FINANCE: The primary care trust has failed to improve its financial position and is still forecasting a £20m deficit for the end of the financial year.
Latest board papers said the financial position for the first 10 months of 2010-11 – ending 31 January – was an overspend of £15.2m against the revenue resource limit for the period.
This is after the application of £24.6m of the PCT contingency and £17.2m of planned investments and reserves which have been deferred.
The papers state: “The forecast outturn position has remained as a projected deficit of £19.9m.” This forecast has remained unchanged since November.
The PCT has blamed the continued overspend on an improvement in the rate of spend on continuing care; a deterioration of circa £1.5m in the cost of prescribing for December above the estimate previously provided; and a slowing of the expenditure trend together with an increase in the proportion of contingency being applied.
The papers add: “The implication is that any year end deficit will be carried forward to the next financial year and become a first charge on the revenue resource limit for 2011-12.
“Work is continuing to reduce this projected year end deficit and to identify further potential in year savings schemes, however it should be noted that these opportunities may be more limited given that only two months of the financial year remain.”
11 March 2011