1. 2016/17 Financial Plan
Emma Sayner
Chief Finance Officer
27 May 2016

2. Contents 2016/17 CCG Allocations – Programme & Running Costs
Business Rules
Budgets
Growth Assumptions
Main provider contracts

3. 2016/17 CCG Allocations:
New Allocation Formulae – includes inequalities adjustment resulted growth of 3.05% - £382m
Although additional funding is significant there are several conditions on its use (GP IT, CAMHS, 1% reserve)
2016/17 Distance From Target reduced to +1.94% (2015/16 = +6.76%).
Separate Allocation for ‘Running Costs’ - £6.2m

4. 2016/17 Business Rules:
No drawdown against historic surplus (1% minimum)
Maintain uncommitted reserve of 1% - £3.8m
Hold 0.5% contingency - £1.9m
Deliver underlying recurrent surplus 1.5%

5. 2016/17 CCG Recurrent Programme Budgets:
Brought Forward Allocation £370.7m
Growth (3.05%) £ m
Recurrent Programme Allocation £382.0m
Acute Services £192.6m
Mental Health £ 39.2m
Community £ 43.2m
Continuing Care £ 28.6m
Primary Care £ 53.7m
Other / Reserves * £ 16.1m
Recurrent Programme Expenditure £373.4m
Recurrent Programme Surplus £ m (2.2% of recurrent resources)
* Incorporates GPIT, elements of Better Care Fund and NHS Estate

6. 2016/17 CCG Recurrent Programme Budgets
Recurrent Programme Adjustments Incorporated Above Net Inflation Investment QIPP TOTAL & Growth Acute Services £3.4m £3.7m (£3.9m) £3.2m Mental Health £0.3m £1.6m (£0.0m) £1.9m Community £0.2m £0.4m (£0.0m) £0.6m Continuing Care £1.6m £0.2m (£2.3m) (£0.5m) Primary Care £1.0m £0.8m (£0.7m) £1.1m Other / Reserves* £0.1m £3.1m (£0.0m) £3.2m Total £6.6m £9.8m (£6.9m) £9.5m * Incorporates GPIT, elements of Better Care Fund and NHS Estate

7. 2016/17 CCG Non Recurrent Programme Budgets:
Non Recurrent Programme Allocation £ 7.8m (Prior Year Surplus) Reserves / investments Contingency £ 2.0m (0.5% of total allocation) Uncommitted Risk Share £ 3.8m (1% of Programme Allocation) Mental Health £ 0.5m Community £ 1.0m Continuing Care (Legacy Claim Contribution) £ 0.7m Primary Care £ 0.6m Non Recurrent Programme Expenditure £ 8.6m Non Recurrent Programme Surplus / (Deficit) (£ 0.8m)

8. 16/17 CCG Recurrent Running Cost Budgets
Recurrent Running Cost Allocation £ 6.2m CCG Staffing Costs/ Commissioning Support £ 5.3m Estates / Other Non-Pay £ 0.9m Non Recurrent Programme Expenditure £ 6.2m Non Recurrent Programme Surplus £ 0.0m

9. 16/17 CCG Summary of Budgets
Allocation £m
Expenditure
Surplus
Recurrent Programme
382.0
373.4
8.6
Non -Recurrent Programme
7.8
(0.8)
Total Programme
389.8
Recurrent Running Costs
6.2
0.0
TOTAL CCG
396.0
388.2

10. GROWTH ASSUMPTIONS 2% efficiency requirement
Tariff uplift of 3.8% (includes CNST adjustment on specific HRGs) – Net 1.8% growth
Mental Health, Ambulance and Community Contracts uplift of 3.1% - Net 1.1% growth (note new community contract remained at 15/16 prices as agreed in tender documentation)
CQUIN remains at 2.5%
Continuing Care budget uplift of 5.5% to incorporate living wage adjustments.
Prescribing budget uplift of 2% to reflect price increases

11. Main Provider Contracts / areas of spend
Hull & East Yorkshire Hospitals - £172.6m
Prescribing - £49.7m
Humber Mental Health - £33.7m
City Healthcare Partnership - £32.7m
Continuing Healthcare - £29.3m
Yorkshire Ambulance Service - £12.5m
Spire - £8.0m

12. Recommendation:
The CCG Governing Body are asked to formally approve the 2016/17 Financial Plan.