FINANCE: The primary care trust has reported a surplus for the first two months of the financial year but would have been in deficit without the use of contingency funds.
At the end of month two, May, the overall performance for NHS East and Coastal Kent was a surplus of £1.023m compared to the planned surplus of £1.5m, according to a finance report published by the Kent and Medway PCT cluster.
However, the report cautioned: “The actual position is supported by the use of contingency of £1.171m. Without this support, the PCT would have been marginally overspent at month two.”
It added: “The reported overspend mostly reflects the costs of late invoices for 2010-11 activity.”
The report also said the year end forecast for the PCT was a surplus of £9m, which was in line with its operational plan and the target set by NHS South East Coast.
But it noted that this position was dependent on delivery of “the very challenging” quality, innovation, productivity and prevention (QIPP) plans amounting to £48m.
As a result, it is currently rated amber for year-to-date performance against two of its statutory and other finance targets, namely to “stay within its resource limit” and “achieve a £9m surplus”.
It is rated green for three other targets: to “stay within overall cash limit”, “stay within resource limit set for capital”, and “achieve public sector payment policy”.
Cluster finance report (see attached, right)
20 July 2011