FINANCE: South Tees Hospitals NHS Foundation Trust was £2.2m behind its financial plan as of June 2012.

A finance board report says: “The position shows a deterioration since last month and is now £2.2m behind plan. The variance is driven by both income under-performance and overspending on non-pay heads..

“This is clearly a cause for concern and actions are being taken swiftly to avoid any further deterioration by the end of quarter 1, when the trust will be given a formal risk rating by Monitor.”

The report added: “We are reviewing accounting actions that can be taken to improve the reported position e.g. review of updated activity data for April/May, allocation of contingency identified as part of the enhanced P&E target, level of accruals etc.”