FINANCE: An Oxfordshire CCG board paper warns that the baseline allocations exercise that has set the CCG’s income “could prove to be materially different than the actual value of activity transfers”.
It says that “the baseline allocations exercise could contain errors.
“As the exercise was based an analysis of expenditure by annual accounts subjective there have been challenges in maintaining an audit trail to contracts and financial plan headings.”
It adds that budget complications related to specialised services could also see up to £42m of income and spend being removed from the CCG.
“How this is done could have either a favourable or adverse impact on the base case financial plan. Without knowing which way this will fall there is significant uncertainty in the position we take into contract negotiations i.e. what our affordable contract envelopes might be,” the finance paper says.
The papers also admit that as a result there has been a “slippage in developing contract offers with providers. As a result these are still being negotiated and how these pan out will have a significant impact on the CCG financial plan.”
28 March 2013