Cash flow
Our Trust has reviewed its cash and working
capital management with the aim of bringing
cash management into line with the commercial
cash management arrangements required of
Foundation Trusts. At the end of the financial
year 2008/09 our Trust has a cash balance of
£19.8 million. In line with our Trust's treasury
management policy, surplus cash has been
invested carefully during the year due to the
uncertainty surrounding the banking system.
Overview of capital investment and
asset values
We invested £3.9m in improving our assets this
year. This included £1.2million to keep our
buildings up to the required standards;
investment in our IT infrastructure; improvements
in security at Reaside Clinic; and preparatory
work at Moseley Hall for the new hospital.
Due to the changing economic climate, we have
prudently reviewed the value of our entire estate.
This has resulted in an adjustment to reduce the
value of our land and building assets by £27
million a reduction of circa 20%. This exercise
ensures that a true and fair value of the Trust's
assets are recorded in the balance sheet and
assists in future financial planning. This
revaluation has lead to the exceptional
impairment charge due to the fact that some
assets were carrying negative equity.
Financial risk rating as a
Foundation Trust
As a Foundation Trust, we report quarterly to the
Foundation Trust regulator, Monitor. As part of
the process our financial performance is rated on
a risk rating scale of 1 to 5, where 5 is the best
rating. On authorisation, our Trust risk rating was
4. At the end of the financial year our Trust had a
rating of 4.
Long term borrowing limit
On authorisation as a Foundation Trust, we were
given a long term borrowing limit of £36m.
During the financial year 2008/09 the Trust has
not borrowed against this limit. We do however,
have plans to borrow some £17m over the next
two years to fund the new Moseley Hall
development.
Management costs
Management costs are defined on the
management cost website at
www.dh.gov.uk/PolicyAndGuidance/Organisation
alPolicy/FinanceAndPlanning/NHSManagement
Costs/fs/en.
The management costs for the three month
period, April 1, 2008 to June 30, 2008 were
£2.7 million, which represents 5.2% of income.
The management costs for the nine month
period, July 1, 2008 to March 31, 2009 were
£8.45 million which represents 5% of income.
External audit
The external auditor is the Audit Commission.
In the nine month period fees of £46,000 were
paid for statutory audit services.
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Internal space at the Eden women's Psychiatric Intensive Care Unit (PICU).
Service user artwork on display at BSMHFT's Annual General Meeting.