Non-Executive Recruitment

Financial Performance

The Trust’s financial strategy is shaped by the environment within which we are delivering our services and the direction of travel we have outlined for our service developments and quality improvement. Our strategy remains broadly in-line to previous years as follows: 

  • To maintain a Use of Resources rating of at least a 2 and to meet our agreed I & E surplus target set.
  • To effectively plan capital expenditure and asset disposals in line with a clear Estates Strategy that aims to reduce and rationalise total non-current assets, to reduce capital charges impact and improve the Use of Resources Metric score
  • To effectively and robustly manage our financial ratios over the medium term as we expect to diminish the liquidity ratio as we start to expend our cash holdings in support of our capital expenditure programme primarily aimed at improving our clinical environments. Our reducing income levels will also impact on our capital service cover ratio if our Estates Strategy; to rationalise our estate; is not met.
  • Realistic assumptions underpin our strategy in respect of growth, adopting a measured approach to the future. This measured approach to what underpins the financial plan does not detract from our objective of maximising growth opportunities.
  • Service improvements will be delivered through efficiency and change as opposed to additional investment to the Trust from outside. Our CIP programme is unlikely to provide for additional resource and funds to support internal investment plans due to the challenging scale of CIPs required to balance our financial position.
  • Maintaining a sound awareness of our cost base across our service and business units as to support our understanding of the services and products we deliver and identify future improvement opportunities.
  • To undertake a thorough viability appraisal of all contracts to deliver cost improvements, ensuring the relative contribution of all service lines is transparent, productivity is understood and that full cost recovery and surplus is achieved unless directed otherwise from the Board.

The Trust’s 2019/20 financial plan passes on both the required national efficiency factor of 1.1% in relation to health funded services included within the net tariff uplift and an additional 1% efficiency requirement to enable the trust to hold minimal risk reserves and meet the control total target.

The total CIP requirement for 2019/20 is therefore projected and modelled at £2.8m (2% of turnover).   The disinvestment plan for 2019/20 stands at £0.450m.

In 2018/19 the Trust embarked on an ambitious 5 year Capital Programme totalling £54.8m; this includes the modernisation of our Acute Care services on the Longley site at NGH; the investment in and development of a new Patient Care System and the relocation of Trust HQ.  The Trust has significant plans to rationalise its Estates portfolio over the next 5 to 10 years, resulting from the co-location of primary Clinical services onto one site which is planned as part of the Trust’s Capital Programme.

Our financial position is summarised as follows:

 

2016/17

Out-turn

2017/18

Out-turn

2018/19

Out-turn

2019/20

Plan

Turnover £m
I and E surplus £m
Use of Resources Rating (1 = highest)

121.170

1.529

1

124.496

6.830

1

127.936

11.697

1

121.463

0.967

1


Use of Resources Rating

2016/17

Actual

2017/18

Actual

2018/19

Actual

2019/20 

Plan

Capital Service Cover
Liquidity
I & E Margin
I & E Margin from Plan
Agency Control Target
Overall Rating

1

1

1

2

1

1

1

1

1

1

1

1

1

2

1

1

1

2

1

1

NHSi Segment Rating

2016/17

Actual

2017/18

Actual

2018/19

Actual


Segment Rating

2

2

2