Financial performance Our financial health has a direct effect on our ability to take care of our patients. Every penny we spend is used to support the people we care for so it’s really important that we manage our finances well.
NCH&C’s efficiency programme of £4.5m consisted of £1.2m of recurrent savings and £3.3m of non-recurrent savings. The programme achieved savings of £4.4m during the year, £0.1m (2.5%) under-achievement. Of these savings £1.1m was recurrent and the remainder achieved through non-recurrent savings.
Working in collaboration with other providers and commissioners through the Norfolk and Waveney Health and Care Partnership (STP) is the key to securing the future for the community services and will continue to be a major component of NCH&C’s long-term financial strategy.
In 2019/20 NCH&C was initially set a control total of break-even, a stretch target of £0.3m was requested to support the wider NHS financial performance. We met this stretch target. NCH&C met its capital resourcing limit (CRL) of £3.8m which relates to the amount of capital expenditure the trust can incur in the year. Against our agency ceiling of £2.5m expenditure was £1.1m (44% of the ceiling). This reflects the work we have done to reduce high cost agency and increase the use of bank and substantive staffing. This performance has seen NCH&C achieve an NHS Oversight Framework Financial Use of Resources rating of 1, which is the highest score achievable and reflects NCH&C’s strong financial management.
NCHC’s financial plan for 2019/20 was to improve on the underlying financial performance of 2018/19 and to deliver a surplus of £0.4m supported by an efficiency programme of £4.5m. The actual surplus delivered was £0.6m, which was an improvement from plan of £0.2m. This compares favourably with the prior year result of a deficit of £12.6m, which included one-off costs in relation to asset impairments (£5.2m) and provision for repayment of VAT (£6.1m). NCH&C’s financial performance is monitored using a number of measures both internally and externally by NHS England and NHS Improvement. The main measure is a control total based on an adjusted surplus/deficit delivery.
£4.5m total
£3.3m non-recurrent savings
£1.2m recurrent savings
NCH&C ANNUAL SUMMARY 2019-20 15
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