1 / 21

Introduction to Finance

Introduction to Finance. Mersey Care NHS Trust. Format of the Session. Part 1 Overview of Funding in the NHS Statutory Financial Duties Other Duties Your Financial Responsibilities Conclusions Part 2 Procurement/Supplies Function Payroll Function Questions.

marnin
Download Presentation

Introduction to Finance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Introduction to Finance Mersey Care NHS Trust

  2. Format of the Session • Part 1 • Overview of Funding in the NHS • Statutory Financial Duties • Other Duties • Your Financial Responsibilities • Conclusions • Part 2 • Procurement/Supplies Function • Payroll Function • Questions

  3. Overview of Funding in the NHS • Where does the money come from? • AND • How is it spent?

  4. Where does the money come from?

  5. How is it spent? - Planned spending in the NHS

  6. Statutory Financial Duties • Break-even • Achieve a 3.5% return on our assets • Manage within external financing limit (EFL) • Manage within capital resource limit (CRL)

  7. Other Duties • To pay 95% of invoices within 30 days as per the Better Payment Practice Code (BPPC) • All public sector organisations are expected to pay Small/Medium Enterprises within 10 days of receipt. • Pay all Service User/Care claims within 7 days of receipt. • Ensure value for money • Achieve Cost Improvement Target (CIP)

  8. Break-Even Duty • The Trust must not spend more than its total income • MCT is forecasting a £4.25m surplus in 2013/14

  9. 2013/14 budget 2013/14 Income £000 budget % High Secure Commissioners 66,227 33% Medium Secure Commissioners 11,894 6% Low Secure Commissioners 5,039 3% Liverpool CCG 56,345 29% Sefton CCG’s 25,498 13% Other CCG’s 6,313 3% Education & Training 2,927 1% Local Authority 8,534 4% Other Non NHS 3,038 2% Informatics Merseyside 11,928 6% Total Income 197,743 100% Income 2013/14

  10. 2013/14 2013/14 budget budget Expenditure £000 % High Secure CBU 42,601 22% Liverpool CBU 26,462 14% Positive Care Partnership CBU 25,519 13% Safe Partnership CBU 12,803 7% Rebuild CBU 13,250 7% Addiction CBU 7,491 4% Total Clinical Business Units 128,126 67% Specialist Management Services 32,782 17% Capital Charges 9,698 5% Early Retirements & PIB's 2,172 1% Earmarked Reserves 9,037 4% Informatics Merseyside 11,678 6% Total Expenditure 193,493 100% Expenditure 2013/14

  11. Capital Resource Limit • Is the amount to spend on capital each year • For maintaining the estate and funding for specific schemes • The capital spend for 2013/14 is £10.9m • Any under spend would be lost

  12. External Financing Limit • The EFL is the cash target • Can only fund cash expenditure from internally generated resources • Limit on external borrowing • Ensures NHS Trusts do not spent more cash than agreed by Parliament

  13. Your Financial Responsibilities Corporate Governance • Governing policy documents: • - Standing Orders • - Standing Financial Instructions • - Scheme of Reservation and Delegation • - Standards of Business conduct • Accountability Arrangements • Financial Controls • Budget Holder Responsibilities

  14. Standing Orders (SO’s) • Practical set of rules • Protects the organisation and the staff • Specifies the business of the Board and the structure of committees • Breach of SOs can lead to disciplinary action

  15. Standing Financial Instructions (SFI’s) • Detailed set of high procedures and responsibilities which are supported by more detailed department procedures • Includes: Authorisation of expenditure Budgetary Control Tendering & Contracting Procedures Capital Investment Security of Assets • All Staff must read and understand both SOs and SFIs • website: www.merseycare.nhs.uk • Services • Finance • Financial Policies & Procedures

  16. Scheme of Reservation and Delegation • Outlines decisions reserved for the Board • Sets out those who are empowered to take action on behalf of the Board • Includes approval of budgets and expenditure limits

  17. Standards of Business Conduct • Anyone acting on behalf of the Trust is expected to conduct themselves in a way which is consistent with the public sector values • The policy in respect of the receipt of gifts, donations, leaving presents and rewards • The policy in respect of hospitality provided and received • The use of corporate credit cards • The procedure for registering gifts and hospitality

  18. Accountability Arrangements • Chief Executive – Accountable Officer • Director of Finance and other Directors • Senior Budget Holders • Budget Holders

  19. Financial Controls • Audit (External and Internal) • Workforce controls • Budgetary controls • Ordering Goods and Services – NHS Supplies • Expenditure Authorisation • Appropriately skilled Finance Dept • Appropriately skilled Budget Holders

  20. Responsibilities of Budget Holders • To remain within budget • Comply with Finance policies including SO’s, SFI’s and the Scheme of Delegation • Highlight potential slippage/overspends • Report on action taken to address overspends, to Finance Committee if significant

  21. Conclusions • Primary Statutory Duty to break even in 2013/14 MCT is forecasting a £4.25m surplus • Corporate Governance documents: • Standing Orders • Standing Financial Instructions • Scheme of Reservations & Delegation • Standards of Business Conduct • Financial Controls • Budget Holder Responsibilities

More Related