FINANCE: The Trust income forecast for 2011-12 worsened by a net £300k in October to £1.6m below plan for the year, according to its latest finance report.
The downward revision of the forecast included provisions for “risks associated with” Commissioning for Quality and Innovation (CQUIN) payments of around £300,000, and an expected £400,000 reduction in income as a result of the November strike. “Management action to mitigate these risks are critical as in the worst case their impact could be over £1m,” the report stated.
Offsetting these expected losses was an expected £400,000 of “winter pressure income” agreed with commissioners to open additional capacity over the winter period.
At month 7 the Trust still had not received confirmation it would receive £6m of “PFI support”, but the support was still assumed in its forecast income.
The report continued: “With regard to cash flow, providing that [cost improvement programmes] are delivered as planned and that all anticipated financial support for the PFI is forthcoming in a timely fashion, the Trust will be able to manage its cash as per plan. If the Trust does not receive its £6m PFI cash support in December 2011 then it is at risk of failing its payment duties as exceptional cash management actions will be required.”