FINANCE: The south west London acute hospital trust recorded a financial risk rating of three on the metrics Monitor uses to assess a trust’s stability.
Three represents an average score, with one being a poor performance and five excellent, and Kingston, not yet a foundation trust, measured it in the run up to its application to be a foundation trust.
A finance report said: “At the end of 2011-12 the trust was rated as three. This fell to a one during month one of 2011-12 due to the impact of the planned deficit but has risen to a two as a result of moving to a cumulative surplus.
“The headings reflect the metrics used by Monitor for FTs. However, the trust’s liquidity ratio will always appear low, as if the trust was an FT it would have access to a working capital facility which improves the liquidity ratio.
“By adjusting for such a working capital facility, the trust’s FRR would increase to 3.2, which with rounding would give an overall 3 at month 12.”
The trust achieved a year-end surplus of £2.1m after releasing £1.2m in reserves.