FINANCE: The mental health trust in North Staffordshire is now able to forecast a small surplus, contrary to previous months.
The trust has a year to date operational surplus – excluding exceptional items – of £797,000. When these exceptional items are added in the trust has a retained year to date surplus of £307,000.
The board was told the finance report confirms the year end forecast achievement of the control total agreed with NHS West Midlands of £700,000, which after “exceptional items” are added is reduced to a surplus of £106,000.
The boards note, however, that previous reports had included an anticipated asset impairment – a charge to expenditure relating to a forecast drop in land and property values – of around £2m.
They add: “Updated valuer advice recently received indicates that during the year land and property values have remained largely unchanged and therefore it has been possible to remove this impairment entry.”
16 February 2011