FINANCE: North Lincolnshire and Goole Foundation Trust faces a tough 2013-14, with the need to make extensive savings.
A finance report to the trust board says that at the end of January the trust was in surplus for the year to date – but by only £150,000, a shortfall of £1.78m against its original plan. This surplus was only achieved with the release of nearly £4m in contingency funds.
The trust’s cash balance are healthy, due to money released by commissioners for winter pressures, but the report warns it will enter the next financial year with better than anticipated cash balances but “with a critical reliance of full delivery of an extensive savings programme.” It is likely to maintain a financial risk rating of three but Mike Rocke, finance director, warned that the trust’s underlying recurrent deficit had increased to around £6 and this remained the key financial risk. Non-recurrent funding was helpful in that it gave additional time for the trust to tackle this.