FINANCE: East and North Hertfordshire Trust is reporting a surplus of £0.8m after the first nine months of the financial year and is forecasting a surplus of £3.5m at year end.

But its board was warned that it faces challenges in doing this including:

*the need to deliver at least £12.8m of cost improvement savings

*departmental spending is forecast to be £4.8m at year end. Departments needed to keep to their revised forecasts and control totals

*an ‘appropriate settlement’ around readmission penalties and transformation funds would be needed.