Balance Sheet and Treasury Management June 2008

Finance Committee

24thJuly 2008

Agenda Item 5.5

Balance Sheet and Treasury Management – June 2008

1. Summary Balance Sheet

The Balance Sheet has been reformatted to reflect the Monitor format. The Trust’s Balance Sheet at 30th June 2008 together with comparative figures for 31 March 2008 is attached (Table BS1). The Trust has net current assets of £8.54m, which represents an increase of £3.068m from the end of the last financial year. This increase in funds is mainly attributable to the increase in cash of £6.768m+ and debtors of £5.526moffset by an increase in creditors of £9.154m.

1. Fixed Assets

The net book value of fixed assets at 30thJune 2008 is £374.699m. Fixed asset additions, disposals and depreciation are accounted for on a monthly basis.The analysis of fixed assets between purchased, donated and intangible assets is as follows:

Further details on this year’s fixed asset additions are included in the capital section.

1. Cash

A summary of the monthly closing cash balances and more detailed information on the source and application of funds has been included at Tables BS2 and BS3. The cash balance at the end of June is £14.98m which is £2.593mlower than original plan of £17.51m. The reason for this variance issummarised in the table below:

The Trust’s cash levels continue to be healthy resulting in interestreceived of £0.295m, which is £0.180m more than originally planned.

The forecast for interest receivable for year 2008/09has been revised from £0.678m to £1.180m.

The cash flow statement incorporates

• A revised monthly cash commitment for capital expenditure,
• A revised PDC draw down profile. Details are set out in the Capital Report (Agenda Item 5.4),
• The repayment, without penalties, of £5m of the working capital loan,
• The repayment of Public Dividend Capital of 4.506m,
• The draw down of the Trust’s available Public Dividend Capital of £22.967m.

1. Debtors

4.1Variance Analysis

Debtors have been reclassified in the Balance Sheet to comply with FT reporting requirements and now include Investments valued at £0.312m throughout this reporting period. The movement in the total debtors balance from the start of the financial year is anincrease of £5.526m. This is mainly attributable to the inclusion ofadditional accruedincome.

4.2 Aged Debtors Analysis

A summary of invoiced debtors as at 30th June 2008 is given at Table BS4. The total value of debtors has increased in the month of June by £2.060m from the previous month. This is mainly attributable to an increase in debtors during the month of June for Bristol Teaching PCT (£1.793m), North Bristol Trust (£0.311m) and Devon PCT of £0.348m from the previous month in respect of Service Level Agreements. The debtor for Devon PCT was paid on 15th July 08.

1. Creditors

5.1 Variance Analysis

Creditor balancesof £33.529m figure at the start of the year have increased by £9.131m to £42.660mat 30thJune. The main movements are:

• Other Creditors of £2.670m
• PDC Dividend of £2.767m
• Accruals of £2.680m
• Deferred Income of £7.574m - largely comprise of Skills for Health ( £5.057m) and Service Agreements (£2.269m)

The above is offset by the movement in trade creditors of £4.823m.

5.2. Invoice Payment Performance

The Better Payments Practice Code requires the Trust to pay all valid invoices by the due date or within 30 days of receipt of goods or a valid invoice, whichever is later. The overall performance of the Trust, for June against the Better Payment Practice Code target is shown in Table BS5 and the highlights are as follows:

The performance for NHS and Non NHS against the code has remained stable, when compared to previous month and previous financial year. NHS has continued exceeded its internal target of 85%.

1. Provisions

The balance shown against Provisions has increased by £2.631m. The main changes are:

• £1.466m for pay enhancements and travel costs for employees.
• £1m for legal expenses.

1. Income and Expenditure Reserve

The above has increased to £31.841m as a result of the surplus achieved to the end of June of £2.435m.

File: Item 5 5 June Balance Sheet and Treasury ReportPage 1 of 3