Financial Plan 2008-09

Board Meeting – 8 April 2008

Russell FavagerDirector of Finance

Quick Recap

Headlines Operating Framework

• 5.46% flat increase

• 1 Year Allocation only

• 2.3% Tariff (inflation) Uplift

• 0.53% Specialist Commissioning

Sources of Funding for 2008-09

New Growth (5.46%) £27.3m

B/Forward recurrent Surplus £12.1m

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Total “new” Monies available£39.4m

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Application of Growth FundingCost & Demand Pressures £23.0m

Delivery of Commissioning Objectives £7.7m

Age Related Macular Degeneration (AMD) £1.0m

Ambulance Service £1.0m

Primary Care Access £0.7m

Community Services £0.7m

Increase in SHA Lodgement £0.5m

Other £2.0m ------------

Total £36.6m

Summary of Planned 2008-09 Position

Resources Available £39.4m

Funding Committed £36.6m

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Potential Surplus £2.8m

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Issues/Risks for Board be aware of• £4m Contingencies held by PCT

• Assume activity commissioned in contracts sufficient to achieve 18 week target

• Assume SHA will approve St Caths OBC / accept £14.5m Lodgement

• Impact of Lord Darzi review – assume any extra requirement on PCT will be central funding

• Impact of Allocation Formula review is neutral

• Planned Expenditure will occur in-year

Expenditure Profile Commissioning Strategy £'000s

2008/09 2009/10 2010/11 2011/12 2012/13 TOTAL

S01 1,596 1,404 1,000 0 0 4,000

S02 2,000 1,000 0 0 0 3,000

S03 1,320 130 1,100 0 0 2,550

S04 539 338 0 0 0 877

S05 945 100 0 0 0 1,045

S06 1,090 325 95 0 0 1,510

S07 1,750 1,875 1,382 1,200 1,200 7,407

9,240 5,172 3,577 1,200 1,200 20,389

Savings Scenarios from Commissioning Strategy

£'000s

2008/09 2009/10 2010/11 2011/12 2012/13 TOTAL

Best case 3,000 12,000 1,000 3,000 3,000 22,000

Medium change 1,500 4,000 4,000 3,500 3,000 16,000

Limited change 2,000 1,500 1,500 700 5,700

Potential Risk around Forecast Position

Contingencies not required £4.0m

Slippage on Commissioning Strategy Spend £9.2m

Budget Underspends/Savings e.g.

• Prescribing / Pharmacy Contract

• Provider Services

• Secondary Care activity

Capital Programme

St Catherine’s Redevelopment 650

Minor Schemes / Maintenance 200

IM&T 150

Provider Services 150

Digital Retinopathy 150

Technical Support / Project Management 80

VCH Scheme – finishing works 62

St Caths Accommodation – finishing works 50

TOTAL 1,492

Budget £’000

Summary

2008-09             2009-10             2010-11

Planned Surplus                   £2,800              £2,900              £6,045 % of Budget            0.5%                 0.5%                 1.0%  Recurrent Surplus    £4,800              £5,400              £5,600

Any Questions?