HULL AND EAST YORKSHIRE HOSPITALS TRUST ANNUAL GENERAL MEETING SEPTEMBER 2014 ANNUAL ACCOUNTS 2013/14 Lee Bond Chief Financial Officer

FINANCIAL PERFORMANCE REVIEW 2013/14 The Trust achieved all of its financial duties in 2013/14 To Break Even on its Statement of Comprehensive Income To Achieve A 3.5% Return on Capital To Operate Within Our External Finance Limit To Operate Within Our Capital Resource Limit

BREAK EVEN DUTY As an NHS Trust we are required to at least break even. For the eighth successive year we achieved an operating surplus. The £40M we have generated over the last 8 years has been used to repay loans and invest in our property, plant and equipment. We generate surpluses so that we can ensure a sound financial basis for the future particularly recognising the challenging economic environment. 2006/07 (£M) 2007/08 (£M) 2008/09 (£M) 2009/10 (£M) 2010/11 (£M) 2011/12 (£M) 2012/13 (£M) 2013/14 (£M)

HOW DO WE SPEND OUR MONEY (£M) Pay295 Supplies and Services - Clinical113 Supplies and Services - Other 15 Premises 21 Depreciation 14 Establishment Expenses 6 Clinical Negligence (NHSLA fees) 9 Other 16 Total489 Our expenditure in 2013/14 was £489M (excluding impairments), which can be summarised as: This year the cost of salaries and wages increased by £1M to £295M.

FINANCIAL FACTS YOU DIDN’T KNOW …………… EIGHT TONNES OF FRESH TOMATOES £14,000 50,000 LOAVES OF BREAD – AROUND 948,000 SLICES £40,500 LINEN AND LAUNDRY: WE USE 1,269,000 SHEETS A YEAR - £431,460

Investment in Infrastructure We invested £27.7M in property, plant and equipment (£M) Building Projects New Emergency Department Hull Royal Infirmary (Upgrade to the façade) Programmes Backlog maintenance Other Equipment Medical and Scientific Equipment Information technology TOTAL SPENT ____ 27.7 ____

THE FINANCIAL FUTURE We expect demand for NHS services will continue to increase, but funding growth will be limited. –The “Tariff” (price paid by Commissioners) fell by 1.5% in 2014/15 –We expect future years to be similar. –Better Care Fund looking to move minimum 3.5% of our non elective care. –National efficiency requirement of between 3% & 5% The Trust will need to improve efficiency and productivity to deliver services within the funding available.

THE FINANCIAL FUTURE We will need to make changes in the way services are provided. –Clinical Commissioning Groups are looking for services to be provided more locally, –NHS England are looking to rationalise specialist provision into fewer, larger centres. Our financial plans reflect our desire to provide services locally that are safe, high quality and which meet the requirements identified by the Care Quality Commission. These will include: –Improvements to our Emergency Department, to our patient record and IT systems, and to our surgical services –Rationalising elective and non-elective services between the Castle Hill and Hull Royal sites respectively, and –Replacing essential medical and surgical equipment

IN SUMMARY We’ve continued to deliver within the financial constraints we face Sound financial management has helped us grow and develop our services The impact of the economic environment will continue to set significant challenges for the NHS over the next few years. We will need to work collaboratively with commissioning and provider colleagues if we are to successfully meet the challenges faced.