FINANCE: The south-west London cluster had set aside £2.8m fo transitional costs as it moves to a single management team from five primary care trusts but added £2m to it for additional costs.
Chief executive Ann Radmore reported to the cluster board: “As part of setting the original running costs budget for 2011-12 we identified £2.8m of costs related to transition, which included a first estimate of the cost of staff required in the short term to finalise responsibilities in the “old” organisations (e.g. closure of 2010-11 Accounts and Annual Report).
“Additionally we have included a reserve of £2m which is designed to cover additional costs due to requests for extended Voluntary Redundancy notice periods; Compulsory Redundancy notice periods running into 2011-12 and any other additional double running costs.”
The report added £2m had been set aside to pay for “consultancy projects”, to be managed by the chief executive.