FINANCE: The mental health foundation trust reported a year-end deficit of £313,000 for 2010-11, according to board papers.
Its latest finance report states that the trust’s financial position as of 31 March was a £313,000 deficit. However, it highlighted that this includes a year-end “impairment” of £1,867,000.
The report added that the trust’s operational financial position on 31 March 2011 was a £1,554,000 surplus against a planned surplus of £1,680,000.
However, it noted a cost improvement plan shortfall of £4,845,000 against originally planned schemes and a reported capital expenditure of £7,873,000 – some of which was redundancy payments owing to the closure of facilities.
The report said: “There is a year to date shortfall against the original Cost Improvement Plan (CIP) of £4,845 – the main areas of non-delivery to date are learning disabilities social care, learning disabilities health and adult services. Any non-delivery of planned CIPs has been offset with alternative plans and mitigating actions.”
It added: “The reported expenditure includes £1,764,000 of redundancies arising from the closure of learning disability homes. These have had to be closed to minimise the trust’s financial losses due to the on-going shortage of the previously agreed funding during the implementation of the Social Care Change Programme.”
The trust ended the year with a Monitor financial risk rating of three.
27 April 2011