FINANCE: Birmingham and Solihull Mental Health Foundation Trust achieved a £400,000 surplus in 2011-12, but only after releasing £2.2m of contingency funding.
Board papers for April said: “The improved position… represents an in year benefit only and not an improvement in the underlying profitability of the organisation.
The report says: “The operational position is not delivering the level of surplus as planned. There is an under recovery on healthcare income of £0.8m and overspends against budgets of £1.1m.
“This has improved since month 11 by circa £1m.”
A change in contract model for forensic child and adolescents mental health services has led to a fall in income.
The trust’s underlying operational position was behind plan due to under recovery of healthcare income and savings.
“This is being mitigated by a contingency and underspends on strategic investments,” the papers said.