capital expenditure is showing a small overspend YTD. Cash remains strong with a cash balance of £79.9m. A full year forecast is not produced at month 2, however two risks and issues against our full year plan have been flagged to the ICS and NHSE, which are £2.1m due to underfunding of the Agenda for Change pay award and £2.9m of income from BOB ICS which has yet to be confirmed. Income & Expenditure position YTD - £0.2m better than plan Capital Expenditure YTD - £83k overspent Cash Actual £79.9m Month 2 Performance The month 2 YTD position is a surplus of £0.7m, £0.2m favourable to plan. The 5% pay award for Agenda for Change Staff has been accrued at month 2 along with additional income for this. Budget has not been set for this so this accounts for £1.5m of the adverse variance on expenditure and £1.2m of the favourable variance on income. The £0.3m difference is the cost pressure at month 2 from the pay award as the income the Trust is receiving does not cover all costs. This equates to an annual pressure of £2.1m which on a budgeted basis is more than this due to vacancies (this figure has still to be calculated). The Finance team are working with Berkshire Healthcare