|
Annual Report
2005-2006: Summary Financial Statements and Auditor's Report |
|
|
Income and Expenditure
Account for the Year Ended 31 March 2006
Statement of Total
Recognised Gains and Losses for the Year Ended 31 March 2006
Cash Flow Statement for
the Year Ended 31 March 2006
Balance Sheet as at 31
March 2006
Income from Activities
Other Operating Income
Management Costs
Better Payment Practice
Code
Profit (Loss) on
Disposal of Fixed Assets
Audit Fees
Salary and Pension
Entitlements of Senior Managers
Financial Performance
Targets
Auditor's Report
|
Income and expenditure account for the year ended 31 March 2006
|
2005/06
£000 |
2004/05
£000 |
Income from activities
|
174,664
|
197,347 |
Other operating income
|
34,535
|
39,359 |
Operating expenses
|
(227,496)
|
(240,951) |
Operating Surplus (Deficit)
|
(18,297)
|
(4,245) |
Profit (loss) on disposal of fixed assets |
(389)
|
(4) |
Surplus (Deficit) before interest
|
(18,686)
|
(4,249) |
Interest receivable |
578
|
633 |
Interest payable
|
(33)
|
0
|
Other finance costs - unwinding of discount
|
(131)
|
(189)
|
Other finance costs - change in discount rate on provisions
|
(667)
|
0
|
Surplus (Deficit) for the financial year
|
(18,939)
|
(3,805)
|
Public Dividend Capital dividends payable
|
(7,846)
|
(6,173)
|
Retained Deficit (deficit) for the year
|
(26,785)
======
|
(9,978)
======
|
With effect from 1 April 2005, the management of Cancer Services at the Mount Vernon Hospital transferred to the East &
North Hertfordshire NHS Trust. Income relating to these services in 2004/05 was £20,929k. Expenditure relating to these services in
2004/05 was £22,201k.
|
[ top ]
|
|
Statement of total recognised gains and losses for the year ended 31 March 2006
|
2005/06
£000
|
2004/05
£000 |
Deficit for the financial year before dividend payments |
(18,939) |
(3,805) |
Fixed asset impairment losses |
0 |
(1,954) |
Unrealised surplus on fixed asset revaluations/indexation |
7,063 |
58,278 |
Increases in the donated asset and
government grant reserve due to receipt of donated
and government grant financed assets |
25 |
324 |
Total recognised gains and losses for the
financial year
|
(11,851) |
52,843 |
Prior period adjustment |
(0) |
(4,133) |
Total gains and losses recognised in the
financial year
|
(11,851)
====== |
48,710
===== |
Carolyn Hughes, Director of Finance
5 July 2006 |
David Law, Chief Executive
5 July 2006 |
|
|
[ top ]
|
|
|
Cash Flow Statement for the year ended 31 March 2006
|
|
2005/06
£000
|
2004/05
£000
|
Operating Activities
Net cash inflow (outflow) from
operating activities
|
(4,535)
|
8,844
|
Returns on investments and servicing
of finance:
Interest received
|
567
|
649
|
Interest paid
|
(1)
|
0
|
Net cash inflow from returns on investments
and servicing of finance
|
566
|
649
|
Capital Expenditure
Payments to acquire tangible fixed assets
|
(7,180)
|
(9,948)
|
Receipts from sale of tangible fixed assets
|
4,096
|
4,547
|
Net cash outflow from capital expenditure
|
(3,084)
|
(5,401)
|
Dividends Paid
|
(7,846)
|
(6,173)
|
Net cash inflow outflow before financing
|
(14,899)
|
(2,081)
|
Financing
Public dividend capital received
|
14,899
|
2,081
|
Public dividend capital repaid (not previously
accrued)
|
0
|
0
|
|
14,899
|
2,081
|
Net cash inflow (outflow) from financing
Increase (decrease) in cash
|
0
==
|
0
==
|
|
[ top ]
|
|
|
Balance sheet as at 31 March 2006
|
|
31 March 06
£000
|
31 March 05
£000
|
Fixed assets
|
|
|
Intangible assets
|
602
|
136
|
Tangible assets
|
223,517
|
221,152
|
|
224,119
|
221,288
|
Current assets
|
|
|
Stocks
|
3,189
|
3,321
|
Debtors
|
16,633
|
19,339
|
Cash at bank and in hand
|
227
|
256
|
|
20,049
|
22,916
|
Creditors: Amounts falling due within one year
|
(32,424)
|
(28,967)
|
Net Current Assets (Liabilities)/Assets
|
(12,375)
|
(6,051)
|
Total Assets Less Current Liabilities
|
211,744
|
215,237
|
Creditors: Amounts falling due after more
than one year
|
(7)
|
(32)
|
Provisions for Liabilities and Charges
|
(9,200)
|
(7,178)
|
Total Assets Employed
|
202,537
======
|
208,027
======
|
Financed by:
Taxpayers' Equity
|
|
|
Public dividend capital
|
152,547
|
137,648
|
Revaluation reserve
|
85,290
|
79,184
|
Donated Asset reserve
|
2,021
|
2,636
|
Income and expenditure reserve
|
(37,321)
|
(11,441)
|
Total Taxpayers' Equity
|
202,537
======
|
208,027
======
|
|
|
|
|
[ top ]
|
|
|
Income from Activities
|
|
|
|
|
2005/06
£000
|
2004/05
£000
|
Primary Care Trusts
|
162,485
|
192,174
|
Local Authorities
|
112
|
342
|
Department of Health
|
8,560
|
0
|
NHS Other
|
|
|
Non NHS: - Private Patients
|
2,192
|
3,485
|
- Overseas patients (non-reciprocal)
|
418
|
238
|
- Road Traffic Act
|
868
|
1,059
|
- Other
|
29
|
49
|
|
174,664
======
|
192,347
======
|
|
|
|
As a consequence of the introduction of Payment by Results, income is now received from the Department of Health in respect
of Market Forces Factor and Transitional Relief. Road Traffic Act income is subject to a provision for doubtful debts of 10.6% to reflect expected rates of collection.
|
|
|
|
[ top ]
|
|
|
Other Operating Income
|
|
2005/06
£000
|
2004/05
£000
|
Education, training and research
|
9,764
|
13,952
|
Charitable and other contributions to expenditure
|
15
|
606
|
Transfers from donated asset reserve
|
692
|
548
|
Income generation
|
3,066
|
3,330
|
Other income
|
20,998
|
20,923
|
|
34,535
=====
|
39,359
=====
|
|
|
|
Income Generation comprises income from the Pharmaceutical Packaging Assembly Service of £1,562k, staff accommodation
£454k, Bishopswood Hospital £295k, car parking income £630k and other income generation of £125k.
Other income comprises Estates services of £491k, services provided to other Hertfordshire Trusts £10,660k, services provided to other NHS bodies £3,532k, and miscellaneous income £6,315k.
|
|
|
|
|
[ top ]
|
|
|
Management Costs
|
|
2005/06
£000
|
2004/05
£000
|
Management costs
|
10,009
|
10,231
|
Income
|
209,199
|
236,706
|
Percentage of Management costs to turnover
|
4.81%
|
4.36%
|
|
|
|
Management costs are defined as those on the management costs website at:
www.dh.gov.uk/PolicyAndGuidance/OrganisationPolicy/FinanceAndPlanning/
NHSManagementCosts/fs/en
|
|
|
|
|
[ top ]
|
|
|
Better Payment Practice Code
|
Better Payment Practice Code
- measure of compliance
|
2005/06
Number
|
2005/06
£000
|
Total Non-NHS trade invoices paid in the year
|
76,129
|
64,942
|
Total Non NHS trade invoices paid within target
|
23,523
|
20,144
|
Percentage of Non-NHS trade invoices paid
within target
|
31%
|
31%
|
Total NHS trade invoices paid in the year
|
2,890
|
16,567
|
Total NHS trade invoices paid within target
|
395
|
4,616
|
Percentage of NHS trade invoices paid within
target
|
14%
|
28%
|
|
|
|
The Better Payment Practice Code requires the Trust to aim to pay all undisputed invoices by the due date or within 30 days of receipt of goods or a valid invoice, whichever is later. During 2005/06 the Trust extended creditor payment terms to assist in the management of cash flows which were negatively affected by the Income and Expenditure account deficit.
|
|
|
|
|
[ top ]
|
|
|
Profit (Loss) on Disposal of Fixed Assets
|
|
2005/06
£000
|
2004/05
£000
|
Profit/loss on the disposal of fixed assets is
made up as follows:
|
0
|
0
|
Profit on disposal of land and buildings
Loss on disposal of plant and equipment
|
(389)
|
(4)
|
|
(389)
====
|
(4)
==
|
|
|
|
|
[ top ]
|
|
|
Audit Fees
|
|
2005/06
£000
|
2004/05
£000
|
Audit Fees
|
241
|
222
|
|
241
===
|
222
===
|
|
|
|
These fees represent work carried out by the Audit Commission in respect of statutory audit of the Trust's financial statements and
other work undertaken for statutory activities under the Code of Practice.
|
|
|
|
|
[ top ]
|
|
A copy of the full Accounts is >> available
here on the Trust’s website, or from the Trust Secretary
on 01442 287599. A full copy of the Remuneration Report is available from the Trust Secretary on 01442 287599.
|
|
|
|
|
[ top ]
|
|
|
Salary and Pension Entitlements of Senior Managers
|
|
|
|
|
|
Remuneration and Pension Benefits 2005/06
|
Salary
(bands of £5,000)
|
Benefits in Kind
Rounded to the
nearest £100
|
Real increase in
pension and related
lump sum at age 60
(bands of £2500)
|
Total accrued
pension and related
lump sum at age
at 31 March 2006
(bands of £5000)
|
Title and Name
|
|
|
|
|
|
£000
|
|
£000
|
£000
|
2005/06
|
|
|
|
|
Chairwoman:
R. Sanderson (left 12/06/05)
|
1 - 5
|
0
|
–
|
–
|
Chairman:
T. Hanahoe (commenced 1/12/05)
|
5 - 10
|
0
|
–
|
–
|
Chief Executive:
D. Law
|
115 - 120
|
21
|
5 - 7.5
|
125 - 130
|
Non-Executives
|
|
|
|
|
S. Namdarkhan
|
5 - 10
|
0
|
–
|
–
|
R. Douglas (acting Chairman for 5 months)
|
10 - 15
|
0
|
–
|
–
|
A. Bernard
|
5 - 10
|
0
|
–
|
–
|
M. Saunders
|
5 - 10
|
0
|
–
|
–
|
J. Wright
|
5 -10
|
0
|
–
|
–
|
Directors
|
|
|
|
|
I. Campbell, Chief Operating Officer (commenced 28/2/06)
|
5 - 10
|
0
|
0 - 2.5
|
125 - 130
|
C. Hughes, Director of Finance
|
90 - 95
|
29
|
7.5 - 10
|
100 - 105
|
G. Etheridge, Director of Nursing
|
80 - 85
|
23
|
2.5 - 5
|
85 - 90
|
S. Colbert, Director of Estates and Facilities
|
70 - 75
|
0
|
2.5 - 5
|
5 - 10
|
S. Shaw, Director of Planning (commenced 1/4/05)
|
75 - 80
|
22
|
12.5 - 15
|
20 - 25
|
H. Borkett-Jones, Clinical/Medical Director*
|
180 - 190
|
0
|
22.5 - 25
|
235 - 240
|
N. Evans**
|
|
|
|
|
R. Rawlinson**
|
|
|
|
|
Consent to disclosure withheld:
|
|
|
|
|
R.Allan, Director of Human Resources
|
|
|
|
|
J Biggs, Interim Director of Operations
|
|
|
|
|
|
|
|
|
|
*Includes sums paid for clinical post **Costs borne by other NHS bodies
|
|
|
|
For the purpose of this note, senior managers are defined as being the Chief Executive, Non-Executive Directors, Executive Directors and Non-Voting Directors.
|
[ top ]
|
|
|
Financial Performance Targets
|
|
|
|
The Trust's breakeven performance
for 2005/06 is as follows:
|
2002/03
£000
|
2003/04
£000
|
2004/05
£000
|
2005/06
£000
|
|
|
|
|
|
Turnover
|
210,257
|
215,098
|
236,706
|
209,199
|
Retained surplus/(deficit) for the year
|
11,668
|
(4,652)
|
(9,978)
|
(26,785)
|
Break-even in-year position
|
11,668
|
(4,652)
|
(9,978)
|
(26,785)
|
Break-even cumulative position
|
198
|
(4,454)
|
(14,432)
|
(41,217)
|
- Anticipated financial year of recovery
|
|
|
|
2008
|
Materiality test:
|
|
|
|
|
- Break-even in-year position
|
5.55%
|
(2.16%)
|
(4.22%)
|
(12.80%)
|
- Break-even cumulative position
|
0.09%
|
(2.07%)
|
(6.10%)
|
(19.70%)
|
|
|
|
|
|
|
|
|
|
|
Capital cost absorption rate
The Trust is required to absorb the cost of capital at a rate of 3.5% of average relevant net assets. The rate is calculated as the
percentage that dividends paid on public dividend capital, totalling £7,846k, bears to the average relevant net assets of
£202,904k, that is 3.9%. The 3.9% is within the Department of Health's materiality range of 3.00% to 4.00%.
|
[ top ]
|
|
Auditor's Report
Independent auditor’s report to the Directors of the Board of West Hertfordshire Hospitals
NHS Trust on the summary financial statements
I have examined the summary financial statements set out on pages 13 to 15 excluding the
note entitled ‘Financial Performance Targets’ as this is specifically excluded from my opinion.
This report is made solely to the Board of West Hertfordshire Hospitals NHS Trust in
accordance with Part II of the Audit Commission Act 1998 and for no other purpose, as set
out in paragraph 36 of the Statement of Responsibilities of Auditors and of Audited Bodies
prepared by the Audit Commission.
Respective responsibilities of directors and auditor: The directors are
responsible for preparing the Annual Report. My responsibility is to report to you my opinion
on the consistency of the summary financial statements within the Annual Report with the
statutory financial statements. I also read the other information contained in the Annual
Report and consider the implications for my report if I become aware of any misstatements or
material inconsistencies with the summary financial statements.
Basis of opinion: I conducted my work in accordance with Bulletin 1999/6 ‘The auditors’
statement on the summary financial statement’ issued by the Auditing Practices Board.
Opinion: In my opinion the summary financial statements are consistent with the statutory
financial statements of the Trust for the year ended 31 March 2006.
Rob Murray
District Auditor
Date: 15 September 2006
Address: Audit Commission, Sheffield
House, Lytton way, Off Gates Way
Stevenage Herts SG1 3HG
[ top ]
|
Download a copy of the Trust's full Accounts
2005/2006
Full Accounts
Download a copy of the Trust's Annual Report:
2005/2006
Annual Report
|
|
|