FINANCE: The trust has revised its forecast for 2011-12 down from a £1.7m surplus to break-even, its latest finance report shows.
The Trust planned for the surplus in 2011-12 assuming it would deliver a cost improvement programme of £8.6m for the year.
“The financial position at the half year stage prompted a revision to the forecast as the run rate suggested that this level of surplus would not be achieved,” its October report states. “The forecast out turn was subsequently adjusted to break-even.”
“The latest projections suggest that the Trust will deliver savings of £6.5m in the current year but the £8.6m plan will be delivered in full year effect terms,” it continues. “The £2.1m shortfall in the current year is partially being mitigated by non-recurrent resources and further reductions in the run rate wherever possible.”
A large proportion of the trust’s cost reduction plans are “reliant on a reduction in staff either through skill mix reviews, management structure changes or from the voluntary redundancies (VR) programme”, the report states. “The majority of these savings will materialise in the second half of this financial year and the Trust is on course to release approximately £2.1m recurrently from the VR programme.”
6 November 2011